Document:

EX-4.1

    
      
        

        

      

       

       

      INTEGRATED
        ALARM SERVICES GROUP, INC., 

       

      as
        the
        Company,

       

      THE
        GUARANTOR PARTIES HERETO, 

       

      as
        Subsidiary Guarantors,

       

      and

       

      WELLS
        FARGO BANK, N.A., 

       

      as
        Trustee

       

      _________

       

      

       

      12%
        SENIOR SECURED NOTES DUE 2011

       

      _________

       

      INDENTURE

       

      Dated
        as
        of November 16, 2004

       

      _________

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          	 	 	
                  Page

                
	
                  ARTICLE
                    ONE

                	
                  DEFINITIONS
                    AND INCORPORATION BY REFERENCE

                	
                  1

                
	
                  Section
                    1.01

                	
                  Definitions

                	
                  1

                
	
                  Section
                    1.02

                	
                  Other
                    Definitions

                	
                  26

                
	
                  Section
                    1.03

                	
                  Incorporation
                    by Reference of Trust Indenture Act

                	
                  27

                
	
                  Section
                    1.04

                	
                  Rules
                    of Construction

                	
                  27

                
	
                  ARTICLE
                    TWO

                	
                  THE
                    NOTES

                	
                  28

                
	
                  Section
                    2.01

                	
                  Form
                    and Dating

                	
                  28

                
	
                  Section
                    2.02

                	
                  Execution
                    and Authentication

                	
                  29

                
	
                  Section
                    2.03

                	
                  Registrar
                    and Paying Agent

                	
                  29

                
	
                  Section
                    2.04

                	
                  Paying
                    Agent to Hold Money in Trust

                	
                  30

                
	
                  Section
                    2.05

                	
                  Holder
                    Lists

                	
                  30

                
	
                  Section
                    2.06

                	
                  Transfer
                    and Exchange

                	
                  30

                
	
                  Section
                    2.07

                	
                  Replacement
                    Notes

                	
                  35

                
	
                  Section
                    2.08

                	
                  Outstanding
                    Notes

                	
                  35

                
	
                  Section
                    2.09

                	
                  Temporary
                    Notes

                	
                  35

                
	
                  Section
                    2.10

                	
                  Cancellation

                	
                  35

                
	
                  Section
                    2.11

                	
                  Defaulted
                    Interest

                	
                  36

                
	
                  Section
                    2.12

                	
                  CUSIP
                    Numbers

                	
                  36

                
	
                  Section
                    2.13

                	
                  Issuance
                    of Additional Notes

                	
                  36

                
	
                  ARTICLE
                    THREE

                	
                  REDEMPTION
                    AND OFFERS TO PURCHASE

                	
                  37

                
	
                  Section
                    3.01

                	
                  Notices
                    to Trustee

                	
                  37

                
	
                  Section
                    3.02

                	
                  Selection
                    of Notes to Be Redeemed

                	
                  37

                
	
                  Section
                    3.03

                	
                  Notice
                    of Redemption

                	
                  37

                
	
                  Section
                    3.04

                	
                  Effect
                    of Notice of Redemption

                	
                  38

                
	
                  Section
                    3.05

                	
                  Deposit
                    of Redemption Price

                	
                  38

                
	
                  Section
                    3.06

                	
                  Notes
                    Redeemed in Part

                	
                  39

                
	
                  Section
                    3.07

                	
                  Repurchase
                    Offers

                	
                  39

                

        

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        
          
            	
                    ARTICLE
                      FOUR

                  	
                    COVENANTS

                  	
                    41

                  
	
                    Section
                      4.01

                  	
                    Payment
                      of Notes

                  	
                    41

                  
	
                    Section
                      4.02

                  	
                    Maintenance
                      of Office or Agency

                  	
                    41

                  
	
                    Section
                      4.03

                  	
                    Commission
                      Reports

                  	
                    42

                  
	
                    Section
                      4.04

                  	
                    Compliance
                      Certificate

                  	
                    43

                  
	
                    Section
                      4.05

                  	
                    Taxes

                  	
                    43

                  
	
                    Section
                      4.06

                  	
                    Stay,
                      Extension and Usury Laws

                  	
                    44

                  
	
                    Section
                      4.07

                  	
                    Limitation
                      on Indebtedness

                  	
                    44

                  
	
                    Section
                      4.08

                  	
                    Limitation
                      on Restricted Payments

                  	
                    46

                  
	
                    Section
                      4.09

                  	
                    Limitation
                      on Liens

                  	
                    49

                  
	
                    Section
                      4.10

                  	
                    Repurchase
                      Offer Following Excess Retail Attrition

                  	
                    49

                  
	
                    Section
                      4.11

                  	
                    Limitation
                      on Asset Sales

                  	
                    51

                  
	
                    Section
                      4.12

                  	
                    Limitation
                      on Restrictions on Distributions from Restricted
                      Subsidiaries

                  	
                    52

                  
	
                    Section
                      4.13

                  	
                    Limitation
                      on Transactions with Affiliates

                  	
                    54

                  
	
                    Section
                      4.14

                  	
                    Limitation
                      on Purchases of Retail Alarm Monitoring Contracts Following
                      Certain
                      Events

                  	
                    55

                  
	
                    Section
                      4.15

                  	
                    Limitation
                      on Issuances and Sales of Equity Interests in Restricted
                      Subsidiaries

                  	
                    55

                  
	
                    Section
                      4.16

                  	
                    Additional
                      Subsidiary Guarantees

                  	
                    56

                  
	
                    Section
                      4.17

                  	
                    Business
                      Activities

                  	
                    57

                  
	
                    Section
                      4.18

                  	
                    Payments
                      for Consent

                  	
                    57

                  
	
                    Section
                      4.19

                  	
                    Repurchase
                      at the Option of Holders Upon a Change of Control

                  	
                    57

                  
	
                    ARTICLE
                      FIVE

                  	
                    SUCCESSORS

                  	
                    58

                  
	
                    Section
                      5.01

                  	
                    Merger,
                      Consolidation or Sale of Assets

                  	
                    58

                  
	
                    Section
                      5.02

                  	
                    Successor
                      Corporation Substituted

                  	
                    59

                  
	
                    ARTICLE
                      SIX

                  	
                    DEFAULTS
                      AND REMEDIES

                  	
                    60

                  
	
                    Section
                      6.01

                  	
                    Events
                      of Default

                  	
                    60

                  
	
                    Section
                      6.02

                  	
                    Acceleration

                  	
                    62

                  
	
                    Section
                      6.03

                  	
                    Other
                      Remedies

                  	
                    62

                  
	
                    Section
                      6.04

                  	
                    Rescission,
                      Cancellation and Waiver of Past Defaults

                  	
                    63

                  

          

           

           

          
            
              
              

            

            
              3

              
                

              

            

            
              
              

            

          

           

          
            
              	
                      Section
                        6.05

                    	
                      Control
                        by Majority

                    	
                      63

                    
	
                      Section
                        6.06

                    	
                      Limitation
                        on Suits

                    	
                      64

                    
	
                      Section
                        6.07

                    	
                      Rights
                        of Holders of Notes to Receive Payment

                    	
                      64

                    
	
                      Section
                        6.08

                    	
                      Collection
                        Suit by Trustee

                    	
                      64

                    
	
                      Section
                        6.09

                    	
                      Trustee
                        May File Proofs of Claim

                    	
                      65

                    
	
                      Section
                        6.10

                    	
                      Priorities

                    	
                      65

                    
	
                      Section
                        6.11

                    	
                      Undertaking
                        for Costs

                    	
                      66

                    
	
                      ARTICLE
                        SEVEN

                    	
                      TRUSTEE

                    	
                      66

                    
	
                      Section
                        7.01

                    	
                      Duties
                        of Trustee

                    	
                      66

                    
	
                      Section
                        7.02

                    	
                      Certain
                        Rights of Trustee

                    	
                      67

                    
	
                      Section
                        7.03

                    	
                      Individual
                        Rights of Trustee

                    	
                      68

                    
	
                      Section
                        7.04

                    	
                      Trustee’s
                        Disclaimer

                    	
                      68

                    
	
                      Section
                        7.05

                    	
                      Notice
                        of Defaults

                    	
                      68

                    
	
                      Section
                        7.06

                    	
                      Reports
                        by Trustee to Holders of the Notes

                    	
                      68

                    
	
                      Section
                        7.07

                    	
                      Compensation
                        and Indemnity

                    	
                      69

                    
	
                      Section
                        7.08

                    	
                      Replacement
                        of Trustee

                    	
                      70

                    
	
                      Section
                        7.09

                    	
                      Successor
                        Trustee by Merger, Etc.

                    	
                      71

                    
	
                      Section
                        7.10

                    	
                      Eligibility;
                        Disqualification

                    	
                      71

                    
	
                      Section
                        7.11

                    	
                      Preferential
                        Collection of Claims Against Company

                    	
                      71

                    
	
                      ARTICLE
                        EIGHT

                    	
                      DEFEASANCE
                        AND COVENANT DEFEASANCE

                    	
                      71

                    
	
                      Section
                        8.01

                    	
                      Option
                        to Effect Legal Defeasance or Covenant Defeasance

                    	
                      71

                    
	
                      Section
                        8.02

                    	
                      Legal
                        Defeasance and Discharge

                    	
                      71

                    
	
                      Section
                        8.03

                    	
                      Covenant
                        Defeasance

                    	
                      72

                    
	
                      Section
                        8.04

                    	
                      Conditions
                        to Legal or Covenant Defeasance

                    	
                      72

                    
	
                      Section
                        8.05

                    	
                      Deposited
                        Money and Government Securities to Be Held in Trust; Other
                        Miscellaneous
                        Provisions

                    	
                      74

                    
	
                      Section
                        8.06

                    	
                      Repayment
                        to the Company

                    	
                      74

                    
	
                      Section
                        8.07

                    	
                      Reinstatement

                    	
                      75

                    

            

             

             

            
              
                
                

              

              
                4

                
                  

                

              

              
                
                

              

            

             

            
              
                	
                        ARTICLE
                          NINE

                      	
                        AMENDMENT,
                          SUPPLEMENT AND WAIVER

                      	
                        75

                      
	
                        Section
                          9.01

                      	
                        Without
                          Consent of Holders of Notes

                      	
                        75

                      
	
                        Section
                          9.02

                      	
                        With
                          Consent of Holders of Notes

                      	
                        76

                      
	
                        Section
                          9.03

                      	
                        Compliance
                          with Trust Indenture Act

                      	
                        78

                      
	
                        Section
                          9.04

                      	
                        Revocation
                          and Effect of Consents

                      	
                        78

                      
	
                        Section
                          9.05

                      	
                        Notation
                          on or Exchange of Notes

                      	
                        78

                      
	
                        Section
                          9.06

                      	
                        Trustee
                          to Sign Amendments, Etc

                      	
                        78

                      
	
                        ARTICLE
                          TEN

                      	
                        SATISFACTION
                          AND DISCHARGE

                      	
                        79

                      
	
                        Section
                          10.01

                      	
                        Satisfaction
                          and Discharge

                      	
                        79

                      
	
                        Section
                          10.02

                      	
                        Deposited
                          Money and Government Securities to Be Held in Trust; Other
                          Miscellaneous
                          Provisions

                      	
                        80

                      
	
                        Section
                          10.03

                      	
                        Repayment
                          to the Company

                      	
                        80

                      
	
                        ARTICLE
                          ELEVEN

                      	
                        SUBSIDIARY
                          GUARANTEES

                      	
                        80

                      
	
                        Section
                          11.01

                      	
                        Guarantees

                      	
                        80

                      
	
                        Section
                          11.02

                      	
                        Limitation
                          on Liability

                      	
                        82

                      
	
                        Section
                          11.03

                      	
                        Successors
                          and Assigns

                      	
                        82

                      
	
                        Section
                          11.04

                      	
                        No
                          Waiver

                      	
                        83

                      
	
                        Section
                          11.05

                      	
                        Intentionally
                          Omitted

                      	
                        83

                      
	
                        Section
                          11.06

                      	
                        Release
                          of Subsidiary Guarantor

                      	
                        83

                      
	
                        Section
                          11.07

                      	
                        Contribution

                      	
                        83

                      
	
                        ARTICLE
                          TWELVE

                      	
                        COLLATERAL

                      	
                        83

                      
	
                        Section
                          12.01

                      	
                        Collateral;
                          Additional Collateral; Substitute Collateral

                      	
                        83

                      
	
                        Section
                          12.02

                      	
                        Additional
                          Collateral; Acquisition of Assets or Property

                      	
                        85

                      
	
                        Section
                          12.03

                      	
                        [Intentionally
                          Omitted]

                      	
                        85

                      
	
                        Section
                          12.04

                      	
                        Release
                          of Collateral

                      	
                        85

                      
	
                        Section
                          12.05

                      	
                        Possession
                          and Use of Collateral

                      	
                        86

                      
	
                        Section
                          12.06

                      	
                        Authorization
                          of Actions to Be Taken by the Collateral Trustee Under
                          the Collateral
                          Documents and the Intercreditor Agreement

                      	
                        86

                      
	
                        Section
                          12.07

                      	
                        Recording,
                          Registration and Opinions 

                      	
                        87

                      

              

               

               

              
                
                  
                  

                

                
                  5

                  
                    

                  

                

                
                  
                  

                

              

               

              
                	
                        ARTICLE
                          THIRTEEN 

                      	
                        MISCELLANEOUS

                      	 
	
                        Section
                          13.01

                      	
                        Trust
                          Indenture Act Controls 

                      	
                        88

                      
	
                        Section
                          13.02 

                      	
                        Notices
                          

                      	
                        88

                      
	
                        Section
                          13.03

                      	
                        Communication
                          by Holders of Notes with Other Holders of Notes

                      	
                        89

                      
	
                        Section
                          13.04

                      	
                        Certificate
                          and Opinion as to Conditions Precedent

                      	
                        89

                      
	
                        Section
                          13.05

                      	
                        Statements
                          Required in Certificate or Opinion

                      	
                        90

                      
	
                        Section
                          13.06

                      	
                        Rules
                          by Trustee and Agents

                      	
                        90

                      
	
                        Section
                          13.07

                      	
                        No
                          Personal Liability of Directors, Officers, Employees and
                          Stockholders

                      	
                        90

                      
	
                        Section
                          13.08

                      	
                        Governing
                          Law

                      	
                        90

                      
	
                        Section
                          13.09

                      	
                        Consent
                          to Jurisdiction

                      	
                        90

                      
	
                        Section
                          13.10

                      	
                        No
                          Adverse Interpretation of Other Agreements

                      	
                        91

                      
	
                        Section
                          13.11

                      	
                        Successors

                      	
                        91

                      
	
                        Section
                          13.12

                      	
                        Severability

                      	
                        91

                      
	
                        Section
                          13.13

                      	
                        Counterpart
                          Originals

                      	
                        91

                      
	
                        Section
                          13.14

                      	
                        Acts
                          of Holders

                      	
                        91

                      
	
                        Section
                          13.15

                      	
                        Benefit
                          of Indenture

                      	
                        93

                      
	
                        Section
                          13.16

                      	
                        Table
                          of Contents, Headings, Etc.

                      	
                        93

                      
	 	 	 

              

            

          

        

      

      

        EXHIBITS

         

        Exhibits
          A    FORM OF
          NOTE

        

        

         

        
        

        
          
            
               

            

            
            

          

          
            6

            
              

            

          

          
            
            

            
            

          

        

        INDENTURE,
          dated as of November 16, 2004, among Integrated Alarm Services Group, Inc.,
          a
          Delaware corporation, the Subsidiary Guarantors (as defined herein) and
          Wells
          Fargo Bank, N.A., a national banking association, as trustee.

         

        The
          Company has duly authorized the execution and delivery of this Indenture
          to
          provide for the issuance from time to time of its 12% Senior Secured Notes
          due
          2011 to be issued as provided in this Indenture. All things necessary to
          make
          this Indenture a valid agreement of the Company, in accordance with its
          terms,
          have been done.

         

        The
          Company and the Trustee agree as follows for the benefit of each other
          and for
          the equal and ratable benefit of the Holders of the Notes:

         

        ARTICLE
          ONE  

         

        DEFINITIONS
          AND INCORPORATION BY REFERENCE

         

        Section
          1.01.  Definitions.

         

        “Acquired
          Debt” means, with respect to any specified Person:

         

        (1) Indebtedness
          of any other Person existing at the time such other Person is merged with
          or
          into or became a Restricted Subsidiary of such specified Person, including,
          without limitation, Indebtedness incurred in connection with, or in
          contemplation of, such other Person merging with or into or becoming a
          Restricted Subsidiary of such specified Person; and

         

        (2) Indebtedness
          secured by a Lien encumbering any asset acquired by such specified
          Person.

         

        “Acquired
          Subordinated Debt” means with respect to any specified entity Indebtedness of
          any other entity existing at the time such other entity is merged with
          or into
          or becomes a Restricted Subsidiary of such specified entity, including,
          without
          limitation, Indebtedness incurred in connection with, or in contemplation
          of,
          such other entity merging with or into or becoming a Restricted Subsidiary
          of
          such specified entity and which would constitute Subordinated
          Indebtedness.

         

        “Additional
          Notes” means Notes issued under this Indenture after the Issue Date and in
          compliance with Section 2.13 and 4.07, it being understood that any Notes
          issued
          in exchange for or replacement of any Notes issued on the Issue Date shall
          not
          be Additional Notes, including any such Notes issued pursuant to a Registration
          Rights Agreement.

         

        “Affiliate”
          of any specified Person means any other Person directly or indirectly
          controlling or controlled by or under direct or indirect common control
          with
          such specified Person. For purposes of this definition, “control” (including,
          with correlative meanings, the terms “controlling,”“controlled by” and “under
          common control with”), as used with respect to any Person, shall mean the
          possession, directly or indirectly, of the power to direct or cause the
          direction of the management or policies of such Person, whether through
          the
          ownership of voting securities, by agreement or otherwise; provided that
          beneficial ownership of 10% or more of the Voting Stock of a Person shall
          be
          deemed to be control.

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

         

        “Agent”
          means any Registrar, Paying Agent or co-registrar.

         

        “Asset
          Sale” means:

         

        (1) the
          sale,
          lease, conveyance or other disposition of any assets or rights (including,
          without limitation, by way of a sale and leaseback and excluding any pledge
          of,
          or the creation, incurrence, assumption or sufferance to exist of any other
          Lien
          on assets by the Company or any of its Restricted Subsidiaries), other
          than
          sales of inventory in the ordinary course of business, and

         

        (2) the
          issue
          or sale by the Company or any of its Subsidiaries of Equity Interests in
          any of
          the Company’s Restricted Subsidiaries (excluding directors’ qualifying shares or
          an immaterial number of shares required by applicable law to be held by
          a Person
          other than the Company or a Restricted Subsidiary and excluding any pledge
          of
          Equity Interests of the Company or any of its Restricted
          Subsidiaries),

         

        in
          the
          case of either clause (1) or (2), whether in a single transaction or a
          series of
          related transactions that have a Fair Market Value in excess of $2.5
          million.

         

        Notwithstanding
          the foregoing, the following items shall not be deemed to be Asset
          Sales:

         

        (1) a
          transfer of assets by the Company to a Restricted Subsidiary or by a Restricted
          Subsidiary to the Company or to another Restricted Subsidiary;

         

        (2) an
          issuance of Equity Interests by a Restricted Subsidiary to the Company
          or to a
          Wholly Owned Restricted Subsidiary of the Company;

         

        (3) the
          sale
          of excess or obsolete assets, in the ordinary course of business;

         

        (4) a
          Restricted Payment that is permitted by Section 4.07 hereof;

         

        (5) transactions
          covered by Section 5.01 hereof;

         

        (6) any
          transaction that constitutes a Change of Control;

         

        (7) dispositions
          or foreclosure in connection with Permitted Liens; and 

         

        (8) the
          licensing or sublicensing of intellectual property or other general intangibles
          and licenses, leases or subleases of other property in the ordinary course
          of
          business and which do not materially interfere with the business of the
          Company
          and its Restricted Subsidiaries.

         

        “Bankruptcy
          Law” means Title 11, U.S. Code or any similar federal or state law for the
          relief of debtors.

         

        “Board
          of
          Directors” means the board of directors of the Company or a Holding Company, as
          applicable, or any duly authorized and constituted committee
          thereof.

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

         

        “Board
          Resolution” means a copy of a resolution certified by the Secretary or an
          Assistant Secretary of the Company to have been duly adopted by the Board
          of
          Directors and to be in full force and effect on the date of such
          certification.

         

        “Broker-Dealer”
          has the meaning set forth in the Registration Rights Agreement.

         

        “Business
          Day” means any day other than a Legal Holiday.

         

        “Capital
          Lease Obligation” means, at the time any determination thereof is to be made,
          the amount of the liability in respect of a capital lease that would at
          such
          time be required to be capitalized on a balance sheet in accordance with
          GAAP.

         

        “Capital
          Stock” means (1) in the case of a corporation, capital stock, (2) in the case
          of
          an association or business entity, any and all shares, interests,
          participations, rights or other equivalents (however designated) of capital
          stock, (3) in the case of a partnership or limited liability company,
          partnership or membership interests (whether general or limited) and (4)
          any
          other interest or participation that confers on a Person the right to receive
          a
          share of the profits and losses of, or distributions of assets of, the
          issuing
          Person.

         

        “Cash
          Equivalents” means: 

         

        (1) United
          States dollars;

         

        (2) securities
          issued or directly and fully guaranteed or insured by the United States
          government or any agency or instrumentality thereof (provided that the
          full
          faith and credit of the United States is pledged in support thereof) having
          maturities of not more than one year from the date of acquisition, unless
          such
          securities are deposited by the Company to defease any Indebtedness;

         

        (3) certificates
          of deposit and eurodollar time deposits with maturities of one year or
          less from
          the date of acquisition, bankers’ acceptances with maturities not exceeding one
          year and overnight bank deposits, in each case with any domestic commercial
          bank
          having capital and surplus in excess of $250 million and outstanding debt
          which
          is rated “A” (or such similar equivalent rating) or higher by at least one
          nationally recognized statistical rating organization (as defined in Rule
          436
          under the Securities Act);

         

        (4) repurchase
          obligations with a term of not more than seven days for underlying securities
          of
          the types described in clauses (2) and (3) above entered into with any
          financial
          institution meeting the qualifications specified in clause (3)
          above;

         

        (5) commercial
          paper having the highest rating obtainable from either Moody’s or S&P and in
          each case maturing within six months after the date of acquisition;

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        

         

        (6) marketable
          direct obligations issued by any state of the United States of America
          or any
          political subdivision of any such state or any public instrumentality thereof
          maturing within six months from the date of acquisition thereof and, at
          the time
          of acquisition, having one of the two highest ratings obtainable from either
          S&P or Moody’s; and

         

        (7) money
          market funds at least 95% of the assets of which constitute Cash Equivalents
          of
          the kinds described in clauses (1) through (6) of this definition.

         

        “Change
          of Control” means the occurrence of any of the following:

         

        (1) the
          sale,
          lease, transfer, conveyance or other disposition (other than by way of
          merger or
          consolidation), in one or a series of related transactions, of all or
          substantially all of the assets of the Company and its Restricted Subsidiaries
          taken as a whole to any Person or;

         

        (2) the
          acquisition by any Person or Group of the power, directly or indirectly,
          to vote
          or direct the voting of securities having more than 50% of the ordinary
          voting
          power for the election of directors of the Company;

         

        (3) the
          first
          day on which a majority of the members of the Board of Directors of the
          Company
          are not Continuing Directors; or

         

        (4) the
          liquidation, dissolution or adoption of a plan of liquidation or dissolution
          other than in a transaction which complies with the provisions described
          in
Section
          5.01
          herein.

         

        “Cash
          Management Obligations” means all obligations of the Company, as borrower, or
          any other Obligor to any Lender under or in connection with any arrangement
          in
          respect of overdraft protection, automated clearing house services and
          other
          treasury, depositary and cash management services, including reimbursement
          obligations relating thereto, overdraft liabilities, liabilities in respect
          of
          returned items, fees, expenses and indemnities (including interest accruing
          thereon after the filing of a petition in bankruptcy or the commencement
          of any
          Insolvency Proceeding, regardless of whether the same is allowed as a claim
          in
          such proceeding).

         

        “Closing
          Date” means November 16, 2004.

         

        “Collateral”
          means all real and personal property of the Company and the Subsidiary
          Guarantors other than “Excluded Assets” (as defined in the Security
          Agreement).

         

        “Collateral
          Documents” means the Security Agreement, the Pledge Agreement, the Second
          Priority Mortgages and any other document or instrument pursuant to which
          a Lien
          is granted by any Grantor to secure any Second Priority Claims or under
          which
          rights or remedies with respect to any such Lien are governed. 

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        

         

        “Collateral
          Trustee” means Wells Fargo Bank, N.A., acting in its capacity as collateral
          trustee under the Collateral Documents, together with its successors and
          in such
          capacity.

         

        “Commission”
          means the Securities and Exchange Commission.

         

        “Company”
          means Integrated Alarm Services Group, Inc. until a successor replaces
          it
          pursuant to Section 5.01 hereof and thereafter means the successor.

         

        “Consolidated
          EBITDA” means, with respect to any Person for any period, the Consolidated Net
          Income of such Person for such period plus or minus, to the extent deducted
          or
          added in computing such Consolidated Net Income:

         

        (1) provision
          for taxes based on income or profits of such Person and its Restricted
          Subsidiaries;

         

        (2) consolidated
          interest expense of such Person and its Restricted Subsidiaries, whether
          paid or
          accrued and whether or not capitalized (including, without limitation,
          amortization of debt issuance costs and original issue discount, non-cash
          interest payments, the interest component of any deferred payment obligations,
          the interest component of all payments associated with Capital Lease
          Obligations, commissions, discounts and other fees and charges incurred
          in
          respect of letter of credit or bankers’ acceptance financings, and net costs (if
          any) pursuant to Hedging Obligations); 

         

        (3) depreciation,
          amortization (including amortization of goodwill and other intangibles
          but
          excluding amortization of prepaid cash expenses that were paid in a prior
          period) and other non-cash charges (excluding any such non-cash charges
          to the
          extent that it represents an accrual of or reserve for cash payments to
          be made
          in any future period or amortization of a prepaid cash expense that was
          paid in
          a prior period) of such Person and its Restricted Subsidiaries; and

         

        (4) (x)
          all
          non-cash credits and gains increasing Consolidated Net Income for such
          period
          and (y) all cash payments during such period relating to non-cash charges
          that
          were added back in determining Consolidated EBITDA in any prior
          period,

         

        in
          each
          case for such period. Notwithstanding the foregoing, items specified in
          (1), (3)
          and (4) above for any Restricted Subsidiary shall be added to Consolidated
          Net
          Income to compute Consolidated EBITDA only:

         

        (a) in
          proportion to the percentage of the total Capital Stock of such Restricted
          Subsidiary held directly or indirectly by the Company; and

         

        (b) to
          the
          extent that a corresponding amount would be permitted at the date of
          determination to be distributed to the Company by such Restricted Subsidiary
          pursuant to its charter
          and by-laws and each law, regulation, agreement or judgment applicable
          to such
          distribution.

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        “Consolidated
          Fixed Charge Coverage Ratio” means, as of any date of determination, the ratio
          of the aggregate amount of Consolidated EBITDA for the four most recent
          Four
          Quarter Period to Consolidated Fixed Charges for such Four Quarter
          Period.

         

        For
          purposes of this definition, “Consolidated EBITDA” and “Consolidated Fixed
          Charges” shall be calculated on a pro forma basis after giving effect
          to:

        

        
          	 	
                  (1)

                	
                  the
                    incurrence by the Company and its Restricted Subsidiaries’ of Indebtedness
                    and the issuance by the Company and its Restricted Subsidiaries’ of
                    Disqualified Stock (and the application of the proceeds therefrom)
                    giving
                    rise to the need to make such calculation and any incurrence
                    (and the
                    application of the proceeds therefrom) or repayment of other
                    Indebtedness
                    occurring during such Four Quarter Period or at any time subsequent
                    to the
                    last day of such Four Quarter Period and on or prior to the date
                    of
                    determination, as if such incurrence or issuance (and the application
                    of
                    the proceeds therefrom) or the repayment, as the case may be,
                    occurred on
                    the first day of such Four Quarter Period,
                    and

                

        

        

        
          	 	
                  (2)
                    

                	
                  any
                    acquisition or disposition (including, without limitation, any
                    acquisition
                    giving rise to the need to make such calculation as a result
                    of the
                    Company or one of its Restricted Subsidiaries (including any
                    entity that
                    becomes a Restricted Subsidiary as a result of such acquisition)
                    incurring, assuming or otherwise becoming liable for Indebtedness
                    or
                    issuing Disqualified Stock) during such Four Quarter Period or
                    at any time
                    subsequent to the last day of such Four Quarter Period and on
                    or prior to
                    the date of determination, as if such acquisition or disposition
                    (including the incurrence or assumption of any such Indebtedness
                    and the
                    issuance of such Disqualified Stock and also including any Consolidated
                    EBITDA associated with such acquisition or disposition) occurred
                    on the
                    first day of such Four Quarter Period.

                

        

        

        For
          purposes of paragraph (2) immediately above, acquisitions of alarm monitoring
          contracts may be given pro forma effect but only to the extent the aggregate
          RMR
          with respect to such net acquired alarm monitoring contracts exceeds the
          aggregate Cancelled RMR and Disqualified RMR during such Four Quarter Period.
          In
          calculating Consolidated EBITDA with respect to acquired alarm monitoring
          contracts, the Company shall apply its average overhead expenses for the
          Four
          Quarter Period. For purposes of this definition, pro forma calculations
          shall be
          made in good faith by a responsible financial or accounting officer of
          the
          Company consistent with (except as otherwise provided in the Indenture)
          Article
          11 of Regulation S-X, promulgated pursuant to the Securities Act, as such
          Regulation may be amended.

         

        If
          any
          Indebtedness bears interest on a floating or fluctuating basis and is being
          given pro forma effect, the interest on such Indebtedness shall be calculated
          as
          if the rate in effect on the date of determination had been the applicable
          rate
          for the entire period (taking into account any Hedging Obligation applicable
          to
          the such Indebtedness if such Hedging Obligation has a remaining term in
          excess
          of 12 months).

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

             If
          any
          Indebtedness is incurred under a revolving credit facility and is being
          given
          pro forma effect, the interest on such Indebtedness shall be calculated
          based on
          the average daily balance of such Indebtedness for the four fiscal quarters
          subject to the pro forma calculation.

        

        “Consolidated
          Fixed Charges” means, for any period the total interest expense of the Company
          and its consolidated Restricted Subsidiaries, plus, to the extent not included
          in such total interest expense and to the extent incurred by the Company
          or its
          Restricted Subsidiaries, without duplication:

        

        (1) interest
          expense attributable to Capital Lease Obligations;

        

        (2)
           amortization
          of debt discount;

        

        (3)
           non-cash
          interest expense;

         

        (4)
commissions,
          discounts and other fees and charges owed with respect to letters of credit
          and
          bankers’ acceptance financing;

         

        (5)
           net
          cash
          payments pursuant to Hedging Obligations; and

         

        
                 
            (6) dividends
            accrued in respect of all Disqualified Stock of the Company and all Preferred
            Stock of any Restricted Subsidiary, in each case held by Persons other
            than the
            Company or a Wholly Owned Restricted Subsidiary (other than dividends
            payable
            solely in Capital Stock (other than Disqualified Stock) of the
            Company).

        

         

        For
          purposes of this definition, Consolidated Fixed Charges excludes the (i)
          amortization of deferred financing fees and the expensing of any bridge
          or other
          financing fees and (ii) net payments pursuant to Hedging Obligations that
          do not
          constitute Indebtedness.

         

            “Consolidated
          Net Income” means, with respect to any Person for any period, the aggregate of
          the Net Income of such Person and its Restricted Subsidiaries for such
          period,
          on a consolidated basis, determined in accordance with GAAP; provided
          that:

         

        (1) the
          Net
          Income of any Person that is not a Restricted Subsidiary or that is accounted
          for by the equity method of accounting shall be included only to the extent
          of
          the amount of dividends or distributions paid in cash to the specified
          Person or
          a Restricted Subsidiary thereof;

         

        (2) the
          Net
          Income (but not net loss) of any Restricted Subsidiary shall be excluded
          to the
          extent that the declaration or payment of dividends or similar distributions
          by
          such Restricted Subsidiary of such Net Income is not at the date of
          determination permitted without any prior governmental approval (that has
          not
          been obtained) or, directly or indirectly, by operation of the terms of
          its
          charter or any 

         

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        agreement,
          instrument, judgment, decree, order, statute, rule or governmental regulation
          applicable to that Subsidiary or its equityholders;

         

        (3) the
          Net
          Income of any Person acquired during the specified period for any period
          prior
          to the date of such acquisition shall be excluded;

         

        (4) any
          extraordinary gain or loss, together with any related provision for taxes
          on
          such gain or loss, shall be excluded;

         

        (5) any
          gain
          or loss resulting from Asset Sales (without regard to the $2.5 million
          limitation set forth in the definition thereof) or abandonments or reserves
          relating thereto and the related tax effects shall be excluded;

         

        (6) any
          gain
          or loss from foreign exchange transactions shall be excluded;

         

        (7) the
          cumulative effect of a change in accounting principles shall be
          excluded;

         

        (8) the
          Net
          Income (but not loss) of any Unrestricted Subsidiary shall be excluded,
          except
          to the extent includable under (1) above;

         

        (9) any
          non-cash compensation expense in connection with the issuance of employee
          or
          independent contractor stock options shall be excluded; and

         

        (10) any
          amount paid or accrued as dividends on Preferred Stock of the Company or
          any
          Subsidiary Guarantor owned by Persons other than the Company and any of
          its
          Restricted Subsidiaries shall be excluded.

         

        “Consolidated
          Net Worth” means, with respect to any specified Person as of any date, the sum
          of:

         

        (1) the
          consolidated common stockholders’ equity of such Person and its consolidated
          Restricted Subsidiaries as of such date; plus

         

        (2) the
          respective amounts reported on such Person’s balance sheet as of such date with
          respect to any series of Preferred Stock (other than Disqualified Stock)
          that by
          its terms is not entitled to the payment of dividends unless such dividends
          may
          be declared and paid only out of net earnings in respect of the year of
          such
          declaration and payment, but only to the extent of any cash received by
          such
          Person upon issuance of such Preferred Stock.

         

        “Continuing
          Directors” means, as of any date of determination, any member of the Board of
          Directors of the Company who:

         

        (1) was
          a
          member of the Board of Directors on the date of this Indenture; or

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        

         

        (2) was
          nominated for election or elected to the Board of Directors with the approval
          of
          a majority of the Continuing Directors who were members of the Board of
          Directors at the time of such nomination or election.

         

        “Corporate
          Trust Office of the Trustee” shall be at the address of the Trustee specified in
          Section 13.02 hereof or such other address as to which the Trustee may
          give
          notice to the Company.

         

        “Credit
          Agreement” means the Credit Agreement, dated as of November 16, 2004, by and
          among Integrated Alarm Services Group, Inc., Criticom International Corporation,
          Monital Signal Corporation, Integrated Alarm Services, Inc., Payne Security
          Group, L.L.C., American Home Security, Inc. and the guarantors party thereto
          and
          the banks party thereto and LaSalle Bank National Association, as Agent,
          including any related notes, guarantees, collateral documents, instruments
          and
          agreements executed in connection therewith, and in each case as amended,
          modified, restated, renewed, refunded, replaced or refinanced from time
          to time,
          including any agreement extending the maturity of, refinancing, replacing
          or
          otherwise restructuring (including by way of adding Restricted Subsidiaries
          of
          the Company as borrowers or guarantors thereunder) all of or a portion
          of the
          Indebtedness under such agreement or any such successor or replacement
          agreement
          and whether by the same or any other agent, lender or group of lenders
          (or other
          institutions) or otherwise.

         

        “Credit
          Agreement Obligations” means all Obligations under or pursuant to the Credit
          Agreement.

         

        “Custodian”
          means the Trustee, as custodian with respect to the Notes in global form,
          or any
          successor entity thereto.

         

        “Default”
          means any event which is, or after notice or passage of time or both would
          be,
          an Event of Default.

         

        “Definitive
          Note” means a certificated Note registered in the name of the Holder thereof,
          issued in accordance with Section 2.06 hereof, bearing, if required, the
          appropriate Private Placement Legend but not the Global Note Legend and
          not
          having attached thereto “Schedule of Exchanges of Interests in the Global
          Note.”

         

        “Depositary”
          means, with respect to the Notes issuable or issued in whole or in part
          in
          global form, the Person specified in Section 2.04 hereof as the Depositary
          with
          respect to the Notes, and any and all successors thereto appointed as depositary
          hereunder and having become such pursuant to the applicable provision of
          this
          Indenture.

         

        “Designated
          Offering” means an offering (including a private placement) of Capital Stock
          (other than Disqualified Stock) of the Company, other than (i) public offerings
          with respect to Capital Stock registered on Form S-8 under the Securities
          Act
          and (ii) issuances to any Subsidiary of the Company.

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        

         

        “Disqualified
          Stock” means any Capital Stock that, by its terms (or by the terms of any
          security into which it is convertible, or for which it is exchangeable,
          at the
          option of the holder thereof), or upon the happening of any event, other
          than an
          initial public offering of Equity Interests, matures or is mandatorily
          redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable
          at
          the option of the holder thereof, in whole or in part, on or prior to the
          date
          that is 91 days after the earlier of the stated maturity date of the Notes
          or
          the date on which no Notes remain outstanding; provided that only the portion
          of
          Capital Stock which so matures or is mandatorily redeemable or is so redeemable
          at the sole option of the holder thereof prior to such date shall be deemed
          Disqualified Capital Stock; provided, further, that any Capital Stock that
          would
          constitute Disqualified Stock solely because the holders thereof have the
          right
          to require the Company to repurchase such Capital Stock upon the occurrence
          of a
          Change of Control or an Asset Sale shall not constitute Disqualified Stock,
          if
          the terms of such Capital Stock provide that the Company may not repurchase
          or
          redeem any such Capital Stock pursuant to such provisions prior to the
          Company’s
          repurchase of such Notes as are required to be repurchased pursuant to
          Section
          4.10, 4.11 and Section 4.19. 

         

        “Equity
          Interests” means Capital Stock and all warrants, options or other rights to
          acquire Capital Stock (but excluding any debt security that is convertible
          into,
          or exchangeable for, Capital Stock).

         

        “Event
          of
          Default” has the meaning set forth in Section 6.01.

         

        “Exchange
          Act” means the Securities Exchange Act of 1934, as amended.

         

        “Exchange
          Notes” means (1) the 12% Senior Secured Notes Due 2011 issued pursuant to this
          Indenture in connection with a Registered Exchange Offer pursuant to a
          Registration Rights Agreement and (2) Additional Notes, if any,
          issued in
          accordance with the terms of this Indenture pursuant to a registration
          statement
          filed with the SEC under the Securities Act.

         

        “Exchange
          Offer” has the meaning set forth in the Registration Rights
          Agreement.

         

        “Exchange
          Offer Registration Statement” has the meaning set forth in the Registration
          Rights Agreement.

         

        “Existing
          Indebtedness” means Indebtedness of the Company and its Restricted Subsidiaries
          (other than Indebtedness under the Credit Agreement and Indebtedness being
          repaid on the date of this Indenture) in existence on the date of this
          Indenture, until such amounts are repaid.

         

        “Fair
          Market Value” means the price that would be paid in an arm’s-length transaction
          between an informed and willing seller under no compulsion to sell and
          an
          informed and willing buyer under no compulsion to buy, as determined in
          good
          faith by the Board of Directors, whose determination shall be conclusive
          if
          evidenced by a Board Resolution.

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        

         

        “First
          Lien Credit Facilities” means (a) the credit facilities provided pursuant to the
          Credit Agreement and (b) any other credit facility permitted by Section
          4.07(b)(i) of the Indenture, that, in the case of both clauses
          (a)
          and
(b),
          is
          secured by a Lien permitted pursuant to clause (v) of the definition of
          "Permitted Liens" in Section 1.01 of the Indenture.

         

        “First
          Priority Cash Management Obligations” means any Cash Management Obligations
          secured by any common Collateral under the same First Priority Collateral
          Documents that secure Obligations under any First Lien Credit
          Facility.

         

        “First
          Priority Claims” means (a) all Credit Agreement Obligations, (b) all Obligations
          under one or more other First Lien Credit Facilities, the Indebtedness
          under
          each of which is designated by the Company, as borrower, as “First Priority
          Claims” for purposes of this Indenture, (c) all other Obligations of the
          Company, as borrower, or any other Obligor under the First Priority Documents,
          including all First Priority Hedging Obligations and First Priority Cash
          Management Obligations and (d) all Future Other First Lien Obligations.
          First
          Priority Claims shall include all interest accrued or accruing (or which
          would,
          absent the commencement of an Insolvency Proceeding, accrue) after the
          commencement of an Insolvency Proceeding in accordance with and at the
          rate
          specified in the relevant First Priority Document whether or not the claim
          for
          such interest is allowed as a claim in such Insolvency Proceeding. To the
          extent
          any payment with respect to the First Priority Claims (whether by or on
          behalf
          of any Obligor, as proceeds of security, enforcement of any right of set-off
          or
          otherwise) is declared to be fraudulent or preferential in any respect,
          set
          aside or required to be paid to a debtor in possession, trustee, receiver
          or
          similar Person, then the obligation or part thereof originally intended
          to be
          satisfied shall be deemed to be reinstated and outstanding as if such payment
          had not occurred. Notwithstanding the foregoing the Notes and related
          Obligations will not constitute First Priority Claims and collateral therefor
          will not constitute First Priority Collateral even if any proceeds of the
          Notes
          are used to repay Obligations under the Credit Agreement. Notwithstanding
          anything to the contrary contained in this definition, any Obligation under
          a
          First Priority Document (including any Cash Management Obligation or Hedging
          Obligation) shall constitute a “First Priority Claim” if the New Credit Facility
          Agent or the relevant First Priority Lender or First Priority Lenders under
          such
          First Priority Document shall have received a written representation from
          the
          Company, as borrower, in or in connection with such First Priority Document
          that
          such Obligation constitutes a “First Priority Claim” under and as defined in
          this Indenture (whether or not such Obligation is at any time determined
          not to
          have been permitted to be incurred under the Indenture). 

         

        ‘‘First
          Priority Claim Period’’ means any period during which: (1) any First Priority
          Claim is outstanding; (2) any commitments pursuant to which First Priority
          Claims may be incurred are in effect; or (3) any letters of credit issued
          under
          any First Priority Documents are outstanding but have not been discharged
          or
          fully cash collateralized in accordance with the terms of the applicable
          First
          Priority Document.

         

        ‘‘First
          Priority Collateral Documents’’ means any agreement, document or instrument
          pursuant to which a Lien is granted securing any First Priority Claims
          or under
          which rights or remedies with respect to such Liens are governed. 

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        

         

        “First
          Priority Documents’’ means the Credit Agreement, the Loan Documents, the First
          Priority Collateral Documents and each of the other agreements, documents
          and
          instruments (including each agreement, document or instrument providing
          for or
          evidencing a First Priority Hedging Obligation or First Priority Cash Management
          Obligation) providing for or evidencing any other Obligation under the
          Credit
          Agreement or any other First Lien Credit Facility or any Future Other First
          Lien
          Obligation, and any other related document or instrument executed or delivered
          pursuant to any First Priority Document at any time or otherwise evidencing
          any
          First Priority Claim.

         

        “First
          Priority Liens’’ means all Liens that secure the First Priority
          Claims.

         

        “First
          Priority Hedging Obligations” means any Hedging Obligations secured by any
          common Collateral under the same First Priority Collateral Documents that
          secure
          Obligations under a First Priority Credit Facility.

         

        “Four
          Quarter Period” means, as of any date of determination, the four most recent
          full fiscal quarters for which financial statements are available ending
          prior
          to the date of such determination.

        

        “Future
          Other First Lien Obligations” means all Obligations of the Company, as borrower,
          or any other obligor in respect of Cash Management Obligations or Hedging
          Obligations that are designated by the Borrower as “First Priority Claims” as
          permitted by the Indenture (other than any First Priority Cash Management
          Obligations and First Priority Hedging Obligations); provided
          that the
          required lenders (however denominated) under any First Lien Credit Facility
          then
          in effect have consented to such designation.

         

        “GAAP”
          means generally accepted accounting principles as in effect from time to
          time
          set forth in the opinions and pronouncements of the Accounting Principles
          Board
          of the American Institute of Certified Public Accountants, and statements
          and
          pronouncements of the Financial Accounting Standards Board, the Commission
          or
          the Public Company Accounting Oversight Board or in such other statements
          by
          such other entity as have been approved by a significant segment of the
          accounting profession.

         

        “Global
          Note Legend” means the legend set forth in Section 2.06(d)(i)(C) hereof, which
          is required to be placed on all Global Notes issued under this
          Indenture.

         

        “Global
          Notes” means, individually and collectively, each of the Notes in permanent
          global form substantially in the form of Exhibit A hereto, issued in accordance
          with Section 2.01 hereof.

         

        “Grantors”
          means each of the Company and the Subsidiary Guarantors that has executed
          and
          delivered a First Priority Collateral Document or a Security
          Document.

         

        “Group”
          means any group of related Persons for purposes of Section 13(d) of the
          Exchange
          Act.

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

        

         

        “Guarantee”
          means a guarantee other than by endorsement of negotiable instruments for
          collection in the ordinary course of business, direct or indirect, in any
          manner
          including, without limitation, by way of a pledge of assets or through
          letters
          of credit or reimbursement agreements in respect thereof, of all or any
          part of
          any Indebtedness.

         

        “Hedging
          Obligations” of any Person means the obligations of such Person
          under:

         

        (1) interest
          rate protection agreements, interest rate swap agreements, interest rate
          cap
          agreements and interest rate collar agreements, interest rate futures and
          interest rate options;

         

        (2) other
          agreements or arrangements designed to protect such Person against fluctuations
          in interest rates; and

         

        (3) any
          foreign exchange contract, currency swap agreement or other similar agreement
          or
          arrangement.

         

        “Holder”
          means the registered owner of any Note.

         

        “Indebtedness”
          means, with respect to any Person, any indebtedness of such Person, whether
          or
          not contingent, in respect of:

         

        (1) borrowed
          money;

         

        (2) evidenced
          by bonds, notes, debentures or similar instruments or letters of credit
          (or
          reimbursement agreements in respect thereof);

         

        (3) banker’s
          acceptances;

         

        (4) Capital
          Lease Obligations;

         

        (5) the
          balance deferred and unpaid of the purchase price of any property, except
          any
          such balance that constitutes an accrued expense or trade payable;
          or

         

        (6) any
          Hedging Obligations;

         

        if
          and to
          the extent any of the preceding items (other than letters of credit and
          Hedging
          Obligations) would appear as a liability upon a balance sheet of such Person
          prepared in accordance with GAAP. In addition, the term “Indebtedness” includes
          all Indebtedness of others secured by a Lien on any asset of the specified
          Person (whether or not such Indebtedness is assumed by such Person, the
          amount
          of such Indebtedness being deemed to be the lesser of the value of such
          property
          or asset or the amount of the Indebtedness so secured and, to the extent
          not
          otherwise included, the Guarantee by such Person of any Indebtedness of
          any
          other Person; provided that Indebtedness shall not include:

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

        

         

        (x) any
          amounts withheld by the Company or any Restricted Subsidiary from the purchase
          price paid for the purchase of monitoring accounts;

         

        (y) Indebtedness
          in respect of letters of credit to support workers compensation obligations,
          performance bonds, bankers’ acceptances and surety or appeal bonds provided by
          the Company or any of its Restricted Subsidiaries to their customers in
          the
          ordinary course of the business; and

         

        (z) Indebtedness
          arising from agreements providing for indemnification, adjustment of purchase
          price or similar obligations, or from guarantees or letters of credit,
          surety
          bonds or performance bonds securing any obligations of the Company or any
          of its
          Restricted Subsidiaries pursuant to such agreements, in each case incurred
          in
          connection with the disposition of any business assets or Restricted
          Subsidiaries of the Company (other than guarantees of Indebtedness or other
          obligations incurred by any Person acquiring all or any portion of such
          business
          assets or Restricted Subsidiaries of the Company for the purpose of financing
          such acquisition) in a principal amount not to exceed the gross proceeds
          actually received by the Company or any of its Restricted Subsidiaries
          in
          connection with such disposition.

         

        The
          amount of any Indebtedness outstanding as of any date shall be:

         

        (1) the
          accreted value thereof, in the case of any Indebtedness issued with original
          issue discount; and

         

        (2) the
          principal amount thereof, together with any interest thereon that is more
          than
          30 days past due, in the case of any other Indebtedness.

         

        “Indenture”
          means this Indenture, as amended or supplemented from time to time.

         

        “Indirect
          Participant” means a Person who holds a beneficial interest in a Global Note
          through a Participant.

         

        “Initial
          Notes” means (1) $125,000,000 aggregate principal amount of 12% Senior
          Secured Notes due 2011 issued on the Issue Date and (2) Additional
          Notes, if any, issued in accordance with the terms of the Indenture in
          a
          transaction exempt from the registration requirements of the Securities
          Act.

         

        “Initial
          Purchasers” means (1) with respect to the Initial Notes issued on the Issue
          Date, Morgan Joseph & Co. Inc., Wells Fargo Securities, LLC and ABN AMRO
          Incorporated and (2) with respect to each issuance of Additional
          Notes, the
          Persons purchasing such Additional Notes under the related Purchase
          Agreement.

         

        “Insolvency
          Proceeding” has the meaning given to it in the Intercreditor
          Agreement.

         

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

        

         

        “Intercreditor
          Agreement” means the Intercreditor Agreement, dated as of November 12, 2004, by
          and among the New Credit Facility Agent, the Collateral Trustee and the
          Company,
          as borrower, as such agreement may be amended, modified or supplemented
          from
          time to time.

         

        “Investments”
          means, with respect to any Person, all investments by such Person in other
          Persons (including Affiliates) in the forms of direct or indirect loans
          (including guarantees of Indebtedness or other obligations) advances or
          capital
          contributions (excluding (1) commission, travel and similar advances to
          officers
          and employees made in the ordinary course of business and (2) advances
          to
          customers or suppliers in the ordinary course of business that are, in
          conformity with GAAP recorded as accounts receivable, prepaid expenses
          or
          deposits on the balance sheets of the Company or its Restricted Subsidiaries),
          purchases or other acquisitions for consideration of Indebtedness, Equity
          Interests or other securities (other than Cash Equivalents), together with
          all
          items that are or would be classified as investments on a balance sheet
          prepared
          in accordance with GAAP; provided, however, that Investments shall not
          include
          the purchase of subscriber accounts or amounts owed to the Company by security
          alarm dealers for subscriber accounts lost through attrition. If the Company
          or
          any Restricted Subsidiary of the Company sells or otherwise disposes of
          any
          Equity Interests of any direct or indirect Restricted Subsidiary of the
          Company
          such that, after giving effect to any such sale or disposition, such Person
          is
          no longer a Restricted Subsidiary of the Company, the Company shall be
          deemed to
          have made an Investment on the date of any such sale or disposition equal
          to the
          Fair Market Value of the Investment in such Restricted Subsidiary not sold
          or
          disposed of in an amount determined as provided in Section 4.07(c) hereof.
          The
          acquisition by the Company or any Restricted Subsidiary of a Person that
          holds
          an Investment in a third Person shall be deemed to be an Investment by
          the
          Company or such Restricted Subsidiary in such third Person in an amount
          equal to
          the Fair Market Value of the Investment held by the acquired Person in
          such
          third Person determined as provided in Section 4.07(c) hereof.

         

        “Issue
          Date” means November 16, 2004.

         

        “Legal
          Holiday” means a Saturday, a Sunday or a day on which banking institutions in
          The City of New York or at a place of payment are authorized by law, regulation
          or executive order to remain closed. If a payment date is a Legal Holiday
          at a
          place of payment, payment may be made at that place on the next succeeding
          day
          that is not a Legal Holiday, and no interest shall accrue on such payment
          for
          the intervening period.

         

        “Letter
          of Transmittal” means the letter of transmittal to be prepared by the Company
          and sent to all Holders of the Notes for use by such Holders in connection
          with
          the Exchange Offer.

         

        “Lien”
          means, with respect to any asset, any mortgage, lien, pledge, charge, security
          interest or encumbrance of any kind in respect of such asset, whether or
          not
          filed, recorded or otherwise perfected under applicable law, including
          any
          conditional sale or other title retention agreement, any lease in the nature
          thereof, any option or other agreement to sell or give a
          security interest in and any filing of or agreement to give any financing
          statement under the Uniform Commercial Code (or equivalent statutes) of
          any
          jurisdiction.

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

         

        “Liquidated
          Damages” means all liquidated damages then owing pursuant to Section 5 of the
          Registration Rights Agreement.

         

        “Moody’s”
          means Moody’s Investors Service, Inc. or any successor to the rating agency
          business thereof.

         

        “Net
          Cash
          Proceeds” with respect to any issuance or sale of Capital Stock or Indebtedness,
          means the cash proceeds of such issuance or sale net of attorneys’ fees,
          accountants’ fees, underwriters’ or placement agents’ fees, discounts or
          commissions and brokerage, consultant and other fees actually incurred
          in
          connection with such issuance or sale and net of taxes paid or payable
          as a
          result thereof.

         

        “Net
          Income” means, with respect to any Person, the net income (loss) of such Person,
          determined in accordance with GAAP.

         

        “Net
          Proceeds” means the aggregate cash proceeds received by the Company or any of
          its Restricted Subsidiaries in respect of any Asset Sale (including payments
          in
          respect of deferred payment obligations when received in the form of cash),
          net
          of:

         

        (1) reasonable
          out-of-pocket expenses and fees relating to such Asset Sale, including,
          without
          limitation, legal, accounting and investment banking fees and sales commissions,
          recording fees, relocation costs, title insurance premiums, appraisers’ fees and
          costs reasonably incurred in preparation of any asset or property for
          sale;

         

        (2) taxes
          paid or reasonably estimated to be payable (calculated based on the combined
          state, federal and foreign statutory tax rates applicable to the Company
          or the
          Restricted Subsidiary engaged in such Asset Sale after taking into account
          any
          tax credits or deductions and any tax sharing arrangements);

         

        (3) 
          all
          payments made on any Indebtedness of the Company or any Subsidiary Guarantor
          which is secured by any assets subject to such Asset Sale;

         

        (4) all
          distributions and other payments required to be made to any Person owning
          a
          beneficial interest in the assets subject to sale, or minority interest
          holders
          in Subsidiaries or joint ventures, as a result of such Asset Sale;
          and

         

        (5) any
          reserves established in accordance with GAAP for adjustment in respect
          of the
          sales price of the asset or assets subject to such Asset Sale or for any
          liabilities associated with such Asset Sale.

         

        “New
          Credit Facility Agent” means, at any time, the Person acting as “agent” or
“administrative agent” under the Credit Agreement.

         

        “Non-Recourse
          Debt” means Indebtedness:

         

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

         

        (1) as
          to
          which neither the Company nor any of its Restricted Subsidiaries (a) provides
          credit support of any kind (including any undertaking, agreement or instrument
          that would constitute Indebtedness), (b) is directly or indirectly liable
          (to a
          Subsidiary Guarantor or otherwise) or (c) constitutes the lender;
          and

         

        (2) no
          default with respect to which (including any rights that the holders thereof
          may
          have to take enforcement action against an Unrestricted Subsidiary) would
          permit
          (upon notice, lapse of time or both) any holder of any other Indebtedness
          (other
          than the Notes) of the Company or any of its Restricted Subsidiaries to
          declare
          a default on such other Indebtedness or cause the payment thereof to be
          accelerated or payable prior to its Stated Maturity.

         

        “Note
          Obligations” means
          all
          Guaranteed Obligations and all Obligations of any Subsidiary Guarantor
          under
          this Indenture, the Notes and the Collateral Documents. 

         

        “Notes”
          means the 12% Senior Secured Notes due 2011 of the Company issued on the
          date
          hereof, any Additional Notes and the Exchange Notes. The Notes, the Additional
          Notes, if any, and the Exchange Notes shall be treated as a single class
          for all
          purposes under this Indenture.

         

        “Obligations”
          means any and all obligations with respect to the payment of (a) any principal
          of or interest (including interest accruing on or after the commencement
          of any
          insolvency or liquidation proceedings, whether or not a claim for post-filing
          interest is allowed in such proceeding) or premium on any Indebtedness,
          including any reimbursement obligation in respect of any letter of credit,
          (b)
          any fees, indemnification obligations, damages, expense reimbursement
          obligations or other liabilities payable under the documentation governing
          any
          Indebtedness, (c) any obligation to post cash collateral in respect of
          letters
          of credit and any other obligations and (d) any Hedging
          Obligations.

         

        “Officer”
          means the Chief Executive Officer, the Chief Financial Officer, or any
          Executive
          Vice-President of the Company.

         

        “Officers’
          Certificate” means a certificate signed by two Officers of the Company, at least
          one of whom shall be the principal executive officer or principal financial
          officer of the Company, and delivered to the Trustee.

         

        “Opinion
          of Counsel” means a written opinion from legal counsel who is acceptable to the
          Trustee. An Opinion of Counsel must meet the requirements of Section 13.04
          of
          this Indenture. The counsel may be an employee of or counsel to the Company
          or
          the Trustee.

         

        “Participant”
          means, with respect to the Depositary, a Person who has an account with
          the
          Depositary.

         

        “Permitted
          Business” means any business conducted by the Company and its Restricted
          Subsidiaries on the date of this Indenture and other businesses reasonably
          related,  ancillary
          or complementary thereto, as determined in good faith by the Company’s Board of
          Directors.

         

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        “Permitted
          Investment” means:

         

        (1) any
          Investment by the Company or a Restricted Subsidiary (whether existing
          on the
          Closing Date or created thereafter) in any Person that after such Investment,
          and as a result thereof, becomes a Restricted Subsidiary;

         

        (2) any
          Investment in Cash Equivalents;

         

        (3) any
          Investment made as a result of the receipt of non-cash consideration from
          a sale
          of assets that was made pursuant to and in compliance with Section
          4.11;

         

        (4) any
          Investments to the extent acquired in exchange for the issuance of Equity
          Interests (other than Disqualified Stock) of the Company;

         

        (5) Investments
          in securities of trade creditors, wholesalers, suppliers or customers received
          pursuant to any plan of reorganization or similar arrangement for obligations
          arising in the ordinary course of business;

         

        (6) loans
          or
          advances to employees of the Company or any Restricted Subsidiary thereof
          for
          purposes of purchasing from the Company its Capital Stock and loans and
          advances
          to dealers or independent contractors secured by alarm monitoring contracts
          and
          made in the ordinary course of business consistent with past practices
          of the
          Company or such Restricted Subsidiary, provided that any such loan or advances
          shall be limited to the Fair Market Value of the alarm monitoring contracts
          securing such loan or advance;

         

        (7) receivables
          owing to the Company or any of its Restricted Subsidiaries, if created
          or
          acquired in the ordinary course of business and payable or dischargeable
          in
          accordance with customary trade terms;

         

        (8) stock,
          obligations or securities received in settlement of debts created in the
          ordinary course of business and owing to the Company or any of its Restricted
          Subsidiaries or in satisfaction of judgments or claims;

         

        (9) Hedging
          Obligations incurred in compliance with Section 4.07 and not for speculative
          purposes; and

         

        (10) other
          Investments in an amount not to exceed $2.0 million.

         

        “Permitted
          Liens” means:

         

        (1) Liens
          securing the Notes or the Subsidiary Guarantees;

         

        (2) Liens
          in
          favor of the Company or any of its Wholly Owned Restricted
          Subsidiaries;

         

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

        

         

        (3) Liens
          on
          property of a Person existing at the time such Person is merged into or
          consolidated with the Company or any Restricted Subsidiary of the Company
          or at
          the time such Person becomes a Restricted Subsidiary of the Company, provided
          that such Liens were in existence prior to the contemplation of such transaction
          and do not extend to any assets other than those of the Person merged into
          or
          consolidated with the Company or the Restricted Subsidiary;

         

        (4) Liens
          on
          property existing at the time of acquisition thereof by the Company or
          any
          Restricted Subsidiary of the Company, provided that such Liens were in
          existence
          prior to the contemplation of such acquisition;

         

        (5) Liens
          under the Credit Agreement;

         

        (6) Liens
          existing on the date of this Indenture;

         

        (7) Liens
          securing Indebtedness represented by Capital Lease Obligations, mortgage
          financings or purchase money obligations, in each case incurred for the
          purpose
          of financing all or any part of the purchase price or cost of construction
          or
          improvement of property or assets used in the Company’s or any Restricted
          Subsidiary’s business or incurred to refinance any such purchase price or cost
          of construction or improvement, in each case incurred no later than 365
          days
          after the date of such acquisition or the date of completion of such
          construction or improvement; provided that the principal amount of any
          Indebtedness described in this clause (6) shall not exceed $5.0 million
          at any
          time outstanding;

         

        (8) Liens
          for
          property taxes, assessments and other governmental charges or levies not
          yet
          delinquent or subject to penalties for nonpayment or which are being contested
          in good faith by appropriate proceedings;

         

        (9) Liens
          resulting from the deposit of funds or evidences of Indebtedness in trust
          for
          the purpose of defeasing Indebtedness of the Company or any of its
          Subsidiaries;

         

        (10) Liens
          imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and other
          similar Liens, on the assets of the Company or any Restricted Subsidiary
          arising
          in the ordinary course of business and securing payment of obligations
          that are
          not more than 60 days past due or are being contested in good faith by
          appropriate proceedings;

         

        (11) pledges
          or deposits by the Company or any Restricted Subsidiary under workmen’s
          compensation laws, unemployment insurance laws or similar legislation,
          or good
          faith deposits in connection with bids, tenders, contracts (other than
          for the
          payment of Indebtedness) or leases to which the Company or any Restricted
          Subsidiary is a party, or deposits to secure public or statutory obligations
          of
          the Company, or deposits for the payment of rent, in each case incurred
          in the
          ordinary course of business; and

         

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

         

        (12) Liens
          on
          the assets of the Company or any Restricted Subsidiary to secure any Permitted
          Refinancing Indebtedness, in whole or in part, of any Indebtedness secured
          by
          Liens; provided, however, that any such Lien shall be limited to the same
          assets
          that secured the original Indebtedness.

         

        “Permitted
          Refinancing Disqualified Stock” means any Disqualified Stock of the Company or
          any of its Restricted Subsidiaries issued in exchange for or the net proceeds
          of
          which are used to repurchase or redeem other Disqualified Stock of the
          Company
          or such Restricted Subsidiary (other than intercompany Disqualified Stock);
          provided that:

         

        (1) the
          liquidation preference of such Permitted Refinancing Disqualified Stock
          does not
          exceed the liquidation value, plus premiums, penalties and accrued dividends
          on,
          the Disqualified Stock so exchanged, repurchased or redeemed (plus the
          amount of
          reasonable expenses incurred in connection therewith);

         

        (2) such
          Permitted Refinancing Disqualified Stock has a redemption date no earlier
          than
          the redemption date of the Disqualified Stock being exchanged, repurchased
          or
          redeemed; and

         

        (3) such
          Permitted Refinancing Disqualified Stock is issued either by the Company
          or by
          the Restricted Subsidiary that issued the Disqualified Stock being exchanged,
          repurchased or redeemed.

         

        “Permitted
          Refinancing Indebtedness” means any Indebtedness of the Company or any of its
          Restricted Subsidiaries issued in exchange for, or the net proceeds of
          which are
          used to extend, refinance, renew, replace, defease or refund other Indebtedness
          of the Company or such Restricted Subsidiary (other than intercompany
          Indebtedness); provided that:

         

        (1) the
          principal amount (or accreted value, if applicable) of such Permitted
          Refinancing Indebtedness does not exceed the principal amount of (or accreted
          value, if applicable), plus premiums, penalties and accrued interest on,
          the
          Indebtedness so extended, refinanced, renewed, replaced, defeased or refunded
          (plus the amount of reasonable expenses incurred in connection
          therewith);

         

        (2) such
          Permitted Refinancing Indebtedness has a final maturity date no earlier
          than the
          final maturity date, and a Weighted Average Life to Maturity equal to or
          greater
          than the Weighted Average Life to Maturity, of the Indebtedness being extended,
          refinanced, renewed, replaced, defeased or refunded;

         

        (3) if
          the
          Indebtedness being extended, refinanced, renewed, replaced, defeased or
          refunded
          is (i) pari
          passu
          in right
          of payment to the Notes or any Subsidiary Guarantee, such Permitted Refinancing
          Indebtedness is pari
          passu
          with or
          subordinated in right of payment to the Notes or any Subsidiary Guarantee,
          (ii)
          subordinated in right of payment to the Notes or any Subsidiary Guarantee,
          such
          Permitted Refinancing Indebtedness is subordinated in right of payment
          to the
          Notes or any Subsidiary 

         

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

           

          Guarantee
            of the Notes, in each case on terms at least as favorable to the Holders
            of
            Notes as those contained in the documentation governing the Indebtedness
            being
            extended, refinanced, renewed, replaced, defeased or refunded, and (iii)
            secured
            liens securing such Permitted Refinancing Indebtedness do not extend
            to any
            assets other than those securing the Indebtedness being extended, refinanced,
            renewed, replaced, defeased or refunded; and

        

         

        (4) such
          Indebtedness is incurred either by the Company or by the Restricted Subsidiary
          that is the obligor on the Indebtedness be extended, refinanced, renewed,
          replaced, defeased or refunded.

         

        “Person”
          means any individual, corporation, company (including any limited liability
          company), association, partnership, joint venture, trust, unincorporated
          organization, government or any agency or political subdivision thereof
          or any
          other entity.

         

        “Pledge
          Agreement”, means the Pledge Agreement, dated November 16, 2004, between
          Integrated Alarm Services Group, as “Pledgor”, and Wells Fargo Bank, N.A., as
          collateral trustee for the Secured Parties (as defined therein). 

         

        “Preferred
          Stock” of any Person means any Capital Stock of such Person that has
          preferential rights to any other Capital Stock of such Person with respect
          to
          dividends or redemptions or upon liquidation.

         

        “Private
          Exchange” means the issuance by the Company, pursuant to a Registration Rights
          Agreement, to the Initial Purchasers, in exchange for the Initial Notes
          held by
          the Initial Purchaser as part of its initial distribution, of a like aggregate
          principal amount of Private Exchange Notes.

         

        “Private
          Exchange Notes” means any 12% Senior Secured Notes due 2011 issued in connection
          with a Private Exchange.

         

        “Private
          Placement Legend” means the legend set forth in Section 2.06(d)(i)(A) o be
          placed on all Notes issued under this Indenture except where otherwise
          permitted
          by the provisions of this Indenture.

         

        “Property”
          means any right or interest in or to property of any kind whatsoever, whether
          real, personal or mixed and whether tangible or intangible, and including
          Capital Stock.

         

        “Purchase
          Agreement” means (1) with respect to the Initial Notes issued on the Issue
          Date, the Purchase Agreement dated November 10, 2004, among the Company
          and the
          Initial Purchasers, and (2) with respect to each issuance of Additional
          Notes, the purchase agreement or underwriting agreement among the Company
          and
          the Persons purchasing such Additional Notes.

         

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

         

        ‘‘Purchase
          Suspension Period’’ means (i) the date on which the Company files its Quarterly
          Report on Form 10-Q (with respect to its first three fiscal quarters) (or,
          in
          the event the Company is not required to or does not file any such Quarterly
          Report with respect to a fiscal quarter, the 45th day after the end of
          such
          fiscal quarter) or the 45th day 

        after
          the
          end of its fourth fiscal quarter (with respect to the last fiscal quarter
          of a
          year) with respect to a Purchase Suspension Trigger to and including (ii)
          the
          next succeeding date on which the Company files a Quarterly Report on Form
          10-Q
          (with respect to its first three fiscal quarters) or the 45th day after
          the end
          of its fourth fiscal quarter (with respect to the last fiscal quarter of
          a year)
          (or, in the event the Company is not required to or does not file any such
          report with respect to a fiscal period, the 45th day after the end of such
          fiscal period) for which both its Weighted Average Retail Attrition Rate
          and
          Retail Attrition Rate are equal to or less than 18%.

         

        “QIB”
          means a “qualified institutional buyer” as defined in Rule 144A.

         

        “Qualified
          Consideration” means, with respect to any Asset Sale (or any other transaction
          or series of related transactions required to comply with Section 4.11(a)(iii)),
          any one or more of:

         

        (1) Cash
          Equivalents;

         

        (2) securities,
          notes or other obligations received by the Company or such Restricted Subsidiary
          from the transferee that are contemporaneously (subject to ordinary settlement
          periods) converted into cash;

         

        (3) Indebtedness
          (excluding contingent liabilities and Indebtedness that is pari
          passu
          or
          subordinated to the Notes or any Subsidiary Guarantee, and Indebtedness
          that is
          owed to the Company or any Affiliate of the Company) of the Company or
          any
          Restricted Subsidiary that is expressly assumed by the transferee in an
          Asset
          Sale and with respect to which the Company or the Restricted Subsidiary,
          as the
          case may be, is unconditionally released by the holder of that Indebtedness;
          and

         

        (4) any
          assets received by the Company or its Restricted Subsidiaries that would
          satisfy
          clause (ii) of Section 4.11(b) (provided that if such assets involve
          consideration in excess of $5.0 million, the valuation of such assets has
          been
          approved by a majority of the members of the Board of Directors of the
          Company
          and, provided, further that if such assets involve consideration in excess
          of
          $15.0 million, the Board of Directors’ determination must be based upon an
          opinion or appraisal issued by an accounting, appraisal or investment banking
          firm of national standing).

         

        “Registered
          Exchange Offer” means the offer by the Company, pursuant to the Registration
          Rights Agreement, to certain Holders of Notes, to issue and deliver to
          such
          Holders, in exchange for the Notes, a like aggregate principal amount of
          Exchange Notes registered under the Securities Act.

         

        “Registration
          Rights Agreement” means (1) with respect to the Initial Notes issued on the
          Issue Date, the Registration Rights Agreement dated November 16, 2004,
          among the
          Company and the Initial Purchasers, and (2) with respect to each
          issuance
          of Additional Notes issued in a transaction exempt from the registration
          requirements of the Securities Act, the registration rights agreement,
          if any,
          among the Company and the Persons purchasing such Additional Notes under
          the
          related Purchase Agreement.

         

        “Representative”
          means the indenture trustee or other trustee, agent or representative of
          holders
          of any Senior Debt.

         

        
          
            
            

          

          
            28

            
              

            

          

          
            
            

          

        

        

         

        “Responsible
          Officer,” when used with respect to the Trustee, means any officer within the
          Corporate Trust Administration of the Trustee (or any successor group of
          the
          Trustee) or any other officer of the Trustee customarily performing functions
          similar to those performed by any of the above designated officers and
          also
          means, with respect to a particular corporate trust matter, any other officer
          to
          whom such matter is referred because of his knowledge of and familiarity
          with
          the particular subject.

         

        “Restricted
          Definitive Note” means a Definitive Note bearing the Private Placement
          Legend.

         

        “Restricted
          Global Note” means a Global Note bearing Placement Legend.

         

        “Restricted
          Investment” means an Investment other than a Permitted Investment.

         

        “Restricted
          Payment” means:

         

        (1) the
          declaration or payment of any dividend or other payment or distribution
          on
          account of the Company’s or any of its Restricted Subsidiaries’ Equity Interests
          (including, without limitation, any payment in connection with any merger
          or
          consolidation involving the Company or any of its Restricted Subsidiaries)
          or to
          the direct or indirect holders of the Company’s or any of its Restricted
          Subsidiaries’ Equity Interests in their capacity as such, other than dividends
          or distributions payable in Equity Interests (other than Disqualified Stock)
          of
          the Company or to the Company or a Restricted Subsidiary of the
          Company;

         

        (2) the
          purchase, repurchase, redemption, acquisition or retirement for value
          (including, without limitation, in connection with any merger or consolidation
          involving the Company) of any Equity Interests of the Company or any Subsidiary
          Guarantor (other than any such Equity Interests owned by the Company or
          any
          Restricted Subsidiary of the Company);

         

        (3) the
          making of any payment on or with respect to, or the purchase, redemption,
          defeasance or other acquisition or retirement for value of, any Indebtedness
          that is subordinated to the Notes, except (a) a payment of interest or
          a payment
          of principal at Stated Maturity or (b) the purchase, redemption, defeasance
          or
          other acquisition or retirement of such subordinated Indebtedness made
          in
          anticipation of satisfying a sinking fund obligation, principal installment
          or
          final maturity, in each case due within one year of the date of such purchase,
          redemption, defeasance or other acquisition or retirement; or

         

        (4) any
          Restricted Investment.

         

        “Restricted
          Subsidiary” means any Subsidiary of the Company other than an Unrestricted
          Subsidiary.

         

        “Rule
          144A” means Rule 144A promulgated under the Securities Act.

         

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

        

         

        “S&P”
          means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. or
          any successor to the rating agency business thereof.

         

        “Second
          Priority Claims” means all Obligations in respect of the Notes or arising under
          the Second Priority Documents or any of them.

         

        “Second
          Priority Documents” means (a) the Indenture, the Notes and the Collateral
          Documents and (b) any other related documents or instruments executed and
          delivered pursuant to any Second Priority Document described in clause
          (a) above
          evidencing or governing any Obligations thereunder.

         

        “Second
          Priority Liens” means all liens granted to the Collateral Trustee that secure
          Second Priority Claims.

         

        “Second
          Priority Mortgages” means a collective reference to each mortgage, deed of
          trust, deed to secure debt, and any other document or instrument under
          which any
          Lien on real property owned by any Grantor is granted to the Collateral
          Trustee
          secure any Second Priority Claims or under which rights or remedies with
          respect
          to any such Liens are governed.

         

        “Securities
          Act” means the Securities Act of 1933, as amended.

         

        “Security
          Agreement” means the Notes Security Agreement, dated as of November 16, 2004,
          among the Debtors and (as defined therein) and the Collateral Trustee.
          

         

        “Senior
          Debt” means:

         

        (1) all
          Indebtedness of the Company or any Subsidiary Guarantor under the Credit
          Agreement;

         

        (2) any
          other
          Indebtedness of the Company or any Subsidiary Guarantor permitted to be
          incurred
          under the terms of this Indenture, unless the instrument under which such
          Indebtedness is incurred expressly provides that it is on a parity with
          or
          subordinated in right of payment to the Notes or any Subsidiary Guarantee;
          and

         

        (3) all
          Obligations with respect to the items listed in the preceding clauses (1)
          and
          (2) (including any interest accruing after the commencement of any bankruptcy
          proceeding at the rate specified in the applicable Senior Debt, whether
          or not
          allowed as a claim in such proceeding).

         

        Notwithstanding
          anything to the contrary in the preceding, Senior Debt will not
          include:

         

        (1) any
          liability for federal, state, local or other taxes owed or owing by such
          Person;

         

        (2) any
          Indebtedness of the Company or any Subsidiary Guarantor to the Company
          or any of
          its Subsidiaries or Affiliates;

         

        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

        

         

        (3) any
          trade
          payables;

         

        (4) any
          amounts or liabilities owing to dealers from whom the Company purchases
          subscriber accounts; or

         

        (5) any
          Indebtedness that is incurred in violation of this Indenture.

         

        “Shelf
          Registration Statement” means the registration statement filed by the Company in
          connection with the offer and sale of Initial Notes or Private Exchange
          Notes
          pursuant to a Registration Rights Agreement.

         

        “Stated
          Maturity” means, with respect to any installment of interest or principal on any
          series of Indebtedness, the date on which such payment of interest or principal
          was scheduled to be paid in the original documentation governing such
          Indebtedness, and shall not include any contingent obligations to repay,
          redeem
          or repurchase any such interest or principal prior to the date originally
          scheduled for the payment thereof.

         

        “Subordinated
          Indebtedness” means any Indebtedness that has a Stated Maturity not earlier than
          the Stated Maturity date of, and is subordinated in right of payment to,
          the
          Notes.

         

        “Subsidiary”
          means, with respect to any Person:

         

        (1) any
          corporation, association or other business entity of which more than 50%
          of the
          total voting power of shares of Capital Stock entitled (without regard
          to the
          occurrence of any contingency) to vote in the election of directors, managers
          or
          trustees thereof is at the time owned, directly or indirectly, by such
          Person;
          and

         

        (2) any
          other
          Person (other than a corporation), including, without limitation, a partnership,
          joint venture or limited liability company, in which the specified Person,
          one
          or more Subsidiaries thereof or the specified Person and one or more
          Subsidiaries thereof, directly or indirectly, at the date of determination
          thereof, has or have at least a majority of the Voting Stock or other ownership
          interests of such Person.

         

        “Subsidiary
          Guarantee” means a Guarantee of the Notes pursuant to this
          Indenture.

         

        “Subsidiary
          Guarantors” means each Subsidiary that executes a Subsidiary Guarantee in
          accordance with the provisions of this Indenture, and their respective
          successors and assigns until released from their obligations under their
          Guarantees in accordance with the terms of this Indenture

         

        “TIA”
          means the Trust Indenture Act of 1939, as in effect on the date on which
          this
          Indenture is qualified under the TIA.

         

        “Transfer
          Restricted Notes” means Notes that bear or are required to bear the Private
          Placement Legend.

         

        
          
            
            

          

          
            31

            
              

            

          

          
            
            

          

        

        

         

        “Trustee”
          means Wells Fargo Bank, N.A., a national banking association, until a successor
          replaces it in accordance with the applicable provisions of this Indenture
          and
          thereafter means the successor serving hereunder.

         

        “Unrestricted
          Subsidiary” means any Subsidiary of the Company that is designated by the Board
          of Directors as an Unrestricted Subsidiary pursuant to a resolution of
          the Board
          of Directors, but only to the extent that such Subsidiary:

         

        (1) has
          no
          Indebtedness other than Non-Recourse Debt; and

         

        (2) is
          a
          Person with respect to which neither the Company nor any of its Restricted
          Subsidiaries has any direct or indirect obligation (1) to subscribe for
          additional Equity Interests or (2) to maintain or preserve such Person’s
          financial condition or to cause such Person to achieve any specified levels
          of
          operating results.

         

        “U.S.
          Government Obligations” means direct obligations (or certificates representing
          an ownership interest in such obligations) of the United States of America
          (including any agency or instrumentality thereof) for the payment of which
          the
          full faith and credit of the United States of America is pledged and which
          are
          not callable or redeemable at the issuer’s option.

         

        “Voting
          Stock” with respect to any specified Person (1) means any class or classes of
          Equity Interests of the specified Person pursuant to which the holders
          thereof
          have the general voting power under ordinary circumstances to elect at
          least a
          majority of the board of directors, partners, managers or trustees of the
          specified Person (irrespective of whether or not, at the time, stock of
          any
          other class or classes have, or might have, voting power by reason of the
          happening of any contingency) that control the management and policies
          of such
          Person, and (2) if such specified Person is a limited partnership, includes
          the
          general partner and limited partner interests of such Person.

         

        “Weighted
          Average Life to Maturity” means, when applied to any Indebtedness at any date,
          the number of years obtained by dividing:

         

        (1) the
          sum
          of the products obtained by multiplying (a) the amount of each then remaining
          installment, sinking fund, serial maturity or other required payments of
          principal, including payment at final maturity, in respect thereof, by
          (b) the
          number of years (calculated to the nearest one-twelfth) that will elapse
          between
          such date and the making of such payment; by

         

        (2) the
          then
          outstanding principal amount of such Indebtedness.

         

        “Wholly
          Owned Restricted Subsidiary” of any Person means a Restricted Subsidiary of such
          Person all the outstanding Capital Stock or other ownership interests of
          which
          (except directors’ qualifying shares) is at such time owned by such Person and
          its other Wholly Owned Restricted Subsidiaries.

         

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

        

         

        Section
          1.02.  Other
          Definitions.

         

        
          	
                  Term

                	
                  Defined

                  in

                  Section

                
	 	 
	
                  “Act”

                	
                  12.14

                
	
                  “Affiliate
                    Transaction”

                	
                  4.12

                
	
                  “Asset
                    Sale Offer”

                	
                  4.11

                
	
                  “Authentication
                    Order”

                	
                  2.02

                
	
                  “Cancelled
                    RMR”

                	
                  4.10

                
	
                  “Change
                    of Control Offer”

                	
                  4.19

                
	
                  “Change
                    of Control Payment”

                	
                  4.19

                
	
                  “Change
                    of Control Payment Date”

                	
                  4.19

                
	
                  “Covenant
                    Defeasance”

                	
                  8.03

                
	
                  “Disqualified
                    RMR”

                	
                  4.10

                
	
                  “DTC”

                	
                  2.01

                
	
                  “Event
                    of Default”

                	
                  6.01

                
	
                  “Excess
                    Proceeds”

                	
                  4.10

                
	
                  “Guaranteed
                    Obligations”

                	
                  11.01

                
	
                  “Incur”

                	
                  4.07

                
	
                  “Legal
                    Defeasance”

                	
                  8.02

                
	
                  “Offer
                    Amount”

                	
                  3.07

                
	
                  “Offer
                    Period”

                	
                  3.07

                
	
                  “Paying
                    Agent”

                	
                  2.04

                
	
                  “Payment
                    Default”

                	
                  6.01

                
	
                  “Permitted
                    Debt”

                	
                  4.07

                
	
                  “Purchase
                    Date”

                	
                  3.07

                
	
                  ‘‘Purchase
                    Suspension Trigger’’

                	
                  4.14

                
	
                  “Qualified
                    RMR”

                	
                  4.10

                
	
                  “Registrar”

                	
                  2.04

                
	
                  “Related
                    Proceedings”

                	
                  12.09

                
	
                  “Replacement
                    Assets”

                	 
	
                  “Replacement
                    RMR”

                	
                  4.10

                
	
                  “Repurchase
                    Offer”

                	
                  3.07

                
	
                  “Retail
                    Attrition Rate”

                	
                  4.10

                
	
                  “Retail
                    Attrition Rate Trigger Event”

                	
                  4.10

                
	
                  “RMR”

                	
                  4.10

                
	
                  “Specified
                    Courts”

                	
                  12.09

                
	
                  ‘‘Trigger
                    Determination Date’’

                	
                  4.10

                
	
                  “Weighted
                    Average Retail Attrition Rate”

                	
                  4.10

                
	
                  “Weighted
                    Average Retail Attrition Rate Trigger Event”

                   

                	
                  4.10

                

        

         

        
          
            
            

          

          
            33

            
              

            

          

          
            
            

          

        

         

        Section
          1.03.  Incorporation
          by Reference of Trust Indenture Act.

         

        Whenever
          this Indenture refers to a provision of the TIA, the provision is incorporated
          by reference in and made a part of this Indenture.

         

        The
          following TIA terms used in this Indenture have the following
          meanings:

         

        “indenture
          securities” means the Notes;

         

        “indenture
          security Holder” means a Holder of a Note;

         

        “indenture
          to be qualified” means this Indenture;

         

        “indenture
          trustee” or “institutional trustee” means the Trustee; and

         

        “obligor”
          on the Notes means the Company and any successor obligor upon the
          Notes.

         

        All
          other
          terms used in this Indenture that are defined by the TIA, defined by TIA
          reference to another statute or defined by Commission rule under the TIA
          have
          the meanings so assigned to them.

         

        Section
          1.04.  Rules
          of Construction.

         

        (a)  Unless
          the context otherwise requires:

         

        (i)  a
          term
          has the meaning assigned to it;

         

        (ii)  an
          accounting term not otherwise defined has the meaning assigned to it in
          accordance with GAAP;

         

        (iii)  “or”
          is
          not exclusive;

         

        (iv)  words
          in
          the singular include the plural, and in the plural include the
          singular;

         

        (v)  provisions
          apply to successive events and transactions; and

         

        (vi)  references
          to sections of or rules under the Securities Act shall be deemed to include
          substitute, replacement of successor sections or rules adopted by the Commission
          from time to time.

         

        
          
            
            

          

          
            34

            
              

            

          

          
            
            

          

        

        

         

        ARTICLE
          TWO

         

        THE
          NOTES

         

        Section
          2.01.  Form
          and Dating.

         

        (a) The
          Initial Notes issued on the Issue Date will be offered and sold by the
          Company
          pursuant to a Purchase Agreement. The Initial Notes issued on the Issue
          Date
          will be resold initially only to QIBs in reliance on Rule 144A and
          to a
          limited number of institutional “accredited investors” as defined in Rule
          501(a)(1), (2), (3) and (7) under the Securities Act. Initial Notes shall
          be
          issued initially in the form of one or more Global Notes without interest
          coupons and with the Global Note Legend and the Private Placement Legend,
          which
          shall be deposited on behalf of the purchasers of the Initial Notes represented
          thereby with the Custodian and registered in the name of the Depositary
          or a
          nominee of the Depositary, duly executed by the Company and authenticated
          by the
          Trustee as provided in this Indenture. 

         

        (b) The
          Initial Notes, the Exchange Notes, the Private Exchange Notes and the Trustee's
          certificate of authentication shall be substantially in the form of Exhibit
          A
          which is hereby incorporated in, and expressly made a part of, this Indenture.
          The Notes may have notations, legends or endorsements required by law,
          stock
          exchange rule, agreements to which the Company is subject, if any, or usage
          (provided that any such notation, legend or endorsement is in a form acceptable
          to the Company). Each Note shall be dated the date of its authentication.
          The
          terms of the Notes set forth in Exhibit A are part of the terms
          of this
          Indenture.

         

        (c) This
          Section 2.01(c) shall apply only to a Global Note deposited with
          or on
          behalf of the Depositary. The Company shall execute and the Trustee shall,
          in
          accordance with this Section 2.01(b), authenticate and deliver initially
          one or more Global Notes that (a) shall be registered in the name
          of the
          Depositary for such Global Note or Global Notes or the nominee of such
          Depositary and (b) shall be delivered by the Trustee to such Depositary
          or
          pursuant to such Depositary's instructions or held by the Trustee as custodian
          for the Depositary. Indirect Participants and Participants shall have no
          rights
          under this Indenture with respect to any Global Note held on their behalf
          by the
          Depositary or by the Trustee as the custodian of the Depositary or under
          such
          Global Note, and the Company, the Trustee and any agent of the Company
          or the
          Trustee shall be entitled to treat the Depositary as the absolute owner
          of such
          Global Note for all purposes whatsoever. Notwithstanding the foregoing,
          nothing
          herein shall prevent the Company, the Trustee or any agent of the Company
          or the
          Trustee from giving effect to any written certification, proxy or other
          authorization furnished by the Depositary or impair, as between the Depositary
          and its Participants, the operation of customary practices of such Depositary
          governing the exercise of the rights of a holder of a beneficial interest
          in any
          Global Note.

         

        (d) Except
          as
          provided in this Section 2.01 or 2.06, owners of beneficial interests in
          Global
          Notes shall not be entitled to receive interests in, or physical delivery
          of,
          Definitive Notes.

         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

        

         

        Section
          2.02.  Execution
          and Authentication.

         

        Two
          Officers of the Company shall sign the Notes by manual or facsimile signature.
          

         

        If
          an
          Officer whose signature is on a Note no longer holds that office at the
          time the
          Trustee authenticates the Note, the Note shall be valid
          nevertheless.

         

        A
          Note
          shall not be valid until an authorized signatory of the Trustee manually
          signs
          the certificate of authentication on the Note. The signature shall be conclusive
          evidence that the Note has been authenticated under this Indenture.

         

        The
          Trustee may appoint an authenticating agent reasonably acceptable to the
          Company
          to authenticate the Notes. Unless limited by the terms of such appointment,
          an
          authenticating agent may authenticate Notes whenever the Trustee may do
          so. Each
          reference in this Indenture to authentication by the Trustee includes
          authentication by such agent. An authenticating agent has the same rights
          as any
          Registrar, Paying Agent or agent for service of notices and
          demands.

         

        The
          Trustee shall authenticate and deliver: (1) on the Issue Date, an
          aggregate
          principal amount of $125,000,000  12% Senior Secured Notes due 2011,
          (2) any Additional Notes for an original issue in an aggregate principal
          amount specified in the written order of the Company pursuant to this Section
          2.02 and (3) Exchange Notes or Private Exchange Notes for issue
          only in a
          Registered Exchange Offer or a Private Exchange, respectively, pursuant
          to a
          Registration Rights Agreement, for a like principal amount of Initial Notes
          issued on the Issue Date, in each case upon a written order of the Company
          signed by two Officers or by an Officer and either an Assistant Treasurer
          or an
          Assistant Secretary of the Company. Such order shall specify the amount
          of the
          Notes to be authenticated and the date on which the original issue of Notes
          is
          to be authenticated and, in the case of any issuance of Additional Notes
          pursuant to Section 2.13, shall certify that such issuance is in
          compliance
          with Section 4.07. 

         

        Section
          2.03.  Registrar
          and Paying Agent.

         

        (a)  The
          Company shall maintain an office or agency where Notes may be presented
          for
          registration of transfer or for exchange (“Registrar”) and an office or agency
          where Notes may be presented for payment (“Paying Agent”). The Registrar shall
          keep a register of the Notes and of their transfer and exchange. The Company
          may
          appoint one or more co-registrars and one or more additional paying agents.
          The
          term “Registrar” includes any co-registrar and the term “Paying Agent” includes
          any additional paying agent. The Company may change any Paying Agent or
          Registrar without prior notice to any Holder. The Company shall notify
          the
          Trustee in writing of the name and address of any Agent not a party to
          this
          Indenture. If the Company fails to appoint or maintain another entity as
          Registrar or Paying Agent, the Trustee shall act as such. The Company or
          any of
          its Subsidiaries may act as Paying Agent or Registrar.

         

        (b)  The
          Company initially appoints DTC to act as Depositary with respect to the
          Global
          Notes.

         

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

        

         

        (c)  The
          Company initially appoints the Trustee to act as the Registrar and Paying
          Agent
          and to act as Custodian with respect to the Global Notes.

         

        Section
          2.04.  Paying
          Agent to Hold Money in Trust.

         

        On
          or
          prior to 11:00 AM New York City time on each due date of the principal
          and
          interest on any Note, the Company shall deposit with the Paying Agent a
          sum
          sufficient to pay such principal and interest when so becoming due. The
          Company
          shall require each Paying Agent (other than the Trustee) to agree in writing
          that the Paying Agent shall hold in trust for the benefit of Noteholders
          or the
          Trustee all money held by the Paying Agent for the payment of principal
          of or
          interest on the Notes and shall notify the Trustee of any default by the
          Company
          in making any such payment. If the Company or a Subsidiary acts as Paying
          Agent,
          it shall segregate the money held by it as Paying Agent and hold it as
          a
          separate trust fund. The Company at any time may require a Paying Agent
          to pay
          all money held by it to the Trustee and to account for any funds disbursed
          by
          the Paying Agent. Upon complying with this Section 2.04, the Paying Agent
          shall
          have no further liability for the money delivered to the Trustee.

         

        Section
          2.05.  Holder
          Lists.

         

        The
          Trustee shall preserve in as current a form as is reasonably practicable
          the
          most recent list available to it of the names and addresses of Noteholders.
          If
          the Trustee is not the Registrar, the Company shall furnish, or cause the
          Registrar to furnish, to the Trustee, in writing at least five Business
          Days
          before each interest payment date and at such other times as the Trustee
          may
          request in writing, a list in such form and as of such date as the Trustee
          may
          reasonably require of the names and addresses of Noteholders.

         

        Section
          2.06.  Transfer
          and Exchange.

         

        (a) When
          Definitive Notes are presented to the Registrar with a request:

         

        (i) to
          register the transfer of such Definitive Notes; or

         

        (ii) to
          exchange such Definitive Notes for an equal principal amount of Definitive
          Notes
          of other authorized denominations,

         

        the
          Registrar shall register the transfer or make the exchange as requested
          if its
          reasonable requirements for such transaction are met; provided,
          however,
          that
          the Definitive Notes surrendered for transfer or exchange:

         

        (i) shall
          be
          duly endorsed or accompanied by a written instrument of transfer in form
          reasonably satisfactory to the Company and the Registrar, duly executed
          by the
          Holder thereof or its attorney duly authorized in writing; and

         

        (ii) if
          such
          Definitive Notes are required to bear a Private Placement Legend, they
          are being
          transferred or exchanged pursuant to an effective registration 

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

        statement
          under the Securities Act, pursuant to clause (A), (B) or (C) below, and
          are
          accompanied by the following additional information and documents, as
          applicable:

         

        (A) if
          such
          Definitive Notes are being delivered to the Registrar by a Holder for
          registration in the name of such Holder, without transfer, a certification
          from
          such Holder to that effect; or

         

        (B) if
          such
          Definitive Notes are being transferred to the Company, a certification
          to that
          effect; or

         

        (C) if
          such
          Definitive Notes are being transferred (x) pursuant to an exemption from
          registration in accordance with Rule 144A or Rule 144 under the Securities
          Act;
          or (y) in reliance upon another exemption from the requirements of the
          Securities Act: (i) a certification to that effect (in the form set forth
          on the
          reverse of the Security) and (ii) if the Company so requests, an opinion
          of
          counsel or other evidence reasonably satisfactory to it as to the compliance
          with the restrictions set forth in the Private Placement Legend.

         

        (b) A Definitive
          Security may not be exchanged for a beneficial interest in a Global
          Security

         

        (c) A
          Global
          Note may not be transferred as a whole except by the Depositary to a nominee
          of
          the Depositary or by a nominee of the Depositary to the Depositary or another
          nominee of the Depositary or by the Depositary or any such nominee to a
          successor Depositary or a nominee of such successor Depositary.

         

        In
          the
          event that Global Note is exchanged for Definitive Notes, prior to the
          consummation of a Registered Exchange Offer or the effectiveness of a Shelf
          Registration Statement with respect to such Notes, such Notes may be exchanged
          only in accordance with such procedures as are substantially consistent
          with the
          provisions of this Section 2.3 (including the certification requirements
          set forth on the reverse of the Initial Notes intended to ensure that such
          transfers comply with Rule 144A or another applicable exemption under the
          Securities Act, as the case may be) and such other procedures as may from
          time
          to time be adopted by the Company.

         

        (d) (i)(A) Except
          as
          permitted by the following paragraphs (ii), (iii) and (iv), each
          certificate evidencing the Global Notes (and all Notes issued in exchange
          therefor or in substitution thereof) shall bear a legend in substantially
          the
          following form:

         

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

         

        
          
            
            

          

          
            38

            
              

            

          

          
            
            

          

        

        THE
          HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS
          NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I)
          TO THE
          COMPANY, (II) 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 OR (III) PURSUANT TO
          AN
          EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
          THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION
          STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV),
          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 NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED
          TO
          IN (A) ABOVE. 

         

        (B) Each
          Definitive Security shall also bear the following additional
          legend:

         

        IN
          CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE REGISTRAR
          AND
          TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER
          AGENT
          MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
          RESTRICTIONS.

         

        (C) Each
          Global Note shall bear the following legend:

         

        THIS
          GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
          THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
          OWNERS
          HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
          THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
          PURSUANT
          TO SECTION 2.07 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
          IN
          WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07(a) OF THE INDENTURE, (III)
          THIS
          GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
          SECTION
          2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
          SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

         

        (ii) Upon
          any
          sale or transfer of a Transfer Restricted Security Note (including any
          Transfer
          Restricted Note represented by a Global Note) pursuant to Rule 144 under
          the
          Securities Act, the Registrar shall permit the transferee thereof to exchange
          such Transfer Restricted Note for a Definitive Note that does not bear
          the
          legend set forth above and rescind any restriction on the transfer of such
          Transfer Restricted Note, if the transferor thereof certifies in writing
          to the
          Registrar that such sale or transfer was made in
          reliance on Rule 144 (such certification to be in the form set forth
          on the
          reverse of the Note).

         

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        

         

        (iii) After
          a
          transfer of any Initial Notes or Private Exchange Notes pursuant to and
          during
          the period of the effectiveness of a Shelf Registration Statement with
          respect
          to such Initial Notes or Private Exchange Notes, as the case may be, all
          requirements pertaining to legends on such Initial Notes or such Private
          Exchange Notes will cease to apply, the requirements requiring any such
          Initial
          Notes or such Private Exchange Notes issued to certain Holders be issued
          in
          global form will cease to apply, and a certificated Initial Note or Private
          Exchange Note or an Initial Note or Private Exchange Note in global form,
          in
          each case without restrictive transfer legends, will be available to the
          transferee of the Holder of such Initial Note or Private Exchange Note
          upon
          exchange of such transferring Holder's certificated Initial Note or Private
          Exchange Note or directions to transfer such Holder's interest in the Global
          Note, as applicable.

         

        (iv) Upon
          the
          consummation of a Registered Exchange Offer with respect to the Initial
          Notes,
          all requirements pertaining to such Initial Notes that Initial Notes issued
          to
          certain Holders be issued in global form will still apply with respect
          to
          Holders of such Initial Notes that do not exchange their Initial Notes,
          and
          Exchange Notes in certificated or global form, in each case without the
          Private
          Placement Legend will be available to Holders that exchange such Initial
          Notes
          in such Registered Exchange Offer.

         

        (v) Upon
          the
          consummation of a Private Exchange with respect to the Initial Notes, all
          requirements pertaining to such Initial Notes that Initial Notes issued
          to
          certain Holders be issued in global form will still apply with respect
          to
          Holders of such Initial Notes that do not exchange their Initial Notes,
          and
          Private Exchange Notes in global form with the Global Security Legend and
          Private Placement Legend hereto will be available to Holders that exchange
          such
          Initial Notes in such Private Exchange.

         

        (e) At
          such
          time as all beneficial interests in a Global Note have either been exchanged
          for
          Definitive Notes, redeemed, purchased or canceled, such Global Note shall
          be
          returned to the Depositary for cancellation or retained and canceled by
          the
          Trustee. At any time prior to such cancellation, if any beneficial interest
          in a
          Global Note is exchanged for Definitive Notes, redeemed, purchased or canceled,
          the principal amount of Notes represented by such Global Note shall be
          reduced
          and an adjustment shall be made on the books and records of the Trustee
          (if it
          is then the Custodian for such Global Note) with respect to such Global
          Note, by
          the Trustee or the Custodian, to reflect such reduction.

         

        (f) The
          Trustee shall have no responsibility or obligation to any beneficial owner
          of a
          Global Note, a member of, or a participant in the Depositary or other Person
          with respect to the accuracy of the records of the Depositary or its nominee
          or
          of any participant or member thereof, with respect to any ownership interest
          in
          the Notes or with respect to the delivery to any participant, member, beneficial
          owner or other Person (other than the Depositary) of any notice (including
          any
          notice of redemption) or the payment of any amount, under or with respect
          to
          such Notes. All notices and communications to be given to the Holders and
          all
          payments to be made to Holders under the Notes shall be given or 

         

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

           

          made
            only
            to or upon the order of the registered Holders (which shall be the Depositary
            or
            its nominee in the case of a Global Note). The rights of beneficial owners
            in
            any Global Note shall be exercised only through the Depositary subject
            to the
            applicable rules and procedures of the Depositary. The Trustee may rely
            and
            shall be fully protected in relying upon information furnished by the
            Depositary
            with respect to its members, participants and any beneficial
            owners.

        

         

        The
          Trustee shall have no obligation or duty to monitor, determine or inquire
          as to
          compliance with any restrictions on transfer imposed under this Indenture
          or
          under applicable law with respect to any transfer of any interest in any
          Note
          (including any transfers between or among Depositary participants, members
          or
          beneficial owners in any Global Note) other than to require delivery of
          such
          certificates and other documentation or evidence as are expressly required
          by,
          and to do so if and when expressly required by, the terms of this Indenture,
          and
          to examine the same to determine substantial compliance as to form with
          the
          express requirements hereof.

         

        (g) A
          Global
          Note deposited with the Depositary or with the Trustee as Custodian for
          the
          Depositary pursuant to Section 2.1 shall be transferred to the beneficial
          owners thereof in the form of Definitive Notes in an aggregate principal
          amount
          equal to the principal amount of such Global Note, in exchange for such
          Global
          Note, only if such transfer complies with Section 2.06 hereof and
          (i) the Depository notifies the Company that it is unwilling or
          unable to
          continue as Depositary for such Global Note and the Depositary fails to
          appoint
          a successor depository or if at any time such Depositary ceases to be a
          “clearing agency” registered under the Exchange Act, in either case, and a
          successor depository is not appointed by the Company within 90 days
          of such
          notice, or (ii) an Event of Default has occurred and is continuing
          or (iii)
          the Company, in its sole discretion, notifies the Trustee in writing that
          it
          elects to cause the issuance of Definitive Notes under this
          Indenture.

         

        Any
          Global Note that is transferable to the beneficial owners thereof pursuant
          to
          this Section 2.06(g) shall be surrendered by the Depositary to the
          Trustee
          located at its principal corporate trust office in the Borough of Manhattan,
          The
          City of New York, to be so transferred, in whole or from time to time in
          part,
          without charge, and the Trustee shall authenticate and deliver, upon such
          transfer of each portion of such Global Note, an equal aggregate principal
          amount of Definitive Notes of authorized denominations. Any portion of
          a Global
          Note transferred pursuant to this Section 2.06(g) shall be executed,
          authenticated and delivered only in denominations of $1,000 principal amount
          and
          any integral multiple thereof and registered in such names as the Depositary
          shall direct. Any Definitive Note delivered in exchange for an interest
          in the
          Transfer Restricted Note shall, except as otherwise provided by
          Section 2.06(d) hereof, bear the applicable legend.

         

        Subject
          to the provisions of this Section 2.06, the registered Holder of
          a Global
          Note shall be entitled to grant proxies and otherwise authorize any Person,
          including Participants and Indirect Participants, to take any action which
          a
          Holder is entitled to take under this Indenture or the Notes.

         

        In
          the
          event of the occurrence of one of the events specified in this
          Section 2.06(g), the Company shall promptly make available to the
          Trustee a
          reasonable supply of Definitive Notes in definitive, fully registered form
          without interest coupons. In the event that such
          Definitive Notes are not issued, the Company expressly acknowledges, with
          respect to the right of any Holder to pursue a remedy under this Indenture,
          the
          right of any beneficial owner of Notes to pursue such remedy with respect
          to the
          portion of the Global Note that represents such beneficial owner's Notes
          as if
          such Definitive Notes had been issued.

         

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

         

        Section
          2.07.  Replacement
          Notes.

         

        If
          a
          mutilated Note is surrendered to the Registrar or if the Holder of a Note
          claims
          that the Note has been lost, destroyed or wrongfully taken, the Company
          shall
          issue and the Trustee shall authenticate a replacement Note if the requirements
          of Section 8-405 of the Uniform Commercial Code are met and the
          Holder
          satisfies any other reasonable requirements of the Trustee. If required
          by the
          Trustee or the Company, such Holder shall furnish an indemnity bond sufficient
          in the judgment of the Company and the Trustee to protect the Company,
          the
          Trustee, the Paying Agent, the Registrar and any co-registrar from any
          loss
          which any of them may suffer if a Note is replaced. The Company and the
          Trustee
          may charge the Holder for their expenses in replacing a Note.

         

        Every
          replacement Note is an additional Obligation of the Company.

         

        Section
          2.08.  Outstanding
          Notes.

         

        Notes
          outstanding at any time are all Notes authenticated by the Trustee except
          for
          those canceled by it, those delivered to it for cancellation and those
          described
          in this Section 2.08 as not outstanding. A Note does not cease to be outstanding
          because the Company or an Affiliate of the Company holds the Note.

         

        If
          a Note
          is replaced pursuant to Section 2.07, it ceases to be outstanding
          unless
          the Trustee and the Company receive proof satisfactory to them that the
          replaced
          Note is held by a bona fide
          purchaser.

         

        If
          the
          Paying Agent segregates and holds in trust, in accordance with this Indenture,
          on a redemption date or maturity date money sufficient to pay all principal
          and
          interest payable on that date with respect to the Notes (or portions thereof)
          to
          be redeemed or maturing, as the case may be, and the Paying Agent is not
          prohibited from paying such money to the Noteholders on that date pursuant
          to
          the terms of this Indenture, then
          on
          and after that date such Notes (or portions thereof) cease to be outstanding
          and
          interest on them ceases to accrue.

         

        Section
          2.09.  Temporary
          Notes.

         

        Until
          definitive Notes are ready for delivery, the Company may prepare and the
          Trustee
          shall authenticate temporary Notes. Temporary Notes shall be substantially
          in
          the form of definitive Notes but may have variations that the Company considers
          appropriate for temporary Notes. Without unreasonable delay, the Company
          shall
          prepare and the Trustee shall authenticate definitive Notes and deliver
          them in
          exchange for temporary Notes upon surrender of such temporary Notes at
          the
          office or agency of the Company, without charge to the Holder.

         

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        

        

         

        Section
          2.10.  Cancellation.

         

        The
          Company at any time may deliver Notes to the Trustee for cancellation.
          The
          Registrar and the Paying Agent shall forward to the Trustee any Notes
          surrendered to them for registration of transfer, exchange or payment.
          The
          Trustee and no one else shall cancel and destroy (subject to the record
          retention requirements of the Exchange Act) all Notes surrendered for
          registration of transfer, exchange, payment or cancellation and deliver
          a
          certificate of such destruction to the Company unless the Company directs
          the
          Trustee to deliver copies of canceled Notes to the Company. The Company
          may not
          issue new Notes to replace Notes they have redeemed, paid or delivered
          to the
          Trustee for cancellation.

         

        Section
          2.11.  Defaulted
          Interest.

         

        If
          the
          Company defaults in a payment of interest on the Notes, the Company shall
          pay
          defaulted interest (plus interest on such defaulted interest to the extent
          lawful) in any lawful manner. The Company may pay the defaulted interest
          to the
          persons who are Noteholders on a subsequent special record date. The Company
          shall fix or cause to be fixed any such special record date and payment
          date to
          the reasonable satisfaction of the Trustee and shall promptly mail or cause
          to
          be mailed to each Noteholder a notice that states the special record date,
          the
          payment date and the amount of defaulted interest to be paid.

         

        Section
          2.12.  CUSIP
          Numbers.

         

        The
          Company in issuing the Notes may use “CUSIP” numbers (if then generally in use)
          and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a
          convenience to Holders; provided,
          however,
          that
          any such notice may state that no representation is made as to the correctness
          of such numbers either as printed on the Notes or as contained in any notice
          of
          a redemption and that reliance may be placed only on the other identification
          numbers printed on the Notes, and any such redemption shall not be affected
          by
          any defect in or omission of such numbers.

         

        Section
          2.13.  Issuance
          of Additional Notes.

         

        After
          the
          Issue Date, the Company shall be entitled, subject to compliance with
          Section 4.07, to issue Additional Notes under this Indenture, which
          Notes
          shall have identical terms as the Initial Notes issued on the Issue Date,
          other
          than with respect to the date of issuance and issue price. All the Notes
          issued
          under this Indenture shall be treated as a single class for all purposes
          of this
          Indenture including waivers, amendments, redemptions and offers to purchase.
          Any
          Additional Notes subsequently issued will be secured, equally and ratably
          with
          the Notes, by the Second Priority Liens on the Collateral. As a result,
          the
          issuance of any Additional Notes will have the effect of diluting the value
          of
          the security interest in the Collateral for the then outstanding
          Notes.

         

        With
          respect to any Additional Notes, the Company shall set forth in a resolution
          of
          its Board of Directors and an Officers' Certificate, a copy of each which
          shall
          be delivered to the Trustee, the following information:

         

        
          
            
            

          

          
            43

            
              

            

          

          
            
            

          

        

        

         

        (i) the
          aggregate principal amount of such Additional Notes to be  authenticated
          and delivered pursuant to this Indenture and the provision of Section 4.07
           that
          the
          Company is relying on to issue such Additional Notes; and

         

        (ii) the
          issue
          price, the issue date and the CUSIP number of such Additional Notes;
provided,
          however,
          that no
          Additional Notes may be issued at a price that would cause such Additional
          Notes
          to have more than a de minimis amount of “original issue discount” within the
          meaning of Section 1273 of the Code.

         

        ARTICLE
          THREE  

         

        REDEMPTION
          AND OFFERS TO PURCHASE

         

        Section
          3.01.  Notices
          to Trustee.

         

        If
          the
          Company elects to redeem the Notes pursuant to the optional redemption
          provisions set forth in the Notes, it shall furnish to the Trustee, at
          least 30
          days but not more than 60 days before a redemption date, an Officers’
          Certificate setting forth (i) the provision of the Notes pursuant to which
          the
          redemption shall occur, (ii) the redemption date, (iii) the principal amount
          of
          Notes to be redeemed and (iv) the redemption price.

         

        Section
          3.02.  Selection
          of Notes to Be Redeemed.

         

        (a)  If
          less
          than all of the Notes are to be redeemed at any time, the Trustee shall
          select
          the Notes to be redeemed among the Holders of the Notes in compliance with
          the
          requirements of the principal national securities exchange, if any, on
          which the
          Notes are listed or, if the Notes are not so listed, on a pro rata basis,
          by lot
          or in accordance with any other method the Trustee considers fair and
          appropriate. In the event of partial redemption by lot, the particular
          Notes to
          be redeemed shall be selected, unless otherwise provided herein, not less
          than
          30 nor more than 60 days prior to the redemption date by the Trustee from
          the
          outstanding Notes not previously called for redemption.

         

        (b)  The
          Trustee shall promptly notify the Company in writing of the Notes selected
          for
          redemption and, in the case of any Note selected for partial redemption,
          the
          principal amount at maturity thereof to be redeemed. No Notes in amounts
          of
          $1,000 or less shall be redeemed in part. Notes and portions of Notes selected
          shall be in amounts of $1,000 or whole multiples of $1,000; except that
          if all
          of the Notes of a Holder are to be redeemed, the entire outstanding amount
          of
          Notes held by such Holder, even if not a multiple of $1,000, shall be redeemed.
          Except as provided in the preceding sentence, provisions of this Indenture
          that
          apply to Notes called for redemption also apply to portions of Notes called
          for
          redemption.

         

        
          
            
            

          

          
            44

            
              

            

          

          
            
            

          

        

        Section
          3.03.  Notice
          of Redemption.

         

        (a)  At
          least
          30 days but not more than 60 days before a redemption date, the Company
          shall
          mail or cause to be mailed, by first class mail, a notice of redemption
          to each
          Holder whose Notes are to be redeemed at its registered address.

         

        (b)  The
          notice shall identify the Notes to be redeemed and shall state:

         

        (i)  the
          redemption date;

         

        (ii)  the
          redemption price;

         

        (iii)  if
          any
          Note is being redeemed in part, the portion of the principal amount at
          maturity
          of such Note to be redeemed and that, after the redemption date upon surrender
          of such Note, a new Note or Notes in principal amount equal to the unredeemed
          portion of the original Note shall be issued in the name of the Holder
          thereof
          upon cancellation of the original Note;

         

        (iv)  the
          name
          and address of the Paying Agent;

         

        (v)  that
          Notes called for redemption must be surrendered to the Paying Agent to
          collect
          the redemption price and become due on the date fixed for
          redemption;

        (vi)  that,
          unless the Company defaults in making such redemption payment, interest,
          if any,
          on Notes called for redemption ceases to accrue on and after the redemption
          date;

         

        (vii)  the
          paragraph of the Notes and/or Section of this Indenture pursuant to which
          the
          Notes called for redemption are being redeemed; and

         

        (viii)  that
          no
          representation is made as to the correctness or accuracy of the CUSIP number,
          if
          any, listed in such notice or printed on the Notes.

         

        (c)  At
          the
          Company’s request, the Trustee shall give the notice of redemption in the
          Company’s name and at its expense; provided, however, that the Company shall
          have delivered to the Trustee, at least 45 days prior to the redemption
          date, an
          Officers’ Certificate requesting that the Trustee give such notice and setting
          forth the information to be stated in such notice as provided in the preceding
          paragraph. The notice, if mailed in the manner provided herein shall be
          presumed
          to have been given, whether or not the Holder receives such notice.

         

        Section
          3.04.  Effect
          of Notice of Redemption.

         

        Once
          notice of redemption is mailed in accordance with Section 3.03 hereof,
          Notes
          called for redemption become irrevocably due and payable on the redemption
          date
          at the redemption price. A notice of redemption may not be
          conditional.

         

        
          
            
            

          

          
            45

            
              

            

          

          
            
            

          

        

         

        Section
          3.05.  Deposit
          of Redemption Price.

         

        (a)  One
          Business Day prior to the redemption date, the Company shall deposit with
          the
          Trustee or with the Paying Agent money sufficient to pay the redemption
          price of
          and accrued interest and Liquidated Damages, if any, on all Notes to be
          redeemed
          on that date. The Trustee or the Paying Agent shall promptly return to
          the
          Company any money deposited with the 

         

        (b)  Trustee
          or the Paying Agent by the Company in excess of the amounts necessary to
          pay the
          redemption price of, and accrued interest on, all Notes to be
          redeemed.

         

        (c)  If
          the
          Company complies with the provisions of the preceding paragraph, on and
          after
          the redemption date, interest shall cease to accrue on the Notes or the
          portions
          of Notes called for redemption. If a note is redeemed on or after an interest
          record date but on or prior to the related interest payment date, then
          any
          accrued and unpaid interest shall be paid to the Person in whose name such
          Note
          was registered at the close of business on such record date. If any Note
          called
          for redemption shall not be so paid upon surrender for redemption because
          of the
          failure of the Company to comply with the preceding paragraph, interest
          shall be
          paid on the unpaid principal, from the redemption date until such principal
          is
          paid, and to the extent lawful on any interest not paid on such unpaid
          principal, in each case at the rate provided in the Notes and in Section
          4.01
          hereof.

         

        Section
          3.06.  Notes
          Redeemed in Part.

         

        Upon
          surrender of a Note that is redeemed in part, the Company shall issue and
          the
          Trustee shall authenticate for the Holder at the expense of the Company
          a new
          Note equal in principal amount to the unredeemed portion of the Note
          surrendered. No Notes in denominations of $1,000 or less shall be redeemed
          in
          part.

         

        Section
          3.07.  Repurchase
          Offers.

         

        In
          the
          event that, pursuant to Section 4.10, 4.11 or 4.19 hereof, the Company
          shall be
          required to commence an offer to all Holders to purchase their respective
          Notes
          (a “Repurchase Offer”), it shall follow the procedures specified in such
          Sections and, to the extent not inconsistent therewith, the procedures
          specified
          below.

         

        The
          Repurchase Offer shall remain open for a period of no less than 30 days
          and no
          more than 90 days following its commencement, except to the extent that
          a longer
          period is required by applicable law (the “Offer Period”). No later than three
          Business Days after the termination of the offer Period (the “Purchase Date”),
          the Company shall purchase the principal amount of Notes required to be
          purchased pursuant to Section 4.10, 4.11 or Section 4.19 hereof (the “Offer
          Amount”) or, if less than the Offer Amount has been tendered, all Notes tendered
          in response to the Repurchase Offer. Payment for any Notes so purchased
          shall be
          made in the same manner as interest payments are made.

         

        If
          the
          Purchase Date is on or after an interest record date and on or before the
          related interest payment date, any accrued and unpaid interest and Liquidated
          Damages, if any, shall be paid to the Person in whose name a Note is registered
          at the close of business on such record date, and no additional interest
          or
          Liquidated Damages shall be payable to Holders who tender Notes pursuant
          to the
          Repurchase Offer.

         

        Upon
          the
          commencement of a Repurchase Offer, the Company shall send, by first class
          mail,
          a notice to the Trustee and each of the Holders. The notice shall contain
          all
          instructions and matters necessary to enable such Holders to tender Notes
          pursuant to the Repurchase Offer. The Repurchase Offer shall be made to
          all
          Holders. The notice, which shall govern the terms of the Repurchase Offer,
          shall
          state:

         

        
          
            
            

          

          
            46

            
              

            

          

          
            
            

          

        

         

         

        (i)  that
          the
          Repurchase Offer is being made pursuant to this Section 3.07 and Section
          4.10, 4.11 or Section 4.19
          hereof,
          and the length of time the Repurchase Offer shall remain open;

         

        (ii)  the
          Offer
          Amount, the purchase price and the Purchase Date;

         

        (iii)  that
          any
          Note not tendered or accepted for payment shall continue to accrue interest
          and
          Liquidated Damages, if any;

         

        (iv)  that,
          unless the Company defaults in making such payment, any Note (or portion
          thereof) accepted for payment pursuant to the Repurchase Offer shall cease
          to
          accrue interest and Liquidated Damages, if any, after the Purchase
          Date;

         

        (v)  that
          Holders electing to have a Note purchase pursuant to a Repurchase offer
          may
          elect to have Notes purchased in integral multiples of $1,000 only;

         

        (vi)  that
          Holders electing to have a Note purchased pursuant to any Repurchase Offer
          shall
          be required to surrender the Note, with the form entitled “Option of Holder to
          Elect Purchase” on the reverse of the Note completed, or transfer by book-entry
          transfer, to the Company, a depositary, if appointed by the Company, or
          a Paying
          Agent at the address specified in the notice at least three days before
          the
          Purchase Date;

         

        (vii)  that
          Holders shall be entitled to withdraw their election if the Company, the
          Depositary or the Paying Agent, as the case may be, receives, not later
          than the
          expiration of the Offer Period, a telegram, telex, facsimile transmission
          or
          letter setting forth the name of the Holder, the principal amount of the
          Note
          the Holder delivered for purchase and a statement that such Holder is
          withdrawing his election to have such Note purchased;

         

        (viii)  that,
          if
          the aggregate amount of Notes surrendered by Holders exceeds the Offer
          Amount,
          the Trustee shall, subject in the case of a Repurchase offer made pursuant
          to Section
          4.10, 4.11 or Section 4.19, select the Notes to be purchased on a pro rata
          basis
          (with such adjustments as may be deemed appropriate by the Trustee so that
          only
          Notes in denominations of $1,000, or integral multiples thereof, shall
          be
          purchased); and

         

        (ix)  that
          Holders whose Notes were purchased only in part shall be issued new Notes
          equal
          in principal amount to the unpurchased portion of the Notes surrendered
          (or
          transferred by book-entry transfer).

         

        
          
            
            

          

          
            47

            
              

            

          

          
            
            

          

        

         

        On
          the
          Purchase Date, the Company shall, to the extent lawful, subject in the
          case of a
          Repurchase Offer made pursuant to Section 4.10, 4.11 or Section 4.19,
          accept
          for payment on a pro rata basis to the extent necessary, the Offer Amount
          of
          Notes (or portions thereof) tendered pursuant to the Repurchase offer,
          or if
          less than the Offer Amount has been tendered, all Notes tendered, and shall
          deliver to the Trustee an Officers’ Certificate stating that such Notes (or
          portions thereof) were accepted for payment by the Company in accordance
          with
          the terms of this Section 3.07. The Company, the Depositary or the Paying
          Agent,
          as the case may be, shall promptly
          (but in any case not later than three days after the Purchase Date) mail
          or
          deliver to each tendering Holder an amount equal to the purchase price
          of Notes
          tendered by such Holder, as the case may be, and accepted by the Company
          for
          purchase, and the Company, shall promptly issue a new Note. The Trustee,
          upon
          written request from the Company shall authenticate and mail or deliver
          such new
          Note to such Holder, in a principal amount at maturity equal to any unpurchased
          portion of the Note surrendered. Any Note not so accepted shall be promptly
          mailed or delivered by the Company to the respective Holder thereof. The
          Company
          shall publicly announce the results of the Repurchase Offer on the Purchase
          Date.

         

        The
          Company shall comply, to the extent applicable, with the requirements of
          Section
          14(e) of the Exchange Act, and any other securities laws and regulations
          to the
          extent such laws or regulations are applicable in connection with the repurchase
          of the Notes pursuant to a Repurchase Offer. To the extent that the provisions
          of any securities laws or regulations conflict the provisions of this Section
          3.07, Section 4.10, 4.11 or Section 4.19, the Company shall comply with
          the
          applicable securities laws and regulations and will not be deemed to have
          breached its obligations under Section 3.07, 4.10, 4.11 or 4.19 by virtue
          of
          such compliance.

         

        ARTICLE
          FOUR

         

        COVENANTS

         

        Section
          4.01.  Payment
          of Notes.

         

        (a)  The
          Company shall pay or cause to be paid the principal of, premium, if any,
          and
          interest on the Notes on the dates and in the manner provided in the Notes.
          Principal, premium, if any, and interest shall be considered paid on the
          date
          due if the Paying Agent, if other than the Company or one of its Subsidiaries,
          holds as of 11:00 a.m. Eastern Time on the due date money deposited by
          the
          Company in immediately available funds and designated for and sufficient
          to pay
          all principal, premium, if any, and interest then due. The Company shall
          pay all
          Liquidated Damages, if any, in the same manner on the dates and in the
          amounts
          set forth in the Registration Rights Agreement.

         

        (b)  The
          Company shall, subject to applicable law, pay interest (including post-petition
          interest in any proceeding under any Bankruptcy Law) on overdue principal
          at the
          rate equal to 1% per annum in excess of the then applicable interest rate
          on the
          Notes to the extent lawful; it shall pay interest (including post-petition
          interest in any proceeding under any Bankruptcy Law) on overdue installments
          of
          interest, and Liquidated Damages (without regard to any applicable grace
          period)
          at the same rate to the extent lawful.

         

        Section
          4.02.  Maintenance
          of Office or Agency.

         

        (a)  The
          Company shall maintain in the Borough of Manhattan, The City of New York,
          an
          office or agency (which may be an office of the Trustee or an agent of
          the
          Trustee, Registrar or co-registrar) where Notes may be surrendered for
          registration of transfer or for exchange and where notices and demands
          to or
          upon the Company in respect of the Notes and this Indenture may be served.
          The
          Company shall give prompt written notice to the Trustee of the location,
          and any
          change in the location, of such office or agency. If at any time the Company
          shall fail to maintain any such required office or agency or shall fail
          to
          furnish the 

         

        
          
            
            

          

          
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        (b)  Trustee
          with the address thereof, such presentations, surrenders, notices and demands
          may be made or served at the Corporate Trust Office of the Trustee.

         

        (c)  The
          Company may also from time to time designate one or more other offices
          or
          agencies where the Notes may be presented or surrendered for any or all
          such
          purposes and may from time to time rescind such designations; provided,
          however,
          that no such designation or rescission shall in any manner relieve the
          Company
          of its obligation to maintain an office or agency in the Borough of Manhattan,
          The City of New York for such purposes. The Company shall give prompt written
          notice to the Trustee of any such designation or rescission and of any
          change in
          the location of any such other office or agency.

         

        (d)  The
          Company hereby designates the Corporate Trust Office of the Trustee as
          one such
          office or agency of the Company in accordance with Section 2.04 of this
          Indenture.

         

        Section
          4.03.  Commission
          Reports.

         

        (a)  Whether
          or not required by the Commission, so long as any Notes are outstanding,
          the
          Company will furnish to the Holders of Notes, within the time periods specified
          in the Commission’s rules and regulations (including any permitted
          extensions):

         

        (i)  all
          quarterly and annual financial information that would be required to be
          contained in a filing with the Commission on Forms 10-Q and 10-K if the
          Company
          were required to file such Forms, including a “Management’s Discussion and
          Analysis of Financial Condition and Results of Operations” and, with respect to
          the annual information only, a report on the annual financial statements
          by the
          Company’s certified independent accountants. Each quarterly and annual report
          filed on Form 10-Q or 10-K shall include (A) the Company’s Weighted Average
          Retail Attrition Rate for the three fiscal quarters ended at the end of
          the
          period covered by such report and (B) the Company’s Retail Attrition Rate for
          the fiscal quarter ended at the end of the period covered by such report;
          and

         

        (ii)  all
          current reports that would be required to be filed with the Commission
          on Form
          8-K if the Company were required to file such reports,

         

        provided
          that the Company shall not be required to deliver any such quarterly report
          or
          information or current report if such report or information is filed with
          the
          Commission and made publicly available on the Commission’s EDGAR
          website.

         

        (b)  In
          addition, whether or not required by the Commission, the Company will file
          a
          copy of all of the information and reports referred to in clauses (a)(i)
          and
          (ii) above with the Commission for public availability within the time
          periods
          specified in the Commission’s rules and regulations (unless the Commission will
          not accept such a filing). In addition, the Company and the Subsidiary
          Guarantors have agreed that, for so long as any Notes remain outstanding,
          they
          will furnish to the Holders, upon their request, the information required
          to be
          delivered pursuant to Rule 144A(d)(4) under the Securities Act.

         

        (c)  If
          the
          Company has designated any of its Subsidiaries as Unrestricted Subsidiaries,
          then the quarterly and annual financial information required by Section
          
4.03(a)
          

         

        
          
            
            

          

          
            49

            
              

            

          

          
            
            

          

        

         

        (d)  shall
          include a reasonably detailed presentation, either on the face of the financial
          statements or in the footnotes thereto, and in “Management’s Discussion and
          Analysis of Financial Condition and Results of Operations,” of the financial
          condition and results of operations of the Company and its Restricted
          Subsidiaries separate from the financial condition and results of operations
          of
          the Unrestricted Subsidiaries of the Company.

         

        Section
          4.04.  Compliance
          Certificate.

         

        (a)  The
          Company and each Subsidiary Guarantor (to the extent that such Subsidiary
          Guarantor is so required under the TIA) shall deliver to the Trustee, within
          90
          days after the end of each fiscal year, an Officers’ Certificate stating that a
          review of the activities of the Company and its Subsidiaries during the
          preceding fiscal year has been made under the supervision of the signing
          Officers with a view to determining whether the Company has kept, observed,
          performed and fulfilled its obligations under this Indenture, and further
          stating, as to each such Officer signing such certificate, that to the
          best of
          his or her knowledge, the Company has kept, observed, performed and fulfilled
          its obligations under this Indenture and is not in default in the performance
          or
          observance of any of the terms, provisions and conditions of this Indenture
          (or,
          if a Default or Event of Default shall have occurred, describing all such
          Defaults or Events of Default of which he or she may have knowledge and
          what
          action the Company is taking or proposes to take with respect thereto)
          and that
          to the best of his or her knowledge no event has occurred and remains in
          existence by reason of which payments on account of the principal of or
          interest, if any, on the Notes is prohibited or if such event has occurred,
          a
          description of the event and what action the Company is taking or proposes
          to
          take with respect thereto.

         

        (b)  So
          long
          as not contrary to the then current recommendations of the American Institute
          of
          Certified Public Accountants, the year-end financial statements delivered
          pursuant to Section 4.03(a) above shall be accompanied by a written statement
          of
          the Company’s independent public accountants (which shall be a firm of
          established national reputation) that in making the examination necessary
          for
          certification of such financial statements, nothing has come to their attention
          that would lead them to believe that the Company has violated any provisions
          of
          Article Four or Article Five hereof or, if any such violation has occurred,
          specifying the nature and period of existence thereof, it being understood
          that
          such accountants shall not be liable directly or indirectly to any Person
          for
          any failure to obtain knowledge of any such violation. If such a certification
          is contrary to the then current recommendations of the American Institute
          of
          Certificate Public Accountants with respect to any year-end financial statements
          being delivered to the Trustee pursuant to Section 4.03(a), the Company
          shall
          deliver an Officer’s Certificate to such effect to the Trustee at the time such
          year-end financial statements are so delivered to the Trustee.

         

        (c)  The
          Company shall, so long as any of the Notes are outstanding, deliver to
          the
          Trustee, forthwith upon any Officer becoming aware of any Default or Event
          of
          Default, an Officer’s Certificate specifying such Default or Event of Default
          and what action the Company is taking or proposes to take with respect
          thereto.

         

        
          
            
            

          

          
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        Section
          4.05.  Taxes.

         

        The
          Company shall pay, and shall cause each of its Subsidiaries to pay, prior
          to
          delinquency, any taxes, assessments, and governmental levies except such
          as are
          contested in good faith and by appropriate proceedings or where the failure
          to
          effect such payment is not adverse in any material respect to the Holders
          of the
          Notes.

         

        Section
          4.06.  Stay,
          Extension and Usury Laws.

         

        The
          Company and each of the Subsidiary Guarantors covenant (to the extent that
          it
          may lawfully do so) that it shall not at any time insist upon, plead, or
          in any
          manner whatsoever claim or take the benefit or advantage of, any stay,
          extension
          or usury law wherever enacted, now or at any time hereafter in force, that
          may
          affect the covenants or the performance of this Indenture; and the Company
          and
          each of the Subsidiary Guarantors (to the extent that it may lawfully do
          so)
          hereby expressly waive all benefit or advantage of any such law, and covenant
          that they shall not, by resort to any such law, hinder, delay or impede
          the
          execution of any power herein granted to the Trustee, but shall suffer
          and
          permit the execution of every such power as though no such law has been
          enacted.

         

        Section
          4.07.  Limitation
          on Indebtedness.

         

        (a)  The
          Company shall not, and shall not permit any Restricted Subsidiary to, directly
          or indirectly, create, incur, issue, assume, guarantee or otherwise become
          directly or indirectly liable, contingently or otherwise, (collectively,
          “Incur”), with respect to any Indebtedness (including Acquired Debt), and the
          Company will not, and will not permit any of its Restricted Subsidiaries
          to,
          issue any Disqualified Stock (other than to the Company or a Wholly Owned
          Restricted Subsidiary); provided,
          however,
          that
          the Company and any Restricted Subsidiary may (1) incur Indebtedness (including
          Acquired Debt) and issue shares of Disqualified Stock if the Company’s
          Consolidated Fixed Charge Coverage Ratio at the time of the incurrence
          of such
          Indebtedness or issuance of such Disqualified Stock, after giving pro forma
          effect thereto (including a pro forma application of the use of proceeds
          therefrom), is greater than 3.0 to 1.0 (2) incur Subordinated Indebtedness
          (including Acquired Subordinated Debt) if the Company’s Consolidated Fixed
          Charge Coverage Ratio at the time of the incurrence of such Indebtedness,
          after
          giving pro forma effect thereto (including a pro forma application of the
          use of
          proceeds therefrom), is greater than 2.5 to 1.0.

         

        (b)  Section
          4.07(a) shall not prohibit the incurrence of any of the following items
          of
          Indebtedness or issuance of Disqualified Stock (collectively, “Permitted
          Debt”):

         

        (i)  the
          incurrence by the Company and the Restricted Subsidiaries of Indebtedness
          pursuant to the Credit Agreement (including letter of credit obligations)
          in an
          aggregate principal amount outstanding under this clause (i) at any one
          time not
          to exceed $30 million, less the aggregate amount of all Net Proceeds of
          Asset
          Sales applied by the Company or any Restricted Subsidiary to repay any
          Indebtedness under the Credit Agreement (and, in the case of any revolving
          credit Indebtedness under the Credit Agreement,
          to effect a corresponding permanent commitment reduction thereunder) pursuant
          to
          Section 4.11;

         

        
          
            
            

          

          
            51

            
              

            

          

          
            
            

          

        

         

        (ii)  the
          incurrence by the Company of Existing Indebtedness;

         

        (iii)  the
          incurrence by the Company of Indebtedness represented by (A) the Notes
          issued on
          the Issue Date and any guarantees of such Notes by the Subsidiary Guarantors
          or
          (B) Exchange Notes in respect of such Notes or any Additional Notes and
          any
          guarantees of such Exchange Notes by the Subsidiary Guarantors;

         

        (iv)  the
          incurrence by the Company or any of its Restricted Subsidiaries of Permitted
          Refinancing Indebtedness in exchange for, or the net proceeds of which
          are used
          to refund, refinance or replace Indebtedness (other than intercompany
          Indebtedness) that was permitted by this Indenture to be Incurred under
          Section
          4.07(a) or clauses (ii), (iii), (iv) and (viii) of this Section 4.07(b),
          or the
          issuance by the Company or any of its Restricted Subsidiaries of Permitted
          Refinancing Disqualified Stock in exchange for, or the net proceeds of
          which are
          used to refund, refinance or replace Disqualified Stock (other than intercompany
          Disqualified Stock) that was permitted by this Indenture to be
          issued;

         

        (v)  the
          incurrence by the Company or any of its Restricted Subsidiaries of intercompany
          Indebtedness between or among the Company and any of its Restricted
          Subsidiaries; provided,
          however,
          that:

         

        (A)  if
          the
          Company or any Subsidiary Guarantor is the obligor, such Indebtedness must
          be
          unsecured, evidenced by a promissory note and expressly subordinated to
          the
          prior payment in full in cash of all obligations under the Notes,
          and

         

        (B)  (i)
          any
          subsequent issuance or transfer of Equity Interests that results in any
          such
          Indebtedness being held by a Person other than the Company or a Restricted
          Subsidiary of the Company, and (ii) any sale or other transfer of any such
          Indebtedness to a Person that is not either the Company or a Restricted
          Subsidiary of the Company shall be deemed, in each case, to constitute
          an
          incurrence of such Indebtedness by the Company or such Restricted Subsidiary,
          as
          the case may be, that was not permitted by this Section 4.07(b)(v);

         

        (vi)  the
          incurrence by the Company or any of its Restricted Subsidiaries of Hedging
          Obligations, provided that such obligations are entered into for bona fide
          hedging purposes and not for speculative purposes;

         

        (vii)  the
          incurrence by the Company and its Restricted Subsidiaries of additional
          Indebtedness in an aggregate amount not to exceed $5.0 million at any one
          time
          outstanding (which amount may, but need not, be incurred under the Credit
          Agreement);

         

        (viii)  the
          incurrence by the Company or its Restricted Subsidiaries of Indebtedness
          represented by Capital Lease Obligations, mortgage financings or purchase
          

         

        
          
            
            

          

          
            52

            
              

            

          

          
            
            

          

        

        money
          obligations, in each case incurred for the purpose of financing all or
          any part
          of the purchase price or cost of construction or improvement of property,
          plant
          or equipment used in the business of the Company or such Restricted Subsidiary
          at the time of such incurrence (whether through a direct purchase of assets
          or
          the Capital Stock of any Person owning solely those assets) in an aggregate
          principal amount not to exceed $2.0 million at any time outstanding;
          and

         

        (ix)  the
          guarantee by the Company or any Subsidiary Guarantor of Indebtedness of
          the
          Company or a Restricted Subsidiary of the Company that was permitted to
          be
          incurred by another provision of this Section 4.07.

         

        For
          purposes of determining compliance with this Section 4.07, in the event
          that an
          item of Indebtedness meets the criteria of more than one of the categories
          of
          Permitted Debt described in Sections 4.07(b)(i) through (ix) above or is
          entitled to be Incurred pursuant to Section 4.07(a), the Company may, in
          its
          sole discretion:

         

        (A)  at
          the
          time the proposed Indebtedness is incurred, classify all or a portion of
          that
          item of indebtedness on the date of its incurrence under either Section
          4.07(a)
          or under any category of Permitted Debt described in clauses (i) through
          (ix) of
          this Section 4.07(b); and

         

        (B)  reclassify
          at any later date all or a portion of that or any other item of Indebtedness
          as
          being or having been incurred in any manner that complies with this Section
          4.07;

         

        provided,
          that, in each case, Indebtedness under the Credit Agreement outstanding
          on the
          date the Notes are first issued under this Indenture is deemed to be incurred
          pursuant to Section 4.07(b)(i).

         

        Accrual
          of interest, accretion or amortization of original issue discount and the
          payment of interest on any Indebtedness in the form of additional Indebtedness
          with the same terms shall not be deemed to be an incurrence of Indebtedness
          for
          purposes of this Section 4.07.

         

        Section
          4.08.  Limitation
          on Restricted Payments.

         

        (a)  The
          Company shall not make, and shall not permit any Restricted Subsidiary
          to make,
          directly or indirectly any Restricted Payment unless, at the time of, and
          after
          giving effect to, such proposed Restricted Payment:

         

        (i)  no
          Default or Event of Default shall have occurred and be continuing or would
          occur
          as a consequence thereof;

         

        (ii)  the
          Company would, at the time of such Restricted Payment and after giving
          pro forma
          effect thereto as if such Restricted Payment had been made at the beginning
          of
          the applicable Latest Full Fiscal Quarter, have been permitted to Incur
          at least
          $1.00 of additional Indebtedness pursuant to the Consolidated Fixed Charge
          Coverage Ratio test set forth in Section 4.07(a); and

         

        
          
            
            

          

          
            53

            
              

            

          

          
            
            

          

        

         

         

        (iii)  such
          Restricted Payment, together with the aggregate amount of all other Restricted
          Payments made by the Company and its Restricted Subsidiaries after the
          Closing
          Date (excluding Restricted Payments permitted by clauses (ii), (iii) and
          (iv) of
          Section 4.08(b) below), is less than the sum, without duplication,
          of:

         

        (A)  50%
          of
          the Consolidated Net Income of the Company for the period (taken as one
          accounting period) beginning October 1, 2004 to the end of the Company’s most
          recently ended fiscal quarter for which internal financial statements are
          available at the time of such Restricted Payment (or, if such Consolidated
          Net
          Income for such period is a deficit, less 100% of such deficit),
          plus

         

        (B)  100%
          of
          the aggregate net proceeds, including the Fair Market Value of property
          other
          than cash as determined by the Board of Directors in good faith, received
          by the
          Company since the Closing Date (i) from the issue or sale of Equity Interests
          of
          the Company (other than Disqualified Stock) (including, without limitation,
          in a
          merger, consolidation, acquisition of property or any other form of transaction
          involving the issue or sale of Capital Stock (other than Disqualified Stock)),
          (ii) from the issue or sale of Disqualified Stock or debt securities of
          the
          Company that have been converted into such Equity Interests (other than
          Equity
          Interests (or Disqualified Stock or convertible debt securities) sold to
          a
          Restricted Subsidiary of the Company), and (iii) from other capital
          contributions to the Company (including, without limitation, through the
          merger
          or consolidation of a Person with and into the Company not involving the
          issuance or delivery of securities or any other consideration by the Company
          or
          any Restricted Subsidiary); plus

         

        (C)  the
          amount equal to the net reduction in Investments (other than Permitted
          Investments) made by the Company or any of its Restricted Subsidiaries
          in any
          Person after the Closing Date resulting from, and without duplication (i)
          repurchases or redemptions of such Investments by such Person, proceeds
          realized
          upon the sale of such Investment to an unaffiliated purchaser and repayments
          of
          loans or advances or other transfers of assets by such Person to the Company
          or
          any Restricted Subsidiary of the Company, or (ii) the redesignation of
          Unrestricted Subsidiaries as Restricted Subsidiaries (valued in each case
          as
          provided in the definition of “Investment”), not to exceed the amount of
          Investments previously made by the Company or any of its Restricted
          Subsidiaries, which amount was included in the calculation of Restricted
          Payments; provided,
          however,
          that no
          amount shall be included under this clause (C) to the extent it is already
          included in Consolidated Net Income.

         

        (b)  Section
          4.08(a) shall not prohibit:

         

        
          
            
            

          

          
            54

            
              

            

          

          
            
            

          

        

         

         

        (i)  the
          payment of any dividend or the making of any distribution in 60 days after
          the
          date of declaration thereof, if at the date of declaration the payment
          or
          distribution complied with the provisions of this Indenture;

         

        (ii)  the
          redemption, repurchase, retirement, defeasance or other acquisition of
          any
          subordinated Indebtedness or Capital Stock of the Company or any warrants,
          options or other rights to acquire shares of any such Capital Stock either
          (a)
          solely in exchange for Equity Interests of the Company other than Disqualified
          Stock, (b) through the application of the net proceeds of a substantially
          concurrent sale for cash (other than to a Restricted Subsidiary of the
          Company)
          of Equity Interests of the Company other than Disqualified Stock or (c)
          in the
          case of Disqualified Stock, solely in exchange for, or through the application
          of the net proceeds of a substantially concurrent sale for cash (other
          than to a
          Restricted Subsidiary of the Company) of, Permitted Refinancing Disqualified
          Stock; provided, in each case, that the amount of any such net cash proceeds
          that are utilized for any such redemption, repurchase, retirement, defeasance
          or
          other acquisition shall be excluded from Section 4.08(a)(iii)(B);

         

        (iii)  the
          defeasance, redemption, repurchase or other acquisition of subordinated
          Indebtedness in exchange for, or with the net cash proceeds from, an Incurrence
          of Permitted Refinancing Indebtedness;

         

        (iv)  repurchases
          of Capital Stock deemed to occur upon the exercise of stock options or
          warrants
          if such Capital Stock represents all or a portion of the exercise price
          thereof;
          or

         

        (v)  Restricted
          Payments in the aggregate amount of $2.5 million,

         

        provided,
          however, that in each case, no Event of Default shall have occurred or
          be
          continuing at the time of such payment or as a result thereof. In determining
          the aggregate amount of Restricted Payments made subsequent to the Closing
          Date,
          amounts expended pursuant to clauses (i) and (v) under this Section 4.08(b)
          shall be included in such calculations.

         

        (c)  The
          amount of all Restricted Payments (other than cash) shall be the Fair Market
          Value on the date of the Restricted Payment of the asset(s) or securities
          proposed to be transferred or issued by the Company or such Restricted
          Subsidiary, as the case may be, pursuant to the Restricted Payment. The
          Fair
          Market Value of any non-cash Restricted Payment shall be determined in
          good
          faith by the Board of Directors whose resolution with respect thereto shall
          be
          delivered to the Trustee. The Board of Directors’ determination shall be based
          upon an opinion or appraisal issued by an accounting, appraisal or investment
          banking firm of national standing, if the Fair Market Value exceeds $2.5
          million. Not later than the date of making any Restricted Payment, the
          Company
          shall deliver to the Trustee an Officers’ Certificate stating that such
          Restricted Payment is permitted and setting forth the basis upon which
          the
          calculations required by this Section 4.08 were computed, together with
          a copy
          of any fairness opinion or appraisal required by this Indenture.

         

        
          
            
            

          

          
            55

            
              

            

          

          
            
            

          

        

         

        (d)  The
          Board
          of Directors may designate any Restricted Subsidiary to be an Unrestricted
          Subsidiary in accordance with the terms of this Indenture if such designation
          would not cause a Default. For purposes of making such determination, all
          outstanding Investments by the Company and its Restricted Subsidiaries
          (except
          to the extent repaid in cash) in the Subsidiary so designated will be deemed
          to
          be Restricted Payments at the time of such designation and will reduce
          the
          amount available for Restricted Payments under Section 4.08. All such
          outstanding Investments will be deemed to constitute Investments in an
          amount
          equal to the Fair Market Value of such Investments at the time of such
          designation as determined in good faith by the Board of Directors. Such
          designation will only be permitted if such Restricted Payment would be
          permitted
          at such time and if such Restricted Subsidiary otherwise meets the definition
          of
          an Unrestricted Subsidiary.

         

        (e)  Any
          such
          designation by the Board of Directors shall be evidenced to the Trustee
          by
          filing with the Trustee a certified copy of the resolution of the Board
          of
          Directors giving effect to such designation and an Officers’ Certificate
          certifying that such designation complied with the foregoing conditions.
          If, at
          any time, any Unrestricted Subsidiary would fail to meet the definition
          of an
          Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
          Subsidiary for purposes of this Indenture and any Indebtedness of such
          Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of
          the
          Company as of such date (and, if such Indebtedness is not permitted to
          be
          incurred as of such date under Section 4.08, the Company shall be in default
          thereof).

         

        (f)  The
          Board
          of Directors of the Company may at any time designate any Unrestricted
          Subsidiary to be a Restricted Subsidiary, provided that:

         

        (i)  such
          designation shall be deemed to be an incurrence of Indebtedness by a Restricted
          Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
          Subsidiary and such designation shall only be permitted if such Indebtedness
          is
          permitted under Section 4.08, calculated on a pro forma basis as if such
          designation had occurred at the beginning of the relevant Latest Full Fiscal
          Quarter and, to the extent such Indebtedness is secured by a Lien, such
          Lien is
          permitted under Section 4.09;

         

        (ii)  all
          outstanding Investments owned by such Unrestricted Subsidiary shall be
          deemed to
          be made as of the time of such designation and such designation shall only
          be
          permitted if such Investments would be permitted under Section 4.08 after
          giving
          effect to any transactions subject to paragraph (a)(iii)(C) of this section;
          and

         

        (iii)  no
          Default or Event of Default would be in existence immediately following
          such
          designation.

         

        Section
          4.09.  Limitation
          on Liens.

         

        The
          Company shall not, and shall not permit any Restricted Subsidiary to, directly
          or indirectly, create, incur, assume or suffer to exist any Lien securing
          Indebtedness on any asset now owned or hereafter acquired, or any income
          or
          profits therefrom or assign or convey any right to receive income therefrom,
          except Permitted Liens.

         

        
          
            
            

          

          
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        Section
          4.10.  Repurchase
          Offer Following Excess Retail Attrition.

         

        (a)  If
          the
          Weighted Average Retail Attrition with respect to any three consecutive
          fiscal
          quarters exceeds 18% (a “Weighted Average Retail Attrition Rate Trigger Event”),
          the Company shall be required to make an offer, to commence within 45 days
          of
          the Trigger Determination Date, to all holders of the Notes to purchase
          10% of
          the Notes then outstanding (but in any event not less than $12.5 million
          of
          Notes) at an offer price in cash in an amount equal to 100% of the principal
          amount thereof, plus accrued and unpaid interest and additional interest,
          if
          any, thereon to the date of purchase, in accordance with the procedures
          sets
          forth in Section 3.07. If the aggregate principal amount of the Notes tendered
          into such offer exceeds the amount the Company is required to repurchase,
          the
          Trustee shall select the Notes to be purchased on a pro rata basis.

         

        (b)  If
          the
          Retail Attrition Rate exceeds 18% for the fiscal quarter immediately succeeding
          any Weighted Average Retail Attrition Rate Trigger Event (a “Retail Attrition
          Rate Trigger Event”), the Company shall be required to make an offer, to
          commence within 45 days of the Trigger Determination Date, to all holders
          of the
          Notes to purchase 10% of the Notes then outstanding (but in any event not
          less
          than $12.5 million of Notes) at an offer price in cash in an amount equal
          to
          100% of the principal amount thereof, plus accrued and unpaid interest
          and
          additional interest, if any, thereon to the date of purchase, in accordance
          with
          the procedures sets forth in Section 3.07. If the aggregate principal amount
          of
          the Notes tendered into such offer exceeds the amount the Company is required
          to
          repurchase, the Trustee shall select the Notes to be purchased on a pro
          rata
          basis.

         

        (c)  In
          no
          event, shall the Company be required to make an offer with respect to a
          Weighted
          Average Retail Attrition Rate Trigger Event and a Retail Attrition Rate
          Trigger
          Event with respect to the same fiscal quarter end. 

         

            “Cancelled
          RMR” means RMR attributable to alarm monitoring contracts with respect to which
          the Company has received effective notice of cancellation under such
          contracts.

         

            “Disqualified
          RMR” means RMR attributable to alarm monitoring contracts with related account
          receivable balances over 90 days from the invoice date.

         

            “Qualified
          RMR” means RMR attributable to alarm monitoring contracts with no related
          account receivable balances over 90 days from the invoice date.

         

            “Replacement
          RMR” means Cancelled RMR or Disqualified RMR that has been replaced by the
          selling Dealer with the new RMR as required by the original sales contract
          with
          the Dealer.

         

            “Retail
          Attrition Rate” means, with respect to any fiscal quarter and for our retail
          alarm monitoring portfolio, the quotient of: (i) the sum of (a) Cancelled
          RMR
plus
          (b) the
          increase (or minus the decrease) in Disqualified RMR minus
          (c)
          Replacement RMR; divided
          by
          (ii) the
          average of the Qualified RMR at the end of the month for all the months
          in the
          fiscal quarter and the end of the month preceding the fiscal quarter. Such
          quotient shall then be annualized by multiplying
          it by four to determine whether a Weighted Average Retail Attrition Trigger
          Event or Retail Attrition Trigger Event has occurred.

         

        
          
            
            

          

          
            57

            
              

            

          

          
            
            

          

        

         

            “RMR”
          means
          the recurring monthly revenue with respect to a retail alarm monitoring
          contract
          on a basis consistent with the calculation of RMR as reported in the Company’s
          filings with the Commission.

         

            ‘‘Trigger
          Determination Date’’ means with respect to a Weighted Average Retail Attrition
          Rate Trigger Event or Retail Attrition Rate Trigger Event, (i) if the fiscal
          period with which the determination is made is the first, second or third
          fiscal
          quarter, the date on which the Company files its Quarterly Report on Form
          10-Q
          with respect to such fiscal period (or, in the event the Company is not
          required
          to or does not file any such Quarterly Report with respect to a fiscal
          quarter,
          the 45th day after the end of such fiscal quarter) or (ii) if the fiscal
          period
          with respect to which the determination is made is the last fiscal quarter,
          the
          date which is 45 days after the end of such fiscal quarter. In the event
          a
          Weighted Average Retail Attrition Rate Trigger Event or Retail Attrition
          Rate
          Trigger Event occurs with respect to the last fiscal quarter, the Company
          will
          provide prompt notice of such Event to the Trustee and the holders of the
          Notes
          in the manner provided in Section 3.07.

         

            “Weighted
          Average Retail Attrition Rate” means, with respect to any consecutive fiscal
          quarters, the weighted average of the Retail Attrition Rate for the given
          quarters with the Qualified RMR at the end of a fiscal quarter being the
          weight
          for the attrition rate for that particular fiscal quarter.

         

        Section
          4.11.  Limitation
          on Asset Sales.

         

        (a)  The
          Company shall not, and shall not permit any Restricted Subsidiary to, directly
          or indirectly, consummate any Asset Sale unless:

         

        (i)  the
          Company or such Restricted Subsidiary receives consideration at the time
          of the
          Asset Sale at least equal to the Fair Market Value of the assets or Equity
          Interests issued or sold or otherwise disposed of;

         

        (ii)  the
          Fair
          Market Value is determined in good faith by the management of the Company
          or, if
          such Asset Sale involves consideration excess of $2.5 million, by the Board
          of
          Directors as evidenced by a board resolution; and

         

        (iii)  at
          least
          80% of the consideration paid to the Company or such Restricted Subsidiary
          in
          connection with such Asset Sale is in the form of Qualified
          Consideration.

         

        (b)  Within
          365 days after the receipt of any Net Proceeds from an Asset Sale, the
          Company
          or the Restricted Subsidiary may apply such Net Proceeds, at the Company’s or
          such Restricted Subsidiary’s option:

         

        (i)  to
          the
          extent the assets and property sold pursuant to such Asset Sale constitute
          Collateral, to repay Indebtedness under the New Credit Facility and permanently
          reduce the commitments thereunder; or

         

        
          
            
            

          

          
            58

            
              

            

          

          
            
            

          

        

         

         

        (ii)  to
          acquire Replacement Assets; provided, that, the Company or the applicable
          Restricted Subsidiary promptly grants to the Trustee a security interest
          in such
          Replacement Assets pursuant to the requirements of the Indenture, which
          security
          interest shall be a Second Priority Lien; or

         

        (iii)  to
          the
          acquisition of a majority of the assets of a Permitted Business, or a majority
          of the Voting Stock of a Person engaged in a Permitted Business (provided
          that
          such Person will become on the date of acquisition thereof a Restricted
          Subsidiary), the making of a capital expenditure or the acquisition of
          other
          long-term assets (including, without limitation, security monitoring accounts
          or
          agreements) that are used or useful in a Permitted Business, provided,
          that the
          Company or the applicable Restricted Subsidiary promptly grants to the
          Collateral Trustee a security interest in such assets or voting stock pursuant
          to the requirements of this Indenture, which security interest shall be
          a Second
          Priority Lien; or

         

        (iv)  a
          combination of prepayment and investment permitted by the foregoing clauses
          (i),
          (ii) and (iii).

         

        (c)  Pending
          application of Net Proceeds pursuant to this Section 4.11, the Company
          may
          temporarily reduce revolving credit borrowings or otherwise invest such
          Net
          Proceeds in any manner that is not prohibited by this Indenture.

         

        (d)  Any
          Net
          Proceeds from Asset Sales that are not applied or invested as provided
          in the
          preceding paragraph will be deemed to constitute “Excess Proceeds.” When the
          aggregate amount of Excess Proceeds exceeds $5.0 million, the Company will
          be
          required to make an offer to all holders of Notes and other Indebtedness
          ranking
          on a parity with the Notes containing provisions similar to those set forth
          in
          this Indenture with respect to offers to purchase with the proceeds of
          sales of
          assets (an “Asset Sale Offer”) to purchase the maximum principal amount of Notes
          and other Indebtedness ranking on a parity with the Notes, pro rata, that
          may be
          purchased out of the Excess Proceeds at an offer price in cash in an amount
          equal to 100% of the principal amount thereof (or the accreted value of
          such
          Indebtedness, if such other Indebtedness is issued at a discount), plus
          accrued
          and unpaid interest, if any, thereon to the date of purchase, in accordance
          with
          the procedures set forth in this Indenture. To the extent that any Excess
          Proceeds remain after consummation of an Asset Sale Offer, the Company
          may use
          such Excess Proceeds for any purpose not otherwise prohibited by this Indenture.
          If the aggregate principal amount of Notes and other Indebtedness ranking
          on a
          parity with the Notes tendered into such Asset Sale Offer exceeds the amount
          of
          Excess Proceeds, the Trustee shall select the Notes and other Indebtedness
          ranking on a parity with the Notes to be purchased on a pro rata basis.
          Upon
          completion of such offer to purchase, the amount of Excess Proceeds shall
          be
          reset at zero.

         

        Section
          4.12.  Limitation
          on Restrictions on Distributions from Restricted
          Subsidiaries.

         

        (a)  The
          Company shall not, and shall not permit any Restricted Subsidiary to, directly
          or indirectly, create or otherwise cause or suffer to exist or become effective
          any encumbrance or restriction on the right of any Restricted Subsidiary
          to:

         

        
          
            
            

          

          
            59

            
              

            

          

          
            
            

          

        

         

        (i)  pay
          dividends or make any other distributions on its Capital Stock to the Company
          or
          any of its Restricted Subsidiaries or pay any indebtedness owed to the
          Company
          or its Restricted Subsidiaries;

         

        (ii)  make
          loans or advances to the Company or any of its Restricted Subsidiaries;
          or

         

        (iii)  transfer
          any of its properties or assets to the Company or any of its Restricted
          Subsidiaries.

         

        (b)  The
          preceding restrictions set forth in Section 4.12(a) above shall not apply
          to
          encumbrances or restrictions existing under or by reason of:

         

        (i)  Existing
          Indebtedness as in effect on the date of this Indenture; 

         

        (ii)  agreements
          existing on the date of this Indenture, and any amendments, modifications,
          restatements, renewals, extensions, supplements, refundings, replacements
          or
          refinancings thereof, provided that such amendments, modifications,
          restatements, renewals, extensions, supplements, refundings, replacements
          or
          refinancings are no more restrictive, taken as a whole, with respect to
          dividend
          and other payment restrictions than those contained in agreements as in
          effect
          on the date of this Indenture, as determined in good faith by the Board
          of
          Directors;

         

        (iii)  this
          Indenture and the Notes and/or the Collateral Documents;

         

        (iv)  the
          Credit Agreement and/or the documentation for the First Priority Liens;
          provided
          that the restrictions contained in any such agreement are no more restrictive,
          taken as a whole (as determined in good faith by the Board of Directors),
          than
          those contained in such agreements as of the date hereof;

         

        (v)  applicable
          law;

         

        (vi)  any
          instrument governing Indebtedness or Capital Stock of a Person acquired
          by the
          Company or any of its Restricted Subsidiaries as in effect at the time
          of such
          acquisition (except to the extent such Indebtedness or Capital Stock was
          incurred in connection with or in contemplation of such acquisition), which
          encumbrance or restriction is not applicable to any Person, or the properties
          or
          assets of any Person, other than the Person, or the property or assets
          of the
          Person, so acquired, provided that, in the case of Indebtedness, such
          Indebtedness was permitted by the terms of this Indenture to be
          incurred;

         

        (vii)  customary
          non-assignment provisions in leases, licenses and other agreements entered
          into
          in the ordinary course of business;

         

        
          
            
            

          

          
            60

            
              

            

          

          
            
            

          

        

        

         

        (viii)  purchase
          money obligations for property acquired in the ordinary course of business
          that
          impose restrictions of the nature described in this Section 4.08(a)(iii)
          on the
          property so acquired;

         

        (ix)  any
          agreement for the sale of a Restricted Subsidiary (whether by stock sale,
          asset
          sale, merger, consolidation or otherwise) that restricts distributions
          by such
          Restricted Subsidiary pending its sale;

         

        (x)  Permitted
          Refinancing Indebtedness, provided that the restrictions contained in the
          agreements governing such Permitted Refinancing Indebtedness are no more
          restrictive, taken as a whole (as determined in good faith by the Board
          of
          Directors), than those contained in the agreements governing the Indebtedness
          being refinanced;

         

        (xi)  secured
          Indebtedness otherwise permitted to be incurred pursuant to the provisions
          under
          Section 4.09 that limits the right of the debtor to dispose of the assets
          securing such Indebtedness;

         

        (xii)  customary
          provisions with respect to the disposition or distribution of assets or
          property
          in joint venture agreements and other similar agreements entered into in
          the
          ordinary course of business; or

         

        (xiii)  restrictions
          on cash or other deposits or net worth imposed by customers under contracts
          entered into in the ordinary course of business.

         

        Section
          4.13.  Limitation
          on Transactions with Affiliates.

         

        (a)  The
          Company shall not, and shall not permit any of its Restricted Subsidiaries
          to,
          directly or indirectly, make any payment to, or sell, lease, transfer or
          otherwise dispose of any of its properties or assets to, or purchase any
          property or assets from, or enter into, make, amend, renew or extend any
          transaction, contract, agreement, understanding, loan, advance or guarantee
          with, or for the benefit of, any Affiliate (each of the foregoing, an “Affiliate
          Transaction”), unless:

         

        (i)  such
          Affiliate Transaction is on terms that are no less favorable to the Company
          or
          such Restricted Subsidiary than those that might reasonably have been obtained
          in a comparable arm’s-length transaction by the Company or such Restricted
          Subsidiary with an unrelated Person;

         

        (ii)  if
          such
          Affiliate Transaction or series of related Affiliate Transactions involves
          aggregate consideration in excess of $2.0 million, either (x) the Board
          of
          Directors (including a majority of the disinterested members of the Board
          of
          Directors) approves such Affiliate Transaction and, in its good faith judgment,
          believes that such Affiliate Transaction complies with clause (i) of this
          paragraph as evidenced by a resolution of the Board of Directors promptly
          delivered to the Trustee or (y) if there are no disinterested members of
          the
          Board of Directors, the Company complies with the fairness
          opinion requirement of this Section 4.12(a)(iii) with respect to such Affiliate
          Transaction; and

         

        
          
            
            

          

          
            61

            
              

            

          

          
            
            

          

        

        (iii)  if
          such
          Affiliate Transaction or series of related Affiliate Transactions involves
          aggregate consideration in excess of $5.0 million, the Company delivers
          to the
          Trustee an opinion as to the fairness to the Company or such Restricted
          Subsidiary of such Affiliate Transaction from a financial point of view
          issued
          by an accounting, appraisal or investment banking firm of national
          standing.

         

        (b)  The
          following items shall not be deemed to be Affiliate Transactions and, therefore,
          will not be subject to the provisions of this Section 4.12(a):

         

        (i)  any
          employment agreement, employee benefit plan or stock option plan entered
          into by
          the Company or any of its Restricted Subsidiaries or the issuance of securities
          or other payments, awards or grants in cash, securities or otherwise pursuant
          thereto in the ordinary course of business that has been approved by a
          majority
          of the disinterested members of the Board of Directors;

         

        (ii)  transactions
          between or among the Company and its Wholly Owned Restricted
          Subsidiaries;

         

        (iii)  Restricted
          Payments that are permitted by the provisions of Section 4.08
          hereof;

         

        (iv)  reasonable
          and customary directors’ fees, indemnification and similar arrangements and
          payments thereunder by the Company or any of its Restricted
          Subsidiaries;

         

        (v)  loans
          or
          advances to employees of the Company or any of its Restricted Subsidiaries
          in
          the ordinary course of business, provided that the aggregate amount of
          all such
          loans and advances at any time outstanding shall not exceed $1.0
          million;

         

        (vi)  any
          agreement as in effect as of the date of this Indenture or any amendment
          thereto
          (so long as any such amendment, taken as a whole, is not disadvantageous
          to the
          Holders of the Notes in any material respect) or any transaction contemplated
          thereby; and

         

        (vii)  the
          issuance of Capital Stock or other Equity Interests of the Company (other
          than
          Disqualified Stock) or the making of other capital contributions to the
          Company.

         

        Section
          4.14.  Limitation
          on Purchases of Retail Alarm Monitoring Contracts Following Certain
          Events.

         

        The
          Company shall not purchase or agree to purchase during any Purchase Suspension
          Period, any retail alarm monitoring contracts or notes receivable secured
          by
          retail alarm monitoring contracts for an aggregate purchase price exceeding
          $2
          million, if the Company’s Weighted Average Retail Attrition Rate for any three
          consecutive fiscal quarters 

         

        
          
            
            

          

          
            62

            
              

            

          

          
            
            

          

        

        exceeds
          18% or if its Retail Attrition Rate for any fiscal quarter exceeds 18%
          (each
          such event being referred to as a ‘‘Purchase Suspension Trigger’’), provided,
          that the foregoing shall not prohibit the Company from purchasing any retail
          alarm monitoring contracts or notes receivable secured by retail alarm
          monitoring contracts pursuant to a written agreement entered into during
          a
          period in which we were not prohibited from agreeing to make such purchase
          pursuant to this provision. 

         

        Section
          4.15.  Limitation
          on Issuances and Sales of Equity Interests in Restricted
          Subsidiaries.

         

        (a)  The
          Company shall not transfer, convey, sell, lease or otherwise dispose of,
          and
          shall not permit any of its Restricted Subsidiaries to issue, transfer,
          convey,
          sell, lease or otherwise dispose of, any Equity Interests in any Restricted
          Subsidiary of the Company (other than the issuance of directors’ qualifying
          shares or an immaterial number of shares required by applicable law to
          be held
          by a Person other than the Company or a Restricted Subsidiary and excluding
          any
          pledge of Equity Interests of any Restricted Subsidiary) to any Person
          (other
          than the Company or a Wholly Owned Restricted Subsidiary of the Company),
          except:

         

        (i)  if,
          immediately after giving effect to such issuance, transfer, conveyance,
          sale,
          lease or other disposition, such Restricted Subsidiary would no longer
          constitute a Restricted Subsidiary and any Investment in such Person remaining
          after giving effect to such issuance or sale would have been permitted
          to be
          made under Section 4.07 hereof if made on the date of such issuance or
          sale;

         

        (ii)  sales
          of
          Common Stock of a Restricted Subsidiary by the Company or a Restricted
          Subsidiary, provided that the Company or such Restricted Subsidiary complies
          with Section 4.11; or

         

        (iii)  sales
          of
          Disqualified Stock or Preferred Stock of a Subsidiary Guarantor by the
          Company
          or a Subsidiary Guarantor that are otherwise permitted under Section 4.07,
          provided that the Company or such Subsidiary Guarantor complies with Section
          4.11.

         

        Section
          4.16.  Additional
          Subsidiary Guarantees.

         

        (a)  If
          the
          Company or any of its Subsidiaries shall acquire or create another Subsidiary
          then such newly acquired or created Subsidiary shall execute a supplemental
          indenture becoming a Subsidiary Guarantor in accordance with the terms
          of this
          Indenture.

         

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

         

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

         

        (ii)  either:

         

        
          
            
            

          

          
            63

            
              

            

          

          
            
            

          

        

        

         

        (A)  the
          Person acquiring the property in any such sale or disposition or the Person
          formed by or surviving any such consolidation or merger (if other than
          the
          Subsidiary Guarantor) is a corporation, partnership, limited liability
          company
          or business trust 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 Subsidiary Guarantor under the Indenture, its Subsidiary Guarantee
          and the
          Registration Rights Agreement pursuant to a supplemental indenture satisfactory
          to the Trustee; or

         

        (B)  such
          sale
          or other disposition complies with the “Limitation on Asset Sale” covenant of
          the Indenture, including the application of the Net Proceeds
          therefrom.

         

        (c)  The
          Subsidiary Guarantee of a Subsidiary Guarantor will be released in connection
          with any sale of all of the Capital Stock of a Subsidiary Guarantor to
          a Person
          that is not (either before or after giving effect to such transaction)
          the
          Company or another Subsidiary of the Company, if the sale of all such Capital
          Stock of that Subsidiary Guarantor complies with Section 4.11
          herein.

         

        Section
          4.17.  Business
          Activities.

         

        The
          Company shall not, and shall not permit any Restricted Subsidiary to, engage
          in
          any business other than Permitted Businesses, except to such extent as
          would not
          be material to the Company and its Restricted Subsidiaries taken as a
          whole.

         

        Section
          4.18.  Payments
          for Consent.

         

        Neither
          the Company nor any of its Restricted Subsidiaries shall, directly or
          indirectly, pay or cause to be paid any consideration, whether by way of
          interest, fee or otherwise, to any Holder of any Notes for or as an inducement
          to any consent, waiver or amendment of any of the terms or provisions of
          this
          Indenture or the Notes unless such consideration is offered to be paid
          or is
          paid to all Holders of the Notes that consent, waive or agree to amend
          in the
          time frame set forth in the solicitation documents relating to such consent,
          waiver or agreement.

         

        Section
          4.19.  Repurchase
          at the Option of Holders Upon a Change of Control.

         

        (a)  If
          a
          Change of Control occurs, each Holder of Notes shall have the right to
          require
          the Company to repurchase all or any part (equal to $1,000 or an integral
          multiple thereof) of that Holder’s Notes pursuant to an offer by the Company (a
“Change of Control Offer”) at an offer price (a “Change of Control Payment”) in
          cash equal to 101% of the aggregate principal amount of Notes repurchased
          plus
          accrued and unpaid interest, and additional interest if any, to the date
          of
          purchase. Within 30 days following any Change of Control, the Company shall
          mail
          a notice to each Holder describing the transaction or transactions that
          constitute the Change of Control and offering to repurchase Notes on a
          date (the
“Change of Control Payment Date”) specified in such notice, which date shall be
          no earlier than 

         

        
          
            
            

          

          
            64

            
              

            

          

          
            
            

          

        

         

        (b)  30
          days
          and no later than 90 days from the date such notice is mailed, pursuant
          to the
          procedures described in Section 3.07.

         

        (c)  By
          11:00
          a.m. Eastern Time on the Change of Control Payment Date, the Company shall,
          to
          the extent lawful:

         

        (i)  accept
          for payment all Notes or portions thereof properly tendered pursuant to
          the
          Change of Control Offer;

         

        (ii)  deposit
          with the Paying Agent an amount equal to the Change of Control Payment
          in
          respect of all Notes or portions thereof properly tendered; and

         

        (iii)  deliver
          or cause to be delivered to the Trustee the Notes properly accepted together
          with an Officers’ Certificate stating the aggregate principal amount of Notes or
          portions thereof being purchased by the Company.

         

        (d)  The
          Paying Agent shall promptly mail to each Holder of Notes properly tendered
          the
          Change of Control Payment for such Notes, and the Trustee shall promptly
          authenticate and mail (or cause to be transferred by book entry) to each
          Holder
          a new Note equal in principal amount to any unpurchased portion of the
          Notes
          surrendered, if any; provided that each such new Note shall be in a principal
          amount of $1,000 or an integral multiple thereof.

         

        (e)  Prior
          to
          complying with any of the provisions of this Section 4.19, but in any event
          within 90 days following a Change of Control, the Company shall either
          repay all
          outstanding Senior Debt or obtain the requisite consents, if any, under
          all
          agreements governing outstanding Senior Debt to permit the repurchase of
          Notes
          required by this Section 4.19. The Company will publicly announce the results
          of
          the Change of Control offer on or as soon as practicable after the Change
          of
          Control Payment Date.

         

        (f)  This
          Section 4.19 will be applicable whether or not any other provisions of
          this
          Indenture are applicable.

         

        (g)  Notwithstanding
          anything to the contrary in this Section 4.19, the Company shall not be
          required
          to make a Change of Control Offer upon a Change of Control if a third party
          makes the Change of Control Offer in the manner, at the times and otherwise
          in
          compliance with the requirements set forth in this Section 4.19 and all
          other
          provisions of this Indenture applicable to a Change of Control Offer made
          by the
          Company and purchases all Notes properly tendered and not withdrawn under
          such
          Change of Control Offer.

         

        (h)  The
          Company shall comply, to the extent applicable, with the requirements of
          Section
          14(e) of the Exchange Act and any other securities laws or regulations
          in
          connection with the repurchase of Notes as a result of a Change of Control.
          To
          the extent that the provisions of any securities laws or regulations conflict
          with the provisions of the covenant described hereunder, the Company shall
          comply with the applicable securities laws and regulations and shall not
          be
          deemed to have breached its obligations under the covenant described hereunder
          by virtue of its compliance with such securities laws or
          regulations.

         

        
          
            
            

          

          
            65

            
              

            

          

          
            
            

          

        

         

        ARTICLE
          FIVE

         

        SUCCESSORS

         

        Section
          5.01.  Merger,
          Consolidation or Sale of Assets.

         

        (a)  The
          Company shall not consolidate or merge with or into (whether or not the
          Company
          is the surviving corporation), or sell, assign, transfer, lease, convey
          or
          otherwise dispose of all or substantially all of its properties or assets
          in one
          or more related transactions, to another Person unless:

         

        (i)  the
          Company is the surviving corporation or the Person formed by or surviving
          any
          such consolidation or merger (if other than the Company) or to which such
          sale,
          assignment, transfer, lease, conveyance or other disposition shall have
          been
          made is a corporation, partnership, limited liability company or business
          trust
          organized or existing under the laws of the United States, any state thereof
          or
          the District of Columbia;

         

        (ii)  the
          Person formed by or surviving any such consolidation or merger (if other
          than
          the Company) or the Person to which such sale, assignment, transfer, lease,
          conveyance or other disposition shall have been made assumes all the obligations
          of the Company under the Notes and this Indenture pursuant to a supplemental
          indenture in a form reasonably satisfactory to the Trustee;

         

        (iii)  immediately
          after such transaction no Default or Event of Default exists; and

         

        (iv)  except
          in
          the case of a merger of the Company with or into a Wholly Owned Restricted
          Subsidiary of the Company, immediately after giving effect to such transaction
          on a pro forma basis, the Company or the Person formed by or surviving
          any such
          consolidation or merger (if other than the Company), or to which such sale,
          assignment, transfer, lease, conveyance or other disposition shall have
          been
          made:

         

        (A)  will
          have
          Consolidated Net Worth immediately after the transaction equal to or greater
          than the Consolidated Net Worth of the Company immediately preceding the
          transaction; and

         

        (B)  will,
          on
          the date of such transaction after giving pro forma effect thereto and
          any
          related financing transactions as if such transaction had occurred at the
          beginning of the applicable Latest Full Fiscal Quarter, be permitted to
          incur at
          least $1.00 of additional Indebtedness pursuant to the Consolidated Fixed
          Charge
          Coverage Ratio test set forth in Section 4.07(a);

         

        provided,
          however, that Section 5.01(a)(iv) above shall not apply if the principal
          purpose
          of such transaction is to change the state of incorporation of the Company
          and
          any such transaction shall not have as one of its purposes the evasion
          of the
          foregoing limitations.

         

        
          
            
            

          

          
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        Section
          5.02.  Successor
          Corporation Substituted.

         

        Upon
          any
          consolidation or merger, or any sale, assignment, transfer, lease, conveyance
          or
          other disposition of all or substantially all of the assets of the Company
          in
          accordance with Section 5.01 hereof, the successor corporation formed by
          such
          consolidation or into or with which the Company is merged or to which such
          sale,
          assignment, transfer, lease, conveyance or other disposition is made shall
          succeed to, and be substituted for (so that from and after the date of
          such
          consolidation, merger, sale, lease, conveyance or other disposition, the
          provisions of this Indenture referring to the “Company” shall refer instead to
          the successor corporation and not to the Company), and may exercise every
          right
          and power of, the Company under this Indenture with the same effect as
          if such
          successor Person had been named as the Company herein; provided, however,
          that
          the predecessor Company shall not be relieved from the obligation to pay
          the
          principal of, premium, if any, and interest and Liquidated Damages, if
          any, on
          the Notes except in the case of a sale, assignment, transfer, conveyance
          or
          other disposition of all of the Company’s assets that meets the requirements of
          Section 5.01 hereof; provided, further, that the predecessor Company shall
          not
          be relieved from the obligation to pay the principal of, premium, if any,
          and
          interest and Liquidated Damages, if any, on the Notes in the case of a
          lease of
          all or substantially all of its property and assets.

         

        ARTICLE
          SIX  

         

        DEFAULTS
          AND REMEDIES

         

        Section
          6.01.  Events
          of Default.

         

        (a)  Each
          of
          the following constitutes an “Event of Default” under this
          Indenture:

         

        (i)  the
          Company defaults in any payment of interest on any Note when the same becomes
          due and payable and such default continues for a period of 30 days;

         

        (ii)  the
          Company default in the payment of the principal of any Note when the same
          becomes due and payable at its Stated Maturity, upon optional redemption,
          upon
          declaration of acceleration, upon required repurchase or otherwise;

         

        (iii)  the
          Company or any of its Restricted Subsidiaries defaults in the performance
          of, or
          breaches, any covenants, warranty or other agreement contained in Sections
          4.10,
          4.11, 4.19 or 5.01;

         

        (iv)  the
          Company or any Restricted Subsidiary defaults in the performance of, or
          breaches, any covenant, warranty or other agreement contained in this Indenture
          or in the Notes (other than a default in the performance or breach of a
          covenant, warranty or agreement which is specifically dealt with in
          Section 6.01(a) (1), (2) or (3)) and such default or breach continues
          for
          30 days after the notice specified below;

         

        
          
            
            

          

          
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        (v)  the
          occurrence of any default under any mortgage, indenture or instrument under
          which there may be issued or by which there may be secured or evidenced
          any
Indebtedness
          for money borrowed by the Company or any of its Restricted Subsidiaries
          (or the
          payment of which is guaranteed by the Company or any of its Restricted
          Subsidiaries) whether such Indebtedness or guarantee exists as of the date
          of
          the Indenture, or is created thereafter, if that default:

         

        (A)  is
          caused
          by a failure to pay at the Stated Maturity the principal of, or interest
          or
          premium, if any, on such Indebtedness (a “Payment Default”); or

         

        (B)  results
          in the acceleration of such Indebtedness prior to its Stated
          Maturity,

         

        and,
          in
          each case, the principal amount of any such Indebtedness, together with
          the
          aggregate principal amount of any other such Indebtedness under which there
          has
          been a Payment Default or the maturity of which has been so accelerated,
          aggregates $5.0 million or more;

         

        (vi)  the
          Company or any of its Restricted Subsidiaries defaults in its obligation
          to pay
          one or more final, non-appealable judgments aggregating in excess of $5.0
          million (which are not covered by insurance as to which the insurer has
          not
          disclaimed coverage) that remain undischarged for a period (during which
          execution shall not be effectively stayed) of 60 days;

         

        (vii)  any
          Subsidiary Guarantee ceases to be in full force and effect (other than
          in
          accordance with the terms of such Subsidiary Guarantee), default
          by any Subsidiary Guarantor in the performance of any covenant set forth
          in its
          Subsidiary Guarantee, a Subsidiary Guarantee ceases to be in full force
          and
          effect (other than in accordance with the terms of such Subsidiary Guarantee)
          or
          a Subsidiary Guarantor denies or disaffirms its obligations under its Subsidiary
          Guarantee and such default continues for 10 days; 

         

        (viii)  the
          Company or any Restricted Subsidiary of the Company pursuant to or within
          the
          meaning of Bankruptcy Law:

         

        (A)  commences
          a voluntary case,

         

        (B)  consents
          to the entry of an order for relief against it in an involuntary
          case,

         

        (C)  makes
          a
          general assignment for the benefit of its creditors, or

         

        (D)  generally
          is not paying its debts as they become due; or

         

        (ix)  a
          court
          of competent jurisdiction enters an order or decree under any Bankruptcy
          Law
          that:

         

        (A)  is
          for
          relief against the Company or any of its Restricted Subsidiaries in an
          involuntary case; or

         

        
          
            
            

          

          
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        (B)  appoints
          a custodian of the Company or any of its Restricted Subsidiaries or for
          all or
          substantially all of the property of the Company or any of its Restricted
          Subsidiaries, or

         

        (C)  orders
          the liquidation of the Company or any of its Restricted
          Subsidiaries;

         

        and
          the
          order or decree remains unstayed and in effect for 60 consecutive days;
          and

         

        (x)  with
          respect to any Collateral, (A) any material Lien under the Collateral Documents,
          at any time, ceases to be in full force and effect for any reason other
          than in
          accordance with the terms of the Collateral Documents and this Indenture
          and
          other than the satisfaction in full of all obligations under this Indenture
          and
          discharge of this Indenture, (B) any security interest created thereunder
          or
          under this Indenture is declared invalid or unenforceable, (C) the Company
          or
          any Subsidiary Guarantor asserts, in any pleading in any court of competent
          jurisdiction, that any such security interest is invalid or unenforceable
          or (D)
          any Person commences a foreclosure proceeding in respect of any material
          portion
          of the Collateral.

         

        (b) The
          foregoing will constitute Events of Default whatever the reason for any
          such
          Event of Default and whether it is voluntary or involuntary or is effected
          by
          operation of law or pursuant to any judgment, decree or order of any court
          or
          any order, rule or regulation of any administrative or governmental
          body.

         

        (c) A
          Default
          under clause (iv) of Section 6.01(a) is not an Event of Default until the
          Trustee or the holders of at least 25% in principal amount of the outstanding
          Notes notify the Company of the Default and the Company does not cure such
          Default within the time specified after receipt of such notice. Such notice
          must
          specify the Default, demand that it be remedied and state that such notice
          is a
“Notice of Default”.

         

        Section
          6.02.  Acceleration.

         

        (a)  In
          the
          case of an Event of Default specified in clauses (viii) or (ix) of Section
          6.01(a) hereof, with respect to the Company or any Restricted Subsidiary
          of the
          Company, all outstanding Notes will become due and payable immediately
          without
          further action or notice. If any other Event of Default occurs and is
          continuing, the Trustee or the Holders of at least 25% in principal amount
          of
          the outstanding Notes may declare the principal of an accrued but unpaid
          interest on all the Notes to be due and payable. Upon such declaration,
          such
          principal and interest shall be due and payable immediately. If an Event
          of
          Default described in Section 6.01(a)(viii) or (ix) occurs and is continuing,
          the
          principal of and interest on all the Notes will ipso
          facto
          become
          and be immediately due and payable without any declaration or other act
          on the
          part of the Trustee or any Holders of the Notes. Under certain circumstances,
          the Holders of at least a majority in principal amount of the outstanding
          Notes
          may rescind any such acceleration with respect to the Notes and its
          consequences. 

         

        
          
            
            

          

          
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        (b)  In
          the
          event of a declaration of acceleration of the Notes because an Event of
          Default
          described in Section 6.01(a)(v) has occurred and is continuing, the declaration
          of acceleration of the Notes shall be automatically annulled if the event
          of
          default or payment default triggering such Event of Default pursuant to
          Section
          6.01(a)(v) shall be remedied or cured by the Company or a Restricted Subsidiary
          of the Company or waived by the holders of the relevant Indebtedness within
          20
          days after the declaration of acceleration of the Notes with respect thereto
          and
          if (A) the annulment of the acceleration of the Notes would not conflict
          with
          any judgment or decree of a court of competent jurisdiction and (B) all
          existing
          Events of Default, except nonpayment of principal, premium or interest
          on the
          Notes that became due solely because of the acceleration of the Notes,
          have been
          cured or waived.

         

        Section
          6.03.  Other
          Remedies.

         

        (a)  If
          an
          Event of Default occurs and is continuing, the Trustee may pursue any available
          remedy to collect the payment of principal, premium, if any, interest,
          and
          Liquidated Damages, if any, with respect to, the Notes or to enforce the
          performance of any provision of the Notes or this Indenture.

         

        (b)  The
          Trustee may maintain a proceeding even if it does not possess any of the
          Notes
          or does not produce any of them in the proceeding. A delay or omission
          by the
          Trustee or any Holder of a Note in exercising any right or remedy accruing
          upon
          an Event of Default shall not impair the right or remedy or constitute
          a waiver
          of or acquiescence in the Event of Default. All remedies are cumulative
          to the
          extent permitted by law.

         

        Section
          6.04.  Rescission,
          Cancellation and Waiver of Past Defaults.

         

        (a)  The
          Holders of a majority in principal amount of the Notes then outstanding
          by
          notice to the Trustee may, on behalf of the Holders of all of the Notes,
          rescind
          and cancel a declaration of acceleration pursuant to Section 6.02 hereof,
          and
          its consequences if:

         

        (i)  the
          rescission would not conflict with any judgment or decree of a court of
          competent jurisdiction;

         

        (ii)  all
          existing Defaults and Events of Default have been cured or waived except
          nonpayment of principal of or interest on the Notes that has become due
          solely
          by such declaration of acceleration;

         

        (iii)  to
          the
          extent the payment of such interest is lawful, interest (at the same rate
          specified in the Notes) on overdue installments of interest and overdue
          payments
          of principal, premium, if any, and interest which has become due otherwise
          than
          by such declaration of acceleration, has been paid;

         

        (iv)  the
          Company has paid the Trustee its reasonable compensation and reimbursed
          the
          Trustee for its reasonable expenses, disbursements and advances;
          and

         

        
          
            
            

          

          
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        (v)  in
          the
          event of cure or waiver of a Default or Event of Default of the type described
          in Section 6.01(a)(viii) or (ix), the Trustee has received an Officers’
          Certificate and Opinion of Counsel that such Default or Event of Default
          has
          been cured or waived.

         

        (b)  The
          holders of a majority in aggregate principal amount of the Notes then
          outstanding by notice to the Trustee may, on behalf of the Holders of all
          of the
          Notes, waive any existing Default or Event of Default and its consequences
          under
          this Indenture except a continuing Default or Event of Default in the payment
          of
          principal of or interest on the Notes.

         

        The
          Company shall deliver to the Trustee an Officers’ Certificate stating that the
          requisite percentage of Holders have consented to any such rescission,
          cancellation or waiver and attaching copies of such consents. In case of
          any
          such rescission, cancellation or waiver, the Company, the Trustee and the
          Holders shall be restored to their former positions and rights hereunder
          and
          under the Notes, respectively. This Section 6.04 and Section 9.02 shall
          be in
          lieu of Section 316(a)(1)(B) of the TIA and such Section 316(a)(1)(B) of
          the TIA
          is hereby expressly excluded from this Indenture and the Notes, as permitted
          by
          the TIA. Upon any such rescission, cancellation or waiver, such Default
          shall
          cease to exist, and any Event of Default arising therefrom shall be deemed
          to
          have been cured for every purpose of this Indenture; but no such waiver
          shall
          extend to any subsequent or other Default or impair any right consequent
          thereon.

         

        Section
          6.05.  Control
          by Majority.

         

        Holders
          of a majority in principal amount of the then outstanding Notes may direct
          the
          time, method and place of conducting any proceeding for exercising any
          remedy
          available to the Trustee or exercising any trust or power conferred on
          it.
          However, the Trustee may refuse to follow any direction that conflicts
          with law
          or this Indenture that the Trustee determines may be unduly prejudicial
          to the
          rights of other Holders of Notes or that may involve the Trustee in personal
          liability.

         

        Section
          6.06.  Limitation
          on Suits.

         

        (a)  A
          Holder
          may not pursue any remedy with respect to this Indenture or the Notes
          unless:

         

        (i)  the
          Holder gives the Trustee written notice of a continuing Event of
          Default;

         

        (ii)  the
          Holders of at least 25% in aggregate principal amount of outstanding Notes
          make
          a written request to the Trustee to pursue the remedy;

         

        (iii)  such
          Holder or Holders offer and, if requested, provide to the Trustee security
          and
          indemnity satisfactory to the Trustee against any costs, liability or expense
          that might be incurred by it in connection with the request or
          direction;

         

        (iv)  the
          Trustee does not comply with the request within 60 days after receipt of
          the
          request and the offer and, if requested, the provision of indemnity;
          and

         

        
          
            
            

          

          
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        (v)  during
          such 60-day period, the Holders of a majority in aggregate principal amount
          of
          the outstanding Notes do not give the Trustee a direction that is inconsistent
          with the request.

         

        (b)  A
          Holder
          of a Note may not use this Indenture to prejudice the rights of another
          Holder
          of a Note or to obtain a preference or priority over another Holder of
          a
          Note.

         

        Section
          6.07.  Rights
          of Holders of Notes to Receive Payment.

         

        Notwithstanding
          any other provision of this Indenture, the right of any Holder of a Note
          to
          receive payment of principal, premium, if any, interest on, and Liquidated
          Damages, if any, with respect to, the Note, on or after the respective
          due dates
          expressed in the Note (including in connection with an offer to purchase),
          or to
          bring suit for the enforcement of any such payment on or after such respective
          dates, shall not be impaired or affected without the consent of such Holder.
          However, any such payment received by a Holder is subject to the subordination
          provisions of Article Ten.

         

        Section
          6.08.  Collection
          Suit by Trustee.

         

        If
          an
          Event of Default specified in Section 6.01(a)(i) or (a)(ii) occurs and
          is
          continuing, the Trustee is authorized to recover judgment in its own name
          and as
          trustee of an express trust against the Company for the whole amount of
          principal of, premium, if any, interest, and Liquidated Damages, if any,
          remaining unpaid on the Notes and interest on overdue principal and premium,
          if
          any, and, to the extent lawful, interest and Liquidated Damages, if any,
          and
          such further amount as shall be sufficient to cover the costs and expenses
          of
          collection, including the reasonable compensation, expenses, disbursements
          and
          advances of the Trustee, its agents and counsel.

         

        Section
          6.09.  Trustee
          May File Proofs of Claim.

         

        The
          Trustee is authorized to file such proofs of claim and other papers or
          documents
          as may be necessary or advisable in order to have the claims of the Trustee
          (including any claim for the reasonable compensation, expenses, disbursements
          and advances of the Trustee, its agents and counsel) and the Holders of
          the
          Notes allowed in any judicial proceedings relative to the Company or any
          Subsidiary Guarantor (or any other obligor upon the Notes), its creditors
          or its
          property and shall be entitled and empowered to collect, receive and distribute
          any money or other securities or property payable or deliverable on any
          such
          claims and any custodian in any such judicial proceeding is hereby authorized
          by
          each Holder to make such payments to the Trustee, and in the event that
          the
          Trustee shall consent to the making of such payments directly to the Holders,
          to
          pay to the Trustee any amount due to it for the reasonable compensation,
          expenses, disbursements and advances of the Trustee, its agents and counsel,
          and
          any other amounts due the Trustee under Section 7.07 hereof. To the extent
          that
          the payment of any such compensation, expenses, disbursements and advances
          of
          the Trustee, its agents and counsel, and any other amounts due the Trustee
          under
          Section 7.07 hereof out of the estate in any such proceeding, shall be
          denied
          for any reason, payment of the same shall be secured by a Lien on, and
          shall be
          paid out of, any and all distributions, dividends, money, securities and
          other

         

        
          
            
            

          

          
            72

            
              

            

          

          
            
            

          

        

        

         

        properties
          that the Holders may be entitled to receive in such proceeding whether
          in
          liquidation or under any plan of reorganization or arrangement or otherwise.
          Nothing herein contained shall be deemed to authorize the Trustee to authorize
          or consent to or accept or adopt on behalf of any Holder any plan of
          reorganization, arrangement, adjustment or composition affecting the Notes
          or
          the rights of any Holder, or to authorize the Trustee to vote in respect
          of the
          claim of any Holder in any such proceeding.

         

        Section
          6.10.  Priorities.

         

        (a)  If
          the
          Trustee collects any money pursuant to this Article, it shall pay out the
          money
          in the following order:

         

        First:
          to
          the Trustee, its agents and attorneys for amounts due under Section 7.07
          hereof,
          including payment of all compensation, expense and liabilities incurred,
          and all
          advances made, by the Trustee and the costs and expenses of
          collection;

         

        Second:
          subject to Article Ten, to Holders of Notes for amounts due and unpaid
          on the
          Notes for principal, premium, if any, interest and Liquidated Damages,
          if any,
          ratably, without preference or priority of any kind, according to the amounts
          due and payable on the Notes for principal, premium, if any, interest,
          and
          Liquidated Damages, if any, respectively; and

         

        Third:
          to
          the Company or to such party as a court of competent jurisdiction shall
          direct.

         

        (b)  The
          Trustee may fix a record date and payment date for any payment to Holders
          of
          Notes pursuant to this Section 6.10.

         

        Section
          6.11.  Undertaking
          for Costs.

         

        In
          any
          suit for the enforcement of any right or remedy under this Indenture or
          in any
          suit against the Trustee for any action taken or omitted by it as a Trustee,
          a
          court in its discretion may require the filing by any party litigant in
          the suit
          of an undertaking to pay the costs of the suit, and the court in its discretion
          may assess reasonable costs, including reasonable attorneys’ fees, against any
          party litigant in the suit, having due regard to the merits and good faith
          of
          the claims or defenses made by the party litigant. This Section does not
          apply
          to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section
          6.07
          hereof, or a suit by Holders of more than ten percent in principal amount
          of the
          then outstanding Notes.

         

        
          
            
            

          

          
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        ARTICLE
          SEVEN

         

        TRUSTEE

         

        Section
          7.01.  Duties
          of Trustee.

         

        Except
          to
          the extent, if any, provided otherwise in the Trust Indenture Act of 1939
          (as
          from time to time in effect):

        

         

        (a)  If
          an
          Event of Default has occurred and is continuing, the Trustee shall exercise
          such
          of the rights and powers vested in it by this Indenture, and use the same
          degree
          of care and skill in its exercise, as a prudent person would exercise or
          use
          under the circumstances in the conduct of such person’s own
          affairs.

         

        (b)  Except
          during the continuance of an Event of Default:

         

        (i)  the
          duties of the Trustee shall be determined solely by the express provisions
          of
          this Indenture and the Trustee need perform only those duties that are
          specifically set forth in this Indenture and no others, and no implied
          covenants
          or obligations shall be read into this Indenture against the Trustee;
          and

         

        (ii)  in
          the
          absence of bad faith on its part, the Trustee may conclusively rely, as
          to the
          truth of the statements and the correctness of the opinions expressed therein,
          upon certificates or opinions furnished to the Trustee and conforming to
          the
          requirements of this Indenture. However, the Trustee shall examine the
          certificates and opinions to determine whether or not they conform to the
          requirements of this Indenture.

         

        (c)  The
          Trustee may not be relieved from liabilities for its own negligent action,
          its
          own negligent failure to act, or its own willful misconduct, except
          that:

         

        (i)  this
          paragraph does not limit the effect of paragraph (b) of this
          Section;

         

        (ii)  the
          Trustee shall not be liable for any error of judgment made in good faith
          by a
          Responsible Officer, unless it is proved that the Trustee was negligent
          in
          ascertaining the pertinent facts; and

         

        (iii)  the
          Trustee shall not be liable with respect to any action it takes or omits
          to take
          in good faith in accordance with a direction received by it pursuant to
          Section
          6.05 hereof.

         

        (d)  Whether
          or not therein expressly so provided, every provision of this Indenture
          that in
          any way relates to the Trustee is subject to paragraphs (a), (b) and (c)
          of this
          Section 7.01.

         

        (e)  No
          provision of this Indenture shall require the Trustee to expend or risk
          its own
          funds or incur any liability. The Trustee shall be under no obligation
          to
          exercise any of its rights and powers under this Indenture at the request
          of any
          Holders, unless such Holder shall have offered to the Trustee security
          and
          indemnity satisfactory to it against any loss, costs, liability or expense
          that
          might be incurred by it in connection with the request or
          direction.

         

        (f)  Money
          held in trust by the Trustee need not be segregated from other funds except
          to
          the extent required by law.

         

        
          
            
            

          

          
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        Section
          7.02.  Certain
          Rights of Trustee.

         

        (a)  The
          Trustee may conclusively rely upon any document believed by it to be genuine
          and
          to have been signed or presented by the proper Person. The Trustee need
          not
          investigate any fact or matter stated in the document.

         

        (b)  Before
          the Trustee acts or refrains from acting, it may require an Officers’
          Certificate or an Opinion of Counsel or both. The Trustee shall not be
          liable
          for any action it takes or omits to take in good faith in reliance on such
          Officers’ Certificate or Opinion of Counsel. The Trustee may consult with
          counsel and the advice of such counsel or any Opinion of Counsel shall
          be full
          and complete authorization and protection from liability in respect of
          any
          action taken, suffered or omitted by it hereunder in good faith and in
          reliance
          thereon.

         

        (c)  The
          Trustee may act through its attorneys and agents and shall not be responsible
          for the misconduct or negligence of any agent appointed with due
          care.

         

        (d)  The
          Trustee shall not be liable for any action it takes or omits to take in
          good
          faith that it believes to be authorized or within the rights or powers
          conferred
          upon it by this Indenture.

         

        (e)  Unless
          otherwise specifically provided in this Indenture, any demand, request,
          direction or notice from the Company shall be sufficient if signed by an
          Officer
          of the Company.

         

        (f)  The
          Trustee shall be under no obligation to exercise any of the rights or powers
          vested in it by this Indenture at the request or direction of any of the
          Holders
          unless such Holders shall have offered to the Trustee security or indemnity
          reasonably satisfactory to it against the costs, expenses and liabilities
          that
          might be incurred by it in compliance with such request or
          direction.

         

        (g)  The
          Trustee shall not be deemed to have notice of any Default or Event of Default
          unless a Responsible Officer of the Trustee has actual knowledge thereof
          or
          unless written notice of such event is sent to the Trustee in accordance
          with
          Section 12.02 hereof, and such notice references the Notes.

         

        Section
          7.03.  Individual
          Rights of Trustee.

         

        The
          Trustee in its individual or any other capacity may become the owner or
          pledgee
          of Notes and may become a creditor of, or otherwise deal with, the Company
          or
          any of its Affiliates with the same rights it would have if it were not
          Trustee.
          However, in the event that the Trustee acquires any conflicting interest
          as
          described in the Trust Indenture Act of 1939 (as in effect at such time),
          it
          must eliminate such conflict within 90 days, apply to the Commission for
          permission to continue as trustee or resign. Any Agent may do the same
          with like
          rights and duties. The Trustee is also subject to Sections 7.10 and 7.11
          hereof.

         

        
          
            
            

          

          
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        Section
          7.04.  Trustee’s
          Disclaimer.

         

        The
          Trustee shall not be responsible for and makes no representation as to
          the
          validity or adequacy of this Indenture, it shall not be accountable for
          the
          Company’s use of the proceeds from the Notes or any money paid to the Company or
          upon the Company’s direction under any provision of this Indenture, it shall not
          be responsible for the use or application of any money received by any
          Paying
          Agent other than the Trustee, and it shall not be responsible for any statement
          or recital herein or any statement in the Notes or any other document in
          connection with the sale of the Notes or pursuant to this Indenture other
          than
          its certificate of authentication. Notwithstanding the effective date of
          this
          Indenture or anything to the contrary contained in this Indenture, the
          Trustee
          shall have no liability or responsibility for any act or event relating
          to this
          Indenture or the transactions related thereto which occurs prior to the
          date of
          this Indenture, and shall have no contractual obligations or fiduciary
          duties to
          the Company, any Subsidiary Guarantors, the Holders of the Notes and the
          holders
          of beneficial interests therein, or any other Person until the date of
          this
          Indenture.

         

        Section
          7.05.  Notice
          of Defaults.

         

        If
          a
          Default or Event of Default occurs and is continuing and if it is known
          to the
          Trustee, the Trustee shall mail to Holders of Notes a notice of the Default
          or
          Event of Default within 90 days after it occurs. Except in the case of
          a Default
          or Event of Default in payment of principal, premium, interest or Liquidated
          Damages on any Note, the Trustee may withhold the notice if and so long
          as a
          committee of its Responsible Officers in good faith determines that withholding
          the notice is in the interests of the Holders of the Notes.

         

        Section
          7.06.  Reports
          by Trustee to Holders of the Notes.

         

        (a)  Within
          60
          days after each May 15 beginning with May 15, following the date hereof,
          and for
          so long as Notes remain outstanding, the Trustee shall mail to the Holders
          of
          the Notes a brief report dated as of such reporting date that complies
          with TIA
§ 313(a) (but if no event described in TIA § 313(a) has occurred within the
          twelve months preceding the reporting date, no report need be transmitted).
          The
          Trustee also shall comply with TIA § 313(b)(2). The Trustee shall also transmit
          by mail all reports as required by TIA § 313(c).

         

        (b)  A
          copy of
          each report at the time of its mailing to the Holders of Notes shall be
          mailed
          to the Company and filed with the Commission and each stock exchange on
          which
          the Notes are listed in accordance with TIA § 313(d). The Company shall promptly
          notify the Trustee when the Notes are listed on any stock exchange or any
          delisting thereof.

         

        Section
          7.07.  Compensation
          and Indemnity.

         

        (a)  The
          Company shall pay to the Trustee from time to time reasonable compensation
          for
          its acceptance of this Indenture and services hereunder in accordance with
          a
          written schedule provided by the Trustee to the Company. The Trustee’s
          compensation shall not be limited by any law on compensation of a trustee
          of an
          express trust. The 

         

        
          
            
            

          

          
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        Company
          shall reimburse the Trustee promptly upon request for all reasonable
          disbursements, advances and expenses incurred or made by it in addition
          to the
          compensation for its services. Such expenses shall include the reasonable
          compensation, disbursements and expenses of the Trustee’s agents and
          counsel.

         

        (b)  The
          Company shall indemnify the Trustee against any and all losses, liabilities
          or
          expenses incurred by it arising out of or in connection with the acceptance
          or
          administration of its duties under this Indenture, including the costs
          and
          expenses of enforcing this Indenture against the Company (including this
          Section
          7.07) and defending itself against any claim (whether asserted by either
          of the
          Company or any Holder or any other person) or liability in connection with
          the
          exercise or performance of any of its powers or duties hereunder, except
          to the
          extent any such loss, liability or expense may be attributable to its
          negligence, bad faith or willful misconduct. The Trustee shall notify the
          Company promptly of any claim for which it may seek indemnity. Failure
          by the
          Trustee to so notify the Company shall not relieve the Company of its
          obligations hereunder. The Company shall defend the claim and the Trustee
          shall
          cooperate in the defense. The Company need not pay for any settlement made
          without its consent, which consent shall not be unreasonably
          withheld.

         

        (c)  The
          obligations of the Company under this Section 7.07 shall survive the
          satisfaction and discharge of this Indenture and resignation of removal
          of the
          Trustee.

         

        (d)  To
          secure
          the Company’s payment obligations in this Section, the Trustee shall have a Lien
          prior to the Notes on all money or property held or collected by the Trustee,
          except that held in trust to pay principal and interest on particular Notes.
          Such Lien shall survive the satisfaction and discharge of this Indenture
          and
          resignation or removal of the Trustee.

         

        (e)  When
          the
          Trustee incurs expenses or renders services after an Event of Default specified
          in Section 6.01(a)(viii) and (ix) hereof occurs, the expenses and the
          compensation for the services (including the fees and expenses of its agents
          and
          counsel) are intended to constitute expenses of administration under any
          Bankruptcy Law.

         

        (f)  The
          Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent
          applicable.

         

        Section
          7.08.  Replacement
          of Trustee.

         

        (a)  A
          resignation or removal of the Trustee and appointment of a successor Trustee
          shall become effective only upon the successor Trustee’s acceptance of
          appointment as provided in this Section 7.08.

         

        (b)  The
          Trustee may resign in writing at any time and be discharged from the trust
          hereby created by so notifying the Company. The Holders of a majority in
          principal amount of the then outstanding Notes may remove the Trustee by
          so
          notifying the Trustee and the Company in writing. The Company may remove
          the
          Trustee if:

         

        (i)  the
          Trustee fails to comply with Section 7.10 hereof;

         

        (ii)  the
          Trustee is adjudged a bankrupt or an insolvent or an order for relief is
          entered
          with respect to the Trustee under any Bankruptcy Law;

         

        
          
            
            

          

          
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        (iii)  a
          custodian or public officer takes charge of the Trustee or its property;
          or

         

        (iv)  the
          Trustee becomes incapable of acting.

         

        (c)  If
          the
          Trustee resigns or is removed or if a vacancy exists in the office of Trustee
          for any reason, the Company shall promptly appoint a successor Trustee.
          Within
          one year after the successor Trustee takes office, the Holders of a majority
          in
          principal amount of the then outstanding Notes may appoint a successor
          Trustee
          to replace the successor Trustee appointed by the Company.

         

        (d)  If
          a
          successor Trustee does not take office within 30 days after the retiring
          Trustee
          resigns or is removed, the retiring Trustee, the Company, or the Holders
          of
          Notes of at least 10% in principal amount of the then outstanding Notes
          may
          petition at the expense of the Company any court of competent jurisdiction
          for
          the appointment of a successor Trustee.

         

        (e)  If
          the
          Trustee, after written request by any Holder who has been a Holder for
          at least
          six months, fails to comply with Section 7.10, such Holder may petition
          any
          court of competent jurisdiction for the removal of the Trustee and the
          appointment of a successor Trustee.

         

        (f)  A
          successor Trustee shall deliver a written acceptance of its appointment
          to the
          retiring Trustee and to the Company. Thereupon, the resignation or removal
          of
          the retiring Trustee shall become effective, and the successor Trustee
          shall
          have all the rights, powers and duties of the Trustee under this Indenture.
          The
          successor Trustee shall mail a notice of its succession to Holders. The
          retiring
          Trustee shall promptly transfer all property held by it as Trustee to the
          successor Trustee, provided all sums owing to the Trustee hereunder have
          been
          paid and subject to the Lien provided for in Section 7.07 hereof.
          Notwithstanding replacement of the Trustee pursuant to this Section 7.08,
          the
          Company’s obligations under Section 7.07 hereof shall continue for the benefit
          of the retiring Trustee.

         

        Section
          7.09.  Successor
          Trustee by Merger, Etc.

         

        If
          the
          Trustee consolidates, merges or converts into, or transfers all or substantially
          all of its corporate trust business to, another Person, the successor Person
          without any further act shall be the successor Trustee.

         

        Section
          7.10.  Eligibility;
          Disqualification.

         

        There
          shall at all times be a Trustee hereunder that is a corporation organized
          and
          doing business under the laws of the United States of America or of any
          state
          thereof that is authorized under such laws to exercise corporate trustee
          power,
          that is subject to supervision or examination by federal or state authorities
          and that has a combined capital and surplus of at least $150.0 million
          (or a
          direct or indirect wholly-owned subsidiary of a bank or trust company,
          or a bank
          holding company, having a combined capital and surplus of $150.0 million)
          as set
          forth in its most recent published annual report of condition.

         

        
          
            
            

          

          
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        This
          Indenture shall always have a Trustee who satisfies the requirements of
          TIA
§310(a)(1), (2) and (5). The Trustee is subject to TIA §310(b).

         

        Section
          7.11.  Preferential
          Collection of Claims Against Company.

         

        The
          Trustee is subject to TIA §311(a), excluding any creditor relationship listed in
          TIA §311(b). A Trustee who has resigned or been removed shall be subject to
          TIA
§ 311(a) to the extent indicated therein. The Trustee hereby waives any
          right to
          set-off any claim that it may have against the Company in any capacity
          (other
          than as Trustee and Paying Agent) against any of the assets of the Company
          held
          by the Trustee; provided, however, that if the Trustee is or becomes a
          lender of
          any other Indebtedness permitted hereunder to be pari passu with the Notes,
          then
          such waiver shall not apply to the extent of such Indebtedness.

         

        ARTICLE
          EIGHT

         

        DEFEASANCE
          AND COVENANT DEFEASANCE

         

        Section
          8.01.  Option
          to Effect Legal Defeasance or Covenant Defeasance.

         

        The
          Company may, at the option of the Board of Directors evidenced by a resolution
          set forth in an Officers’ Certificate, at any time, elect to have either Section
          8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance
          with the
          conditions set forth below in this Article Eight.

         

        Section
          8.02.  Legal
          Defeasance and Discharge.

         

        Upon
          the
          Company’s exercise under Section 8.01 hereof of the option applicable to this
          Section 8.02, the Company shall, subject to the satisfaction of the conditions
          set forth in Section 8.04 hereof, be deemed to have been discharged from
          its
          obligations with respect to all outstanding Notes and all obligations of
          the
          Subsidiary Guarantors shall be deemed to have been discharged with respect
          to
          their obligations under the Subsidiary Guarantees on the date the conditions
          set
          forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose,
          Legal Defeasance means that the Company and the Subsidiary Guarantors shall
          be
          deemed to have paid and discharged the entire Indebtedness represented
          by the
          outstanding Notes and Subsidiary Guarantees, respectively, which shall
          thereafter be deemed to be “outstanding” only for the purposes of Section 8.05
          hereof and the other Sections of this Indenture referred to in (a) and
          (b)
          below, and to have satisfied all its other obligations under such Notes
          and this
          Indenture (and the Trustee, on demand of and at the expense of the Company,
          shall execute proper instruments acknowledging the same), except for the
          following provisions which shall survive until otherwise terminated or
          discharged hereunder: (a) the rights of Holders of outstanding Notes to
          receive
          from the trust fund described in Section 8.04 hereof, and as more fully
          set
          forth in such Section, payments in respect of the principal, interest or
          premium, if any, on such Notes when such payments are due, (b) the Company’s
          obligations with respect to such Notes under Article 2 concerning issuing
          temporary Notes, registration of Notes and mutilated, destroyed, lost or
          stolen
          Notes and the Company’s obligations under Section 4.02 hereof, (c) the rights,
          powers, trusts, duties and immunities of the Trustee hereunder and the
          Company’s
          and the Subsidiary Guarantor’s obligations in connection therewith and (d) this
          Article 8. Subject to 

        compliance
          with this Article 8, the Company may exercise its option under this Section
          8.02
          notwithstanding the prior exercise of its option under Section 8.03
          hereof.

         

        
          
            
            

          

          
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        Section
          8.03.  Covenant
          Defeasance.

         

            Upon
          the
          Company’s exercise under Section 8.01 hereof of the option applicable to this
          Section 8.03, the Company shall, subject to the satisfaction of the conditions
          set forth in Section 8.04 hereof, be released from its obligations under
          the
          covenants contained in Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13,
          4.14,
          4.15, 4.16, 4.17, 4.18 and 4.19 hereof with respect to the outstanding
          Notes on
          and after the date the conditions set forth in Section 8.04 are satisfied
          (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed
          not “outstanding” for the purposes of any direction, waiver, consent or
          declaration or act of Holders (and the consequences of any thereof) in
          connection with such covenants, but shall continue to be deemed “outstanding”
          for all other purposes hereunder (it being understood that such Notes shall
          not
          be deemed outstanding for accounting purposes). For this purpose, Covenant
          Defeasance means that, with respect to the outstanding Notes, the Company
          and
          the Subsidiary Guarantors may omit to comply with and shall have no liability
          in
          respect of any term, condition or limitation set forth in any such covenant,
          whether directly or indirectly, by reason of any reference elsewhere herein
          to
          any such covenant or by reason of any reference in any such covenant to
          any
          other provision herein or in any other document and such omission to comply
          shall not constitute a Default or an Event of Default under Section 6.01
          hereof,
          but, except as specified above, the remainder of this Indenture and such
          Notes
          shall be unaffected thereby. In addition, upon the Company’s exercise under
          Section 8.01 hereof of the option applicable to this Section 8.03, subject
          to
          the satisfaction of the conditions set forth in Section 8.04 hereof, Sections
          6.01(a)(iii) through (vii) shall not constitute Events of Default.

         

        Section
          8.04.  Conditions
          to Legal or Covenant Defeasance.

         

        (a)  The
          following shall be the conditions to the application of either Section
          8.02 or
          8.03 hereof to the outstanding Notes:

         

        (i)  the
          Company must irrevocably deposit with the Trustee, in trust, for the benefit
          of
          the Holders of the Notes, cash in U.S. dollars, non-callable U.S. Government
          Obligations, or a combination thereof, in such amounts as will be sufficient,
          in
          the opinion of a nationally recognized firm of independent public accountants,
          to pay the principal of, or interest and premium, if any, on the outstanding
          Notes on the stated maturity or on the applicable redemption date, as the
          case
          may be, and the Company must specify whether the Notes are being defeased
          to
          maturity or to a particular redemption date;

         

        (ii)  in
          the
          case of Legal Defeasance, the Company shall have delivered to the Trustee
          an
          opinion of counsel in the United States reasonably acceptable to the Trustee
          confirming that (a) the Company has received from, or there has been published
          by, the Internal Revenue Service a ruling or (b) since the date of this
          Indenture, there has been a change in the applicable federal income tax
          law, in
          either case to the effect that, and based thereon such opinion of counsel
          shall
          confirm that, the Holders of 

         

        
          
            
            

          

          
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        the
          outstanding Notes will not recognize income, gain or loss for federal income
          tax
          purposes as a result of such Legal Defeasance and will be subject to federal
          income tax on the same amounts, in the same manner and at the same times
          as
          would have been the case if such Legal Defeasance had not occurred;

         

        (iii)  in
          the
          case of Covenant Defeasance, the Company shall have delivered to the Trustee
          an
          opinion of counsel in the United States reasonably acceptable to the Trustee
          confirming that the Holders of the outstanding Notes will not recognize
          income,
          gain or loss for federal income tax purposes as a result of such Covenant
          Defeasance and will be subject to federal income tax on the same amounts,
          in the
          same manner and at the same times as would have been the case if such Covenant
          Defeasance had not occurred;

         

        (iv)  no
          Default or Event of Default shall have occurred and be continuing either:
          (a) on
          the date of such deposit (other than a Default or Event of Default resulting
          from the borrowing of funds to be applied to such deposit); or (b) insofar
          as
          Events of Default from bankruptcy or insolvency events are concerned, at
          any
          time in the period ending on the 123rd day after the date of
          deposit;

         

        (v)  such
          Legal Defeasance or Covenant Defeasance will not result in a breach or
          violation
          of, or constitute a default under any material agreement or instrument
          (other
          than this Indenture) to which the Company or any of its Subsidiaries is
          a party
          or by which the Company or any of its Subsidiaries is bound;

         

        (vi)  the
          Company must deliver to the Trustee an Officers’ Certificate stating that the
          deposit was not made by the Company with the intent of preferring the Holders
          of
          Notes over the other creditors of the Company with the intent of defeating,
          hindering, delaying or defrauding creditors of the Company or
          others;

         

        (vii)  if
          the
          Notes are to be redeemed prior to their stated maturity, the Company must
          deliver to the Trustee irrevocable instructions to redeem all of the Notes
          on
          the specified redemption date; and

         

        (viii)  the
          Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
          Counsel, each stating that all conditions precedent relating to the Legal
          Defeasance or the Covenant Defeasance have been complied with.

         

        Section
          8.05.  Deposited
          Money and Government Securities to Be Held in Trust;

         

        Other
          Miscellaneous Provisions.

         

        (a)  Subject
          to Section 8.06 hereof, all money and non-callable Government Securities
          (including the proceeds thereof) deposited with the Trustee pursuant to
          Section
          8.04 hereof in respect of the outstanding Notes shall be held in trust
          and
          applied by the Trustee, in accordance with the provisions of such Notes
          and this
          Indenture, to the payment, either directly or through any Paying Agent
          (including the Company acting as Paying Agent) as the Trustee may determine,
          to
          the Holders of such Notes of all sums due and to become due thereon in
          respect
          of principal, premium and Liquidated Damages, if any, and interest, but
          such
          money need not be segregated from other funds except to the extent required
          by
          law.

         

        
          
            
            

          

          
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        (b)  The
          Company shall pay and indemnify the Trustee against any tax, fee or other
          charge
          imposed on or assessed against the cash or non-callable Government Securities
          deposited pursuant to Section 8.04 hereof or the principal and interest
          received
          in respect thereof other than any such tax, fee or other charge which by
          law is
          for the account of the Holders of the outstanding Notes.

         

        (c)  Anything
          in this Article Eight to the contrary notwithstanding, the Trustee shall
          deliver
          or pay to the Company from time to time upon the request of the Company
          any
          money or non-callable Government Securities held by it as provided in Section
          8.04 hereof which, in the opinion of a nationally recognized firm of independent
          public accountants expressed in a written certification thereof delivered
          to the
          Trustee (which may be the opinion delivered under Section 8.04(a) hereof),
          are
          in excess of the amount thereof that would then be required to be deposited
          to
          effect an equivalent Legal Defeasance or Covenant Defeasance.

         

        Section
          8.06.  Repayment
          to the Company.

         

        Any
          money
          deposited with the Trustee or any Paying Agent, or then held by the Company,
          in
          trust for the payment of the principal of, premium, if any, or interest
          on any
          Note and remaining unclaimed for two years after such principal, and premium,
          if
          any, or interest has become due and payable shall be paid to the Company
          on its
          request or (if then held by the Company) shall be discharged from such
          trust;
          and the Holder of such Note shall thereafter look only to the Company for
          payment thereof, and all liability of the Trustee or such Paying Agent
          with
          respect to such trust money, and all liability of the Company as trustee
          thereof, shall thereupon cease; provided, however, that the Trustee or
          such
          Paying Agent, before being required to make any such repayment, may at
          the
          expense of the Company cause to be published once, in the New York Times
          and The
          Wall Street Journal (national edition), notice that such money remains
          unclaimed
          and that, after a date specified therein, which shall not be less than
          30 days
          from the date of such notification or publication, any unclaimed balance
          of such
          money then remaining shall be repaid to the Company.

         

        Section
          8.07.  Reinstatement.

         

        If
          the
          Trustee or Paying Agent is unable to apply any United States dollars or
          non-callable Government Securities in accordance with Section 8.02 or 8.03
          hereof, as the case may be, by reason of any order or judgment of any court
          or
          governmental authority enjoining, restraining or otherwise prohibiting
          such
          application, then the Company’s obligations under this Indenture and the Notes
          shall be revived and reinstated as though no deposit had occurred pursuant
          to
          Section 8.02 or 8.03 hereof and, in the case of a Legal Defeasance, the
          Subsidiary Guarantors’ obligations under their respective Subsidiary Guarantees
          shall be revised and reinstated as though no deposit had occurred pursuant
          to
          Section 8.02 hereof, in each case until such time as the Trustee or Paying
          Agent
          is permitted to apply all such money in accordance with Section 8.02 or
          8.03
          hereof, as the case may be; provided, however, that, if the Company makes
          any
          payment of principal of, premium, if any, or interest on any Note following
          the
          reinstatement of its obligations, the Company shall be subrogated to the
          rights
          of the Holders of such Notes to receive such payment from the money held
          by the
          Trustee or Paying Agent.

         

        
          
            
            

          

          
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        ARTICLE
          NINE

         

        AMENDMENT,
          SUPPLEMENT AND WAIVER

         

        Section
          9.01.  Without
          Consent of Holders of Notes.

         

        (a)  Notwithstanding
          Section 9.02 of this Indenture, the Company, the Subsidiary Guarantors,
          and the
          Trustee may amend or supplement this Indenture, the Notes or the Collateral
          Documents without the consent of any Holder of a Note:

         

        (i)  to
          cure
          any ambiguity, omission, defect or inconsistency;

         

        (ii)  to
          provide for uncertificated Notes in addition to or in place of certificated
          Notes;

         

        (iii)  to
          provide for the assumption of the Company’s or any Subsidiary Guarantor’s
          obligations to Holders of Notes in the case of a merger or consolidation
          or sale
          of all or substantially all of the Company’s or such Subsidiary Guarantor’s
          assets;

         

        (iv)  to
          add
          any additional assets as Collateral;

         

        (v)  to
          release Collateral from the Lien of the Indenture and the Collateral Documents
          when permitted or required by the Collateral Documents or the Indenture;
          

         

        (vi)  upon
          any
          amendment, waiver or consent to the First Priority Collateral Documents
          granting
          the First Priority Liens on the Collateral, amending, waiving or consenting
          to
          the comparable provisions of the Collateral Documents as and to the extent
          set
          forth in the Intercreditor Agreement;

         

        (vii)  to
          make
          any change that would provide any additional rights or benefits to the
          Holders
          of Notes or that does not adversely affect the legal rights under this
          Indenture
          of any such Holder in any material respect;

         

        (viii)  to
          comply
          with requirements of the Commission in order to effect or maintain the
          qualification of this Indenture under the Trust Indenture Act; or

         

        (ix)  to
          reflect the release of any Subsidiary Guarantor from its Subsidiary Guarantee
          or
          add any Subsidiary Guarantor pursuant to and in the manner provided by
          this
          Indenture.

         

        (b)  Upon
          the
          request of the Company accompanied by a resolution of its Board of Directors
          authorizing the execution of any such amended or supplemental Indenture,
          and
          upon receipt by the Trustee of any documents requested under Section 7.02(b)
          hereof, the Trustee shall join with the Company in the execution of any
          amended
          or supplemental Indenture authorized or permitted by the terms of this
          Indenture
          and to make any further appropriate agreements and stipulations that may
          be
          therein contained, but the Trustee shall not be obligated to
          enter
          into such amended or supplemental Indenture that affects its own rights,
          duties
          or immunities under this Indenture or otherwise.

         

        
          
            
            

          

          
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        Section
          9.02.  With
          Consent of Holders of Notes.

         

        (a)  Except
          as
          otherwise provided in this Section 9.02, the Company, the Subsidiary Guarantors
          and the Trustee may amend or supplement this Indenture with the consent
          of the
          Holders of at least a majority in aggregate principal amount of the Notes
          then
          outstanding (including, without limitation, consents obtained in connection
          with
          a purchase of, or tender offer or exchange offer for, Notes), and, subject
          to
          Sections 6.04 and 6.07 hereof, any past default or compliance with any
          provisions may also be waived (except a default in the payment of principal,
          premium or interest and certain covenants and provisions of this Indenture
          which
          cannot be amended without the consent of each Holder of an outstanding
          Note)
          with the consent of the Holders of at least a majority in aggregate principal
          amount of the Notes then outstanding (including consents obtained in connection
          with a purchase of, or tender offer or exchange offer for, the
          Notes).

         

        (b)  The
          Company may, but shall not be obligated to, fix a record date for the purpose
          of
          determining the Persons entitled to consent to any indenture supplemental
          hereto. If a record date is fixed, the Holders on such record date, or
          its duly
          designated proxies, and only such Persons, shall be entitled to consent
          to such
          supplemental indenture, whether or not such Holders remain Holders after
          such
          record date; provided that unless such consent shall have become effective
          by
          virtue of the requisite percentage having been obtained prior to the date
          which
          is 90 days after such record date, any such consent previously given shall
          automatically and without further action by any Holder be cancelled and
          of no
          further effect.

         

        (c)  Upon
          the
          request of the Company accompanied by a resolution of its Board of Directors
          authorizing the execution of any such amendment or supplement to this Indenture,
          and upon the filing with the Trustee of evidence satisfactory to the Trustee
          of
          the consent of the Holders of Notes as aforesaid, and upon receipt by the
          Trustee of the documents described in Section 7.02 hereof, the Trustee
          shall
          join with the Company in the execution of such amendment or supplement
          unless
          such amendment or supplement directly affects the Trustee’s own rights, duties
          or immunities under this Indenture or otherwise, in which case the Trustee
          may
          in its discretion, but shall not be obligated to, enter into such amendment
          or
          supplement.

         

        (d)  It
          shall
          not be necessary for the consent of the Holders of Notes under this Section
          9.02
          to approve the particular form of any proposed amendment, supplement or
          waiver,
          but it shall be sufficient if such consent approves the substance
          thereof.

         

        (e)  After
          an
          amendment, supplement or waiver under this Section becomes effective, the
          Company shall mail to the Holders of Notes affected thereby a notice briefly
          describing the amendment, supplement or waiver. Any failure of the Company
          to
          mail such notice, or any defect therein, shall not, however, in any way
          impair
          or affect the validity of any such amendment, supplement or waiver. Subject
          to
          Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal
          amount of the then outstanding Notes (including Additional Notes, if any)
          may
          waive compliance in a particular instance by the Company with any provision
          

         

        
          
            
            

          

          
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        of
          this
          Indenture, or the Notes. However, without the consent of each Holder affected,
          an amendment or waiver under this Section 9.02 may not (with respect to
          any
          Notes held by a non-consenting Holder):

         

        (i)  reduce
          the amount of Notes whose Holders must consent to an amendment, supplement
          or
          waiver;

         

        (ii)  reduce
          the principal of or change the fixed maturity of any Note or change the
          date on
          which any Notes may be subject to redemption or repurchase, reduce the
          redemption or repurchase price of the Notes, or waive any payment with
          respect
          to the redemption of the Notes (except as would otherwise be permitted
          under
          this Section 9.02(e)(ix));

         

        (iii)  reduce
          the rate of or change the time for payment of interest on any Note;

         

        (iv)  waive
          a
          Default or Event of Default in the payment of principal, premium or interest
          on
          the Notes (except a rescission of acceleration of the Notes by the Holders
          of at
          least a majority in aggregate principal amount of the Notes and a waiver
          of the
          payment default that resulted from such acceleration);

         

        (v)  make
          any
          Note payable in currency other than U.S. dollars;

         

        (vi)  make
          any
          change in the provisions of this Indenture relating to waivers of past
          Defaults
          or the rights of Holders of Notes to receive payments of principal, interest
          or
          premium, if any, on the Notes;

         

        (vii)  release
          any Subsidiary Guarantor from any of its obligations under its Subsidiary
          Guarantee or this Indenture, except in accordance with the terms of this
          Indenture;

         

        (viii)  impair
          the right to institute suit for the enforcement of any payment on or with
          respect to the Notes or the Subsidiary Guarantees;

         

        (ix)  after
          the
          Company’s obligation to purchase the Notes arises under this Indenture, amend,
          change or modify the obligation of the Company to make and consummate an
          Asset
          Sale Offer with respect to any Asset Sale in accordance with Section 4.11
          or the
          obligation of the Company to make and consummate a Change of Control Offer
          in
          the event of a Change of Control in accordance with Section 4.19, including,
          in
          each case, amending, changing or modifying any definition relating
          thereto;

         

        (x)  amend
          or
          modify any of the provisions of this Indenture or the related definitions
          affecting the subordination or ranking of the Notes or any Subsidiary Guarantee
          in any manner adverse to the Holders of the Notes or any Subsidiary Guarantee;
          

         

        (xi)  except
          as
          permitted by this Indenture, the Collateral Documents or the Intercreditor
          Agreement, release the Company or any Guarantor from the Collateral Documents
          or
          release all or substantially all the collateral granted thereunder;
          or

         

        
          
            
            

          

          
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        (xii)  make
          any
          change in the preceding amendment and waiver provisions.

         

        Section
          9.03.  Compliance
          with Trust Indenture Act.

         

        Every
          amendment or supplement to this Indenture or the Notes shall be set forth
          in a
          document that complies with the TIA as then in effect.

         

        Section
          9.04.  Revocation
          and Effect of Consents.

         

        Until
          an
          amendment, supplement or waiver becomes effective, a consent to it by a
          Holder
          of a Note is a continuing consent by the Holder of a Note and every subsequent
          Holder of a Note or portion of a Note that evidences the same debt as the
          consenting Holder’s Note, even if notation of the consent is not made on any
          Note. However, any such Holder of a Note or subsequent Holder of a Note
          may
          revoke the consent as to its Note if the Trustee receives written notice
          of
          revocation before the date the waiver, supplement or amendment becomes
          effective. An amendment, supplement or waiver becomes effective in accordance
          with its terms and thereafter binds every Holder.

         

        Section
          9.05.  Notation
          on or Exchange of Notes.

         

        (a)  The
          Trustee may place an appropriate notation about an amendment, supplement
          or
          waiver on any Note thereafter authenticated. The Company in exchange for
          all
          Notes may issue and the Trustee shall, upon receipt of an Authentication
          Order,
          authenticate new Notes that reflect the amendment, supplement or
          waiver.

         

        (b)  Failure
          to make the appropriate notation or issue a new Note shall not affect the
          validity and effect of such amendment, supplement or waiver.

         

        Section
          9.06.  Trustee
          to Sign Amendments, Etc.

         

        The
          Trustee shall sign any amendment or supplement to this Indenture or any
          Note
          authorized pursuant to this Article Nine if the amendment or supplement
          does not
          adversely affect the rights, duties, liabilities or immunities of the Trustee.
          The Company may not sign an amendment or supplemental Indenture or Note
          until
          its Board of Directors approves it. In executing any amendment or supplement
          or
          Note, the Trustee shall be entitled to receive and (subject to Section
          7.01
          hereof) shall be fully protected in relying upon an Officers’ Certificate and an
          Opinion of Counsel stating that the execution of such amendment or supplement
          is
          authorized or permitted by this Indenture and all conditions precedent
          and
          covenants, if any, provided for in this Indenture relating to the proposed
          action have been satisfied. 

         

        
          
            
            

          

          
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        ARTICLE
          TEN

         

        SATISFACTION
          AND DISCHARGE

         

        Section
          10.01.  Satisfaction
          and Discharge.

         

        (a)  This
          Indenture shall be discharged and shall cease to be of further effect as
          to all
          Notes issued thereunder, when:

         

        (i)  either:

         

        (A)  all
          Notes
          that have been authenticated (except lost, stolen or destroyed Notes that
          have
          been replaced or paid and Notes for whose payment money has theretofore
          been
          deposited in trust and thereafter repaid to the Company) have been delivered
          to
          the Trustee for cancellation; or

         

        (B)  all
          Notes
          that have not been delivered to the Trustee for cancellation have become
          due and
          payable by reason of the sending of a notice of redemption or otherwise
          or will
          become due and payable within one year and the Company or any Subsidiary
          Guarantor has irrevocably deposited or caused to be deposited with the
          Trustee
          as trust funds in trust solely for the benefit of the Holders, cash in
          U.S.
          dollars, non-callable Government Securities, or a combination thereof,
          in such
          amounts as will be sufficient without consideration of any reinvestment
          of
          interest, to pay and discharge the entire indebtedness on the Notes not
          delivered to the Trustee for cancellation for principal, premium and Liquidated
          Damages, if any, and accrued interest to the date of maturity or
          redemption;

         

        (ii)  no
          Default or Event of Default shall have occurred and be continuing on the
          date of
          any deposit referred to in clause (a)(i)(B) or shall occur as a result
          of such
          deposit and such deposit will not result in a breach or violation of, or
          constitute a default under, any other instrument to which the Company or
          any
          Subsidiary of the Company is a party or by which the Company or any Subsidiary
          of the Company is bound;

         

        (iii)  the
          Company has paid or caused to be paid all sums payable by it under this
          Indenture; and

         

        (iv)  the
          Company has delivered irrevocable instructions to the Trustee under this
          Indenture to apply the deposited money toward the payment of the Notes
          at
          maturity or the redemption date, as the case may be.

         

        (b)  In
          addition, the Company must deliver an Officers’ Certificate and an Opinion of
          Counsel (which opinion may be subject to customary assumptions and exclusions)
          to the Trustee stating that all conditions precedent to satisfaction and
          discharge have been satisfied.

         

        
          
            
            

          

          
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        (c)  Notwithstanding
          the above, the Trustee shall pay to the Company from time to time upon
          its
          request any cash or Government Securities held by it as provided in this
          

         

        section
          which, in the opinion of a nationally recognized firm of independent public
          accountants expressed in a written certification delivered to the Trustee,
          are
          in excess of the amount thereof that would then be required to be deposited
          to
          effect a satisfaction and discharge under this Article Eleven.

         

        Section
          10.02.  Deposited
          Money and Government Securities to Be Held in Trust;

         

        Other
          Miscellaneous Provisions.

         

        Subject
          to Section 10.03 hereof, all money and non-callable Government Securities
          (including the proceeds thereof) deposited with the Trustee pursuant to
          Section
          10.01 hereof in respect of the outstanding Notes shall be held in trust
          and
          applied by the Trustee, in accordance with the provisions of such Notes
          and this
          Indenture, to the payment, either directly or through any Paying Agent
          (including the Company acting as Paying Agent) as the Trustee may determine,
          to
          the Holders of such Notes of all sums due and to become due thereon in
          respect
          of principal, premium and Liquidated Damages, if any, and interest, but
          such
          money need not be segregated from other funds except to the extent required
          by
          law.

         

        Section
          10.03.  Repayment
          to the Company.

         

        Any
          money
          deposited with the Trustee or any Paying Agent, or then held by the Company,
          in
          trust for the payment of the principal of, premium and Liquidated Damages,
          if
          any, or interest on any Note and remaining unclaimed for two years after
          such
          principal, and premium or Liquidated Damages, if any, or interest has become
          due
          and payable shall be paid to the Company on its request or (if then held
          by the
          Company) shall be discharged from such trust; and the Holder of such Note
          shall
          thereafter look only to the Company for payment thereof, and all liability
          of
          the Trustee or such Paying Agent with respect to such trust money, and
          all
          liability of the Company as trustee thereof, shall thereupon cease; provided,
          however, that the Trustee or such Paying Agent, before being required to
          make
          any such repayment, may at the expense of the Company cause to be published
          once, in the New York Times or The Wall Street Journal (national edition),
          notice that such money remains unclaimed and that, after a date specified
          therein, which shall not be less than 30 days from the date of such notification
          or publication, any unclaimed balance of such money then remaining shall
          be
          repaid to the Company.

         

        ARTICLE
          ELEVEN

          

        SUBSIDIARY
          GUARANTEES

        

         

        Section
          11.01.  Guarantees.
          

         

        Each
          Subsidiary Guarantor hereby unconditionally and irrevocably guarantees,
          jointly
          and severally, to each Holder and to the Trustee and its successors and
          assigns
          (a) the full and punctual payment of principal of and interest on
          the Notes
          when due, whether at maturity, by acceleration, by redemption or otherwise,
          and
          all other monetary obligations of the Company under this Indenture and
          the Notes
          and (b) the full and punctual performance within applicable grace
          periods
          of all other obligations of the Company under this Indenture, the Notes,
          the
          Purchase Agreement and the Collateral Documents (all the foregoing obligations
          of the Company being hereinafter collectively called the “Guaranteed
          Obligations”). Each Subsidiary 

         

        
          
            
            

          

          
            88

            
              

            

          

          
            
            

          

        

         

        Guarantor
          further agrees that the Guaranteed Obligations may be extended or renewed,
          in
          whole or in part, without notice or further assent from such Subsidiary
          Guarantor and that such Subsidiary Guarantor will remain bound under this
          Article 11 notwithstanding any extension or renewal of any
          Obligation.

         

        Each
          Subsidiary Guarantor waives presentation to, demand of, payment from and
          protest
          to the Company of any of the Guaranteed Obligations and also waives notice
          of
          protest for nonpayment. Each Subsidiary Guarantor waives notice of any
          default
          under the Notes or the Guaranteed Obligations. The obligations of each
          Subsidiary Guarantor hereunder shall not be affected by (1) the
          failure of
          any Holder or the Trustee to assert any claim or demand or to enforce any
          right
          or remedy against the Company or any other Person (including any Subsidiary
          Guarantor) under this Indenture, the Notes or any other agreement or otherwise;
          (2) any extension or renewal of any thereof; (3) any rescission,
          waiver, amendment or modification of any of the terms or provisions of
          this
          Indenture, the Notes or any other agreement; (4) the release of
          any
          security held by any Holder or the Trustee for the Guaranteed Obligations
          or any
          of them; (5) the failure of any Holder or the Trustee to exercise
          any right
          or remedy against any other guarantor of the Guaranteed Obligations; or
          (6) except as set forth in Section 11.06, any change in the ownership
          of
          such Subsidiary Guarantor.

         

        Each
          Subsidiary Guarantor further agrees that its Subsidiary Guaranty herein
          constitutes a guarantee of payment, performance and compliance when due
          (and not
          a guarantee of collection) and waives any right to require that any resort
          be
          had by any Holder or the Trustee to any security held for payment of the
          Guaranteed Obligations.

         

        Except
          as
          expressly set forth in Sections 8.02, 11.02 and 11.06, the obligations
          of
          each Subsidiary Guarantor hereunder shall not be subject to any reduction,
          limitation, impairment or termination for any reason, including any claim
          of
          waiver, release, surrender, alteration or compromise, and shall not be
          subject
          to any defense of setoff, counterclaim, recoupment or termination whatsoever
          or
          by reason of the invalidity, illegality or unenforceability of the Guaranteed
          Obligations or otherwise. Without limiting the generality of the foregoing,
          the
          obligations of each Subsidiary Guarantor herein shall not be discharged
          or
          impaired or otherwise affected by the failure of any Holder or the Trustee
          to
          assert any claim or demand or to enforce any remedy under this Indenture,
          the
          Securities or any other agreement, by any waiver or modification of any
          thereof,
          by any default, failure or delay, willful or otherwise, in the performance
          of
          the obligations, or by any other act or thing or omission or delay to do
          any
          other act or thing which may or might in any manner or to any extent vary
          the
          risk of such Subsidiary Guarantor or would otherwise operate as a discharge
          of
          such Subsidiary Guarantor as a matter of law or equity.

         

        Each
          Subsidiary Guarantor further agrees that its Guarantee herein shall continue
          to
          be effective or be reinstated, as the case may be, if at any time payment,
          or
          any part thereof, of principal
          of or interest on any Obligation is rescinded or must otherwise be restored
          by
          any Holder or the Trustee upon the bankruptcy or reorganization of the
          Company
          or otherwise.

         

        
          
            
            

          

          
            89

            
              

            

          

          
            
            

          

        

         

        In
          furtherance of the foregoing and not in limitation of any other right which
          any
          Holder or the Trustee has at law or in equity against any Subsidiary Guarantor
          by virtue hereof, upon the failure of the Company to pay the principal
          of or
          interest on any Obligation when and as the same shall become due, whether
          at
          maturity, by acceleration, by redemption or otherwise, or to perform or
          comply
          with any other Obligation, each Subsidiary Guarantor hereby promises to
          and
          shall, upon receipt of written demand by the Trustee, forthwith pay, or
          cause to
          be paid, in cash, to the Holders or the Trustee an amount equal to the
          sum of
          (A) the unpaid amount of such Guaranteed Obligations, (B) accrued
          and
          unpaid interest on such Guaranteed Obligations (but only to the extent
          not
          prohibited by law) and (C) all other monetary Guaranteed Obligations of
          the
          Company to the Holders and the Trustee.

         

        Each
          Subsidiary Guarantor agrees that it shall not be entitled to any right
          of
          subrogation in respect of any Obligations guaranteed hereby until payment
          in
          full of all Obligations. Each Subsidiary Guarantor further agrees that,
          as
          between it, on the one hand, and the Holders and the Trustee, on the other
          hand,
          (i) the maturity of the Guaranteed Obligations hereby may be accelerated
          as
          provided in Article 6 for the purposes of such Subsidiary Guarantor's Subsidiary
          Guaranty herein, notwithstanding any stay, injunction or other prohibition
          preventing such acceleration in respect of the Guaranteed Obligations guaranteed
          hereby, and (ii) in the event of any declaration of acceleration
          of such
          Guaranteed Obligations as provided in Article 6, such Guaranteed
          Obligations (whether or not due and payable) shall forthwith become due
          and
          payable by such Subsidiary Guarantor for the purposes of this
          Section.

         

        Each
          Subsidiary Guarantor also agrees to pay any and all costs and expenses
          (including reasonable attorneys' fees) incurred by the Trustee or any Holder
          in
          enforcing any rights under this Section.

         

        Section
          11.02.  Limitation
          on Liability. 

         

        Any
          term
          or provision of this Indenture to the contrary notwithstanding, the maximum
          aggregate amount of the Guaranteed Obligations guaranteed hereunder by
          any
          Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
          guaranteed without rendering this Indenture, as it relates to such Subsidiary
          Guarantor, voidable under applicable law relating to fraudulent conveyance
          or
          fraudulent transfer or similar laws affecting the rights of creditors
          generally.

         

        Section
          11.03.  Successors
          and Assigns. 

         

        Except
          as
          set forth in Section 11.06, this Article 11 shall be binding upon
          each
          Subsidiary Guarantor and its successors and assigns and shall enure to
          the
          benefit of the successors and assigns of the Trustee and the Holders and,
          in the
          event of any transfer or assignment of rights by any Holder or the Trustee,
          the
          rights and privileges conferred upon that party in this Indenture and in
          the
          Securities shall automatically extend to and be vested in such transferee
          or
          assignee, all subject to the terms and conditions of this
          Indenture.

         

        Section
          11.04.  No
          Waiver. 

         

        Neither
          a
          failure nor a delay on the part of either the Trustee or the Holders in
          exercising any right, power or privilege under this Article 11 shall operate
          as
          a waiver thereof, nor shall a single or partial exercise thereof preclude
          any
          other or further exercise of any right, power or privilege. The rights,
          remedies
          and benefits of the Trustee and the Holders herein expressly specified
          are
          cumulative and not exclusive of any other rights, remedies or benefits
          which
          either may have under this Article 11 at law, in equity, by statute or
          otherwise.

         

        
          
            
            

          

          
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        Section
          11.05.  Intentionally
          Omitted. 

         

        Section
          11.06.  Release
          of Subsidiary
          Guarantor. 

         

        A
          Subsidiary Guarantor will be released from its obligations under this Article
          11
          (other than any obligation that may have arisen under Section
          11.07)

         

        (a)  upon
          the
          sale or other disposition (including by way of consolidation or merger)
          of a
          Subsidiary Guarantor, including the sale or disposition of Capital Stock
          of a
          Subsidiary Guarantor following which such Subsidiary Guarantor is no longer
          a
          Subsidiary,

         

        (b)  upon
          the
          sale or disposition of all or substantially all the assets of such Subsidiary
          Guarantor,

         

        (c)  upon
          defeasance of the Securities pursuant to Article 8, or

         

        (d)  upon
          the
          full satisfaction of the Company’ obligations under this Indenture;

         

        provided,
          however,
          that in
          the case of clauses (a) and (b) above, (i) such sale or other disposition
          is made to a Person other than the Company or a Subsidiary of the Company
          and
          (ii) such sale or disposition is otherwise permitted by this Indenture.
          At
          the request of the Company, the Trustee shall execute and deliver an appropriate
          instrument evidencing such release.

         

        Section
          11.07.  Contribution. 

         

        Each
          Subsidiary Guarantor that makes a payment under its Subsidiary Guaranty
          shall be
          entitled upon payment in full of all Guaranteed Obligations under this
          Indenture
          to a contribution from each other Subsidiary Guarantor in an amount equal
          to
          such other Subsidiary Guarantor's pro rata
          portion
          of such payment based on the respective net assets of all the Subsidiary
          Guarantors at the time of such payment determined in accordance with
          GAAP.

        

         

        ARTICLE
          TWELVE

         

        COLLATERAL

         

        Section
          12.01.  Collateral;
          Additional Collateral; Substitute Collateral.

         

        (a)  In
          order
          to secure the due and punctual payment of the principal of, premium, if
          any, and
          interest on the Notes, and all other obligations of the Company and the
          Guarantors under this Indenture and the Collateral Documents, when and
          as the
          same shall be due and payable, the Company, the
          Subsidiary Guarantors and
          the
          Collateral Trustee have simultaneously with the execution of this Indenture
          entered into the Collateral Documents to create on a second priority basis
          security interests in substantially all of the Company’s and the Company’s
          existing and future Subsidiaries’ tangible and intangible property (real,
          personal or otherwise).

         

        
          
            
            

          

          
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        (b)  The
          Collateral Trustee, the Company, and the Subsidiary Guarantors, each
          hereby agree that the Collateral Trustee holds its interest in the Collateral
          in
          trust for its benefit and for the benefit of the Holders pursuant to the
          terms
          of the Collateral Documents. Each of the Company and the Subsidiary Guarantors
          covenants and agrees that it shall execute, acknowledge and deliver to
          the
          Collateral Trustee such further assignments, transfers, assurances or other
          instruments and shall do or cause to be done all such acts and things as
          may be
          necessary or proper to assure and confirm to the Collateral Trustee that
          it
          holds duly created, enforceable and perfected Liens upon the Collateral,
          or any
          part thereof, as from time to time constituted, and the right, title and
          interest in and to the Collateral Documents so as to render the same available
          for the security and benefit of this Indenture and of the Notes. 

         

        (c)  The
          Collateral Trustee shall act as the collateral trustee pursuant to the
          Intercreditor Agreement and Second Priority Documents and shall be authorized
          to
          appoint co-Collateral Trustees as necessary in its sole discretion. Except
          as
          otherwise explicitly provided herein or in the Intercreditor Agreement
          or Second
          Priority Documents, neither the Collateral Trustee nor any of its respective
          officers, directors, employees or agents shall be liable for failure to
          demand,
          collect or realize upon any of the Collateral or for any delay in doing
          so or
          shall be under any obligation to sell or otherwise dispose of any Collateral
          upon the request of any other person or to take any other action whatsoever
          with
          regard to the Collateral or any part thereof. The Collateral Trustee shall
          be
          accountable only for amounts that it actually receives as a result of the
          exercise of such powers, and neither the Collateral Trustee nor any of
          its
          officers, directors, employees or agents shall be responsible for any act
          or
          failure to act hereunder, except for its own willful misconduct, gross
          negligence or bad faith. 

         

        (d)  (i)
          Each
          Holder, by its acceptance of the Notes, consents and agrees to the terms
          of the
          Intercreditor Agreement and the Second Priority Documents as the same may
          be in
          effect or may be amended from time to time in accordance with their terms.
          

         

        (ii) By
          their
          acceptance of the Notes, the Holders hereby authorize and instruct the
          Trustee,
          as Collateral Trustee, to (A) enter into the Second Priority Documents,
          (B)
bind
          the
          Holders on the terms set forth in the Second Priority Documents and (C)
          perform
          and observe its obligations under the Collateral Documents.

        

        
          
            
            

          

          
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                  (iii) By
          their
          acceptance of the Notes, the Holders hereby authorize and instruct the
          Collateral Trustee to (A) enter into the Intercreditor Agreement, (B) bind
          the
olders
          on
          the terms set forth in the Intercreditor Agreement, and (C) perform and
          observe
          its obligations under the Intercreditor Agreement. 

         

        Section
          12.02.  Additional
          Collateral; Acquisition of Assets or Property.

         

        Concurrently
          with the acquisition by the Company or any Subsidiary Guarantor of any
          Property
          comprising the Collateral hereafter acquired by the Company or any Subsidiary
          Guarantor, the Company shall, or shall cause such Subsidiary Guarantor,
          as the
          case may be, to, as promptly as practicable, subject to obtaining the consents
          contemplated by the next succeeding paragraph:

         

        (i)  execute
          and deliver to the Collateral Trustee, such Collateral Documents and take
          such
          other actions as shall be necessary to create, perfect and protect a Lien
          in
          favor of the Collateral Trustee on such assets or property (to the extent
          required to be perfected in accordance with the terms of the Collateral
          Documents);

         

        (ii)  with
          respect to any fee interest in any tract (or series of tracts at the same
          location) of real property after the Issue Date by the Company or any Subsidiary
          Guarantor, promptly (A) execute and deliver a Second Priority Mortgage
          in favor
          of the Collateral Trustee, creating a second priority security interest
          for the
          benefit of the Holders of the Notes, covering such real property, and (B)
          deliver to the Collateral Trustee title and extended coverage insurance
          covering
          such real property in an amount at least equal to the purchase price of
          such
          real property, with local fixture filings being made in respect of fixtures
          associated with such real property as well as a current ALTA survey thereof,
          together with a surveyor’s certificate; and

         

        (iii)  promptly
          deliver to the Collateral Trustee such opinions of counsel, if any, as
          the
          Collateral Trustee may reasonably require with respect to this Section
          12.01(b)
          (including opinions as to enforceability and perfection of security interests),
          which opinions shall be in form and substance, and from counsel, reasonably
          satisfactory to such Collateral Trustee.

         

        (b)  If
          the
          granting or perfection of a security interest in such property requires
          the
          consent or agreement of a third party, the Company will use commercially
          reasonable efforts to obtain such consent as promptly as practicable with
          respect to the Lien for the benefit of the Collateral Trustee.

         

        (c)  

         

        Section
          12.03.  [Intentionally
          Omitted]

         

        Section
          12.04.   Release
          of Collateral.

         

        (a)  The
          Liens
          in favor of the Collateral Trustee under the Collateral Documents will
          be
          released in whole: (i) upon payment in full of the principal of, and accrued
          and
          unpaid interest and premium, if any, and additional interest, if any, on
          all
          outstanding Notes and payment in full of all other Obligations with respect
          to
          the Notes that are due and payable at or prior to the time such principal,
          accrued and unpaid interest and premium are paid; or (ii) upon defeasance
          of the
          Notes or a discharge of the Indenture in accordance with the provisions
          described in Article Eight..

         

        (b)  The
          Liens
          in favor of the Collateral Trustee under the Collateral Documents will
          be
          released with respect to any asset constituting Collateral, if:

         

        (i)  The
          asset
          has been sold or otherwise disposed of by the Company or a Subsidiary Guarantor
          to a Person other than the Company or a Restricted Subsidiary in a transaction
          permitted by and in accordance with the Indenture, at the time of such
          sale or
          disposition; or

         

        
          
            
            

          

          
            93

            
              

            

          

           

                          (ii)  The
            Collateral Trustee and the New Credit Facility Agent, in accordance with
            the
            provisions set forth in the Intercreditor Agreement, exercise any remedies
            in
            respect to such asset, including any sale or other disposition
            thereof.

        

         

        The
          Company, subject to compliance with Section 4.07, has the ability to issue
          Additional Notes having identical terms and conditions to the
          Notes.

         

        Section
          12.05.  Possession
          and Use of Collateral.

         

        Subject
          to and in accordance with the provisions of this Indenture, the
          Intercreditor Agreement and the Collateral Documents,
          so long
          as the Collateral Trustee has not exercised rights or remedies with respect
          to
          the Collateral in connection with an Event of Default that has occurred
          and is
          continuing, except as provided in the Intercreditor Agreement and the Collateral
          Documents, the Company and the Subsidiary Guarantors shall have the right
          to
          remain in possession and retain exclusive control of and to exercise all
          rights
          with respect to the Collateral, to freely, operate, manage, develop, lease,
          use,
          consume and enjoy the Collateral, to alter or repair any Collateral so
          long as
          such alterations and repairs do not impair the Liens of the Collateral
          Documents
          thereon, and otherwise comply with Section 12.03 hereof, and to collect,
          receive, use, invest and dispose of the profits, revenues, proceeds and
          other
          income thereof.

         

        
          
            
            

          

          
            94

            
              

            

          

          
            
            

          

        

        

         

        Section
          12.06.  Authorization
          of Actions to Be Taken by the Collateral Trustee Under the Collateral Documents
          and the Intercreditor Agreement.

         

        Subject
          to the provisions of the Collateral Documents and the Intercreditor
          Agreement:

         

        (a)  the
          Collateral Trustee may, in its sole discretion and without the consent
          of the
          Holders, take all actions it deems necessary or appropriate in order to
          (i)
          enforce any of the terms of the Collateral Documents; and (ii) collect
          and
          receive any and all amounts payable in respect of the obligations of the
          Company, the Subsidiary Guarantors hereunder and under the Collateral Documents;
          and

         

        (b)  the
          Collateral Trustee shall have power to institute and to maintain such suits
          and
          proceedings as it may deem reasonably necessary to prevent any impairment
          of the
          Collateral by any act that may be unlawful or in violation of the Collateral
          Documents or this Indenture, and such suits and proceedings as the Collateral
          Trustee may deem reasonably necessary to preserve or protect its interests
          and
          the interests of the Holders in the Collateral (including the power to
          institute
          and maintain suits or proceedings to restrain the enforcement of or compliance
          with any legislative or other governmental enactment, rule or order that
          may be
          unconstitutional or otherwise invalid if the enforcement of, or compliance
          with,
          such enactment, rule or order would impair the security interest thereunder
          or
          be prejudicial to the interests of the Holders or of the Collateral
          Trustee).

         

        By
          acquiring a Note and without any further action on its part, each Holder
          hereby
          consents to the terms of the Intercreditor Agreement and authorizes and
          directs
          the Collateral Trustee to take each action that the Collateral Trustee
          is
          required to take pursuant to the terms of the Intercreditor
          Agreement.

         

        Section
          12.07.  Recording,
          Registration and Opinions.

         

        (a)  As
          required by the provisions of Section 314(b) of the TIA, the Company and,
          if
          applicable, the Subsidiary Guarantors shall take or cause to be taken all
          action
          required to perfect, maintain, preserve and protect the Lien on and security
          interest in the Collateral granted by the Second Priority Documents (subject
          only to Permitted Liens), including without limitation, the filing of financing
          statements, continuation statements, mortgages and any instruments of further
          assurance, in such manner and in such places as may be required by law
          fully to
          preserve and protect the rights of the Holders and the Collateral Trustee
          under
          this Indenture and the Second Priority Documents to all property comprising
          the
          Collateral. The Company shall from time to time promptly pay all financing,
          continuation statements and mortgage recording, registration and/or filing
          fees,
          charges and taxes relating to this Indenture and the Second Priority Documents,
          any amendments thereto and any other instruments of further assurance required
          hereunder or pursuant to the Second Priority Documents. The Collateral
          Trustee
          shall have no obligation to, nor shall it be responsible for any failure
          to, so
          register, file or record. 

         

                  (b)  The
          Company shall furnish to the Trustee on the anniversary of the Issue Date
          in
          each year, beginning with 2005, an Opinion of Counsel, dated as of such
          date,
          which complies with TIA § 314(b)(2), either (i)(x) stating that, in the
          opinion of such counsel, such action has been taken with respect to the
          delivery
          of Collateral, recordings, registrations, filings, re-recordings,
          re-registrations and refilings of this Indenture, the Collateral Documents
          and
          all supplemental indentures, financing statements, continuation statements
          and
          other instruments of further assurance as are necessary to maintain the
          perfected Liens of the Collateral Documents under applicable law in those
          items
          of Collateral that can be perfected by the filing, recordings, registrations
          or
          delivery and reciting with respect to such Liens on and security interests
          in
          the Collateral the details of such action or referring to prior Opinions
          of
          Counsel in which such details are given, and (y) stating that, based on
          relevant
          laws as in effect on the date of such Opinion of Counsel, all financing
          statements, continuation statements, and other documents have been executed
          and
          filed that are necessary, as of such date and during the succeeding 12
          months,
          fully to maintain the perfection of the security interests of the Collateral
          Trustee hereunder and under the Collateral Documents with respect to the
          Collateral; provided
          that if
          there is a required filing of a continuation statement or other instrument
          within such 12 month period and such continuation statement or other instrument
          is not effective if filed at the time of the opinion, such opinion may
          so state
          and in that case the Company shall cause a continuation statement or other
          instrument to be timely filed so as to maintain such Liens and security
          interests and shall provide a further Opinion of Counsel to the effect
          of this
          clause (i) upon the filing of the relevant continuation statement or other
          instrument; or (ii) stating that, in the opinion of such counsel, no such
          action
          is necessary to maintain such Liens or security interests.

         

        (c)  In
          the
          event that the Company or any Guarantor wish the Collateral Trustee to
          execute a
          release of any Collateral from the lien of the Second Priority Documents
          in
          accordance with this Indenture, the Intercreditor Agreement and the Second
          Priority Documents, it shall furnish the Collateral Trustee an Officers’
          Certificate complying with Section 13.04 certifying that all conditions
          precedent have been met and that no consent of the Holders is required
          together
          with any documents required by any other provision 

         

         

        
          
            
            

          

          
            95

            
              

            

          

          
            
            

          

           

          of
            this
            Indenture and delivery as required by this Indenture, an Opinion of Counsel
            to
            the effect that such accompanying documents constitute all the documents
            required by this Indenture, by Section 314(d) of the TIA or that no such
            documents are so required. If such release is given pursuant to the automatic
            release provisions of the Intercreditor Agreement, the Officers’ Certificate
            shall also be accompanied by evidence that the Collateral has been released
            under the First Priority Documents. Upon the receipt of such documents
            the
            Trustee shall execute, or shall cause the Collateral Trustee to execute,
            a
            release of the Collateral. The Trustee, however, shall have no duty to
            confirm
            the legality or validity of such documents, its sole duty being to certify
            that
            it has received such documentation which on their face conform to Section
            314(d)
            of the TIA. 

        

         

        ARTICLE
          THIRTEEN 

         

        MISCELLANEOUS

         

        Section
          13.01.  Trust
          Indenture Act Controls.

         

        If
          any
          provision of this Indenture limits, qualifies or conflicts with the duties
          imposed by TIA §318(c), the imposed duties shall control.

         

        Section
          13.02.  Notices.

         

        (a)  Any
          notice or communication by the Company or any Subsidiary Guarantor, on
          the one
          hand, or the Trustee on the other hand, to the other is duly given if in
          writing
          and delivered in Person or mailed by first class mail (registered or certified,
          return receipt requested), telecopier or overnight air courier guaranteeing
          next
          day delivery, to the others’ address:

         

        If
          to the
          Company or any Subsidiary Guarantor:

         

        Integrated
          Alarm Services Group, Inc.

        One
          Capital Center

        99
          Pine
          Street, 3rd
          Floor

        Albany,
          New York 12207

         

        Facsimile:
          (518) 426-0953

        Attention:
          Michael Moscinski

         

        

         

        If
          to the
          Trustee:

         

        

         

        Wells
          Fargo Bank, N.A.

        213
          Court
          Street

        Suite
          703

        Middletown,
          CT 06457

         

        

         

        Facsimile:
          (860) 704-6219

        Attention:
          Joe O’Donnell

         

        (b)  The
          Company, the Subsidiary Guarantors or the Trustee, by notice to the others
          may
          designate additional or different addresses for subsequent notices or
          communications.

         

        (c)  All
          notices and communications (other than those sent to Holders) shall be
          deemed to
          have been duly given: at the time delivered by hand, if personally delivered;
          three Business Days after being deposited in the mail, postage prepaid,
          if
          mailed; when receipt acknowledged, if telecopied; and the next Business
          Day
          after timely delivery to the courier, if sent by overnight air courier
          guaranteeing next day delivery. The Trustee may accept signatures to original
          documents to the same effect as if it had received the original of such
          documents.

         

        
          
            
            

          

          
            96

            
              

            

          

          
            
            

          

        

        (d)  Any
          notice or communication to a Holder shall be mailed by first class mail,
          certified or registered, return receipt requested, or by overnight air
          courier
          guranteeing
          next day delivery to its address shown on the register kept by the Registrar.
          Any notice or communication shall also be so mailed to any Person described
          in
          TIA §313(c), to the extent required by the TIA. Failure to mail a notice or
          communication to a Holder or any defect in it shall not affect its sufficiency
          with respect to other Holders.

         

        (e)  If
          a
          notice or communication is mailed in the manner provided above within the
          time
          prescribed, it is duly given, whether or not the addressee receives
          it.

         

        (f)  If
          the
          Company mails a notice or communication to Holders, it shall mail a copy
          to the
          Trustee and each Agent at the same time.

         

        Section
          13.03.  Communication
          by Holders of Notes with Other Holders of Notes.

         

        Holders
          may communicate pursuant to TIA §312(b) with other Holders with respect to its
          rights under this Indenture or the Notes. The Company, the Trustee, the
          Registrar and anyone else shall have the protection of TIA §312(c).

         

        Section
          13.04.  Certificate
          and Opinion as to Conditions Precedent.

         

        Upon
          any
          request or application by the Company to the Trustee to take any action
          under
          this Indenture, the Company shall furnish to the Trustee:

         

        (i)  an
          Officers’ Certificate in form and substance reasonably satisfactory to the
          Trustee (which shall include the statements set forth in Section 13.05
          hereof)
          stating that, in the opinion of the signers, all conditions precedent and
          covenants, if any, provided for in this Indenture relating to the proposed
          action have been satisfied; and

         

        (ii)  an
          Opinion of Counsel in form and substance reasonably satisfactory to the
          Trustee
          (which shall include the statements set forth in Section 13.05 hereof)
          stating
          that, in the opinion of such counsel (who may rely upon and Officers’
          Certificate as to matters of fact), all such conditions precedent and covenants
          have been satisfied.

         

        Section
          13.05.  Statements
          Required in Certificate or Opinion.

         

        Each
          certificate or opinion with respect to compliance with a condition or covenant
          provided for in this Indenture (other than a certificate provided pursuant
          to
          TIA §314(a)(4)) shall comply with the provisions of TIA §314(e) and shall
          include:

         

        (i)  a
          statement that the Person making such certificate or opinion has read such
          covenant or condition;

         

        (ii)  a
          brief
          statement as to the nature and scope of the examination or investigation
          upon
          which the statements or opinions contained in such certificate or opinion
          are
          based;

         

        (iii)  a
          statement that, in the opinion of such Person, he or she has made such
          examination or investigation as is necessary to enable him to express an
          informed opinion as to whether or not such covenant or condition has been
          satisfied; and

         

        
          
            
            

          

          
            97

            
              

            

          

          
            
            

          

        

        

         

        (iv)  a
          statement as to whether or not, in the opinion of such Person, such condition
          or
          covenant has been satisfied.

         

        Section
          13.06.  Rules
          by Trustee and Agents.

         

        The
          Trustee may make reasonable rules for action by or at a meeting of Holders.
          The
          Registrar or Paying Agent may make reasonable rules and set reasonable
          requirements for its functions.

         

        Section
          13.07.  No
          Personal Liability of Directors, Officers, Employees and
          Stockholders.

         

        No
          director, officer, employee, incorporator or shareholder of the Company
          or any
          Subsidiary Guarantor, as such, shall have any liability for any obligations
          of
          the Company or the Subsidiary Guarantors under the Notes, this Indenture,
          the
          Subsidiary Guarantees or for any claim based on, in respect of, or by reason
          of,
          such obligations or their creation. Each Holder of Notes by accepting a
          Note
          waives and releases all such liability. This waiver and release are part
          of the
          consideration for issuance of the Notes. The waiver may not be effective
          to
          waive liabilities under the federal securities laws.

         

        Section
          13.08.  Governing
          Law.

         

        THE
          LAWS
          OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE,
          THE NOTES AND THE SUBSIDIARY GUARANTEES.

         

        Section
          13.09.  Consent
          to Jurisdiction.

         

        Any
          legal
          suit, action or proceeding arising out of or based upon this Indenture
          or the
          transactions contemplated hereby (“Related Proceedings”) may be instituted in
          the federal courts of the United States of America located in the City
          of New
          York, Borough of Manhattan, or the courts of the State of New York in each
          case
          located in the City of New York (collectively, the “Specified Courts”), and each
          party irrevocably submits to the non-exclusive jurisdiction of such courts
          in
          any such suit, action or proceeding. Service of any process, summons, notice
          or
          document by mail (to the extent allowed under any applicable statute or
          rule of
          court) to such party’s address set forth above shall be effective service of
          process for any suit, action or other proceeding brought in any such court.
          The
          parties irrevocably and unconditionally waive any objection to the laying
          of
          venue of any suit, action or other proceeding in the Specified Courts and
          irrevocably and unconditionally waive and agree not to plead or claim in
          any
          such court has been brought in an inconvenient forum.

         

        Section
          13.10.  No
          Adverse Interpretation of Other Agreements.

         

        This
          Indenture may not be used to interpret any other indenture, loan or debt
          agreement of the Company or any of its Subsidiaries or of any other Person.
          Any
          such indenture, loan or debt agreement may not be used to interpret this
          Indenture.

         

        
          
            
            

          

          
            98

            
              

            

          

          
            
            

          

        

        

         

        Section
          13.11.  Successors.

         

        All
          agreements of the Company or any Subsidiary Guarantor in this Indenture
          and the
          Notes shall bind its successors. All agreements of the Trustee in this
          Indenture
          shall bind its successors.

         

        Section
          13.12.  Severability.

         

        In
          case
          any provision in this Indenture or the Notes shall be invalid, illegal
          or
          unenforceable, the validity, legality and enforceability of the remaining
          provisions shall not in any way be affected or impaired thereby.

         

        Section
          13.13.  Counterpart
          Originals.

         

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

         

        Section
          13.14.  Acts
          of Holders.

         

        (a)  Any
          request, demand, authorization, direction, notice, consent, waiver or other
          action provided by this Indenture to be given or taken by the Holders may
          be
          embodied in and evidenced by one or more instruments of substantially similar
          tenor signed by such Holders in person or by agents duly appointed in writing;
          and, except as herein otherwise expressly provided, such action shall become
          effective when such instrument or instruments are delivered to the Trustee
          and,
          where it is hereby expressly required, to the Company. Such instrument
          or
          instruments (and the action embodied therein and evidenced thereby) are
          herein
          sometimes referred to as the “Act” of the Holders signing such instrument or
          instruments. Proof of execution of any such instrument or of a writing
          appointing any such agent shall be sufficient for any purpose of this Indenture
          and conclusive in favor of the Trustee and the Company if made in the manner
          provided in this Section 12.14.

         

        
          
            
            

          

          
            99

            
              

            

          

          
            
            

          

        

         

        (b)  The
          fact
          and date of the execution by any Person of any such instrument or writing
          may be
          proved by the affidavit of a witness of such execution or by a certificate
          of a
          notary public or other officer authorized by law to take acknowledgments
          of
          deeds, certifying that the individual signing such instrument or writing
          acknowledged to such witness, notary or officer the execution thereof.
          Where
          such execution is by a signer acting in a capacity other than his individual
          capacity, such certificate or affidavit shall also constitute sufficient
          proof
          of authority. The fact and date of the execution of any such instrument
          or
          writing, or the authority of the Person executing the same, may also be
          proved
          in any other manner which the Trustee deems sufficient.

         

        (c)  Notwithstanding
          anything to the contrary contained in this Section 12.14, the principal
          amount
          and serial numbers of Notes held by any Holder, and the date of holding
          the
          same, shall be proved by the register of the Notes maintained by the Registrar
          as provided in Section 2.04 hereof.

         

        (d)  If
          the
          Company shall solicit from the Holders of the Notes any request, demand,
          authorization, direction, notice, consent, waiver or other Act, the Company
          may,
          at its option, by or pursuant to a resolution of its Board of Directors,
          fix in
          advance a record date for the determination of Holders entitled to give
          such
          request, demand, authorization, direction, notice, consent, waiver or other
          Act,
          but the Company shall have no obligation to do so. Notwithstanding TIA
§316(c),
          such record date shall be the record date specified in or pursuant to such
          resolution, which shall be a date not earlier than the date 30 days prior
          to the
          first solicitation of Holders generally in connection therewith or the
          date of
          the most recent list of Holders forwarded to the Trustee prior to such
          solicitation pursuant to Section 2.06 hereof and not later than the date
          such
          solicitation is completed. If such a record date is fixed, such request,
          demand,
          authorization, direction, notice, consent, waiver or other Act may be given
          before or after such record date, but only the Holders of record at the
          close of
          business on such record date shall be deemed to be Holders for the purposes
          of
          determining whether Holders of the requisite proportion of the then outstanding
          Notes have authorized or agreed or consented to such request, demand,
          authorization, direction, notice, consent, waiver or other Act, and for
          that
          purpose the then outstanding Notes shall be computed as of such record
          date;
          provided that no such authorization, agreement or consent by the Holders
          on such
          record date shall be deemed effective unless it shall become effective
          pursuant
          to the provisions of this Indenture not later than eleven months after
          the
          record date.

         

        (e)  Any
          request, demand, authorization, direction, notice, consent, waiver or other
          Act
          of the Holder of any Note shall bind every future Holder of the same Note
          and
          the Holder of every Note issued upon the registration or transfer thereof
          or in
          exchange therefor or in lieu thereof in respect of anything done, omitted
          or
          suffered to be done by the Trustee or the Company in reliance thereon,
          whether
          or not notation of such action is made upon such Note.

         

        (f)  Without
          limiting the foregoing, a Holder entitled hereunder to take any action
          hereunder
          with regard to any particular Note may do so itself with regard to all
          or any
          part of the principal amount of such Note or by one or more duly appointed
          agents each of which may do so pursuant to such appointment with regard
          to all
          or any part of such principal amount.

         

        Section
          13.15.  Benefit
          of Indenture.

         

        Nothing,
          in this Indenture or the Notes, express or implied, shall give to any Person,
          other than the parties hereto, any Paying Agent, any Registrar and its
          successors hereunder, and the Holders, any benefit or any legal or equitable
          right, remedy or claim under this Indenture.

         

        Section
          13.16.  Table
          of Contents, Headings, Etc.

         

        The
          Table
          of Contents, Cross-Reference Table and Headings of the Articles and Sections
          of
          this Indenture have been inserted for convenience of reference only, are
          not to
          be considered a part of this Indenture and shall in no way modify or restrict
          any of the terms or provisions hereof.

         

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK]

        

        

        
        

        
          
            
               

            

            
            

          

          
            100

            
              

            

          

          
            
            

            
            

          

        

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

        

        

        INTEGRATED
          ALARM SERVICES GROUP, INC.

        

        

        By:_/s/
          Timothy M. McGinn

        Name:
          Timothy M. McGinn

        Title:
          Chairman & CEO

        

        CRITICOM
          INTERNATIONAL CORPORATION

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        MONITAL
          SIGNAL CORPORATION

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        MORLYN
          FINANCIAL GROUP, L.L.C.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        PAYNE
          SECURITY GROUP, L.L.C.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Manager

        

        

        GUARDIAN
          GROUP, LLC

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Manager

        
          
            
            

          

          
            101

            
              

            

          

          
            
            

          

        

        

        INTEGRATED
          ALARMS SERVICES, INC.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Chairman
          & CEO

        

        MADISON
          PROTECTION, INC.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        EVEREST
          VIDEO SYSTEMS, L.L.C.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        INTEGRATED
          ALARM AND SECURITY, LLC

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Manager

        

        ALERT
          ALARM COMPANY, INC.

        

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        AMERICAN
          BURGLAR & FIRE ALARM CO.

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        
          
            
            

          

          
            102

            
              

            

          

          
            
            

          

        

        

        NORCO
          ALARMS, INC.

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        SECURITY
          GENERAL CORPORATION

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        AMERICAN
          HOME SECURITY, INC.

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        SHIELD
          SIGNAL CORP.

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        TELEGUARD
          SECURITY SYSTEMS INC.

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        WALTER
          BREESE, INCORPORATED

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        MONITAL
          FUNDING CORPORATION

        

        By:
          /s/
          Timothy M. McGinn

        Name:
          Timothy
          M. McGinn

        Title:
          Authorized
          Person

        

        

        [Signatures
          continue on next page]

        

        

        
        

        
          
            
               

            

            
            

          

          
            103

            
              

            

          

          
            
            

            
            

          

        

        

        WELLS
          FARGO BANK, N.A., as Trustee

        

        

        By: /s/
          Joseph P. O'Donnell  

        Name:
          Joseph P. O'Donnell

        Title:
          Assistant Vice President

        

        

        
        

        
          
            
               

            

            
            

          

          
            104

            
              

            

          

          
            
            

            
            

          

        

        EXHIBIT
          A

         

        

         

        [Face
          of
          Note]

         

        [INSERT
          APPROPRIATE LEGENDS]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        CUSIP
          45890M AB 5

         

                                                                                                        No.**$[    
          ]**

        

        

        

        

        INTEGRATED
          ALARM SERVICES GROUP, INC.

         

        

         

        12%
          Senior Secured Notes due 2011

         

        Issue
          Date:

         

        Integrated
          Alarm Services Group, Inc., a Delaware corporation (the “Company”, which term
          includes any successor under this Indenture hereinafter referred to), for
          value
          received, promises to pay to CEDE & CO. or its registered assigns, the
          principal sum of One Hundred Twenty-Five Million Dollars ($125,000,000)
          on
          November 15, 2011.

         

        Interest
          Payment Dates: May 15 and November 15, commencing May 15, 2005.

         

        Record
          Dates: May 1 and November 1.

         

        Reference
          is hereby made to the further provisions of this Note set forth on the
          reverse
          hereof, which further provisions shall for all purposes have the same effect
          as
          if set forth at this place.

         

        IN
          WITNESS WHEREOF, the Company has caused this Note to be signed manually
          or by
          facsimile by its duly authorized officers.

         

        INTEGRATED
          ALARM SERVICES GROUP, INC.

        

        

        By:
          __________________________________

        Name:
          ________________________________

        Title:
          _________________________________

        

        

        By:
          __________________________________

        Name:
          ________________________________

        Title:
          _________________________________

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        (Trustee’s
          Certificate of Authentication)

         

        

         

        This
          is
          one of the 12% Senior Secured Notes due 2011 described in the within-mentioned
          Indenture.

         

        

         

        Dated:

         

        

         

        WELLS
          FARGO BANK, N.A.,

         

        as
          Trustee

         

        By:___________________________

         

        Authorized
          Signatory

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        [Reverse
          Side of Note]

         

        INTEGRATED
          ALARM SERVICES GROUP, Inc.

         

        12%
          Senior Secured Notes due 2011

         

        Capitalized
          terms used herein shall have the meanings assigned to them in the Indenture
          referred to below unless otherwise indicated.

         

        1.  Interest.
          The Company promises to pay interest on the principal amount of this Note
          at 12
          % per annum from the date hereof until maturity and shall pay the Liquidated
          Damages, if any, payable pursuant to Section 5 of the Registration Rights
          Agreement referred to below. The Company shall pay interest and Liquidated
          Damages, if any, semi-annually in arrears on May 15 and November 15 of
          each
          year, or if any such day is not a Business Day, on the next succeeding
          Business
          Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from
          the most recent date to which interest has been paid or, if no interest
          has been
          paid, from the date of original issuance; provided that if there is no
          existing
          Default in the payment of interest, and if this Note is authenticated between
          a
          record date referred to on the face hereof and the next succeeding Interest
          Payment Date, interest shall accrue from such next succeeding Interest
          Payment
          Date; provided further that the first Interest Payment Date shall be May
          15,
          2005. The Company shall pay interest (including post-petition interest
          in any
          proceeding under any Bankruptcy Law) on overdue principal and premium,
          if any,
          from time to time on demand at a rate that is 1% per annum in excess of
          the rate
          then in effect; it shall pay interest (including post-petition interest
          in any
          proceeding under any Bankruptcy Law) on overdue installments of interest
          and
          Liquidated Damages (without regard to any applicable grace periods) from
          time to
          time on demand at the same rate to the extent lawful. Interest shall be
          computed
          on the basis of a 360-day year of twelve 30-day months.

         

        2.  Method
          of
          Payment. The Company shall pay interest on the Notes (except defaulted
          interest)
          and Liquidated Damages, if any, to the Persons who are Holders of Notes
          at the
          close of business on the record date immediately preceding the Interest
          Payment
          Date, even if such Notes are canceled after such record date and on or
          before
          such Interest Payment Date, except as provided in Section 2.11 of the Indenture
          with respect to defaulted interest. The Notes shall be payable as to principal,
          premium and Liquidated Damages, if any, and interest at the office or agency
          of
          the Company maintained for such purpose in The City of New York, or, at
          the
          option of the Company, payment of interest and Liquidated Damages, if any,
          may
          be made by check mailed to the Holders at their addresses set forth in
          the
          register of Holders, and provided that payment by wire transfer of immediately
          available funds shall be required with respect to principal of and interest,
          premium and Liquidated Damages, if any, on, all Global Notes. Such payment
          shall
          be in such coin or currency of the United States of America as at the time
          of
          payment is legal tender for payment of public and private debts.

         

        3.  Paying
          Agent and Registrar. Initially, the Trustee under the Indenture shall act
          as
          Paying Agent and Registrar. The Company may change any Paying Agent or
          Registrar
          without notice to any Holder. The Company or any of its Subsidiaries may
          act in
          any such capacity.

         

        4.  

         

        5.  Indenture.
          The Company issued the Notes under an Indenture dated as of November 16
          , 2004
          (“Indenture”) among the Company, the Subsidiary Guarantors and the Trustee. The
          terms of the Notes include those stated in the Indenture and those made
          part of
          the Indenture by reference to the Trust Indenture Act of 1939, as amended.
          Terms
          defined in the Indenture and not defined herein have the meanings ascribed
          thereto in the Indenture. The Notes are subject to all such terms, and
          Holders
          are referred to the Indenture and such Act for a statement of such terms.
          To the
          extent any provision of this Note conflicts with the express provisions
          of the
          Indenture, the provisions of the Indenture shall govern and be controlling.
          

         

        The
          Notes
          are senior secured obligations of the Company. The Company shall be entitled,
          subject to its compliance with Section 4.07 of the Indenture, to
          issue
          Additional Notes pursuant to Section 2.13 of the Indenture. The
          Initial
          Notes issued on the Issue Date, any Additional Notes and all Exchange Notes
          or
          Private Exchange Notes issued in exchange therefor will 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; transfer or sell assets; guarantee indebtedness;
          restrict dividends or other payments of subsidiaries; and consolidate,
          merge or
          transfer all or substantially all of their assets and the assets of their
          subsidiaries. These covenants are subject to important exceptions and
          qualifications.

         

        6.  Optional
          Redemption. (a)
          Except
          as set forth in this Section 5, the Company shall not have the option to
          redeem
          any Notes.

         

        (a) On
          or
          before November 15, 2008, the Company shall have the option to redeem the
          Notes,
          in whole or in part, upon not less than 30 nor more than 60 days’ prior notice,
          at a redemption price equal to the greater of the following
          amounts:

        

        •
          100% of
          the principal amount of the Notes being redeemed on the redemption date;
          or

        

        •
          the sum
          of the present values of the remaining scheduled payments of principal
          and
          interest on the Notes being redeemed on that redemption date (not including
          any
          portion of any payments of interest accrued to the redemption date), discounted
          to the redemption date on a semi-annual basis at the Treasury Rate (as
          defined
          below), plus 50 basis points, as determined by the Reference Treasury Dealer
          (as
          defined below),

        

        plus,
          in
          each case, accrued and unpaid interest and Liquidated Damages, if any,
          on the
          Notes to the redemption date. Notwithstanding the foregoing, installments
          of
          interest on Notes that are due and payable on an interest payment dates
          falling
          on or prior to a redemption date will be payable on the interest payment
          date to
          the registered holders as of the close of business on the relevant record
          date.
          The redemption price will be calculated on the basis of a 360-day year
          consisting of twelve 30-day months.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        “Comparable
          Treasury Issue” means the United States Treasury security selected by the
          Reference Treasury Dealer as having a maturity comparable to the remaining
          term
          of the Notes.

        

        “Comparable
          Treasury Price” means, with respect to any redemption date, (A) the average of
          the Reference Treasury Dealer Quotations for such redemption date, after
          excluding the highest and lowest such Reference Treasury Dealer Quotations,
          or
          (B) if the Trustee obtains fewer than three such Reference Treasury Dealer
          Quotations, the average of all such Quotations, or (C) if only one Reference
          Treasury Dealer Quotation is received, such Quotation.

        

        “Reference
          Treasury Dealer” means (A) Wells Fargo Securities LLC or ABN AMRO Incorporated
          or their respective affiliates which are Primary Treasury Dealers, and
          its
          successors; provided, however, that if Wells Fargo Securities LLC or ABN
          AMRO
          Incorporated shall cease to be a primary U.S. Government securities dealer
          in
          New York City (a ‘‘Primary Treasury Dealer’’), the Company shall substitute
          therefor another Primary Treasury Dealer; and (B) any other Primary Treasury
          Dealer(s) selected by the Trustee after consultation with the
          Company.

        

        “Reference
          Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
          and any redemption date, the average, as determined by the Trustee, of
          the bid
          and asked prices for the Comparable Treasury Issue, expressed in each case
          as a
          percentage of its principal amount, quoted in writing to the Trustee by
          such
          Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
          business day preceding such redemption date.

        

        “Treasury
          Rate” means, with respect to any redemption date, the rate per annum equal to
          the semi-annual equivalent yield to maturity of the Comparable Treasury
          Issue,
          assuming a price for the Comparable Treasury Issue, expressed as a percentage
          of
          its principal amount, equal to the Comparable Treasury Price for such redemption
          date.

        

        (b) On
          and
          after November 15, 2008, the Company shall have the option to redeem the
          Notes,
          in whole or in part, upon not less than 30 nor more than 60 days’ prior notice,
          at the redemption prices (expressed as percentages of principal amount)
          set
          forth below plus accrued and unpaid interest and Liquidated Damages, if
          any,
          thereon to the applicable redemption date, if redeemed during the twelve-month
          period beginning on November 15 of the years indicated below (subject to
          the
          right of Holders on the relevant record date to receive interest and Liquidated
          Damages due on the related interest payment date):

        

        
          	
                  Year 

                	
                  Percentage

                
	
                  2008

                	
                  106.0
                    %

                
	
                  2009

                	
                  103.0
                    %

                
	
                  2010

                	
                  100.0
                    %

                

        

        

        (c) Notwithstanding
          the foregoing, on or prior to November 15, 2007, the Company will be entitled
          at
          its option on one or more occasions to redeem Notes in an aggregate principal
          amount not to exceed the sum of 35 % of the aggregate principal amount
          of the
          Notes originally issued on the Issue Date plus 100% of the aggregate principal
          amount of any 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Additional
          Notes issued, at a redemption price (expressed as a percentage of principal
          amount) of 112.0 %, plus accrued and unpaid 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), with the Net
          Cash
          Proceeds from one or more Designated Offerings; provided,
          however,
          that
          (A) at least 65% of the aggregate principal amount of the Notes originally
          issued on the Issue Date remains outstanding immediately after the occurrence
          of
          each such redemption, other than the Notes held, directly or indirectly,
          by the
          Company or its Affiliates); and (B) each such redemption occurs within
          90 days
          after the date of the related Designated Offering.

        

        7.  Repurchase
          at Option of Holder. Upon a Change of Control, any Holder of Notes will
          have the
          right to cause the Company to repurchase all or any part of the Notes of
          such
          Holder at a repurchase price equal to 101% of the principal amount of the
          Notes
          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.  Guarantee.
          The payment by the Company of the principal of, and premium and interest
          on, the
          Notes 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.

         

        9.  Denominations,
          Transfer, Exchange. The Notes are in registered form without coupons in
          denominations of $1,000 and integral multiples of $1,000. The transfer
          of Notes
          may be registered and Notes may be exchanged as provided in the Indenture.
          The
          Registrar and the Trustee may require a Holder, among other things, to
          furnish
          appropriate endorsements and transfer documents and the Company may require
          a
          Holder to pay any taxes and fees required by law or permitted by the Indenture.
          The Company is not required to transfer or exchange any Note selected for
          redemption. Also, the Company is not required to transfer or exchange any
          Note
          for a period of 15 days before a selection of Notes to be redeemed or between
          a
          record date and the corresponding interest payment date.

         

        10.  Persons
          Deemed Owners. The registered Holder of a Note will be treated as its owner
          for
          all purposes.

         

        11.  Amendment,
          Supplement and Waiver. Subject to certain exceptions, the Indenture or
          the Notes
          may be amended or supplemented with the consent of the Holders of at least
          a
          majority in principal amount of the then outstanding Notes (including,
          without
          limitation, consents obtained in connection with a purchase of, or tender
          offer
          or exchange offer for, the Notes), and any past default or compliance with
          any
          provisions may also be waived (except a default in the payment of principal,
          premium or interest and certain covenants and provisions of the Indenture
          which
          cannot be amended without the consent of each Holder of an outstanding
          Note)
          with the consent of the Holders of at least a majority in aggregate principal
          amount of the Notes then outstanding (including consents obtained in connection
          with a purchase of, or tender offer or exchange offer for, the Notes).
          Without
          the consent of any Holder of a Note, the Indenture or the Notes may be
          amended
          or supplemented to, among other things, cure any ambiguity, defect or
          inconsistency, or to make any change that does not adversely affect the
          legal
          rights under the Indenture of any such Holder.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        12.  Defaults
          and Remedies. In the case of an Event of Default arising from certain events
          of
          bankruptcy or insolvency, with respect to the Company or any Restricted
          Subsidiary of the Company, all outstanding Notes will become due and payable
          immediately without further action or notice. If any other Event of Default
          occurs and is continuing, the Trustee or the Holders of at least 25% in
          principal amount of the then outstanding Notes may declare all the Notes
          to be
          due and payable immediately by notice in writing to the Company specifying
          the
          Event of Default. Holders of the Notes may not enforce the Indenture or
          the
          Notes except as provided in the Indenture. Subject to certain limitations,
          Holders of a majority in principal amount of the then outstanding Notes
          may
          direct the Trustee in its exercise of any trust or power. The Trustee may
          withhold from Holders of the Notes notice of any Default or Event of Default
          (except a Default or Event of Default relating to the payment of principal,
          premium, interest or Liquidated Damages) if it determines that withholding
          notice is in their interest. Holders of a majority in principal amount
          of the
          then outstanding Notes by notice to the Trustee may, on behalf of the Holders
          of
          all of the Notes, rescind and annul a declaration of acceleration pursuant
          to
          Section 6.02 of the Indenture, and its consequences, and waive any related
          existing Default or Event of Default if certain conditions are
          satisfied.

         

        13.  Trustee
          Dealings with Company. The Trustee, in its individual or any other capacity,
          may
          make loans to, accept deposits from, and perform services for the Company
          or its
          Affiliates, and may otherwise deal with the Company or its Affiliates,
          as if it
          were not the Trustee.

         

        14.  No
          Recourse Against Others. No director, officer, employee, incorporator or
          stockholder of the Company, as such, shall have any liability for any
          obligations of the Company under the Notes or the Indenture, or for any
          claim
          based on, in respect of, or by reason of, such obligations or their creation.
          Each Holder of Notes by accepting a Note waives and releases all such liability.
          The waiver and release are part of the consideration for issuance of the
          Notes.
          The waiver may not be effective to waive liabilities under the federal
          securities laws.

         

        15.  Authentication.
          This Note shall not be valid until authenticated by the manual signature
          of the
          Trustee or an authenticating agent.

         

        16.  Additional
          Rights of Holders of Restricted Global Notes and Restricted Definitive
          Notes. In
          addition to the rights provided to Holders under the Indenture, Holders
          of
          Restricted Global Notes and Restricted Definitive Notes shall have all
          the
          rights set forth in the Registration Rights Agreement dated as of November
          16,
          2004, between the Company and the parties named on the signature pages
          thereof
          or, in the case of Additional Notes, Holders of Restricted Global Notes
          and
          Restricted Definitive Notes shall have the rights set forth in one or more
          registration rights agreements, if any, between the Company, the Subsidiary
          Guarantors and the other parties thereto, relating to rights given by the
          Company and the Subsidiary Guarantors to the purchasers of Additional
          Notes.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        17.  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 Notes and the Trustee may use CUSIP numbers in notices of
          redemption
          as a convenience to Holders. No representation is made as to the accuracy
          of
          such numbers either as printed on the Notes or as contained in any notice
          of
          redemption and reliance may be placed only on the other identification
          numbers
          placed thereon.

         

        18.  Copies
          of
          Documents. The Company shall furnish to any Holder upon written request
          and
          without charge a copy of the Indenture and/or the Registration Rights Agreement.
          Requests may be made to:

         

        Integrated
          Alarm Services Group, Inc.

        One
          Capital Center

        99
          Pine
          Street, 3rd
          Floor

        Albany,
          New York 12207

         

        Facsimile:
          (518) 426-0953

        Attention:
          Michael Moscinski

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Assignment
          Form

         

        To
          assign
          this Note, fill in the form below:

         

        (I)
          or
          (we) assign and transfer this Note
          to:__________________________________________________

                                                                (Insert
          assignee’s
          legal name)

                ___________________________________________________________________________________________________________

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

                

                ___________________________________________________________________________________________________________

         

                ___________________________________________________________________________________________________________

         

                ___________________________________________________________________________________________________________

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

         

        and
          irrevocably appoint
          _____________________________________________________________________         

         

        to
          transfer this Note 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
          face of this Note) 

        

        

        Signature
          Guarantee*:__________________________

         

        *
          Participant in a recognized Signature Guarantee Medallion Program (or other
          signature guarantor acceptable to the Trustee).

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        OPTION
          OF
          HOLDER TO ELECT PURCHASE

         

            If
          you want
          to elect to have this Note purchased by the Company pursuant to Section
          4.10,
          4.11 or 4.19 of the Indenture, check the appropriate box below:

         

        [
          ]
          Section 4.10 [
          ]
          Section 4.11  [
          ]
          Section 4.19

         

            If
          you want
          to elect to have only part of the Note purchased by the Company pursuant
          to
          Section 4.10, 4.11 or Section 4.19 of the Indenture, state the amount you
          elect
          to have purchased:

         

        

         

        $__________________

         

        

         

        Date:_____________

         

        

         

        Your
          Signature: _____________________________________

        (Sign
          exactly as your name

        appears
          on the face of this

        Note)

        

        

        Tax
          Identification No.: ________________________________

        

        Signature
          Guarantee*:________________

         

        *
          Participant in a recognized Signature Guarantee Medallion Program (or other
          signature guarantor acceptable to the Trustee).

         

        

         

        
        

        
          
            
               

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

         

        

         

        The
          following exchanges of a part of this Global Note for an interest in another
          Global Note or for a Definitive Note, or exchanges of a part of another
          Global
          Note or Definitive Note for an interest in this Global Note, have been
          made:

         

        
          	
                  Date
                    of Exchange

                	
                  Amount
                    of Decrease in Principal Amount at

                  Maturity

                  of
                    this Global Note

                	
                  Amount
                    of Increase in Principal Amount at Maturity

                  of
                    this Global Note

                	
                  Principal
                    Amount at

                  Maturity

                  of
                    this Global Note Following such decrease
                    (or increase)

                
	
                   

                	
                	
                	
                
	
                   <S>

                	
                  <C>

                	
                  <C>

                	
                   <C>

                
	 	 	 	 

        

        

        

        

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        [Face
          of
          Note]

         

        [INSERT
          APPROPRIATE LEGENDS]

         

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        CUSIP
          45890M AC 3

         

                                                                                                        No.**$[   
          ]**

        

        

        

        

        INTEGRATED
          ALARM SERVICES GROUP, INC.

         

        

         

        12%
          Senior Secured Notes due 2011

         

        Issue
          Date:

         

        Integrated
          Alarm Services Group, Inc., a Delaware corporation (the “Company”, which term
          includes any successor under this Indenture hereinafter referred to), for
          value
          received, promises to pay to CEDE & CO. or its registered assigns, the
          principal sum of One Hundred Twenty-Five Million Dollars ($125,000,000)
          on
          November 15, 2011.

         

        Interest
          Payment Dates: May 15 and November 15, commencing May 15, 2005.

         

        Record
          Dates: May 1 and November 1.

         

        Reference
          is hereby made to the further provisions of this Note set forth on the
          reverse
          hereof, which further provisions shall for all purposes have the same effect
          as
          if set forth at this place.

         

        IN
          WITNESS WHEREOF, the Company has caused this Note to be signed manually
          or by
          facsimile by its duly authorized officers.

         

        INTEGRATED
          ALARM SERVICES GROUP, INC.

        

        

        By:
          ______________________________________

        Name:

        Title:

        

        

        By:
          ______________________________________

        Name:

        Title:

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        (Trustee’s
          Certificate of Authentication)

         

        

         

        This
          is
          one of the 12% Senior Secured Notes due 2011 described in the within-mentioned
          Indenture.

         

        

         

        Dated:

         

        

         

        WELLS
          FARGO BANK, N.A.,

         

        as
          Trustee

         

        By:___________________________

         

        Authorized
          Signatory

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        [Reverse
          Side of Note]

         

        INTEGRATED
          ALARM SERVICES GROUP, Inc.

         

        12%
          Senior Secured Notes due 2011

         

        Capitalized
          terms used herein shall have the meanings assigned to them in the Indenture
          referred to below unless otherwise indicated.

         

        19.  Interest.
          The Company promises to pay interest on the principal amount of this Note
          at 12
          % per annum from the date hereof until maturity and shall pay the Liquidated
          Damages, if any, payable pursuant to Section 5 of the Registration Rights
          Agreement referred to below. The Company shall pay interest and Liquidated
          Damages, if any, semi-annually in arrears on May 15 and November 15 of
          each
          year, or if any such day is not a Business Day, on the next succeeding
          Business
          Day (each an “Interest Payment Date”). Interest on the Notes shall accrue from
          the most recent date to which interest has been paid or, if no interest
          has been
          paid, from the date of original issuance; provided that if there is no
          existing
          Default in the payment of interest, and if this Note is authenticated between
          a
          record date referred to on the face hereof and the next succeeding Interest
          Payment Date, interest shall accrue from such next succeeding Interest
          Payment
          Date; provided further that the first Interest Payment Date shall be May
          15,
          2005. The Company shall pay interest (including post-petition interest
          in any
          proceeding under any Bankruptcy Law) on overdue principal and premium,
          if any,
          from time to time on demand at a rate that is 1% per annum in excess of
          the rate
          then in effect; it shall pay interest (including post-petition interest
          in any
          proceeding under any Bankruptcy Law) on overdue installments of interest
          and
          Liquidated Damages (without regard to any applicable grace periods) from
          time to
          time on demand at the same rate to the extent lawful. Interest shall be
          computed
          on the basis of a 360-day year of twelve 30-day months.

         

        20.  Method
          of
          Payment. The Company shall pay interest on the Notes (except defaulted
          interest)
          and Liquidated Damages, if any, to the Persons who are Holders of Notes
          at the
          close of business on the record date immediately preceding the Interest
          Payment
          Date, even if such Notes are canceled after such record date and on or
          before
          such Interest Payment Date, except as provided in Section 2.11 of the Indenture
          with respect to defaulted interest. The Notes shall be payable as to principal,
          premium and Liquidated Damages, if any, and interest at the office or agency
          of
          the Company maintained for such purpose in The City of New York, or, at
          the
          option of the Company, payment of interest and Liquidated Damages, if any,
          may
          be made by check mailed to the Holders at their addresses set forth in
          the
          register of Holders, and provided that payment by wire transfer of immediately
          available funds shall be required with respect to principal of and interest,
          premium and Liquidated Damages, if any, on, all Global Notes. Such payment
          shall
          be in such coin or currency of the United States of America as at the time
          of
          payment is legal tender for payment of public and private debts.

         

        21.  Paying
          Agent and Registrar. Initially, the Trustee under the Indenture shall act
          as
          Paying Agent and Registrar. The Company may change any Paying Agent or
          Registrar
          without notice to any Holder. The Company or any of its Subsidiaries may
          act in
          any such capacity.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

         

        22.  Indenture.
          The Company issued the Notes under an Indenture dated as of November 16
          , 2004
          (“Indenture”) among the Company, the Subsidiary Guarantors and the Trustee. The
          terms of the Notes include those stated in the Indenture and those made
          part of
          the Indenture by reference to the Trust Indenture Act of 1939, as amended.
          Terms
          defined in the Indenture and not defined herein have the meanings ascribed
          thereto in the Indenture. The Notes are subject to all such terms, and
          Holders
          are referred to the Indenture and such Act for a statement of such terms.
          To the
          extent any provision of this Note conflicts with the express provisions
          of the
          Indenture, the provisions of the Indenture shall govern and be controlling.
          

         

        The
          Notes
          are senior secured obligations of the Company. The Company shall be entitled,
          subject to its compliance with Section 4.07 of the Indenture, to
          issue
          Additional Notes pursuant to Section 2.13 of the Indenture. The
          Initial
          Notes issued on the Issue Date, any Additional Notes and all Exchange Notes
          or
          Private Exchange Notes issued in exchange therefor will 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; transfer or sell assets; guarantee indebtedness;
          restrict dividends or other payments of subsidiaries; and consolidate,
          merge or
          transfer all or substantially all of their assets and the assets of their
          subsidiaries. These covenants are subject to important exceptions and
          qualifications.

         

        23.  Optional
          Redemption. (a)
          Except
          as set forth in this Section 5, the Company shall not have the option to
          redeem
          any Notes.

         

        (a) On
          or
          before November 15, 2008, the Company shall have the option to redeem the
          Notes,
          in whole or in part, upon not less than 30 nor more than 60 days’ prior notice,
          at a redemption price equal to the greater of the following
          amounts:

        

        •
          100% of
          the principal amount of the Notes being redeemed on the redemption date;
          or

        

        •
          the sum
          of the present values of the remaining scheduled payments of principal
          and
          interest on the Notes being redeemed on that redemption date (not including
          any
          portion of any payments of interest accrued to the redemption date), discounted
          to the redemption date on a semi-annual basis at the Treasury Rate (as
          defined
          below), plus 50 basis points, as determined by the Reference Treasury Dealer
          (as
          defined below),

        

        plus,
          in
          each case, accrued and unpaid interest and Liquidated Damages, if any,
          on the
          Notes to the redemption date. Notwithstanding the foregoing, installments
          of
          interest on Notes that are due and payable on an interest payment dates
          falling
          on or prior to a redemption date will be payable on the interest payment
          date to
          the registered holders as of the close of business on the relevant record
          date.
          The redemption price will be calculated on the basis of a 360-day year
          consisting of twelve 30-day months.

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
 

        “Comparable
          Treasury Issue” means the United States Treasury security selected by the
          Reference Treasury Dealer as having a maturity comparable to the remaining
          term
          of the Notes.

        

        “Comparable
          Treasury Price” means, with respect to any redemption date, (A) the average of
          the Reference Treasury Dealer Quotations for such redemption date, after
          excluding the highest and lowest such Reference Treasury Dealer Quotations,
          or
          (B) if the Trustee obtains fewer than three such Reference Treasury Dealer
          Quotations, the average of all such Quotations, or (C) if only one Reference
          Treasury Dealer Quotation is received, such Quotation.

        

        “Reference
          Treasury Dealer” means (A) Wells Fargo Securities LLC or ABN AMRO Incorporated
          or their respective affiliates which are Primary Treasury Dealers, and
          its
          successors; provided, however, that if Wells Fargo Securities LLC or ABN
          AMRO
          Incorporated shall cease to be a primary U.S. Government securities dealer
          in
          New York City (a ‘‘Primary Treasury Dealer’’), the Company shall substitute
          therefor another Primary Treasury Dealer; and (B) any other Primary Treasury
          Dealer(s) selected by the Trustee after consultation with the
          Company.

        

        “Reference
          Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer
          and any redemption date, the average, as determined by the Trustee, of
          the bid
          and asked prices for the Comparable Treasury Issue, expressed in each case
          as a
          percentage of its principal amount, quoted in writing to the Trustee by
          such
          Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
          business day preceding such redemption date.

        

        “Treasury
          Rate” means, with respect to any redemption date, the rate per annum equal to
          the semi-annual equivalent yield to maturity of the Comparable Treasury
          Issue,
          assuming a price for the Comparable Treasury Issue, expressed as a percentage
          of
          its principal amount, equal to the Comparable Treasury Price for such redemption
          date.

        

        (b) On
          and
          after November 15, 2008, the Company shall have the option to redeem the
          Notes,
          in whole or in part, upon not less than 30 nor more than 60 days’ prior notice,
          at the redemption prices (expressed as percentages of principal amount)
          set
          forth below plus accrued and unpaid interest and Liquidated Damages, if
          any,
          thereon to the applicable redemption date, if redeemed during the twelve-month
          period beginning on November 15 of the years indicated below (subject to
          the
          right of Holders on the relevant record date to receive interest and Liquidated
          Damages due on the related interest payment date):

        

        
          	
                  Year 

                	
                  Percentage

                
	
                  2008

                	
                  106.0
                    %

                
	
                  2009

                	
                  103.0
                    %

                
	
                  2010

                	
                  100.0
                    %

                

        

        

        (c) Notwithstanding
          the foregoing, on or prior to November 15, 2007, the Company will be entitled
          at
          its option on one or more occasions to redeem Notes in an aggregate principal
          amount not to exceed the sum of 35 % of the aggregate principal amount
          of the
          Notes originally issued on the Issue Date plus 100% of the aggregate principal
          amount of any 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Additional
          Notes issued, at a redemption price (expressed as a percentage of principal
          amount) of 112.0 %, plus accrued and unpaid 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), with the Net
          Cash
          Proceeds from one or more Designated Offerings; provided,
          however,
          that
          (A) at least 65% of the aggregate principal amount of the Notes originally
          issued on the Issue Date remains outstanding immediately after the occurrence
          of
          each such redemption, other than the Notes held, directly or indirectly,
          by the
          Company or its Affiliates); and (B) each such redemption occurs within
          90 days
          after the date of the related Designated Offering.

        

        24.  Repurchase
          at Option of Holder. Upon a Change of Control, any Holder of Notes will
          have the
          right to cause the Company to repurchase all or any part of the Notes of
          such
          Holder at a repurchase price equal to 101% of the principal amount of the
          Notes
          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.

         

        25.  Guarantee.
          The payment by the Company of the principal of, and premium and interest
          on, the
          Notes 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.

         

        26.  Denominations,
          Transfer, Exchange. The Notes are in registered form without coupons in
          denominations of $1,000 and integral multiples of $1,000. The transfer
          of Notes
          may be registered and Notes may be exchanged as provided in the Indenture.
          The
          Registrar and the Trustee may require a Holder, among other things, to
          furnish
          appropriate endorsements and transfer documents and the Company may require
          a
          Holder to pay any taxes and fees required by law or permitted by the Indenture.
          The Company is not required to transfer or exchange any Note selected for
          redemption. Also, the Company is not required to transfer or exchange any
          Note
          for a period of 15 days before a selection of Notes to be redeemed or between
          a
          record date and the corresponding interest payment date.

         

        27.  Persons
          Deemed Owners. The registered Holder of a Note will be treated as its owner
          for
          all purposes.

         

        28.  Amendment,
          Supplement and Waiver. Subject to certain exceptions, the Indenture or
          the Notes
          may be amended or supplemented with the consent of the Holders of at least
          a
          majority in principal amount of the then outstanding Notes (including,
          without
          limitation, consents obtained in connection with a purchase of, or tender
          offer
          or exchange offer for, the Notes), and any past default or compliance with
          any
          provisions may also be waived (except a default in the payment of principal,
          premium or interest and certain covenants and provisions of the Indenture
          which
          cannot be amended without the consent of each Holder of an outstanding
          Note)
          with the consent of the Holders of at least a majority in aggregate principal
          amount of the Notes then outstanding (including consents obtained in connection
          with a purchase of, or tender offer or exchange offer for, the Notes).
          Without
          the consent of any Holder of a Note, the Indenture or the Notes may be
          amended
          or supplemented to, among other things, cure any ambiguity, defect or
          inconsistency, or to make any change that does not adversely affect the
          legal
          rights under the Indenture of any such Holder.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        29.  Defaults
          and Remedies. In the case of an Event of Default arising from certain events
          of
          bankruptcy or insolvency, with respect to the Company or any Restricted
          Subsidiary of the Company, all outstanding Notes will become due and payable
          immediately without further action or notice. If any other Event of Default
          occurs and is continuing, the Trustee or the Holders of at least 25% in
          principal amount of the then outstanding Notes may declare all the Notes
          to be
          due and payable immediately by notice in writing to the Company specifying
          the
          Event of Default. Holders of the Notes may not enforce the Indenture or
          the
          Notes except as provided in the Indenture. Subject to certain limitations,
          Holders of a majority in principal amount of the then outstanding Notes
          may
          direct the Trustee in its exercise of any trust or power. The Trustee may
          withhold from Holders of the Notes notice of any Default or Event of Default
          (except a Default or Event of Default relating to the payment of principal,
          premium, interest or Liquidated Damages) if it determines that withholding
          notice is in their interest. Holders of a majority in principal amount
          of the
          then outstanding Notes by notice to the Trustee may, on behalf of the Holders
          of
          all of the Notes, rescind and annul a declaration of acceleration pursuant
          to
          Section 6.02 of the Indenture, and its consequences, and waive any related
          existing Default or Event of Default if certain conditions are
          satisfied.

         

        30.  Trustee
          Dealings with Company. The Trustee, in its individual or any other capacity,
          may
          make loans to, accept deposits from, and perform services for the Company
          or its
          Affiliates, and may otherwise deal with the Company or its Affiliates,
          as if it
          were not the Trustee.

         

        31.  No
          Recourse Against Others. No director, officer, employee, incorporator or
          stockholder of the Company, as such, shall have any liability for any
          obligations of the Company under the Notes or the Indenture, or for any
          claim
          based on, in respect of, or by reason of, such obligations or their creation.
          Each Holder of Notes by accepting a Note waives and releases all such liability.
          The waiver and release are part of the consideration for issuance of the
          Notes.
          The waiver may not be effective to waive liabilities under the federal
          securities laws.

         

        32.  Authentication.
          This Note shall not be valid until authenticated by the manual signature
          of the
          Trustee or an authenticating agent.

         

        33.  Additional
          Rights of Holders of Restricted Global Notes and Restricted Definitive
          Notes. In
          addition to the rights provided to Holders under the Indenture, Holders
          of
          Restricted Global Notes and Restricted Definitive Notes shall have all
          the
          rights set forth in the Registration Rights Agreement dated as of November
          16,
          2004, between the Company and the parties named on the signature pages
          thereof
          or, in the case of Additional Notes, Holders of Restricted Global Notes
          and
          Restricted Definitive Notes shall have the rights set forth in one or more
          registration rights agreements, if any, between the Company, the Subsidiary
          Guarantors and the other parties thereto, relating to rights given by the
          Company and the Subsidiary Guarantors to the purchasers of Additional
          Notes.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        34.  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 Notes and the Trustee may use CUSIP numbers in notices of
          redemption
          as a convenience to Holders. No representation is made as to the accuracy
          of
          such numbers either as printed on the Notes or as contained in any notice
          of
          redemption and reliance may be placed only on the other identification
          numbers
          placed thereon.

         

        35.  Copies
          of
          Documents. The Company shall furnish to any Holder upon written request
          and
          without charge a copy of the Indenture and/or the Registration Rights Agreement.
          Requests may be made to:

         

        Integrated
          Alarm Services Group, Inc.

        One
          Capital Center

        99
          Pine
          Street, 3rd
          Floor

        Albany,
          New York 12207

         

        Facsimile:
          (518) 426-0953

        Attention:
          Michael Moscinski

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Assignment
          Form

         

        To
          assign
          this Note, fill in the form below:

         

        (I)
          or
          (we) assign and transfer this Note
          to:_________________________________

                                                                (Insert
          assignee’s
          legal name)

         

                ______________________________________________________________________________________________

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

                ______________________________________________________________________________________________

         

                ______________________________________________________________________________________________

         

                ______________________________________________________________________________________________

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

         

        and
          irrevocably appoint
          ________________________________________________________________         

         

        to
          transfer this Note 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
          face of this Note) 

        

        

        Signature
          Guarantee*:__________________________

         

        

        

        *
          Participant in a recognized Signature Guarantee Medallion Program (or other
          signature guarantor acceptable to the Trustee).

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        OPTION
          OF
          HOLDER TO ELECT PURCHASE

         

        If
          you
          want to elect to have this Note purchased by the Company pursuant to Section
          4.10, 4.11 or 4.19 of the Indenture, check the appropriate box
          below:

         

        [
          ]
          Section 4.10 [
          ]
          Section 4.11  [
          ]
          Section 4.19

         

        If
          you
          want to elect to have only part of the Note purchased by the Company pursuant
          to
          Section 4.10, 4.11 or Section 4.19 of the Indenture, state the amount you
          elect
          to have purchased:

         

        

         

        $__________________

         

        

         

        Date:_____________

         

        

         

        Your
          Signature: _____________________________________

        (Sign
          exactly as your name

        appears
          on the face of this

        Note)

        

        

        Tax
          Identification No.: ________________________________

        

        Signature
          Guarantee*:________________

         

        *
          Participant in a recognized Signature Guarantee Medallion Program (or other
          signature guarantor acceptable to the Trustee).

         

        

         

        
        

        
          
            
               

            

            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        SCHEDULE
          OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

         

        

         

        The
          following exchanges of a part of this Global Note for an interest in another
          Global Note or for a Definitive Note, or exchanges of a part of another
          Global
          Note or Definitive Note for an interest in this Global Note, have been
          made:

         

         

        
           

          
            	
                    Date
                      of Exchange

                  	
                    Amount
                      of Decrease in Principal Amount at

                    Maturity

                    of
                      this Global Note

                  	
                    Amount
                      of Increase in Principal Amount at Maturity

                    of
                      this Global Note

                  	
                    Principal
                      Amount at

                    Maturity

                    of
                      this Global Note Following such decrease
                      (or increase)

                  
	
                     

                  	
                  	
                  	
                  
	
                     <S>

                  	
                    <C>

                  	
                    <C>

                  	
                     <C>EX-4.2

    
      

      

    

    

    $125,000,000

     

    

     

    INTEGRATED
      ALARM SERVICES GROUP, INC.

     

    (a
      Delaware corporation)

     

    12%
      Senior Secured Notes due 2011

     

    

     

    

     

    

     

    

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    

     

    

     

    

     

     

    

     

    November
      16, 2004

     

    

     

    
    

    

    
      
        
          
            	 	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    November
      16, 2004

     

    

     

    Morgan
      Joseph & Co. Inc.

    Wells
      Fargo Securities, LLC

    as
      Representatives of the several Initial Purchasers

    c/o
        Morgan
      Joseph & Co. Inc.

    600
      Fifth
      Avenue 

    New
      York,
      NY 10020

    

    Ladies
      and Gentlemen:

     

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into between Integrated Alarm Services Group, Inc., a Delaware
      corporation (the "Company"),
      the
      guarantors listed on the signature page hereto (the "Guarantors")
      and
      Morgan Joseph & Co. Inc. and Wells Fargo Securities, LLC, as representatives
      (in such capacity, the "Representatives") of the several purchasers named in
      Schedule I hereto (the "Initial
      Purchasers").

     

        This
      Agreement is entered into in connection with the Purchase Agreement, dated
      November 10, 2004, by and between the Company, the Guarantors and the Initial
      Purchasers (the "Purchase
      Agreement"),
      which
      provides for the issuance and sale by the Company to the Initial Purchasers
      of
      $125,000,000 aggregate principal amount of the Company's 12% Senior Secured
      Notes Due 2011 (the "Notes").
      In
      order to induce the Initial Purchasers to enter into the Purchase Agreement,
      the
      Company and the Guarantors have agreed to provide the registration rights set
      forth in this Agreement for the benefit of the Initial Purchasers and their
      direct and indirect transferees. The parties hereby agree as
      follows:

     

    1. Definitions.
      Capitalized terms used herein without definition shall have their respective
      meanings set forth in the Purchase Agreement. As used in this Agreement, the
      following capitalized defined terms shall have the following
      meanings:

     

    "Act"
      means
      the Securities Act of 1933, as amended, and the rules and regulations of the
      Commission promulgated thereunder.

     

    "Additional
      Interest"
      has the
      meaning set forth in Section 4 hereto.

     

    "Affiliate"
      means,
      with respect to any specified person, any other person that, directly or
      indirectly, controls, is controlled by, or is under common control with, such
      specified person. For purposes of this definition, control of a person means
      the
      power, direct or indirect, to direct or cause the direction of the management
      and policies of such person whether by contract or otherwise; and the terms
      "controlling" and "controlled" have meanings correlative to the
      foregoing.

     

    "Agreement"
      has the
      meaning set forth in the preamble hereto.

     

    "Business
      Day"
      means
      any day excluding Saturday, Sunday or any other day which is a legal holiday
      under the laws of New York, New York or is a day on which banking institutions
      therein located are authorized or required by law or other governmental action
      to close.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    "Closing
      Date"
      shall
      mean the Closing Date as defined in the Purchase Agreement.

     

    "Commission"
      means
      the Securities and Exchange Commission.

     

    "Consummate"
      means,
      with respect to a Registered Exchange Offer, the completion of all of the
      following: (a) the filing and effectiveness under the Act of the Exchange Offer
      Registration Statement relating to the Exchange Notes to be issued in the
      Registered Exchange Offer, (b) the maintenance of such Exchange Offer
      Registration Statement continuously effective and the keeping of the Registered
      Exchange Offer open for a period not less than the minimum period required
      pursuant to Section 2(c)(ii) hereof, (c) the Company's acceptance for exchange
      of all Transfer Restricted Notes duly tendered and not validly withdrawn
      pursuant to the Registered Exchange Offer and (d) the delivery of duly executed
      and authenticated Exchange Notes by the Company to the registrar under the
      Indenture in the same aggregate principal amount as the aggregate principal
      amount of Transfer Restricted Notes duly tendered and not validly withdrawn
      by
      Holders thereof pursuant to the Registered Exchange Offer and the delivery
      of
      such Exchange Notes to such Holders. The term "Consummation" has a meaning
      correlative to the foregoing.

     

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

     

    "Exchange
      Notes"
      means
      debt securities of the Company substantially identical in all material respects
      to the Notes other than the issue date (except that the Additional Interest
      provisions and the transfer restrictions pertaining to the Notes will be
      modified or eliminated, as appropriate), to be issued under the
      Indenture.

     

    "Exchange
      Offer Registration Period"
      means
      the 180-day period following the Consummation of the Registered Exchange Offer,
      exclusive of any period during which any stop order shall be in effect
      suspending the effectiveness of the Exchange Offer Registration Statement;
      provided,
      however,
      that in
      the event that all resales of Exchange Notes (including any resales by
      Participating Broker-Dealers) covered by such Exchange Offer Registration
      Statement have been made, the Exchange Offer Registration Statement need not
      thereafter remain continuously effective for such period. 

     

    "Exchange
      Offer Registration Statement"
      means a
      registration statement of the Company and the Guarantors on an appropriate
      form
      under the Act with respect to the Registered Exchange Offer, all amendments
      and
      supplements to such registration statement, including post-effective amendments,
      in each case including the Prospectus contained therein, all exhibits thereto
      and all material incorporated by reference therein.

     

    "Filing
      Date"
      has the
      meaning set forth in Section 2(a) hereto.

     

    "Holder"
      means
      any holder from time to time of Transfer Restricted Notes or Exchange Notes
      (including the Initial Purchasers).

     

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    

     

    "Indenture"
      means
      the indenture relating to the Notes and the Exchange Notes, dated as of November
      16, 2004, between the Company and Wells Fargo Bank, N.A., as Trustee, as the
      same may be amended, supplemented, waived or otherwise modified from time to
      time in accordance with the terms thereof. 

     

    "Initial
      Purchasers"
      has the
      meaning set forth in the preamble hereto.

     

    "Losses"
      has the
      meaning set forth in Section 8(d) hereto.

     

    "Majority
      Holders"
      means
      the Holders of a majority of the aggregate principal amount of Transfer
      Restricted Notes registered under a Registration Statement.

     

    "Managing
      Underwriters"
      means
      the investment banker or investment bankers and manager or managers that shall
      administer an underwritten offering under a Shelf Registration
      Statement.

     

    "Notes"
      has the
      meaning set forth in the preamble hereto.

     

    "Participating
      Broker-Dealer"
      means
      any Holder (which may include the Initial Purchasers) that is a broker-dealer
      electing to exchange Notes acquired for its own account as a result of
      market-making activities or other trading activities for Exchange
      Notes.

     

    "Private
      Exchange Notes"
      has the
      meaning set forth in Section 2(f) hereof.

     

    "Prospectus"
      means
      the prospectus included in any Registration Statement (including a prospectus
      that discloses information previously omitted from a prospectus filed as part
      of
      an effective registration statement in reliance upon Rule 430A under the Act
      or
      any similar rule that may be adopted by the Commission), as amended or
      supplemented by any prospectus supplement, with respect to the terms of the
      offering of any portion of the Transfer Restricted Notes covered by such
      Registration Statement, and all amendments and supplements to the
      Prospectus.

     

    "Purchase
      Agreement"
      has the
      meaning set forth in the preamble hereto.

     

    "Registered
      Exchange Offer"
      means
      an offer by the Company to issue and deliver a like principal amount of Exchange
      Notes in exchange for Transfer Restricted Notes. 

     

    "Registration
      Expenses"
      shall
      mean any and all expenses incident to performance of or compliance by the
      Company and the Guarantors with this Agreement, including without limitation:
      (i) all Commission, stock exchange or National Association of Securities
      Dealers, Inc. registration and filing fees, (ii) all fees and expenses incurred
      in connection with compliance with state securities or blue sky laws (including
      reasonable fees and disbursements of counsel for any underwriters or Holders
      in
      connection with blue sky 

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    qualification of any of the Exchange Notes or Transfer
      Restricted Notes), (iii) all expenses of any Persons in preparing or assisting
      in preparing, word processing, printing and distributing any Registration
      Statement, any Prospectus, any amendments or supplements thereto, any
      underwriting agreements, securities sales agreements
      and other documents relating to the performance of and compliance with this
      Agreement, (iv) all rating agency fees, (v) all fees and disbursements relating
      to the qualification of the Indenture under applicable securities laws, (vi)
      the
      fees and disbursements of the Trustee and its counsel, (vii) the fees and
      disbursements of counsel for the Company and, in the case of a Shelf
      Registration Statement, the fees and disbursements of one counsel for the
      Holders (which counsel shall be selected by the Majority Holders and which
      counsel may also be counsel for the Initial Purchasers) and (viii) the fees
      and
      disbursements of the independent public accountants of the Company, including
      the expenses of any special audits or "cold comfort" letters required by or
      incident to such performance and compliance, but excluding fees and expenses
      of
      counsel to the underwriters (other than fees and expenses set forth in clause
      (ii) above) or the Holders and underwriting discounts and commissions and
      transfer taxes, if any, relating to the sale or disposition of Transfer
      Restricted Notes by a Holder.

     

    "Registration
      Statement"
      means
      any Exchange Offer Registration Statement or Shelf Registration Statement that
      covers any of the Transfer Restricted Notes (including any guarantees of each
      thereof) pursuant to the provisions of this Agreement, amendments and
      supplements to such registration statement, including post-effective amendments,
      in each case including the Prospectus contained therein, all exhibits thereto,
      and all material incorporated by reference therein.

     

    "Shelf
      Registration"
      means a
      registration effected pursuant to Section 3 hereof.

     

    "Shelf
      Registration Event Date"
      has the
      meaning set forth in Section 3(a) hereof.

     

    "Shelf
      Registration Period"
      has the
      meaning set forth in Section 3(c) hereof.

     

    "Shelf
      Registration Statement"
      means a
      "shelf" registration statement of the Company filed pursuant to the provisions
      of Section 3 hereof, which covers some or all of the Transfer Restricted
      Notes, as applicable, on an appropriate form under Rule 415 under the
      Act,
      or any similar rule that may be adopted by the Commission, and which may be
      in
      the format of an amendment to the Exchange Offer Registration Statement if
      permitted by the Commission, all amendments and supplements to such registration
      statement, including post-effective amendments, in each case including the
      Prospectus contained therein, all exhibits thereto and all material incorporated
      by reference therein.

     

    "Transfer
      Restricted Notes"
      means
      each Note upon original issuance thereof and at all times subsequent thereto,
      each Exchange Note as to which Section 3(a)(iii) or Section 3(a)(v)
      apply
      upon original issuance and at all times subsequent thereto, until in the case
      of
      any such Note or Exchange Note, as the case may be, the earliest to occur of
      (i) the date on which such Note has been exchanged by a person other
      than a
      Participating Broker-Dealer for an Exchange Note (other than with respect to
      an
      Exchange Note as to which Section 3(a)(iii) or Section 3(a)(v) apply), (ii)
      with
      respect to Exchange Notes received by Participating Broker-Dealers in the
      Registered Exchange Offer, the date on which such Exchange Note has been sold
      by
      such Participating Broker-Dealer by means of the Prospectus contained in the
      Exchange Offer Registration Statement, (iii) a Shelf Registration Statement
      covering such Note or Exchange Note, as the case may be, has been declared
      effective by the Commission and such Note or Exchange Note, as the case may
      be,
      has been disposed of in accordance with the plan of distribution
      set forth in such effective Shelf Registration Statement, (iv) the date on
      which
      such Note or Exchange Note, as the case may be, is distributed to the public
      pursuant to Rule 144 under circumstances in which any legend borne by such
      Note
      relating to restrictions on transferability thereof, under the Act or otherwise,
      is removed by the Company, or (v)  such Note or Exchange Note, as the
      case
      may be, ceases to be outstanding for purposes of the Indenture.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    "Trust
      Indenture Act"
      means
      the Trust Indenture Act of 1939, as amended.

     

    "Trustee"
      means
      the trustee with respect to the Notes or Exchange Notes, as applicable, under
      the Indenture.

     

    2.
      Registered
      Exchange Offer; Resales of Exchange Notes by Participating Broker-Dealers;
      Private Exchange.
      (a) The
      Company and the Guarantors shall prepare and, not later than 90 days from the
      Closing Date, shall file with the Commission the Exchange Offer Registration
      Statement with respect to the Registered Exchange Offer (the date of such filing
      hereinafter referred to as the "Filing Date"). The Company and the Guarantors
      shall use their reasonable best efforts (i) to cause the Exchange Offer
      Registration Statement to be declared effective under the Act within 180 days
      from the Closing Date and (ii) to have such Exchange Offer Registration
      Statement remain effective until the closing of the Registered Exchange Offer.
      The Company shall commence the Registered Exchange Offer promptly after the
      Exchange Offer Registration Statement has been declared effective by the
      Commission and use its reasonable best efforts to Consummate the Registered
      Exchange Offer by the 210th
      day
      after the Closing Date.

     

    (b)
      The
      objective of such Registered Exchange Offer is to enable each Holder electing
      to
      exchange Transfer Restricted Notes for Exchange Notes (assuming that such Holder
      (x) is not an Affiliate of the Company, (y) is not a broker-dealer that acquired
      the Transfer Restricted Notes in a transaction other than as a part of its
      market-making or other trading activities and (z) if such Holder is not a
      broker-dealer, acquires the Exchange Notes in the ordinary course of such
      Holder's business, is not participating in the distribution of the Exchange
      Notes and has no arrangements or intentions with any person to make a
      distribution of the Exchange Notes) to resell such Exchange Notes from and
      after
      their receipt without any limitations or restrictions under the Act and without
      material restrictions under the securities laws of a substantial proportion
      of
      the several states of the United States. Each Holder participating in the
      Registered Exchange Offer shall be required to represent to the Company that
      at
      the time of the tender of its Notes pursuant to the Registered Exchange Offer
      each of the items listed in subsections (x), (y) and (z) of this Section 2(b)
      is
      true. 

     

    (c)
      In
      connection with the Registered Exchange Offer, the Company shall:

     

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

     

    (ii) keep
      the
      Registered Exchange Offer open for acceptance for not less than 20 Business
      Days
      (or longer if required by applicable law) after the date notice thereof is
      mailed to Holders;

     

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (iii) permit
      Holders to withdraw tendered Notes at any time prior to 5:00 p.m. New York
      City
      time on the last Business Day on which the Registered Exchange Offer shall
      remain open; 

     

    (iv) utilize
      the services of a depositary for the Registered Exchange Offer with an address
      in the Borough of Manhattan, The City of New York; and

     

    (v) comply
      in
      all material respects with all applicable laws relating to the Registered
      Exchange Offer.

     

    (d)
      As
      soon as practicable after the close of the Registered Exchange Offer, the
      Company shall:

     

    (i)
      accept for exchange all the Notes validly tendered and not withdrawn pursuant
      to
      the Registered Exchange Offer; 

     

    (ii)
      deliver to the Trustee for cancellation all of the Notes so accepted for
      exchange; and 

     

    (iii)
      execute and cause the Trustee promptly to authenticate and deliver to each
      Holder Exchange Notes equal in principal amount to the Transfer Restricted
      Notes
      of such Holder so accepted for exchange.

     

    (e)
      The
      Initial Purchasers and the Company acknowledge that, pursuant to interpretations
      by the staff of the Commission of Section 5 of the Act, and in the absence
      of an applicable exemption therefrom, each Participating Broker-Dealer is
      required to deliver a prospectus meeting the requirements of the Act in
      connection with a sale of any Exchange Notes received by such Participating
      Broker-Dealer pursuant to the Registered Exchange Offer in exchange for Transfer
      Restricted Notes acquired for its own account as a result of market-making
      activities or other trading activities. Accordingly, the Company will allow
      Participating Broker-Dealers and other persons, if any, with similar prospectus
      delivery requirements to use the Prospectus contained in the Exchange Offer
      Registration Statement during the Exchange Offer Registration Period in
      connection with the resale of such Exchange Notes and shall:

     

    (i) include
      the information set forth in (a) Annex A hereto on the cover of the Prospectus
      forming a part of the Exchange Offer Registration Statement; (b) Annex B hereto
      in the forepart of the Prospectus forming a part of the Exchange Offer
      Registration Statement in a section setting forth details of the Registered
      Exchange Offer; (c) Annex C hereto in the plan of distribution section of the
      Prospectus forming a part of the Exchange Offer Registration Statement, and
      (d)
      Annex D hereto in the letter of transmittal delivered pursuant to the Registered
      Exchange Offer, in each case substantially in the form specified therein,
      subject to applicable Commission requirements; and

     

    (ii) use
      its
      reasonable best efforts to keep the Exchange Offer Registration Statement
      continuously effective under the Act during the Exchange Offer Registration
      Period for delivery of the Prospectus included therein by Participating
      Broker-Dealers in connection with sales of Exchange Notes received pursuant
      to
      the Registered Exchange Offer, as contemplated by Section 5(h)
      below.

     

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (f)
      In
      the event that the Initial Purchasers determine that they are not eligible
      to
      participate in the Registered Exchange Offer with respect to the exchange of
      Transfer Restricted Notes constituting any portion of an unsold allotment,
      at
      the request of the Initial Purchasers, the Company shall issue and deliver
      to
      such Initial Purchasers, or to any party purchasing Transfer Restricted Notes
      or
      Exchange Notes registered under the Shelf Registration Statement from the
      Initial Purchasers, in exchange for such Transfer Restricted Notes, a like
      principal amount of Exchange Notes to the extent permitted by applicable law
      (the "Private
      Exchange Notes").
      The
      Company shall use its reasonable best efforts to cause the CUSIP Service Bureau
      to issue the same CUSIP number for such Exchange Notes as for Exchange Notes
      issued pursuant to the Registered Exchange Offer.

     

    3.
      Shelf
      Registration.
      (a) If
      (i) the Company and the Guarantors are not permitted to file the Exchange Offer
      Registration Statement or to Consummate the Registered Exchange Offer in
      accordance with Section 2 hereof because the Registered Exchange Offer is not
      permitted by applicable law or the applicable interpretations of the staff
      of
      the Commission, (ii) for any other reason the Registered Exchange Offer is
      not
      Consummated by the 210th
      day
      after the Closing Date, (iii) any Holder notifies the Company on or prior to
      the
      210th
      day
      after the Closing Date that (A) such Holder is not eligible to participate
      in
      the Registered Exchange Offer due to applicable law or the applicable
      interpretations of the staff of the Commission, (B) the Exchange Notes such
      Holder would receive would not be freely tradable, (C) such Holder is a
      Participating Broker-Dealer that cannot publicly resell the Exchange Notes
      that
      it acquires in the Registered Exchange Offer without delivering a Prospectus
      and
      the Prospectus contained in the Exchange Offer Registration Statement is not
      appropriate or available for resales following the Consummation of the
      Registered Exchange Offer, or (D) the Holder is a broker-dealer and owns Notes
      it has not exchanged and that it acquired directly from the Company or one
      of
      its Affiliates, (iv) the Initial Purchasers so requests with respect to Notes
      that are not eligible to be exchanged for Exchange Notes in the Registered
      Exchange Offer and are held by it following Consummation of the Registered
      Exchange Offer, or (v) in the case where an Initial Purchasers participates
      in
      the Registered Exchange Offer or acquires Private Exchange Notes pursuant to
      Section 2(f) hereof, the Initial Purchasers does not receive freely tradable
      Exchange Notes in exchange for Notes constituting any portion of an unsold
      allotment (it being understood that, for purposes of this Section 3, (x) the
      requirement that the Initial Purchasers deliver a Prospectus containing the
      information required by Items 507 and/or 508 of Regulation S-K under the Act
      in
      connection with sales of Exchange Notes acquired in exchange for such Transfer
      Restricted Notes shall result in such Exchange Notes being not "freely tradable"
      and (y) the requirement that a Participating Broker-Dealer deliver a Prospectus
      in connection with sales of Exchange Notes acquired in the Registered Exchange
      Offer in exchange for Transfer Restricted Notes acquired as a result of
      market-making activities or other trading activities shall not result in such
      Exchange Notes being not "freely tradable") (the date on which any event
      specified in clause (i) through (v) above occurs, the "Shelf Registration Event
      Date"), the following provisions shall apply:

     

    (b)
      The
      Company and the Guarantors shall, in addition to or in lieu of conducting the
      Exchange Offer, on or prior to the 30th
      day
      following such Shelf Registration Event Date, prepare and file with the
      Commission a Shelf Registration Statement relating to the offer and sale of
      the
      Notes and the Exchange Notes, as applicable, by the Holders 

     

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    thereof
      from time to time in accordance with the methods of distribution elected by
      such
      Holders and set forth in such Shelf Registration Statement, and shall use their
      reasonable best efforts to cause the Shelf Registration Statement to be declared
      effective by the Commission within 60 days after filing the Shelf Registration
      Statement with the Commission. With respect to Exchange Notes received by the
      Initial Purchasers in exchange for Notes constituting any portion of an unsold
      allotment, the Company may, if permitted by current interpretations by the
      Commission's staff, file a post-effective amendment to the Exchange Offer
      Registration Statement containing the information required by Regulation S-K
      Items 507 and/or 508, as applicable, in satisfaction of its obligations under
      this paragraph (b) with respect thereto, and any such Exchange Offer
      Registration Statement, as so amended, shall be referred to herein as, and
      governed by the provisions herein applicable to, a Shelf Registration
      Statement.

     

    (c)
      The
      Company and the Guarantors shall use their reasonable best efforts to keep
      such
      Shelf Registration Statement continuously effective, supplemented and amended
      as
      required by the Act in order to permit the Prospectus forming a part thereof
      to
      be usable by Holders until the earlier of (i) two years from the date the Shelf
      Registration Statement has been declared effective exclusive of any period
      during which any stop order shall be in effect suspending the effectiveness
      of
      the Shelf Registration Statement, and (ii) such time as there are no longer
      any
      Transfer Restricted Securities outstanding (the "Shelf Registration Period").
      The Company and the Guarantors shall be deemed not to have used their reasonable
      best efforts to keep the Shelf Registration Statement effective during the
      Shelf
      Registration Period if they voluntarily take any action that would result in
      Holders of the Notes or Exchange Notes covered thereby not being able to offer
      and sell such notes during that period, unless such action is (x) required
      by
      applicable law or (y) pursuant to Section 3(d) hereof and, in either case,
      so
      long as the Company and the Guarantors promptly thereafter comply with the
      requirements of Section 5(k) hereof, if applicable.

     

    (d)
      The
      Company may suspend the use of the Prospectus that forms a part of the Shelf
      Registration Statement for a period not to exceed 60 days in any six-month
      period or an aggregate of 90 days in any twelve-month period for valid business
      reasons (not including avoidance of its obligations hereunder) to avoid
      premature public disclosure of a pending corporate transaction, including
      pending acquisitions or divestitures of assets, mergers and combinations and
      similar events; provided that
      (i) the
      Company promptly thereafter complies with the requirements of Section 5(k)
      hereof, if applicable; (ii) the period during which the Shelf Registration
      Statement is required to be effective and usable shall be extended by the number
      of days during which such Shelf Registration Statement was not effective or
      usable pursuant to the foregoing provisions; and (iii) the Additional Interest
      shall accrue on the Notes as provided in Section 4 hereof.

     

    4.
      Additional
      Interest.
      

     

    (a)
      The
      parties hereto agree that Holders of Transfer Restricted Notes will suffer
      damages if the Company and the Guarantors fail to perform their obligations
      under Section 2 or Section 3 hereof and that it would not be feasible to
      ascertain the extent of such damages. Accordingly, in the event that (i) the
      applicable Registration Statement is not filed with the Commission on or prior
      to the date specified herein for such filing, (ii) the applicable Registration
      Statement has not been declared effective by the Commission on or 

     

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    prior to
      the date specified herein for such effectiveness after such obligation arises,
      (iii) if the Registered Exchange Offer is required to be Consummated hereunder,
      the Registered Exchange Offer has not been Consummated by the Company within
      the
      time period set forth in the last sentence of Section 2(a) hereof, (iv) prior
      to
      the end of the Exchange Offer Registration Period or the Shelf Registration
      Period, the Commission shall have issued a stop order suspending the
      effectiveness of the Exchange Offer Registration Statement or the Shelf
      Registration Statement, as the case may be, or proceedings have been initiated
      with respect to the Registration Statement under Section 8(d) or 8(e) of the
      Act, or (v) the Prospectus forming a part of a Registration Statement ceases
      to
      be useable in connection with resales of the Transfer Restricted Notes covered
      by such Registration Statement prior to the end of the Exchange Offer
      Registration Period or the Shelf Registration Period (whether or not as a result
      of the initiation of a suspension period pursuant to Section 3(d) hereof) (each
      such event referred to in clauses (i) through (v), a "Registration Default"),
      then additional interest with respect to the Transfer Restricted Notes
      ("Additional Interest") will accrue with respect to the first 90-day period
      immediately following the occurrence of such Registration Default in an amount
      equal to 0.25% per annum per $1,000 principal amount of such Notes and will
      increase by an additional 0.25% per annum per $1,000 principal amount of such
      Notes for each subsequent 90-day period until such Registration Default has
      been
      cured, up to an aggregate maximum amount of Additional Interest of 1.00% per
      annum per $1,000 principal amount of Notes for all Registration Defaults.
      Following the cure of a Registration Default, the accrual of Additional Interest
      with respect to such Registration Default will cease with respect to that
      Registration Default.

     

    (b)
      The
      Company shall notify the Trustee and paying agent under the Indenture (or the
      trustee and paying agent under such other indenture under which any Transfer
      Restricted Notes are issued) immediately upon the happening of each and every
      Registration Default. The Company shall pay the Additional Interest due on
      the
      Transfer Restricted Notes by depositing with the paying agent (which shall
      not
      be the Company for these purposes) for the Transfer Restricted Notes, in trust,
      for the benefit of the Holders thereof, prior to 11:00 a.m. on the next interest
      payment date specified in the Indenture (or such other indenture), sums
      sufficient to pay the Additional Interest then due. The Additional Interest
      due
      shall be payable on each interest payment date specified by the Indenture (or
      such other indenture) to the record holders entitled to receive the interest
      payment to be made on such date. Each obligation to pay Additional Interest
      shall be deemed to accrue from and include the date of the applicable
      Registration Default to, but excluding, the relevant interest payment date.
      

     

    (c)
      All
      of the Company's and the Guarantors' obligations set forth in this Section
      4
      which are outstanding with respect to any Transfer Restricted Note at the time
      such Note ceases to be covered by an effective Registration Statement shall
      survive until such time as all such obligations with respect to such Transfer
      Restricted Note have been satisfied in full (notwithstanding termination of
      this
      Agreement).

     

    5.
      Registration
      Procedures.
      In
      connection with any Exchange Offer Registration Statement and, to the extent
      applicable, any Shelf Registration Statement, the following provisions shall
      apply:

     

    (a)
      The
      Company shall furnish to the Initial Purchasers, not less than 5 Business Days
      prior to the filing thereof with the Commission, a copy of any Registration
      Statement, and each
      amendment thereof and each amendment or supplement, if any, to the Prospectus
      included therein (including all documents incorporated by reference therein)
      and
      shall use their reasonable best efforts to reflect in each such document, when
      so filed with the Commission, such comments as the Initial Purchasers may
      propose.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b)
      The
      Company shall ensure that: 

     

    (i) any
      Registration Statement and any amendment thereto and any Prospectus contained
      therein and any amendment or supplement thereto complies in all material
      respects with the Act;

     

    (ii) any
      Registration Statement and any amendment thereto does not, when it becomes
      effective, contain an untrue statement of a material fact or omit to state
      a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading; and

     

    (iii) any
      Prospectus forming part of any Registration Statement, including any amendment
      or supplement to such Prospectus, does not include an untrue statement of a
      material fact or omit to state a material fact necessary in order to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading.

     

    (c)
      (1)
      The Company shall advise the Initial Purchasers and, in the case of a Shelf
      Registration Statement, the Holders of Transfer Restricted Notes covered
      thereby, and, if requested by the Initial Purchasers or any such Holder, confirm
      such advice in writing:

     

    (i) when
      a
      Registration Statement and any amendment thereto has been filed with the
      Commission and when the Registration Statement or any post-effective amendment
      thereto has become effective; and

     

    (ii) of
      any
      request by the Commission for amendments or supplements to the Registration
      Statement or the Prospectus included therein or for additional
      information.

     

    (2)
      The
      Company shall advise the Initial Purchasers and, in the case of a Shelf
      Registration Statement, the Holders of Transfer Restricted Notes covered
      thereby, and, in the case of an Exchange Offer Registration Statement, any
      Participating Broker-Dealer that has provided in writing to the Company a
      telephone or facsimile number or address for notices, and, if requested by
      the
      Initial Purchasers or any such Holder or Participating Broker-Dealer, confirm
      such advice in writing:

     

    (i) of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Registration Statement or the initiation of any proceedings for that
      purpose;

     

    (ii) of
      the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification of the Transfer Restricted Notes included in any Registration
      Statement for sale in any jurisdiction or the initiation or threatening of
      any
      proceeding for such purpose; and

     

    

    
      
        
        

      

      
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    (iii) of
      the
      happening of any event that requires the making of any changes in the
      Registration Statement or the Prospectus so that, as of such date, the
      statements therein are not misleading and do not omit to state a material fact
      required to be stated therein or necessary to make the statements therein (in
      the case of the Prospectus, in light of the circumstances under which they
      were
      made) not misleading (which advice shall be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been
      made).

     

    (d)
      The
      Company and the Guarantors shall use their reasonable best efforts to file
      any
      amendments or supplements to a Registration Statement or Prospectus requested
      by
      the Commission and obtain the withdrawal of any order suspending the
      effectiveness of any Registration Statement or the qualification of the Transfer
      Restricted Notes covered thereby for sale in any jurisdiction, in each case
      at
      the earliest possible time.

     

    (e)
      The
      Company shall furnish to each Holder of Transfer Restricted Notes included
      in
      any Shelf Registration Statement, without charge, at least one copy of such
      Shelf Registration Statement and any post-effective amendment thereto, including
      financial statements and schedules, any documents incorporated by reference
      therein and, if the Holder so requests in writing, all exhibits thereto
      (including those incorporated by reference).

     

    (f)
      The
      Company shall, during the Shelf Registration Period, deliver to each Holder
      of
      Transfer Restricted Notes included in any Shelf Registration Statement, without
      charge, as many copies of the Prospectus (including any preliminary Prospectus)
      included in such Shelf Registration Statement and any amendment or supplement
      thereto as such Holder may reasonably request; and the Company consents to
      the
      use of the Prospectus (including any preliminary prospectus) or any amendment
      or
      supplement thereto by each of the selling Holders of Transfer Restricted Notes
      in connection with the offering and sale of the Transfer Restricted Notes
      covered by the Prospectus or any amendment or supplement thereto.

     

    (g)
      The
      Company shall furnish to each Participating Broker-Dealer that so requests,
      without charge, at least one copy of the Exchange Offer Registration Statement
      and any post-effective amendment thereto, including financial statements and
      schedules, any documents incorporated by reference therein and, if the
      Participating Broker-Dealer so requests in writing, all exhibits thereto
      (including those incorporated by reference). 

     

    (h)
      The
      Company shall, during the Exchange Offer Registration Period and pursuant to
      the
      requirements of the Act for the resale of the Exchange Notes during the period
      in which a prospectus is required to be delivered under the Act (including
      any
      Commission no-action letters relating to the Registered Exchange Offer), deliver
      to each Participating Broker-Dealer, without charge, as many copies of the
      Prospectus (including any preliminary Prospectus) included in such Exchange
      Offer Registration Statement and any amendment or supplement thereto as such
      Participating Broker-Dealer may reasonably request; and the Company and the
      Guarantors consent to the use of the Prospectus (including any preliminary
      prospectus) or any amendment or supplement thereto by any such Participating
      Broker-Dealer in connection with the offering and sale of the Exchange Notes,
      as
      provided in Section 2(e) above.

     

    

    
      
        
        

      

      
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    (i)
      Prior
      to the Registered Exchange Offer or any other offering of Transfer Restricted
      Notes pursuant to any Registration Statement, the Company and the Guarantors
      shall use their reasonable best efforts to register, qualify or cooperate with
      the Holders of Transfer Restricted Notes included therein and their respective
      counsel in connection with the registration or qualification of such Transfer
      Restricted Notes for offer and sale under the securities or blue sky laws of
      such states as any such Holders reasonably request in writing and do any and
      all
      other commercially reasonable acts or things necessary or advisable to enable
      the offer and sale in such jurisdictions of the Transfer Restricted Notes
      covered by such Registration Statement.

     

    (j)
      The
      Company shall cooperate with the Holders to facilitate the timely preparation
      and delivery of certificates representing Transfer Restricted Notes to be sold
      pursuant to any Registration Statement free of any restrictive legends and
      in
      denominations authorized by the indenture and registered in such names as
      Holders may request.

     

    (k)
      Upon
      the occurrence of any event contemplated by Section 3(d) or
      paragraph (c)(2)(iii) of this Section 5, the Company and the Guarantors
      shall promptly prepare and file a post-effective amendment to any Registration
      Statement or an amendment or supplement to the related Prospectus or any other
      required document so that, as thereafter delivered to purchasers of the Transfer
      Restricted Notes included therein, the Prospectus will not include an untrue
      statement of a material fact or omit to state any material fact necessary to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading.

     

    (l)
      The
      Company shall use its reasonable best efforts to cause The Depository Trust
      Company ("DTC") on the first Business Day following the effective date of any
      Registration Statement hereunder or as soon as possible thereafter to remove
      (i)
      from any existing CUSIP number assigned to the Transfer Restricted Notes or
      Exchange Notes, as the case may be, any designation indicating that such notes
      are "restricted securities," which efforts shall include delivery to DTC of
      a
      letter executed by the Company substantially in the form of Annex E hereto
      and
      (ii) any other stop or restriction on DTC's system with respect to the Transfer
      Restricted Notes or Exchange Notes, as the case may be. In the event the Company
      is unable to cause DTC to take actions described in the immediately preceding
      sentence, the Company shall take such actions as the Initial Purchasers may
      request to provide, as soon as practicable, a new CUSIP (if not already
      obtained) number for the Transfer Restricted Notes or Exchange Notes registered
      under such Registration Statement and to cause such CUSIP number to be assigned
      to the Transfer Restricted Notes or Exchange Notes (or to the maximum aggregate
      principal amount of the securities to which such number may be
      assigned).

     

    (m)
      The
      Company shall use its reasonable best efforts to comply with all applicable
      rules and regulations of the Commission and shall make generally available
      to
      the security holders as soon as practicable after the effective date of the
      applicable Registration Statement an earnings statement satisfying the
      provisions of Section 11(a) of the Act and Rule 158 promulgated
      thereunder.

     

    (n)
      The
      Company shall cause the Indenture to be qualified under the Trust Indenture
      Act
      in a timely manner.

     

    

    
      
        
        

      

      
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    (o)
      The
      Company may require each Holder of Transfer Restricted Notes to be sold pursuant
      to any Shelf Registration Statement to furnish to the Company such information
      regarding the Holder and the distribution of such Transfer Restricted Notes
      as
      may, from time to time, be required by the Act, and the obligations of the
      Company to any Holder hereunder shall be expressly conditioned on the compliance
      of such Holder with such request.

     

    (p)
      The
      Company shall, if requested, promptly incorporate in a Prospectus supplement
      or
      post-effective amendment to a Shelf Registration Statement (i) such information
      as the Majority Holders provide or, if the Transfer Restricted Notes are being
      sold in an underwritten offering, as the Managing Underwriters and the Majority
      Holders reasonably agree should be included therein and, in either case,
      provided to the Company in writing for inclusion in the Shelf Registration
      Statement, or Prospectus, and (ii) such information as a Holder may provide
      from
      time to time to the Company in writing for inclusion in a Prospectus or any
      Shelf Registration Statement, in the case of clause (i) or (ii) above,
      concerning such Holder and/or underwriter and the distribution of such Holder's
      Transfer Restricted Notes and, in either case, shall make all required filings
      of such Prospectus supplement or post-effective amendment as soon as practicable
      after being notified in writing of the matters to be incorporated in such
      Prospectus supplement or post-effective amendment.

     

    (q)
      In
      the case of any Shelf Registration Statement, the Company and the Guarantors
      shall enter into such agreements (including underwriting agreements) and take
      all other customary and appropriate actions as may be reasonably requested
      in
      order to expedite or facilitate the registration or the disposition of any
      Transfer Restricted Notes, and in connection therewith, if an underwriting
      agreement is entered into, cause the same to contain indemnification provisions
      and procedures no less favorable than those set forth in Section 8 (or such
      other provisions and procedures reasonably acceptable to the Majority Holders
      and the Managing Underwriters, if any, with respect to all parties to be
      indemnified pursuant to Section 8).

     

    (r)
      In
      the case of any Shelf Registration Statement, and if requested by the Initial
      Purchasers in connection with resales of Transfer Restricted Notes under the
      Exchange Offer Registration Statement, the Company shall:

     

    (i) make
      reasonably available for inspection by the Holders of Transfer Restricted Notes
      to be registered thereunder, any Managing Underwriter participating in any
      disposition pursuant to such Shelf Registration Statement, and any attorney,
      accountant or other agent retained by the Holders or any such Managing
      Underwriter, all relevant financial and other records, pertinent corporate
      documents and properties of the Company and any of its
      subsidiaries;

     

    (ii) cause
      the
      Company's officers, directors and employees to supply all relevant information
      reasonably requested by the Holders or any such Managing Underwriter, attorney,
      accountant or agent in connection with any such Registration Statement as is
      customary for similar due diligence examinations; provided,
      however,
      that
      any information that is designated in writing by the Company in good faith
      as
      confidential at the time of delivery of such information shall be kept
      confidential by the Holders 

    
 

    
      
        
        

      

      
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    or
      any
      such Managing Underwriter, attorney, accountant or agent, unless (x) disclosure
      thereof is made in connection with a court proceeding or required by law;
provided
      that
      each Holder and any such Managing Underwriter, attorney, accountant or agent
      will, upon learning that disclosure of such information is sought in a court
      proceeding or required by law, give notice to the Company to allow the Company
      to undertake appropriate action to prevent disclosure at the Company's sole
      expense, or (y) such information has previously been made or becomes available
      to the public generally through the Company or through a third party without
      an
      accompanying obligation of confidentiality;

     

    (iii) make
      such
      representations, warranties and covenants to the Holders of Transfer Restricted
      Notes registered thereunder and the Managing Underwriters, if any, in form,
      substance and scope as are customarily made in comparable transactions and
      covering matters including, but not limited to, those set forth in the Purchase
      Agreement;

     

    (iv) obtain
      opinions of counsel to the Company and updates thereof (which counsel and
      opinions, in form, scope and substance, shall be reasonably satisfactory to
      the
      Managing Underwriters, if any) addressed to each selling Holder and the Managing
      Underwriters, if any, covering such matters as are customarily covered in
      opinions requested in underwritten offerings and such other matters as may
      be
      reasonably requested by such Holders and Managing Underwriters;

     

    (v) obtain
      "cold comfort" letters and updates thereof from the independent certified public
      accountants of the Company (and, if necessary, any other independent certified
      public accountants of any subsidiary of the Company or of any business acquired
      by the Company for which financial statements and financial data are, or are
      required to be, included in the Registration Statement), addressed to each
      selling Holder of the Transfer Restricted Notes covered by such Shelf
      Registration Statement (provided such Holder furnishes the accountants with
      such
      representations as the accountants customarily require in similar situations)
      and the Managing Underwriters, if any, in customary form and covering matters
      of
      the type customarily covered in "cold comfort" letters in connection with
      primary underwritten offerings; and

     

    (vi) deliver
      such documents and certificates as may be reasonably requested by the Majority
      Holders and the Managing Underwriters, if any, including those to evidence
      compliance with Section 5(i) and with any customary conditions contained in
      the
      underwriting agreement or other agreement entered into by the Company or a
      Guarantor.

     

    The
      foregoing actions set forth in this Section 5(r) shall be performed at (i)
      the
      effectiveness of such Shelf Registration Statement and each post-effective
      amendment thereto and (ii) each closing under any underwriting or similar
      agreement as and to the extent required thereunder.

     

    (s)
      If a
      Registered Exchange Offer is to be Consummated, upon delivery of the Notes
      by
      Holders to the Company (or to such other Person as directed by the Company)
      in
      exchange for the Exchange Notes, the Company shall mark, or caused to be marked,
      on the Notes so exchanged that such Notes are being canceled in exchange for
      the
      Exchange Notes. In no event shall the Notes be marked as paid or otherwise
      satisfied.

     

    

    
      
        
        

      

      
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    (t)
      The
      Company shall use its reasonable best efforts to confirm that the ratings
      applicable to the Transfer Restricted Notes will apply to the Notes covered
      by a
      Registration Statement.

     

    (u)
      In
      the event that any broker-dealer shall underwrite any Notes or Exchange Notes
      or
      participate as a member of an underwriting syndicate or selling group or "assist
      in the distribution" (within the meaning of the Rules of Fair Practice and
      the
      By-Laws of the National Association of Securities Dealers, Inc.) thereof,
      whether as a Holder of such Notes or Exchange Notes or as an underwriter, a
      placement or sales agent or a broker or dealer in respect thereof, or otherwise,
      the Company and the Guarantors shall assist such broker-dealer in complying
      with
      the requirements of such Rules and By-Laws, including, without limitation,
      by:

     

    (i) if
      such
      Rules or By-Laws shall so require, engaging a "qualified independent
      underwriter" (as defined in such Rules) to participate in the preparation of
      the
      Registration Statement, to exercise usual standards of due diligence with
      respect thereto and, if any portion of the offering contemplated by such
      Registration Statement is an underwritten offering or is made through a
      placement or sales agent, to recommend the yield of such Notes or Exchange
      Notes;

     

    (ii) indemnifying
      any such qualified independent underwriter to the extent of the indemnification
      of underwriters provided in Section 8 hereof; and

     

    (iii) providing
      such information to such broker-dealer as may be required in order for such
      broker-dealer to comply with the requirements of such Rules.

     

    (v)
      The
      Company and the Guarantors shall use their reasonable best efforts to take
      all
      other steps necessary to effect the registration of the Notes or the Exchange
      Notes, as the case may be, covered by a Registration Statement as contemplated
      by, and in accordance with the terms of, this Agreement.

     

    (w)
      In
      the case of a Shelf Registration Statement, each Holder of Notes or Exchange
      Notes, as applicable, to be registered pursuant thereto agrees by acquisition
      of
      such Notes or Exchange Notes, as the case may be, that, upon the occurrence
      of
      any event contemplated by subsections (c)(2)(iii) above during the period for
      which the Company is required to maintain the effectiveness of the Shelf
      Registration Statement, such Holder will, upon written notice thereof from
      the
      Company, discontinue disposition of such Notes or Exchange Notes, as applicable,
      under such Shelf Registration Statement until such Holder's receipt of copies
      of
      the supplemented or amended Prospectus contemplated in subsection (k) above,
      or
      until advised in writing by the Company that the use of the applicable
      Prospectus may be resumed.

     

    6.
      Registration
      Expenses.
      The
      Company shall bear all Registration Expenses (including the reasonable fees
      and
      expenses, if any, of Mayer, Brown, Rowe & Maw LLP, counsel for the Initial
      Purchasers, incurred in connection with the Registered Exchange Offer) incurred
      in connection with the performance of their obligations under Sections 2, 3,
      4
      and 5 hereof.

     

    

    
      
        
        

      

      
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    7.
      Rules
      144 and 144A.
      The
      Company and the Guarantors shall use their reasonable best efforts to file
      the
      reports required to be filed by them under the Act and the Exchange Act in
      a
      timely manner and, if at any time the Company is not required to file such
      reports, it will, upon the request of any Holder of Transfer Restricted Notes,
      make publicly available other information so long as necessary to permit sales
      of their securities pursuant to Rules 144 and 144A (or any successor rule
      adopted by the Commission). The Company and the Guarantors each covenant that
      it
      will take such further action as any Holder of Transfer Restricted Notes may
      reasonably request, all to the extent required from time to time to enable
      such
      Holder to sell Transfer Restricted Notes without registration under the
      Securities Act within the limitation of the exemptions provided by Rules 144
      and
      144A (including the requirements of Rule 144A(d)(4) if applicable). The Company
      will provide a copy of this Agreement to prospective purchasers of Transfer
      Restricted Notes identified to the Company by the Initial Purchasers upon
      request. Upon the request of any Holder of Transfer Restricted Notes, the
      Company shall deliver to such Holder a written statement as to whether it has
      complied with such requirements. Notwithstanding the foregoing, nothing in
      this
      Section 7 shall be deemed to require the Company or a Guarantor to register
      any
      of its securities pursuant to the Exchange Act.

     

    8.
      Indemnification
      and Contribution.

     

    (a)
      (i)
      In connection with any Registration Statement, the Company and each Guarantor,
      jointly and severally, agree to indemnify and hold harmless each Holder of
      Transfer Restricted Notes covered thereby, the directors, officers and employees
      of each such Holder and each person who controls any such Holder within the
      meaning of Section 15 of the Act or Section 20 of the Exchange Act against
      any
      losses, claims, damages or liabilities, joint or several, to which they or
      such
      controlling person may become subject, insofar as such losses, claims, damages
      or liabilities (or actions in respect thereof) arise out of or are based upon
      (x) any untrue statement or alleged untrue statement of any material fact
      contained in the Registration Statement as originally filed or in any amendment
      thereof, in any preliminary Prospectus or Prospectus or in any amendment thereof
      or supplement thereto, or (y) the omission or alleged omission to state therein
      a material fact required to be stated therein or necessary to make the
      statements therein not misleading, and will reimburse, as incurred, each such
      indemnified party for any legal or other expenses reasonably incurred by them
      in
      connection with investigating, defending against or appearing as a third party
      witness in connection with any such loss, claim, damage, liability or action;
      provided,
      however,
      that
      the Company and the Guarantors will not be liable in any such case to the extent
      that any such loss, claim, damage or liability arises out of or is based upon
      any untrue statement or alleged untrue statement or omission or alleged omission
      made therein in reliance upon and in conformity with written information
      relating to the Holder furnished to the Company by any such Holder specifically
      for inclusion therein. This indemnity agreement will be in addition to any
      liability which the Company may otherwise have.

     

    (ii)
      The
      Company and each Guarantor, jointly and severally, also agree to indemnify
      or
      contribute to Losses, as provided in Section 8(d), of each underwriter of
      Transfer Restricted Notes registered under a Registration Statement, their
      officers and directors and each person who controls such underwriter within
      the
      meaning of Section 15 of the Act or Section 20 of the Exchange Act on
      substantially the same basis as that of the indemnification of the selling
      Holders
      provided in this Section 8(a) and shall, if requested by any Holder, enter
      into
      an underwriting agreement reflecting such agreement, as provided in Section
      5(q)
      hereof.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (b)
      Each
      Holder of Transfer Restricted Notes covered by a Registration Statement
      severally agrees to indemnify and hold harmless the Company and the Guarantors
      and their respective directors, officers, employees and agents and each person,
      if any, who controls the Company or the Guarantors within the meaning of Section
      15 of the Act or Section 20 of the Exchange Act against any losses, claims,
      damages or liabilities, joint or several, to which they or such controlling
      persons become subject, insofar as such losses, claims, damages or liabilities
      (or actions in respect thereof) arise out of or are based upon (i) any untrue
      statement or alleged untrue statement of any material fact contained in the
      Registration Statement as originally filed or in any amendment thereof, in
      any
      preliminary Prospectus or Prospectus or in any amendment thereof or supplement
      thereto, or (ii) the omission or alleged omission to state therein a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading, and will reimburse, as incurred, each such indemnified party
      for
      any legal or other expenses reasonably incurred by them in connection with
      investigating, defending against, or appearing as a third party witness in
      connection with any such loss, claim, damage, liability or action but only
      if
      and to the extent that such untrue statement or alleged untrue statement or
      omission or alleged omission was made in reliance upon and in conformity with
      written information relating to such Holder furnished to the Company by such
      Holder specifically for inclusion therein. This indemnity agreement will be
      in
      addition to any liability which any such Holder may otherwise have.

     

    (c)
      Promptly after receipt by any person to whom indemnity may be available under
      this Section 8 (the "indemnified
      party")
      of
      notice of the commencement of any action, such indemnified party will, if a
      claim in respect thereof is to be made against any person from whom indemnity
      may be sought under this Section 8 (the "indemnifying
      party"),
      notify such indemnifying party of the commencement thereof; but the failure
      so
      to notify the indemnifying party (i) will not relieve it from liability under
      paragraph (a) or (b) above unless and to the extent it did not otherwise learn
      of such action and such failure results in the forfeiture by the indemnifying
      party of substantial rights and defenses as determined by a court of competent
      jurisdiction and (ii) will not, in any event, relieve the indemnifying party
      from any obligations to any indemnified party other than the indemnification
      obligation provided in paragraph (a) or (b) above. In case any such action
      is
      brought against any indemnified party, and such indemnified party notifies
      the
      relevant indemnifying party of the commencement thereof, such indemnifying
      party
      will be entitled to participate therein and, to the extent that it may wish,
      to
      assume the defense thereof, jointly with any other indemnifying party similarly
      notified, with counsel satisfactory to such indemnified party; provided,
      however,
      that if
      the named parties in any such action (including impleaded parties) include
      both
      the indemnified party and the indemnifying party and the indemnified party
      shall
      have concluded, based on advice of outside counsel, that there may be one or
      more legal defenses available to it and/or other indemnified parties which
      are
      different from or additional to those available to the indemnifying party or
      that representation of both parties by the same counsel would be inappropriate
      due to actual or potential differing interests between them, the indemnifying
      party shall not have the right to direct the defense of such action on behalf
      of
      such indemnified party or parties and such indemnified party or parties shall
      have the right to select separate counsel to defend such action on behalf of
      such indemnified 

     

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    party
      or
      parties. After notice from an indemnifying party to an indemnified party of
      its
      election so to assume the defense thereof and approval by such indemnified
      party
      of counsel appointed to defend such action, such indemnifying party will not
      be
      liable to such indemnified party under this Section 8 for any legal or other
      expenses, other than reasonable costs of investigation, subsequently incurred
      by
      such indemnified party in connection with the defense thereof, unless
      (i) such indemnified party shall have employed separate counsel in
      accordance with the proviso to the immediately preceding sentence or
      (ii) such indemnifying party does not promptly retain counsel satisfactory
      to such indemnified party or (iii) such indemnifying party has authorized the
      employment of counsel for such indemnified party at the expense of the
      indemnifying party. After such notice from an indemnifying party to an
      indemnified party, such indemnifying party will not be liable for the costs
      and
      expenses of any settlement of such action effected by such indemnified party
      without the written consent of such indemnifying party. Notwithstanding the
      foregoing sentence, if at any time an indemnified party shall have requested
      an
      indemnifying party to reimburse the indemnified party for fees and expenses
      of
      counsel as contemplated by (i), (ii) or (iii) of the third sentence of this
      paragraph, the indemnifying party agrees that it shall be liable for any
      settlement of any proceeding effected without its written consent if (x) such
      settlement is entered into more than 30 days after receipt by such indemnifying
      party of the aforesaid request and (y) such indemnifying party shall not have
      reimbursed the indemnified party in accordance with such request prior to the
      date of such settlement. An indemnifying party will not, without the prior
      written consent of the indemnified party, settle or compromise or consent to
      the
      entry of any judgment in any pending or threatened claim, action, suit or
      proceeding in respect of which indemnification may be sought hereunder (whether
      or not the indemnified party or any other person that may be entitled to
      indemnification hereunder is a party to such claim, action, suit or proceeding)
      unless such settlement, compromise or consent includes an unconditional release
      of the indemnified party and such other persons from all liability arising
      out
      of such claim, action, suit or proceeding.

     

    (d)
      In
      the circumstances in which the indemnity agreement provided for in the preceding
      paragraphs of this Section 8 is unavailable or insufficient, for any reason,
      to
      hold harmless an indemnified party in respect of any, losses, claims, damages
      or
      liabilities (including, without limitation, legal or other expenses incurred
      in
      connection with investigating or defending any action or claim) (or actions
      in
      respect thereof) (collectively "Losses")
      then
      each indemnifying party, in order to provide for just and equitable
      contribution, agrees to contribute to the amount paid or payable by such
      indemnified party as a result of such Losses to which such indemnified party
      may
      be subject (i) in such proportion as is appropriate to reflect the relative
      benefits received by such indemnifying party, on the one hand, and such
      indemnified party, on the other hand, from the original issuance sale of the
      Notes under the Purchase Agreement and the Registration Statement which resulted
      in such Losses, or (ii) if the allocation provided by the foregoing clause
      (i)
      is unavailable for any reason, the indemnifying party and the indemnified party
      shall contribute in such proportion as is appropriate to reflect not only such
      relative benefits but also the relative fault of such indemnifying party, on
      the
      one hand, and such indemnified party, on the other hand, in connection with
      the
      statements or omissions which resulted in such Losses and any other relevant
      equitable considerations appropriate in the circumstances. The relative fault
      of
      the parties shall be determined by reference to, among other things, whether
      the
      untrue or alleged untrue statement of a material fact or the omission or alleged
      omission to state a material fact relates to information supplied by the Company
      or the Guarantors, on the one hand, or such Holder or such other indemnified
      person, as the case may be, on the other hand, and the parties' intent, relative
      knowledge, access to information 

     

    

    
      
        
        

      

      
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    and
      opportunity to correct or prevent such statement or omission, and any other
      relevant equitable considerations appropriate in the circumstances. Benefits
      received by the Company shall be deemed to be equal to the sum of (x) the total
      net proceeds from the original issuance and sale of the Notes (before deducting
      expenses) as set forth in the Final Memorandum, and (y) the total amount of
      Additional Interest which the Company was not required to pay as a result of
      registering the Transfer Restricted Notes covered by the Registration Statement
      which resulted in such Losses. Benefits received by any Holder (other than
      the
      Initial Purchasers) shall be deemed to be equal to the value of receiving
      Transfer Restricted Notes registered under the Act. Benefits received by the
      Initial Purchasers shall be deemed to be equal to the total purchase discounts
      and commissions as set forth in the Purchase Agreement. Benefits received by
      any
      underwriter shall be deemed to be equal to its relative share of the total
      underwriting discounts and commissions, as set forth on the cover page of the
      Prospectus forming a part of the Registration Statement which resulted in such
      Losses. Notwithstanding any other provision of this Section 8(d), the Holders
      of
      the Transfer Restricted Notes shall in no case be required to contribute any
      amount in excess of the amount by which the net proceeds received by such
      Holders from the sale of the Transfer Restricted Notes pursuant to a
      Registration Statement exceeds the amount of damages which such Holders have
      otherwise been required to pay by reason of such untrue or alleged untrue
      statement or omission or alleged omission and in no case shall any underwriter
      be responsible for any amount in excess of the underwriting discount or
      commission applicable to the Transfer Restricted Notes purchased by such
      underwriter under the Registration Statement which resulted in such Losses.
      The
      parties agree that it would not be just and equitable if contribution were
      determined by pro rata allocation (even if the Holders were treated as one
      entity for such purpose) or by any other method of allocation that does not
      take
      into account the equitable considerations referred to above. Notwithstanding
      the
      provisions of this paragraph (d), the Initial Purchasers shall not be obligated
      to make contributions hereunder that in the aggregate exceed the total
      underwriting discounts and commissions received by the Initial Purchasers from
      the Company in connection with the purchase of the Notes, and no person guilty
      of fraudulent misrepresentation (within the meaning of Section 11(f) of the
      Act)
      shall be entitled to contribution from any person who was not guilty of such
      fraudulent misrepresentation. For purposes of this Section 8, each person,
      if
      any, who controls an indemnified party within the meaning of either Section
      15
      of the Act or Section 20 of the Exchange Act and each director, officer,
      employee and agent of such indemnified party shall have the same rights to
      contribution as such indemnified party.

     

    (e)
      The
      provisions of this Section 8 will remain in full force and effect, regardless
      of
      any investigation made by or on behalf of any Holder, the Company, the
      Guarantors or any of the directors, officers, employees, agents or controlling
      persons referred to in Section 8 hereof, and will survive the sale by a Holder
      of Transfer Restricted Notes covered by a Registration Statement.

     

    9.
      Underwritten
      Registrations

     

    If
      any of
      the Transfer Restricted Notes covered by any Shelf Registration Statement are
      to
      be sold in an underwritten offering, the Managing Underwriter that will
      administer the offering will be selected by the Majority Holders of such
      Transfer Restricted Notes included in such offering, and such Holders shall
      be
      responsible for all underwriting commissions and discounts in connection
      therewith.

     

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    

     

    No
      person
      may participate in any underwritten offering pursuant to a Shelf Registration
      Statement unless such person (i) agrees to sell such person's Transfer
      Restricted Notes on the basis reasonably provided in any underwriting
      arrangements approved by the persons entitled hereunder to approve such
      arrangements and (ii) completes and executes all questionnaires, powers of
      attorney, indemnities, underwriting agreements and other documents reasonably
      required under the terms of such underwriting arrangements.

     

    10.
      Miscellaneous.

     

    (a)
      No
      Inconsistent Agreements.
      Neither
      the Company nor any Guarantor has, as of the date hereof, entered into nor
      shall
      it, on or after the date hereof, enter into any agreement that is inconsistent
      with the rights granted to the Holders herein or otherwise conflicts with the
      provisions hereof.

     

    (b)
      Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, qualified, modified or supplemented, and waivers or consents to
      departures from the provisions hereof may not be given, unless the Company
      has
      obtained the written consent of the Majority Holders; provided
      that,
      with
      respect to any matter that directly or indirectly affects the rights of the
      Initial Purchasers hereunder, the Company shall obtain the written consent
      of
      the Initial Purchasers. Notwithstanding the foregoing, a waiver or consent
      to
      departure from the provisions hereof with respect to a matter that relates
      exclusively to the rights of Holders whose Transfer Restricted Notes are being
      sold pursuant to a Shelf Registration Statement or whose Notes are being
      exchanged pursuant to an Exchange Offer Registration Statement, as the case
      may
      be, and which does not directly or indirectly affect the rights of other Holders
      may be given by such Holders, determined on the basis of Notes being sold rather
      than registered. Notwithstanding any of the foregoing, no amendment,
      modification, supplement, waiver or consents to any departure from the
      provisions of Section 8 hereof shall be effective as against any Holder of
      Transfer Restricted Notes unless consented to in writing by such
      Holder.

     

    (c)
      Notices.
      All
      notices and other communications provided for or permitted hereunder shall
      be
      made in writing by hand-delivery, first-class mail, telex, telecopier, or air
      courier guaranteeing overnight delivery:

     

    (i) if
      to the
      Initial Purchasers, as follows:

     

    c/o
      Morgan Joseph & Co. Inc.

    600
      Fifth
      Avenue 

    New
      York,
      NY 10020

    Facsimile:

    Attention:
      High-Yield Debt Capital Markets

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    

    with
      a
      copy mailed or delivered to:

     

    Mayer,
      Brown, Rowe & Maw LLP

    190
      South
      LaSalle Street

    Chicago,
      Illinois 60603

    Facsimile:
      312-701-7711

    Attention: Edward
      S.
      Best.

     

    (ii) if
      to any
      other Holder, at the most current address given by such Holder to the Company
      in
      accordance with the provisions of this Section 10(c), which address initially
      is, with respect to each Holder, the address of such Holder maintained by the
      registrar under the Indenture, with a copy in like manner to the Initial
      Purchasers; and

     

    (iii) if
      to the
      Company or the Guarantors, as follows:

     

    Integrated
      Alarm Services Group Inc.

    99
      Pine
      Street, 3rd
      Floor

    Albany,
      New York 12207 

    Facsimile:
      518-320-4115

    Attention:
      Timothy McGinn

    

    with
      a
      copy mailed or delivered to:

     

    Gersten,
      Savage, Kaplowitz, Wolf & Marcus, LLP

    101
      East
      52nd Street -- 9th Floor 

    New
      York,
      New York 10022

    Facsimile:
      (212)
      980-5192

    Attention:
      Jay M. Kaplowitz.

    

    All
      such
      notices and communications shall be deemed to have been duly given when
      received, if delivered by hand or air courier, and when sent, if sent by
      first-class mail, telex or facsimile.

     

    The
      Company by notice to the others may designate additional or different addresses
      for subsequent notices or communications.

     

    (d)
      Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of and be binding upon the successors
      and
      assigns of each of the parties, including, without the need for an express
      assignment or any consent by the Company or any Guarantor thereto, subsequent
      Holders. The Company and the Guarantors hereby agree to extend the benefits
      of
      this Agreement to any Holder and any such Holder may specifically enforce the
      provisions of this Agreement as if an original party hereto. 

     

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

     

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

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

     

    (g)
      Governing
      Law and Consent to Jurisdiction.
      This
      agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York. The Company and each Guarantor (x) submits to the
      nonexclusive jurisdiction of the courts of the State of New York and of the
      United States sitting in the Borough of Manhattan in respect of any action,
      claim or proceeding ("Proceeding")
      arising out of or relating to this Agreement or the transactions contemplated
      hereby, (y) irrevocably waives, to the fullest extent permitted by applicable
      law, any objection that it may now or hereafter have to the laying of venue
      of
      any Proceeding in the Supreme Court of the State of New York, County of New
      York, or the United States District Court for the Southern District of New
      York,
      and any claim that any Proceeding in any such court has been brought in an
      inconvenient forum, and (z) agrees that any service of process or other legal
      summons in connection with any Proceeding may be served on it by mailing a
      copy
      thereof by registered mail, or a form of mail substantially equivalent thereto,
      postage prepaid, addressed to the served party at its address as provided for
      in
      Section 10(c). Nothing in this section shall affect the right of the parties
      to
      serve process in any other manner permitted by law.

     

    (h)
      Obligations
      of New Guarantors.
      If any
      person becomes a Guarantor (as defined in the Indenture) after the date hereof
      and while the Company has continuing obligations under this Agreement, the
      Company will cause such Guarantor to become a party hereto including for
      purposes of registration obligations, the guarantee of Additional Interest
      on a
      joint and several basis and indemnification and contribution pursuant to Section
      8.

     

    (i)
      Severability.
      In the
      event that any one or more of the provisions contained herein, or the
      application thereof in any circumstances, is held invalid, illegal or
      unenforceable in any respect for any reason, the validity, legality and
      enforceability of any such provision in every other respect and of the remaining
      provisions hereof shall not be in any way impaired or affected thereby, it
      being
      intended that all of the rights and privileges of the parties shall be
      enforceable to the fullest extent permitted by law.

     

    (j)
      Notes
      Held by the Company, etc.
      Whenever
      the consent or approval of Holders of a specified percentage of principal amount
      of Transfer Restricted Notes or Exchange Notes is required hereunder, Transfer
      Restricted Notes or Exchange Notes held by the Company or any of its Affiliates
      (other than subsequent Holders of Transfer Restricted Notes or Exchange Notes
      if
      such subsequent Holders are deemed to be Affiliates solely by reason of their
      holdings of such Notes) shall not be counted in determining whether such consent
      or approval was given by the Holders of such required percentage.

     

    (k)
      Remedies.
      In the
      event of a breach by either the Company or any of the Guarantors of any of
      their
      respective obligations under this Agreement, each Holder, in addition to being
      entitled to exercise all rights provided herein, in the Indenture or, in the
      case of the Initial Purchasers, in the Purchase Agreement, or granted by law,
      including recovery of damages, will be entitled to specific perfor-mance of
      its
      rights under this Agreement. The Company and the Guarantors agree that monetary
      damages would not be adequate compensation for any loss incurred by reason
      of a
      breach by either the Company or any of the Guarantors of any of the provisions
      of this Agreement and hereby further agree that, in the event of any action
      for
      specific performance
      in respect of such breach, the Company shall (and shall cause each Guarantor
      to)
      waive the defense that a remedy at law would be adequate.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    [Intentionally
      left blank]

     

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

          

    
      

        Please
          confirm that the foregoing correctly sets forth the agreement between and
          between the Company and the Initial Purchasers.

         

        

         

        Very
          truly yours,

         

        

         

        INTEGRATED
          ALARM SERVICES GROUP, INC.  

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Chairman
          & CEO    

         

         

        CRITICOM
          INTERNATIONAL CORPORATION  

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        MONITAL
          SIGNAL CORPORATION        

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        MORLYN
          FINANCIAL GROUP, L.L.C.      

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        PAYNE
          SECURITY GROUP, L.L.C. 

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Manager      

         

         

        GUARDIAN
          GROUP, LLC

         

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Manager      

         

        

        INTEGRATED
          ALARMS SERVICES, INC.

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Chairman
          & CEO    

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        MADISON
          PROTECTION, INC.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person

         

        

        EVEREST
          VIDEO SYSTEMS, L.L.C.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        INTEGRATED
          ALARM AND SECURITY, LLC

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Manager      

         

        

        ALERT
          ALARM COMPANY, INC.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        
 

        AMERICAN
          BURGLAR & FIRE ALARM CO.

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        NORCO
          ALARMS, INC.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        SECURITY
          GENERAL CORPORATION

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        AMERICAN
          HOME SECURITY, INC.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        SHIELD
          SIGNAL CORP.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        TELEGUARD
          SECURITY SYSTEMS INC.

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        WALTER
          BREESE, INCORPORATED

        

        By:
          /s/
          Timothy M. McGinn    

        Name:
          Timothy
          M. McGinn   

        Title:
          Authorized
          Person   

        

        

        MONITAL
          FUNDING CORPORATION

        

        By:
          /s/
          Timothy M. McGinn     

        Name:
          Timothy
          M. McGinn    

        Title:
          Authorized
          Person    

         

        

        [Signatures
          continue on next page]

        
 

      

    

    
      
        
          

        

        
        

      

      
        25

        
          

        

      

      
        
        

        
        

      

    

    

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

    

    MORGAN
      JOSEPH & CO. INC.

    

     

    By:
      /s/
      Mary Lou Malanoski

     

    Name:
      Mary Lou Malanoski

    Title:
      Chief Financial Officer

     

    

    WELLS
      FARGO SECURITIES, LLC

     

    By:
      /s/
      Stephen T. Moss  

     

    Name:
      Stephen T. Moss

    Title:
      Managing Director

     

    ABN
      AMRO
      INCORPORATED

     

    By:
      /s/
      David Kanler   

     

    Name:
      David Kanler

    Title:
      Managing Director

     

    
    

    

    
      
        
          

        

        
        

      

      
        26

        
          

        

      

      
        
        

        
        

      

    

    

    SCHEDULE
      I

     

    INITIAL
      PURCHASERS

     

    
      	
              Initial
                Purchaser

               

            	
              Aggregate
                Principal

              Amount
                of Notes

               

            
	
              Morgan
                Joseph Co. Inc.

            	 	 	 	
              $

            	
              5,000,000

            
	
              Wells
                Fargo Securities, LLC

            	 	 	 	 	
              115,000,000

            
	
              ABN
                AMRO Incorporated

            	 	 	 	 	
              5,000,000

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
              Total

            	 	 	 	
              $

            	
              125,000,000

            

    

    

    

     

    
    

    

    
      
        
          
            	 	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    ANNEX
      A

     

    Each
      broker-dealer that receives Exchange Notes for its own account pursuant to
      the
      Registered Exchange Offer must acknowledge that it will deliver a prospectus
      in
      connection with any resale of such Exchange Notes. The Letter of Transmittal
      states that by so acknowledging and by delivering a prospectus, a broker-dealer
      will not be deemed to admit that it is an "underwriter" within the meaning
      of
      the Act. This Prospectus, as it may be amended or supplemented from time to
      time, may be used by a broker-dealer during the Exchange Offer Registration
      Period in connection with resales of Exchange Notes received in exchange for
      Notes where such Notes were acquired by such broker-dealer as a result of
      market-making activities or other trading activities. The Company has agreed
      that, during the Exchange Offer Registration Period, it will make this
      Prospectus available to any broker-dealer for use in connection with any such
      resale. See "Plan of Distribution."

     

    

     

    
    

    

    
      
        
          
            	 	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    ANNEX
      B

     

    Each
      broker-dealer that receives Exchange Notes for its own account in exchange
      for
      Notes, where such Notes were acquired by such broker-dealer as a result of
      market-making activities or other trading activities, must acknowledge that
      it
      will deliver a prospectus in connection with any resale of such Exchange Notes
      during the Exchange Offer Registration Period. See "Plan of
      Distribution."

     

    

     

    
    

    

    
      
        
          
            	 	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    ANNEX
      C

     

    PLAN
      OF
      DISTRIBUTION

     

    Each
      broker-dealer that receives Exchange Notes for its own account pursuant to
      the
      Registered Exchange Offer must acknowledge that it will deliver a prospectus
      in
      connection with any resale of such Exchange Notes during the Exchange Offer
      Registration Period. This Prospectus, as it may be amended or supplemented
      from
      time to time, may be used by a broker-dealer in connection with resales of
      Exchange Notes received in exchange for Notes where such Notes were acquired
      as
      a result of market-making activities or other trading activities. The Company
      has agreed that, during the Exchange Offer Registration Period, it will make
      this Prospectus, as amended or supplemented, available to any broker-dealer
      for
      use in connection with any such resale. In addition, until ____________ 2005,
      all dealers effecting transactions in the Exchange Notes may be required to
      deliver a prospectus. 

     

    The
      Company will not receive any proceeds from any sale of Exchange Notes by
      broker-dealers. Exchange Notes received by broker-dealers for their own account
      pursuant to the Registered Exchange Offer may be sold from time to time in
      one
      or more transactions in the over-the-counter market, in negotiated transactions,
      through the writing of options on the Exchange Notes or a combination of such
      methods of resale, at market prices prevailing at the time of resale, at prices
      related to such prevailing market prices or negotiated prices. Any such resale
      may be made directly to purchasers or to or through brokers or dealers who
      may
      receive compensation in the form of commissions or concessions from any such
      broker-dealer and/or the purchasers of any such Exchange Notes. Any
      broker-dealer that resells Exchange Notes that were received by it for its
      own
      account pursuant to the Registered Exchange Offer and any broker or dealer
      that
      participates in a distribution of such Exchange Notes may be deemed to be an
      "underwriter" within the meaning of the Act and any profit from any such resale
      of Exchange Notes and any commissions or concessions received by any such
      persons may be deemed to be underwriting compensation under the Act. The Letter
      of Transmittal states that by acknowledging that it will deliver and by
      delivering a prospectus, a broker-dealer will not be deemed to admit that it
      is
      an "underwriter" within the meaning of the Act.

     

    During
      the Exchange Offer Registration Period, the Company will promptly send
      additional copies of this Prospectus and any amendment or supplement to this
      Prospectus to any broker-dealer that requests such documents in the Letter
      of
      Transmittal. The Company has agreed to pay all expenses incident to the
      Registered Exchange Offer (including the expenses of one counsel for the holders
      of the Notes) other than dealers' and brokers' discounts, commissions and
      counsel fees and will indemnify the holders of the Notes (including any
      broker-dealers) against certain liabilities, including liabilities under the
      Act.

     

    [If
      applicable, add information required by Regulation S-K Items 507 and/or
      508.]

     

    

     

    
    

    

    
      
        
          
            	 	 	 

          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    ANNEX
      D

     

    
      	 	
              
              

            	
              CHECK
                HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL
                COPIES
                OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
                THERETO.

            

    

                  

     

            o  Name:       ______________________________  

     

              

             Address:    _______________________________

     

                     
_______________________________

     

     

        The
      undersigned represents that it is not an Affiliate of the Company, that any
      Exchange Notes to be received by it will be acquired in the ordinary course
      of
      business and that at the time of the commencement of the Registered Exchange
      Offer it had no arrangement with any person to participate in a distribution
      of
      the Exchange Notes.

     

        In
      addition,
      if the undersigned is not a broker-dealer, the undersigned represents that
      it is
      not engaged in, and does not intend to engage in, a distribution of Exchange
      Notes. If the undersigned is a broker-dealer that will receive Exchange Notes
      for its own account in exchange for Notes, it represents that the Notes to
      be
      exchanged for Exchange Notes were acquired by it as a result of market-making
      activities or other trading activities and acknowledges that it will deliver
      a
      prospectus in connection with any resale of such Exchange Notes; however, by
      so
      acknowledging and by delivering a prospectus, the undersigned will not be deemed
      to admit that it is an "underwriter" within the meaning of the Act.

     

    

     

    

     

    
    

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    

    ANNEX
      E

     

    FORM
      OF
      LETTER TO BE PROVIDED BY THE COMPANY TO

     

    THE
      DEPOSITORY TRUST COMPANY

     

    The
      Depository Trust Company

    55
      Water
      Street, 50th Floor

    New
      York,
      NY 10041

     

    
      	 	
              Re:

            	
              12%
                Senior Notes Due 2011 (the "Notes")
                of Integrated Alarm Services Group,
                Inc.

            

    

     

    Ladies
      and Gentlemen:

     

    Please
      be
      advised that the Securities and Exchange Commission has declared effective
      a
      Registration Statement on Form S-__ under the Securities Act of 1933, as
      amended, with regard to all of the Notes referenced above. Accordingly, there
      is
      no longer any restriction as to whom such Notes may be sold and [any
      restrictions on the CUSIP designation are no longer appropriate and may be
      removed] [the new CUSIP number for the Notes provided should be used]. I
      understand that upon receipt of this letter, DTC will remove any stop or
      restriction on its system with respect to this issue. 

     

    As
      always, please do not hesitate to call if we can be of further
      assistance.

     

    Very
      truly yours,

     

    INTEGRATED
      ALARM SERVICES GROUP, INC.

    

    By:_________________________________

    Name:

    Title:

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