Document:

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                                                                   Exhibit  10.7

                             INTERCREDITOR AGREEMENT

     INTERCREDITOR AND SUBORDINATION AGREEMENT (this "Agreement") dated as of
August 25, 2003 by and among Monitronics International, Inc., a Texas
corporation (the "Borrower"), Fleet National Bank, as Administrative Agent for
the Lenders from time to time party to the Credit Agreement referred to below
(the "Administrative Agent"), and The Northwestern Mutual Life Insurance Company
("NML").

                                    RECITALS

     WHEREAS, the Borrower, the Administrative Agent, Bank of America, N.A., as
syndication agent, and the Lenders referred to therein are entering into a
Credit Agreement dated as of the date hereof (as amended, modified, supplemented
and/or extended from time to time, the "Credit Agreement", capitalized terms
used herein and not otherwise defined shall have the same meanings herein as in
the Credit Agreement), pursuant to which the Lenders have agreed, subject to the
terms and conditions set forth therein, to make revolving credit loans, swing
line loans and term loans to the Borrower (collectively, the "Loans"), such
Loans to be evidenced by the Borrower's Revolving Credit and Term Notes, payable
to the order of the respective Lenders (collectively, as amended, modified,
supplemented and/or extended from time to time the "Notes"); and

     WHEREAS, the Borrower and NML are parties to that certain Subordinated Note
and Warrant Purchase Agreement dated as of January 18, 2002 (the "Original
Purchase Agreement"), whereby NML extended loans to the Borrower in an aggregate
principal amount of Forty Million Dollars ($40,000,000) on the terms and
conditions set forth therein, such loans evidenced by the Borrower's 13.5%
Subordinated Notes Due January 18, 2009, in the aggregate principal amount of
Forty Million Dollars ($40,000,000) issued to NML (collectively, as amended,
modified, supplemented and/or extended from time to time, the "Subordinated
Notes") and warrants to purchase an aggregate of up to 1,133,328 shares of Class
A Common Stock, par value $.01 per share, of the Borrower (the "Warrants"); and

     WHEREAS, on the date hereof, concurrently with the funding of the initial
Loans under the Credit Agreement, NML and the Borrower are entering into the
First Amendment to Subordinated Note and Warrant Purchase Agreement (the
"Amendment"; the Amendment and the Original Purchase Agreement being referred to
herein collectively as the "Subordinated Purchase Agreement"), and the Borrower
is redeeming Twenty Million Four Hundred Ninety Thousand Nine Hundred Twenty
Seven Dollars and 10/100 ($20,490,927.10) in principal amount of the
Subordinated Notes and paying such amounts as required under the Original
Purchase Agreement to be paid in connection with such redemption; and

     WHEREAS, the obligation of the Lenders to make the Loans is subject to the
condition, among others, that NML shall execute and deliver this Agreement and
subordinate, to the extent and in the manner hereinafter set forth, the
Subordinate Liabilities (as hereinafter defined);

     NOW, THEREFORE, in consideration of the foregoing premises and the
covenants contained herein, the parties hereto agree as follows:

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                                    AGREEMENT

Section 1. Definitions.

     As used in this Agreement, the terms defined above shall have their
respective meanings set forth above and the following terms shall have the
following meanings:

     1.1 "Senior Agreements" shall mean, collectively, the Credit Agreement, the
Notes, the Security Documents and each other Loan Document, in each case, as
amended, restated, modified, supplemented and/or extended from time to time.

     1.2 "Senior Event of Default" shall mean the occurrence of any Default or
Event of Default under and as from time to time defined in the Credit Agreement.

     1.3 "Senior Lender" or "Senior Lenders" shall mean the Administrative
Agent, each Lender now or hereafter party to the Credit Agreement together with
any other holder of any Senior Obligations, jointly, severally or jointly and
severally, as the context may require.

     1.4 "Senior Obligations" shall mean any and all indebtedness of the
Borrower to the Senior Lenders for principal, interest (including, without
limitation, interest and other amounts that would accrue and become due but for
the filing of a petition in bankruptcy or the operation of the automatic stay
under Section 362(a) of Title 11 of the United States Code, as amended, or
similar laws, as now or hereafter in effect, whether or not any such interest or
other amounts is allowed as a claim enforceable against the Borrower in such
proceeding), fees, indemnities, expenses and costs (including costs of
collection, and including fees and expenses accrued during any bankruptcy
proceeding, whether or not such fees and expenses are allowed as a claim
enforceable against the Borrower in such proceeding) and all other amounts,
including amounts advanced to protect the liens and security interests (and/or
the collateral) of the Senior Lenders, in each case as provided under the Senior
Agreements and/or any documents contemplated thereby, direct or indirect,
contingent or non-contingent, secured or unsecured, now existing or hereafter
arising or incurred or now or hereafter due and owing to the Senior Lenders;
provided, that the principal amount (exclusive of interest (including, without
limitation, interest and other amounts that would accrue and become due but for
the filing of a petition in bankruptcy or the operation of the automatic stay
under Section 362(a) of Title 11 of the United States Code, as amended, or
similar laws, as now or hereafter in effect, whether or not any such interest or
other amounts is allowed as a claim enforceable against the Borrower in such
proceeding)) of such indebtedness shall not exceed an amount equal to
$470,000,000, without the prior written consent of the Subordinated Creditors in
accordance with Section 6.2 hereof.

     1.5 "Subordinated Creditors" shall mean NML, together with any other holder
of any Subordinate Liabilities.

     1.6 "Subordinated Debt Documents" shall mean the Subordinated Purchase
Agreement, the Subordinated Notes and the Warrants, in each case as amended,
restated, modified, supplemented and/or extended from time to time.

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     1.7 "Subordinate Liabilities" shall mean all indebtedness of the Borrower
to the Subordinated Creditors for (a) principal of and interest on the
Subordinated Notes, together with any prepayment fees or premiums under the
Subordinated Notes and (b) any and all other indebtedness, liabilities or
obligations of any kind or nature of the Borrower, direct or indirect,
contingent or non-contingent, now existing or hereafter arising or incurred or
now or hereafter due and owing to any Subordinated Creditor under or with
respect to the Subordinated Notes and/or the Subordinated Purchase Agreement,
including without limitation fees, expenses, costs, and post-petition interest
in bankruptcy.

Section 2. Subordination.

     2.1 Subordination. So long as any Senior Obligations are outstanding or the
Lenders are obligated to make Loans to the Borrower under the Credit Agreement,
each Subordinated Creditor agrees that the Subordinate Liabilities are and shall
at all times hereafter be expressly subordinate and junior in right of payment
and exercise of remedies to all Senior Obligations in the manner and to the
extent set forth in this Section 2, including but not limited to the occurrence
of redemptions or any other events that would require the Borrower to accelerate
payment in respect of the Subordinate Liabilities. Without limiting the
foregoing, any lien on, security interest in, or mortgage or pledge of or into
any of the assets of the Borrower in favor of or for the benefit of any
Subordinated Creditor, whether now existing or arising in the future, is hereby
expressly made subordinate and junior in priority of payment and right of
enforcement to any liens, security interests, mortgages or pledges of or into
any of the assets of the Borrower, both now existing and arising in the future,
securing any of the Senior Obligations.

     2.2 Bankruptcy; Insolvency, etc.

          (a) In the event of any insolvency, bankruptcy, receivership,
liquidation, reorganization or other similar proceedings relative to the
Borrower or to its assets, or in the event of any proceedings for voluntary
liquidation, dissolution or other winding up of the Borrower, whether or not
involving insolvency or bankruptcy, so long as any Senior Obligations are
outstanding, the holders of Senior Obligations shall be entitled in any such
proceedings to receive payment in full in cash of all Senior Obligations before
the Subordinated Creditors are entitled in such proceeding to receive any
payment on account of the Subordinate Liabilities (except for payment in
securities which are subordinate and junior in right of payment to all Senior
Obligations then outstanding), and to that end in any such proceedings, so long
as any Senior Obligations remain outstanding, any payment or distribution of any
kind or character, whether in cash or in other property, to which the
Subordinated Creditors would be entitled but for the provisions hereof (except
for payment in securities which are subordinate and junior in right of payment
to all Senior Obligations then outstanding) shall be delivered to the holders of
Senior Obligations to the extent necessary to make payment in full in cash of
all Senior Obligations remaining unpaid, after giving effect to any concurrent
payment or distribution to the holders of Senior Obligations in respect thereof.

          (b) So long as any Senior Obligations remain outstanding, the holders
of Senior Obligations (or their representatives) are authorized and empowered,
in any proceedings described in Section 2.2(a), in their own names or in the
names of the Subordinated Creditors, to

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(i) file claims, proofs of claim and other instruments of similar character
reasonably necessary to enforce the obligations of the Borrower in respect of
the Subordinate Liabilities in the event the Subordinated Creditors fail to do
so within 15 days of the due date pertaining thereto; and (ii) receive and apply
to the Senior Obligations every payment or distribution of every kind or
character to which such Subordinated Creditors are entitled in respect thereof
and give acquittance therefor. The Subordinated Creditors will execute and
deliver such other documents and instruments as the holders of the Senior
Obligations, or any agent or representative designated by them may reasonably
request in order to give effect to the foregoing terms of this Section 2.2(b).
Notwithstanding the foregoing, neither this Section 2.2 nor any other provision
of this Agreement, the Subordinated Debt Documents or the Borrower's charter
documents shall be construed to give any holder of Senior Obligations any right
to vote any Subordinated Note, or any shares of common stock of the Borrower
represented by the Warrants or issued pursuant to the exercise of the Warrants
or any claim thereunder or with respect thereto, or any portion of any such
notes, shares or claims, whether in connection with any resolution,
arrangements, plan of reorganization, compromise, settlement, election of
trustees or otherwise.

     2.3 Payment Block.

          (a) If any default in the payment (a "Payment Default") on account (y)
of any principal of or interest on the Notes, or (z) any fees or other amounts
payable in respect of any Senior Obligations in the aggregate in excess of
$250,000, (in either case, whether at maturity or at a date fixed for prepayment
or by declaration, acceleration or otherwise) occurs or exists, then (i) the
rights of any Subordinated Creditor to receive any payments or other
distributions with respect to the Subordinate Liabilities shall be suspended
from and after the date that such Subordinated Creditor receives from the
Administrative Agent a notice (a "Stop Payment Notice") of such Payment Default,
(ii) immediately following any Payment Default, and without the necessity of
delivery of a Stop Payment Notice, no payment or distribution of any character,
whether in cash, securities or other property (except for payment in securities
which are subordinate and junior in right of payment to all Senior Obligations
then outstanding) shall be made by the Borrower on account of the Subordinate
Liabilities or in respect of the redemption, retirement, purchase or other
acquisition thereof, and (iii) following the receipt by any Subordinated
Creditor of a Stop Payment Notice, no payment or distribution of any character,
whether in cash, securities or other property on account of the Subordinate
Liabilities or in respect of the redemption retirement, purchase or other
acquisition thereof (except for payment in securities which are subordinate and
junior in right of payment to all Senior Obligations then outstanding) shall be
received or accepted by such Subordinated Creditor unless and until such Payment
Default shall have been cured or waived.

          (b) If any Senior Event of Default has occurred and is continuing
under circumstances in which Sections 2.2 and 2.3(a) are not applicable, or
would occur after giving effect to any payment in respect of the Subordinate
Liabilities, then (i) the rights of any Subordinated Creditor to receive any
payments or other distributions with respect to the Subordinate Liabilities
shall be suspended from and after the date that such Subordinated Creditor
receives a Stop Payment Notice from the Administrative Agent with respect to
such default, and (ii) from and after the delivery of such a Stop Payment
Notice, no payment or distribution of any character, whether in cash, securities
or other property (except securities

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which are subordinate and junior in right of payment to all Senior Obligations
then outstanding) shall be made by the Borrower, or received or accepted by any
Subordinated Creditor from the Borrower, on account of the Subordinate
Liabilities, or in respect of the redemption, retirement, purchase or other
acquisition thereof, unless and until such default shall have been cured or
waived in writing by the Senior Lenders or 180 days shall have elapsed since the
date upon which such Subordinated Creditor received such Stop Payment Notice,
whichever is earlier; provided, however, that, for purposes of this subsection
(b), the Administrative Agent shall not be permitted to (i) issue a Stop Payment
Notice more than once during any 365 consecutive days, (ii) issue more than four
Stop Payment Notices in the aggregate during the term of this Agreement, or
(iii) use any default existing on the date that any Stop Payment Notice is
issued by it (and with respect to which it had at that time actual knowledge) as
the basis for the issuance of any subsequent Stop Payment Notice; provided,
further, however, that the limitations set forth in the foregoing proviso shall
not be applicable with respect to a Stop Payment that is deemed to be delivered
under this subsection (b) as a result of the delivery by a Subordinated Creditor
of an Acceleration Notice (as defined in Section 2.4 hereof). Unless the
provisions of Sections 2.2 or 2.3(a) become applicable (whether by acceleration
or otherwise), no payment suspension period commenced pursuant to this Section
2(b) shall exceed 180 consecutive days.

          (c) Notwithstanding anything to the contrary contained in Section
2.3(b), the Borrower may pay and each Subordinated Creditor may take and retain
any payment on the Subordinate Liabilities before receipt by the Borrower of a
Stop Payment Notice, except for prepayments or redemptions in respect thereof
(whether mandatory or otherwise); provided, however, that in the event that
Section 2.2 or Section 2.3(a) become applicable (whether by acceleration or
otherwise during the pendency of a payment suspension period pursuant to Section
2.3(b)), then the provisions of Section 2.2 or Section 2.3(a), as applicable,
shall become effective without the necessity of delivery of a Stop Payment
Notice. Subject to the proviso in the immediately preceding sentence, the
Borrower shall be entitled to resume the making of any payments otherwise
prohibited under this Section 2.3, including any payments previously suspended,
at such time as the default giving rise to such prohibition shall have been
cured or waived in writing or the applicable period following the date upon
which the Subordinated Creditors received the relevant Stop Payment Notice shall
have elapsed. The making of payments by the Borrower to the extent permitted by
this Agreement (including payments made during the pendency of a Senior Event of
Default when no Stop Payment Notice is in effect) shall not constitute a breach
of Section 8.7 of the Credit Agreement, except for purposes of determining
whether the conditions to lending thereunder have been satisfied.

          (d) Notwithstanding anything to the contrary herein, the
Administrative Agent shall not be required to deliver Stop Payment Notices to
Transferees (as hereinafter defined) who have not complied with Section 6.1
hereof.

     2.4 Standstill. Each Subordinated Creditor agrees that such Subordinated
Creditor shall not exercise any rights or remedies or take any enforcement
action available upon the occurrence of a default or an event of default or
otherwise under the documents evidencing the Subordinate Liabilities or take any
action toward the collection of any Subordinate Liabilities during the period
(the "Standstill Period") ending on the earliest of (a) the expiration of 90
days following the Subordinated Creditor giving a written notice to the Borrower
and the

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Administrative Agent stating that a default or an event of default under
the Subordinated Debt Documents to which it is a party has occurred and is
continuing and confirming that such Subordinated Creditor intends to exercise
its rights and remedies with respect to such default or event of default, (b)
the date the Senior Lenders accelerate the maturity of the Senior Obligations or
the date the Senior Lenders exercise any foreclosure remedies or proceedings
available to it upon an event of default with respect to the Senior Obligations,
(c) the occurrence of a proceeding described in Section 2.2(a) above, (d) the
date that all of the Senior Obligations shall have been paid in full and the
Senior Agreements are terminated, (e) the date that the Borrower makes any
payment or distribution, other than in the ordinary course of business, in
respect of any indebtedness which is not either Senior Obligations or other
indebtedness which, by its terms, is senior in right of payment to the
Subordinate Liabilities or, if earlier, the date that the Borrower enters into
any agreement to effectuate such a payment of distribution or (f) the date on
which the Borrower consummates a sale of its assets, the proceeds of which have
an aggregate book value in excess of 25% of the book value of the Borrower's
consolidated assets prior to such sale. The failure to make a payment of
principal of, interest on, or fees, costs or expenses relative to any of the
Subordinate Liabilities by reason of any provision of this Agreement shall not
be construed as preventing the occurrence of a default or event of default with
respect to such Subordinate Liabilities. In the event that the Subordinated
Creditors commence the exercise of any rights or remedies or any enforcement
action after the expiration of any Standstill Period imposed pursuant to this
Section 2.4, then the Borrower hereby agrees not to assert, and hereby waives
any right to assert, as a defense or otherwise, that such exercise of rights,
remedies and/or enforcement actions by the Subordinated Creditors are untimely
or that the Subordinated Creditors' delay in commencing such rights, remedies
and/or enforcement actions constitutes a waiver of any of its rights or remedies
or is otherwise commercially unreasonable. Furthermore, the Borrower agrees that
any applicable statute of limitations that would otherwise prevent the
Subordinated Creditors from pursuing any claim with respect to the Subordinate
Liabilities shall be tolled upon the commencement of, and until the expiration
of, any Standstill Period imposed pursuant to this Section 2.4, and the Borrower
hereby agrees not to assert, and hereby waives any right to assert as a defense,
any applicable statute of limitations without giving effect to such tolling.
Notwithstanding the foregoing, no Subordinated Creditor shall be prohibited from
(i) taking any action at any time that is required under applicable law to toll
any applicable statute of limitations that (without giving effect to the
preceding sentence) would otherwise prevent such Subordinated Creditor from
preserving any claim with respect to the Subordinate Liabilities, provided that
such Subordinated Creditor simultaneously provides the Administrative Agent and
the other Subordinated Creditors with written notice thereof; or (ii)
accelerating the maturity of the Subordinated Notes; provided, however, that if
such Subordinated Creditor intends to accelerate the maturity of the
Subordinated Notes at any time prior to the expiration of the applicable
Standstill Period, then (x) such Subordinated Creditor shall provide the
Administrative Agent with written notice prior to such acceleration (an
"Acceleration Notice"), (y) no enforcement action shall be taken by any holder
of Subordinate Liabilities with respect to such acceleration during the
Standstill Period, and (z) such Acceleration Notice shall be deemed also to
constitute a Stop Payment Notice under Section 2.3(b) hereof unless a payment
block pursuant to a Stop Payment Notice under Section 2.3(b) is then in effect.
If any holder of Subordinate Liabilities receives any payment from the Borrower,
such payment shall be deemed to constitute a representation of the Borrower to
the Senior Lenders and the Subordinated Creditors that no Senior Event of
Default exists under the Credit Agreement (and that, after

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giving effect to such payment, no Senior Event of Default will exist), and that
such payment is permitted to be paid by the Borrower under the Credit Agreement
and this Agreement.

     2.5 Turn-Over of Payments Received by Subordinated Creditors.

          (a) In the event that the Borrower shall make or any Subordinated
Creditor shall receive any payment on the Subordinate Liabilities which the
holders thereof are not permitted to receive and retain pursuant to Sections
2.1, 2.2, 2.3, or 2.4, such payment shall be held in trust by the Subordinated
Creditor receiving same, for the benefit of the Senior Lenders, and shall be
paid over immediately (without necessity of demand) to the Administrative Agent,
for the benefit of the holders of the Senior Obligations, as their respective
interests may appear, for application in accordance with the Senior Agreements
to the payment of all Senior Obligations remaining due and payable until the
same shall have been paid in full in cash, after giving effect to any concurrent
payment or distribution to the holders of such Senior Obligations.

          (b) The proceeds of any sale or other disposition (other than to the
Borrower, or any Subsidiary or any Affiliate of the Borrower which has liability
for the Loans) of Subordinate Liabilities in accordance with Section 6.1 hereof,
which may be received by a holder thereof, shall not be treated as a payment to
which the holders of Senior Obligations are entitled under this Agreement.

     2.6 Obligations Absolute. The provisions of this Agreement are solely for
the purposes of defining the relative rights of the holders of Senior
Obligations on the one hand and the holders of Subordinate Liabilities on the
other hand, with respect to the enforcement of rights and remedies and priority
of payment of the various obligations of the Borrower to each of them. Nothing
herein shall impair, as between the Borrower and the holder of any Subordinate
Liabilities, the obligations of the Borrower, which are unconditional and
absolute, to pay to the holder thereof the principal and interest thereon and
any other liabilities encompassed in the Subordinate Liabilities, all in
accordance with their respective terms, nor shall anything in this Agreement
prevent the occurrence of any event of default under the Subordinated Debt
Documents, or prevent any Subordinated Creditor from exercising all remedies
otherwise permitted by the Subordinated Debt Documents, applicable law or
otherwise, subject to (a) the rights, if any, of the holders of Senior
Obligations under Section 2.5 of this Agreement to receive cash or property
otherwise payable or deliverable to the Subordinated Creditors, and (b) the
restrictions on the Subordinated Creditors in favor of the holders of Senior
Obligations set forth in Section 2 hereof.

     2.7 Subrogation. Upon and subject to the payment in full in cash of the
Senior Obligations, the Subordinated Creditors shall be subrogated to the rights
of the holders of Senior Obligations to receive payments or distributions of
assets of the Borrower applicable to the Senior Obligations until the
Subordinate Liabilities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of Senior Obligations
to which the Subordinated Creditors would be entitled except for the provisions
of this Agreement shall, as between the Borrower and its creditors other than
the holders of Senior Obligations and the Subordinated Creditors, be deemed to
be a payment on account of the Senior Obligations. Each Subordinated Creditor
hereby waives any claim against the Senior Lenders based on impairment

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of the Subordinated Creditor's rights of subrogation against the Borrower due to
the action or inaction of the Senior Lenders or otherwise.

     2.8 Subordination Not Affected. Without the necessity of any reservation of
rights against or any notice to or further assent by the Subordinated Creditors,
(i) any demand for payment of any Senior Obligations made by any holder of
Senior Obligations may be rescinded in whole or in part by such holder, (ii) the
holders of Senior Obligations may exercise or refrain from exercising any rights
and/or remedies against the Borrower and others, if any, liable under the Senior
Obligations, and (iii) the Senior Obligations (including without limitation, the
Credit Agreement, the Notes, the Security Documents and the other Loan
Documents), or any collateral security therefor or right of any nature with
respect thereto, may be amended, extended, modified, continued, accelerated,
compromised, waived, surrendered or released by the holders of the Senior
Obligations, and any agreement or instrument evidencing, securing or otherwise
relating to the Senior Obligations may be amended, extended, modified,
continued, accelerated, compromised, waived, surrendered or released by the
holder thereof, all without impairing, abridging, releasing or affecting in any
manner the subordination of the Subordinate Liabilities to the Senior
Obligations provided for herein; provided, that without the prior written
consent of the Subordinated Creditors (including, for purposes of this Section,
only Transferees who have complied with Section 6.1 hereof), the Senior Lenders
shall not amend or otherwise modify any provision of the Senior Agreements to
(i) expressly prohibit the Borrower from making payments in respect of the
Subordinate Liabilities that, in each case, are permitted to be made under this
Agreement; (ii) expressly prohibit the Borrower from making any amendments or
modifications to the documents relating to the Subordinate Liabilities that are
not prohibited hereby or by the Senior Agreements as in effect on the date
hereof; (iii) to increase the stated applicable pre-default or post-default
interest rate margin by more than 2.00% per annum above the respective stated
margin set forth in the Senior Agreements as in effect on the date hereof; (iv)
to extend any maturity date under the Senior Agreements (as in effect on the
date hereof) more than sixty (60) days; (v) to increase the stated principal
amount of the Senior Obligations to more than the principal amount set forth in
the definition of Senior Obligations or (vi) to shorten the amortization period
of the Loans under the Credit Agreement as in effect on the date hereof, except
to the extent that the shortening of such period results solely from a change in
the maturity date under the Senior Agreement. Without limiting the foregoing,
each Subordinated Creditor waives any and all notice of the creation, amendment,
extension, acceleration, compromise, continuation, waiver, surrender, release or
modification of any nature of any Senior Obligations, and notice of or proof of
reliance by the holders of Senior Obligations upon the subordination provided
for herein. The Senior Obligations shall conclusively be deemed to have been
created, contracted or incurred in reliance upon the provisions of this
Agreement.

     2.9 Right To Retain Payment Received. Any payment in respect of the
Subordinate Liabilities which is not required to be held in trust for the
benefit of, or paid over to, the holders of Senior Obligations pursuant to
Section 2.3 or Section 2.5, and which is received by the holders of the
Subordinate Liabilities shall become the sole and absolute property of the
holders of Subordinate Liabilities and shall not, by virtue of the provisions of
this Agreement or otherwise, be subject to any payment over or any distribution
to or claim by any holders of Senior Obligations or any other person.

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Section 3. Notices.

     3.1 By the Senior Lenders to the Subordinated Creditors. The Administrative
Agent shall endeavor to provide the Subordinated Creditors with notice of any
Senior Event of Default by the Borrower under the Credit Agreement
simultaneously with giving notice to the Borrower, provided, however, that the
Senior Lenders shall have no liability to the Subordinated Creditors for the
Administrative Agent's failure to provide the Subordinated Creditors with any
such notice(s), and further provided, that the failure to give such notice(s)
shall not alter, amend, or affect the subordination provisions of this
Agreement.

     3.2 By the Subordinated Creditors to the Senior Lenders. Each Subordinated
Creditor shall endeavor to provide the Administrative Agent with notice of any
default under the Subordinated Debt Documents simultaneously with giving notice
to the Borrower, provided, however, that no Subordinated Creditor shall have any
liability to the Senior Lenders for such Subordinated Creditor's failure to
provide any notice required under this Section 3.2.

     3.3 By the Borrower to the Administrative Agent. The Borrower shall provide
the Administrative Agent with copies of all notices of any default received by
it from any Subordinated Creditor immediately upon its receipt thereof.

     3.4 By the Borrower to the Subordinated Creditors. The Borrower shall
provide the Subordinated Creditors with copies of all notices of any default
received by it from any Senior Lender immediately upon its receipt thereof.

Section 4. Representations and Warranties.

     4.1 By the Borrower. The Borrower represents and warrants as follows:

          (a) Subordinated Purchase Agreement; Subordinated Notes. Attached
hereto as Exhibit A are true, correct and complete copies of the Subordinated
Debt Documents.

          (b) No Assignment or Participation in Subordinated Notes. The
Subordinated Creditors are the registered owners of the Subordinated Notes and
the Warrants.

          (c) Authorization and Enforceability. The execution, delivery and
performance of this Agreement has been duly authorized by all necessary
corporate action on the part of the Borrower, and this Agreement constitutes a
valid and binding obligation of the Borrower, enforceable against the Borrower
in accordance with its terms.

          (d) Subordinated Notes Legended. The Borrower has caused the
Subordinated Notes and the Warrants issued to and held by the Subordinated
Creditors to be affixed with a legend referencing this Agreement and the
subordination provisions hereof.

     4.2 By the Subordinated Creditors.

          (a) Each Subordinated Creditor hereby represents and warrants that it
has not sold (in whole or in part) or granted any assignments of or
participations in the Subordinated

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Notes or the Warrants; nor has such Subordinated Creditor granted or permitted
to exist any lien or encumbrance of any nature on such Subordinated Notes or
Warrants.

          (b) Each Subordinated Creditor hereby acknowledges that this Agreement
is a "subordination agreement" within the meaning of Section 501(a) of the
United States Bankruptcy Code, 11 U.S.C. (S)510(a).

Section 5. Covenants of the Subordinated Creditors.

     5.1 Amendment of Subordinated Purchase Agreement and Subordinated Notes.
Neither the Borrower nor the Subordinated Creditors will, without the prior
written consent of the Senior Lenders, amend or consent to the amendment of the
Subordinated Debt Documents if such amendment would (i) increase the principal
amount or interest rate payable by the Borrower in respect of the Subordinated
Notes (except increases in principal amount of the Subordinated Notes as a
result of payment-in-kind interest), and/or the amount of the Subordinate
Liabilities; (ii) change the dates on which payments of principal or interest on
the Subordinated Notes or any other Subordinate Liabilities are due; (iii) amend
existing covenants or the related definitions used therein (by making them more
restrictive), including but not limited to the financial covenants set forth
therein; (iv) amend the definitions of default or event of default appearing in
the Subordinated Debt Documents; (v) add any provisions to the Subordinated Debt
Documents requiring the Borrower to make any additional payments or prepayments
to the Subordinated Creditors or requiring the Borrower to purchase, exchange or
redeem any portion of the Subordinate Liabilities or the Warrants, or (vi) take
any collateral as security for the Subordinate Liabilities.

     5.2 Validity and Enforceability of Liens Securing Senior Obligations;
Cooperation with Senior Lenders; Consent to Asset Sales by the Borrower.

          (a) The Subordinated Creditors will not in any proceeding, whether in
connection with a bankruptcy or insolvency or other event described in Section
2.2 or otherwise, (i) challenge or contest (or join in any challenge or contest
by any third party) the superiority, priority, validity or enforceability of any
security interest or lien granted to the Administrative Agent and/or the Senior
Lenders pursuant to the Senior Agreements or (ii) challenge the validity or
enforceability of such Senior Agreements, or any provisions thereof. The
Subordinated Creditors hereby waive any right to require the Administrative
Agent or other holders of the Senior Obligations to marshal the collateral for
such Senior Obligations.

          (b) Without limiting the foregoing, the Subordinated Creditors will
not challenge or oppose (or join with any party challenging or opposing) or take
any action whatsoever to impair the exercise by the Senior Lenders of the right
granted to the Senior Lenders to move for the appointment of a receiver for the
Borrower.

Section 6. Miscellaneous.

     6.1 Transfers. No Subordinated Creditor shall sell, assign or otherwise
transfer, in whole or in part, any Subordinate Liabilities or any interest
therein, to any other person or entity (a "Transferee") unless such Transferee
first signs an acknowledgment in the form of Exhibit B

                                       10

<PAGE>

hereto and delivers a signed counterpart hereof to each other party hereto,
whereby each such Transferee shall become a party hereto and expressly
acknowledges the subordination provided for herein and agrees to be bound by all
of the terms hereof. The Borrower hereby agrees that any such transfer shall not
affect its obligations under this Agreement and that it will promptly execute
and deliver any such counterpart when requested to do so.

     6.2 Modifications. No amendment, modification, termination or waiver of any
provision of this Agreement, or consent to any departure therefrom, shall in any
event be effective without the written concurrence of the Administrative Agent
and the holders of at least a majority of the Subordinated Notes then
outstanding.

     6.3 Termination; Reinstatement. This Agreement shall remain in full force
and effect until the payment in full in cash of all Senior Obligations and the
expiration or termination of the obligations of the Lenders to make Loans to the
Borrower under the Senior Agreements, provided, that this Agreement shall
continue to be effective or be reinstated (as the case may be) if at any time
payment of any of the Senior Obligations is refunded or rescinded or must
otherwise be returned by the Senior Lenders upon a bankruptcy, arrangement,
reorganization or similar proceeding for relief of debtors under state or
federal law or otherwise, all as though such payment had not been made.

     6.4 Notices. Unless otherwise specifically provided herein, any notice or
other communication herein required or permitted to be given shall be in writing
and shall be deemed to have been given and received the (i) day of sending if
delivered by hand delivery, telegram, telecopy or telex, receipt confirmed, (ii)
one (1) day after being sent, if sent by Federal Express, Express Mail, or other
similar nationally known overnight delivery service, or (iii) three (3) days
after being deposited in the mails, registered or certified with postage
prepaid, and properly addressed. For the purposes hereof, the address of each
party hereto is as set forth under its name on the signature pages hereof, or
such other address as such party may specify by written notice to each other
party.

     6.5 Third Party Rights. This Agreement is solely for the benefit of the
Senior Lenders, the Subordinated Creditors and the Borrower, and no other person
shall have any right, benefit, priority or other interest under, or because of
the existence of, this Agreement.

     6.6 Counterparts. This Agreement and any amendments, waivers, consents, or
supplements may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute one and the same instrument.

     6.7 Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement,
including the validity hereof and the rights and obligations of the parties
hereunder, shall be governed by, and construed in accordance with, the internal
laws (as opposed to the conflicts of law provisions, but including sections
5-1401 and 5-1402 of the general obligations law of the State of New York) and
decisions of the State of New York. Each party hereto hereby irrevocably submits
to the nonexclusive jurisdiction of any New York or Federal court sitting in the
City of New York, New York over any suit, action or proceeding arising out of or
relating to this

                                       11

<PAGE>

Agreement and waives, to the fullest extent permitted or not prohibited by law,
any objection which it may now or hereafter have to the laying of the venue of
any such suit, action or proceeding brought in such a court and any claim that
any such suit, action or proceeding brought in such a court has been brought in
an inconvenient forum. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.7.

     6.8 Descriptive Headings. The descriptive headings of this Agreement are
for convenience only and shall have no legal effect.

                            [Signature pages follow]

                                       12

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as an
instrument under seal as of the date first above written.

                                 ADMINISTRATIVE AGENT:

                                 FLEET NATIONAL BANK,
                                 as Administrative Agent for the Senior Lenders

                                 By: /s/ John F. Lynch
                                     -------------------------------------------
                                     Name:
                                     Title:

                                 100 Federal Steet
                                 Boston, MA  02110
                                 Attention: John F. Lynch, Senior Vice President

                                 With a copy to:

                                 Peter M. Palladino, P.C.
                                 Choate, Hall & Stewart
                                 Exchange Place
                                 53 State Street
                                 Boston, MA 02109

<PAGE>

                                 SUBORDINATED CREDITOR:

                                 THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

                                 By: /s/ Mark Kishler
                                     -------------------------------------------
                                     Name: Mark Kishler
                                     Title: Authorized Representative

                                 The Northwestern Mutual Life Insurance Company
                                 720 East Wisconsin Avenue
                                 Milwaukee, WI 53202
                                 Attention: Securities Department
                                 Fax: (414) 665-7124

                                 with a copy to:

                                 The Northwestern Mutual Life Insurance Company
                                 720 East Wisconsin Avenue
                                 Milwaukee, WI 53202
                                 Attention: Tim Otto, Legal Department
                                 Fax: (414) 665-7016

                                 BORROWER:

                                 MONITRONICS INTERNATIONAL, INC.

                                 By: /s/ James R. Hull
                                     -------------------------------------------
                                     James R. Hull, President
                                     12801 Stemmons Freeway, Suite 821
                                     Dallas, TX 75234

                                 with a copy to:

                                 Vinson & Elkins L.L.P.
                                 3700 Trammell Crow Center
                                 2001 Ross Avenue
                                 Dallas, TX 75201
                                 Attention:  Christine Hathaway, Esq.

<PAGE>

                                   EXHIBIT B

                                 ACKNOWLEDGMENT

     The undersigned purchaser, assignee, or transferee of the Subordinate
Liabilities described in Schedule 1 attached hereto, hereby acknowledges the
terms of this Intercreditor and Subordination Agreement and the subordination
provided for herein and agrees to be bound by all of the terms hereof. This
Agreement will be attached to and become part of the Intercreditor and
Subordination Agreement.

                                     -------------------------------------------

                                     By:
                                         ---------------------------------------
                                     Its:
                                          --------------------------------------
                                     Date:
                                           -------------------------------------

                                     Notice Address:

                                     -------------------------------------------

                                     -------------------------------------------

                                     -------------------------------------------
                                     Attention:
                                                --------------------------------
                                     Telecopy Number:
                                                      --------------------------

Acknowledged and Agreed:

MONITRONICS INTERNATIONAL, INC.

By:
    -----------------------------
    Name:
    Title:<PAGE>

                                                                    Exhibit 10.8

                                PLEDGE AGREEMENT

     PLEDGE AGREEMENT, dated as of August 25, 2003, by and among The
Northwestern Mutual Life Insurance Company (the "Pledgor") and Fleet National
Bank, as Administrative Agent for the Lenders from time to time party to the
credit agreement referred to below (in such capacity, the "Secured Party").

                              W I T N E S S E T H :

     WHEREAS, Monitronics International, Inc., a Texas corporation (the
"Borrower"), the Secured Party, Bank of America, N.A., as syndication agent, and
the Lenders party thereto have entered into a Credit Agreement dated as of the
date hereof (as amended, modified, supplemented and/or extended from time to
time, the "Credit Agreement", capitalized terms used herein and not otherwise
defined shall have the same meanings herein as in the Credit Agreement),
pursuant to which the Lenders have agreed, subject to the terms and conditions
set forth therein, to make revolving credit loans, swing line loans and term
loans to the Borrower (collectively, the "Loans"), such Loans to be evidenced by
the Borrower's Revolving Credit and Term Notes, payable to the order of the
respective Lenders (collectively, as amended, modified, supplemented and/or
extended from time to time the "Notes");

     WHEREAS, the Pledgor collectively owns substantially all of the warrants of
the Borrower and will thereby benefit from the making of the Loans;

     WHEREAS, the obligation of the Lenders to make the Loans is subject to the
conditions, among others, that the Pledgor shall execute and deliver this
Agreement and grant the security interests hereinafter described, and the
Pledgor hereby enters into this Agreement and pledges the Pledged Collateral (as
herein defined) to the Secured Party to induce the Lenders to enter into the
Credit Agreement and make the Loans.

     NOW, THEREFORE, in consideration of the willingness of the Lenders to enter
into the Credit Agreement and to agree, subject to the terms and conditions set
forth therein, to make the Loans to the Borrower pursuant thereto, and for other
good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged by the Pledgor, it is hereby agreed as follows:

     1. Security Interest. The Pledgor hereby deposits with and pledges to the
Secured Party, for the benefit of the Credit Parties, the warrants, together
with the shares of common stock issuable upon exercise thereof, listed in
Schedule I attached hereto (the warrants, together with the shares of common
stock issuable upon exercise thereof and any additional securities or collateral
now or hereafter pledged hereunder are sometimes herein referred to collectively
as the "Pledged Collateral"), and the Pledgor hereby grants to the Secured
Party, for the benefit of the Credit Parties, a security interest in and lien on
all of the Pledged Collateral as security for the due and punctual payment and
performance of the Secured Obligations described in Section 2 hereof.

     2. Secured Obligations. The security interest hereby granted shall secure
the due and punctual payment and performance of the following liabilities and
obligations of the Borrower (herein called the "Secured Obligations"):

<PAGE>

          (a) Principal of and premium, if any, and interest on the Notes
(including, without limitation, the payment of interest and other amounts that
would accrue and become due but for the filing of a petition in bankruptcy or
the operation of the automatic stay under Section 362(a) of Title 11 of the
United States Code, as amended); and

          (b) Any and all other obligations of the Borrower to the Secured Party
and/or the Credit Parties under the Credit Agreement or under any other Loan
Document.

     Notwithstanding the foregoing, the Secured Party and/or the Credit Parties
shall not, without the prior written consent of the Pledgor, (a) increase the
stated principal amount of the Secured Obligations to an amount in excess of the
Aggregate Commitment from time to time in effect under the Credit Agreement (up
to $475,000,000) plus $47,500,000, or (b) extend the Revolving Loan Maturity
Date, the Term Loan Maturity Date or any Incremental Term Loan Maturity Date
more than sixty (60) days.

     3. Special Warranties and Covenants of the Pledgor. The Pledgor hereby
warrants and covenants to the Secured Party and each Lender that:

          (a) The Pledgor warrants and will defend the Secured Party's right,
title and security interest in and to the Pledged Collateral against the claims
and demands of all persons whomsoever.

          (b) The Pledgor has good title to the Pledged Collateral, free and
clear of all claims, mortgages, pledges, and Liens, except as may be expressly
set forth and permitted under the Credit Agreement.

          (c) If any additional shares of Capital Stock of the Borrower or other
equity securities of the Borrower are acquired by any means by the Pledgor after
the date hereof in exchange for or otherwise in connection with any warrant (or
any other Pledged Collateral), the same shall constitute Pledged Collateral and
shall be immediately deposited and pledged with the Secured Party, for the
benefit of the Credit Parties, as provided in Section 1 hereof simultaneously
with such acquisition.

          (d) The Pledged Collateral constitutes all of the Capital Stock of the
Borrower beneficially owned by the Pledgor or in which the Pledgor has any
rights.

          (e) The Pledgor may transfer, sell or otherwise dispose of all or a
portion of the Pledged Collateral, but only on the condition that a transferee
of the Pledged Collateral first becomes a party hereto; provided, however, that
in the event that there shall exist an Event of Default under the Credit
Agreement on account of the Borrower's failure to pay principal or interest on
any Note when the same is due and payable (whether at maturity, upon
acceleration or otherwise) or on account of the Borrower's failure to perform or
comply with any covenant or term contained in Section 8.16 or 8.17 of the Credit
Agreement, and such Event of Default shall be continuing after applicable grace
and cure periods, the Pledgor may not transfer any of the Pledged Collateral
without the prior written consent of the Lenders, which consent shall not be
unreasonably withheld or delayed.

                                        2

<PAGE>

          (f) The Pledgor will not create, incur or permit to exist any pledge,
mortgage, lien, charge, encumbrance or any security interest whatsoever with
respect to any of the Pledged Collateral or the proceeds thereof, other than
Liens on and security interests in the Pledged Collateral created hereby or
which are otherwise expressly permitted under the Credit Agreement.

          (g) The Pledgor has all necessary power and authority to enter into
this Agreement, to carry out its obligations hereunder and to consummate the
transactions contemplated hereby. The execution and delivery of this Agreement
by the Pledgor, the performance by the Pledgor of its obligations hereunder, and
the consummation by the Pledgor of the transactions contemplated hereby have
been duly authorized by all requisite action on the part of the Pledgor. This
Agreement has been duly executed and delivered by the Pledgor, and (assuming due
authorization, execution and delivery by the Secured Party) this Agreement
constitutes the legal, valid and binding obligation of the Pledgor, enforceable
against the Pledgor in accordance with its terms, except as such enforcement may
be limited by applicable bankruptcy, insolvency, reorganization or similar laws
affecting the enforcement of creditors rights generally and by general equity
principles (whether enforcement is sought at law or in equity).

     4. Distributions. In case, upon the dissolution, winding up, liquidation or
reorganization of the Borrower whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or any other
marshaling of the assets and liabilities of the Borrower or otherwise, any sum
shall be paid or any property shall be distributed upon or with respect to any
of the Pledged Collateral, such sum shall be paid over to the Secured Party to
be held as collateral security for the Secured Obligations. In case any stock
dividend shall be declared on any of the Pledged Collateral, or any share of
stock or fraction thereof shall be issued pursuant to any stock split involving
any of the Pledged Collateral, or any distribution of capital (including cash
dividends, except those expressly allowed under the Credit Agreement) shall be
made on any of the Pledged Collateral, or any property shall be distributed upon
or with respect to the Pledged Collateral pursuant to recapitalization or
reclassification of the capital of the Borrower, the shares or other property so
distributed shall be delivered to the Secured Party to be held as collateral
security for the Secured Obligations.

     5. Events of Default. There shall exist a default under this Agreement upon
the happening of any of the following events or conditions (herein called
"Events of Default"):

          (a) Any Event of Default (as defined or provided in the Credit
Agreement) shall occur and such Event of Default shall continue beyond the
expiration of the applicable period of grace, if any; or

          (b) There shall be a material breach of any term or provision
contained herein, or any representation and/or warranty made in this Agreement
or in any document executed or delivered by the Pledgor from time to time in
connection herewith is untrue or misleading in any material respect.

     6. Rights and Remedies of Secured Party. Upon the occurrence and
continuance of any Event of Default, such default not having previously been
remedied or cured within any

                                       3

<PAGE>

applicable grace or cure periods, the Secured Party shall have the following
rights and remedies with respect to the Pledged Collateral:

          (a) All rights and remedies provided by law, including, without
limitation, those provided by the New York Uniform Commercial Code as in effect
from time to time (the "Uniform Commercial Code");

          (b) All rights and remedies provided in this Agreement; and

          (c) All rights and remedies provided in the Credit Agreement, the
Notes, the Security Documents or in any other Loan Document, other agreement,
document or instrument pertaining to the Secured Obligations.

     The rights and remedies of the Secured Party set forth above shall be
exercisable only in connection with a foreclosure on the Pledged Collateral in
accordance with the terms hereof. The rights and remedies of the Secured Party
under this Agreement against the Pledgor shall be limited to foreclosure on such
Pledged Collateral, and the Secured Party shall not have the right to commence
any action against the Pledgor for any deficiency remaining in respect of the
Secured Obligations after the exercise of the rights of the Secured Party
against the Pledged Collateral in accordance with terms of this Agreement. The
Pledgor may exercise its rights under the Warrants at any time prior to any
foreclosure thereon by the Secured Party and any stock receivable by the Pledgor
upon any such exercise shall be delivered directly to the Secured Party as
Pledged Collateral hereunder.

     7. Right to Transfer into Name of Secured Party, etc. In case there shall
exist an Event of Default that shall be continuing after applicable grace and
cure periods, but subject to the provisions of the Uniform Commercial Code or
other applicable law, the Secured Party may cause all or any of the Pledged
Collateral to be transferred into its name or into the name of its nominee or
nominees. So long as no Event of Default shall exist and be continuing, the
Pledgor shall be entitled to exercise as the Pledgor shall deem fit, but in a
manner not inconsistent with the terms hereof or of the Secured Obligations, the
voting power with respect to the Pledged Collateral.

     8. Right of Secured Party to Exercise Voting Power, etc. In case there
shall exist an Event of Default, which shall not have been remedied or cured,
the Secured Party, until such Event of Default has been remedied or cured in
accordance with the Credit Agreement shall be entitled to exercise the voting
power with respect to the Pledged Collateral, to receive and retain, as
collateral security for the Secured Obligations, any and all dividends or other
distributions at any time and from time to time declared or made upon any of the
Pledged Collateral, and to exercise any and all rights of payment, conversion,
exchange, subscription or any other rights, privileges or options pertaining to
the Pledged Collateral as if it were the absolute owner thereof, including
without limitation, the right to exchange, at its discretion, any and all of the
Pledged Collateral upon the merger, consolidation, reorganization,
recapitalization or other readjustment of the Borrower or, upon the exercise of
any such right, privilege or option pertaining to the Pledged Collateral, and in
connection therewith, to deposit and deliver any and all of the Pledged
Collateral with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Secured Party may
determine, all without liability except

                                       4

<PAGE>

to account for property actually received, but the Secured Party shall have no
duty to exercise any of the aforesaid rights, privileges or options and shall
not be responsible for any failure to do so or delay in so doing.

     9. Right of Secured Party to Dispose of Collateral, etc. Upon the
occurrence and continuance of an Event of Default, such default not having
previously been remedied or cured within any applicable grace or cure periods,
the Secured Party shall have the right, unless the Event of Default shall have
been remedied or cured in accordance with the Credit Agreement prior to taking
any such actions, at any time or times thereafter to sell, resell, assign and
deliver all or any of the Pledged Collateral in one or more parcels at any
exchange or broker's board or at public or private sale; provided, however, that
the Secured Party shall not sell, resell, assign or deliver any of the Pledged
Collateral unless (a) the Secured Party shall sell, resell, assign and deliver
all of the Pledged Collateral and (b) simultaneously therewith, the Secured
Party shall also sell, resell, assign and deliver all other shares of (and
warrants for) capital stock of the Borrower held in pledge by the Secured Party
at the time of such sale. Unless the Pledged Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, the Secured Party will give the Pledgor at least ten (10)
days' prior written notice at the addresses of the Pledgor specified in Section
17 hereof of the time and place of any public sale thereof or of the time after
which any private sale or any other intended disposition thereof is to be made.
Any such notice shall be deemed to meet any requirement hereunder or under any
applicable law (including the Uniform Commercial Code) that reasonable
notification be given of the time and place of such sale or other disposition.
Such notice may be given without any demand of performance or other demand, all
such demands being hereby expressly waived by the Pledgor. All such sales shall
be conducted in a commercially reasonable manner and shall be at such
commercially reasonable price or prices as the Secured Party shall deem best and
either for cash or on credit or for future delivery (without assuming any
responsibility for credit risk). At any such sale or sales the Secured Party may
purchase any or all of the Pledged Collateral to be sold thereat upon such terms
as the Secured Party may deem best. Upon any such sale or sales the Pledged
Collateral so purchased shall be held by the purchaser absolutely free from any
claims or rights of whatsoever kind or nature, including any equity of
redemption and any similar rights, all such equity of redemption and any similar
rights being hereby expressly waived and released by the Pledgor. In the event
any consent, approval or authorization of any governmental agency will be
necessary to effectuate any such sale or sales, the Pledgor shall execute, and
hereby agree to cause the Borrower to execute, all such applications or other
instruments as may be required. The proceeds of any such sale or sales, together
with any other additional collateral security at the time received and held
hereunder, shall be received and applied: first, to the payment of all costs and
expenses of such sale, including reasonable attorneys' fees; second, to the
payment of the Secured Obligations in such order of priority as the Secured
Party shall determine, and any surplus thereafter remaining shall be paid to the
Pledgor or to whomever may be legally entitled thereto (including, if
applicable, any subordinated creditor of the Borrower or the Pledgor).

          The Pledgor recognizes that the Secured Party may be unable to effect
a public sale of all or a part of the Pledged Collateral by reason of certain
prohibitions contained in the Securities Act of 1933, but may be compelled to
resort to one or more private sales to a restricted group of purchasers, each of
whom will be obligated to agree, among other things, to acquire such Pledged
Collateral for its own account, for investment and not with a view to the

                                       5

<PAGE>

distribution or resale thereof. The Pledgor acknowledges that private sales so
made may be at prices and upon other terms less favorable to the seller than if
such Pledged Collateral were sold at public sales, and that the Secured Party
has no obligation to delay sale of any such Pledged Collateral for the period of
time necessary to permit such Pledged Collateral to be registered for public
sale under the Securities Act of 1933. The Pledgor agrees that any such private
sales shall not be deemed to have been made in a commercially unreasonable
manner solely because they shall have been made under the foregoing
circumstances.

     10. Collection of Amounts Payable on Account of Pledged Collateral, etc.
Upon the occurrence and during the continuance of any Event of Default, the
Secured Party may, but without obligation to do so, demand, sue for and/or
collect any money or property at any time due, payable or receivable, to which
it may be entitled hereunder, on account of or in exchange for any of the
Pledged Collateral and shall have the right, for and in the name, place and
stead of the Pledgor, to execute endorsements, assignments or other instruments
of conveyance or transfer with respect to all or any of the Pledged Collateral.

     11. Care of Pledged Collateral in Secured Party's Possession. Beyond the
exercise of reasonable care to assure the safe custody of the Pledged Collateral
while held hereunder, the Secured Party shall have no duty or liability to
collect any sums due in respect thereof or to protect or preserve rights
pertaining thereto, and shall be relieved of all responsibility for the Pledged
Collateral upon surrendering the same to the Pledgor.

     12. Waivers, etc. The Pledgor hereby waives presentment, demand, notice,
protest and, except as is otherwise provided herein, all other demands and
notices in connection with this Agreement or the enforcement of the Secured
Party's rights hereunder or in connection with any Secured Obligations or any
Pledged Collateral; consent to and waive notice of the granting of renewals,
extensions of time for payment or other indulgences to the Borrower or the
Pledgor or to any third party, or substitution, release or surrender of any
collateral security for any Secured Obligation, the addition or release of
persons primarily or secondarily liable on any Secured Obligation or on any
collateral security for any Secured Obligation, the acceptance of partial
payments on any Secured Obligation or on any collateral security for any Secured
Obligation and/or the settlement or compromise thereof. No delay or omission on
the part of the Secured Party in exercising any right hereunder shall operate as
a waiver of such right or of any other right hereunder. Any waiver of any such
right on any one occasion shall not be construed as a bar to or waiver of any
such right on any future occasion. The Pledgor further waives any right it may
have under the constitutions of any state in which any of the Pledged Collateral
may be located, or under the Constitution of the United States of America, to
notice (other than any requirement of notice provided herein) or to a judicial
hearing prior to the exercise of any right or remedy provided by this Agreement
to the Secured Party and waives their rights, if any, to set aside or invalidate
any sale duly consummated in accordance with the foregoing provisions hereof on
the grounds (if such be the case) that the sale was consummated without a prior
judicial hearing. The Pledgor's waivers under this section have been made
voluntarily, intelligently and knowingly and after the Pledgor has been apprised
and counseled by their attorneys as to the nature thereof and its possible
alternative rights.

     13. Termination; Assignment, etc. This Agreement and the security interest
in the Pledged Collateral created hereby shall terminate upon the earliest of:
(a) the time when all of

                                       6

<PAGE>

the Secured Obligations have been paid and finally discharged in full in cash or
Cash Equivalents (provided that the Lenders are no longer obligated to make
Loans under the Credit Agreement) or (b) the termination of any pledge agreement
pursuant to which any capital stock warrants or other securities issued by the
Borrower have been pledged to the Secured Party. For all purposes of this
Agreement, no Default or Event of Default shall be deemed to have been cured or
waived except as expressly provided in the Credit Agreement. No waiver by the
Secured Party or any Lender or by any other holder of Secured Obligations of any
default shall be effective unless in writing nor operate as a waiver of any
other default or of the same default on a future occasion. In the event of a
sale or assignment by any Lender of all or any of the Secured Obligations held
by it in accordance with the terms of the Credit Agreement, such Lender may
assign or transfer its rights and interest under this Agreement in whole or in
part to the purchaser or purchasers of such Secured Obligations, whereupon such
purchaser or purchasers shall become vested with all of the powers and rights of
such Lender hereunder, and such Lender shall thereafter be forever released and
fully discharged from any liability or responsibility hereunder with respect to
the rights and interest so assigned. At the sole expense of the Pledgor
following termination of this Agreement and the termination of the Secured
Party's security interest in the Pledged Collateral, the Secured Party shall
return all Pledged Stock and other Pledged Collateral in its possession to the
Pledgor (or to the Borrower, as agent for the Pledgor) and shall execute and
deliver to the Pledgor such other documents as the Pledgor may reasonably
require to evidence the termination of the Secured Party's security interest in
the Pledged Collateral.

     14. Reinstatement. Notwithstanding the provisions of Section 13, this
Agreement shall continue to be effective or be reinstated, as the case may be,
if at any time any amount received by the Credit Parties or the Secured Party in
respect of the Secured Obligations is rescinded or must otherwise be restored or
returned by the Credit Parties or the Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or the
Pledgor or upon the appointment of any intervenor or conservator of, or trustee
or similar official for, the Borrower or the Pledgor or any substantial part of
their respective properties, or otherwise, all as though such payments had not
been made.

     15. Governmental Approvals, etc. Upon the exercise by the Secured Party of
any power, right, privilege or remedy pursuant to this Agreement which requires
any consent, approval, qualification or authorization of any governmental
authority or instrumentality, the Pledgor will execute and deliver, or will
cause the execution and delivery of, all applications, certificates, instruments
and other documents and papers that the Secured Party may be required to obtain
for such governmental consent, approval, qualification or authorization.

     16. Restrictions on Transfer, etc. To the extent that any restrictions
imposed by the charter or by-laws of the Borrower, the Shareholders Agreement or
any other agreement among the holders of capital stock of the Borrower or other
document or instrument would in any way affect or impair the pledge of the
Pledged Collateral hereunder or the exercise by the Secured Party of any right
granted hereunder, including, without limitation, the right of the Secured Party
to dispose of the Pledged Collateral upon the occurrence of any Event of
Default, the Pledgor hereby waives such restrictions, and represents and
warrants that it will cause all shares of Capital Stock (and rights to acquire
the same) of the Borrower held by it to be voted to cause the Borrower to take
all necessary action to waive such restrictions, and the Pledgor hereby agrees

                                       7

<PAGE>

that it will take any further action which the Secured Party may reasonably
request in order that the Secured Party may obtain and enjoy the full rights and
benefits granted to the Secured Party by this Agreement free of any such
restrictions. Without limiting the generality of the foregoing, each Pledgor
agrees that, notwithstanding the provisions of Section 2D of the Shareholders
Agreement, any purchaser of Pledged Collateral, including any Credit Party, who
acquires any Pledged Collateral pursuant to the terms of this Agreement, shall
take such Pledged Collateral free and clear of all terms of the Shareholders
Agreement and neither such Persons nor such Pledged Collateral shall thereafter
be subject to any term or condition of the Shareholders Agreement.

     17. Notices. Except as otherwise provided herein, all notices to the
Pledgor or to the Secured Party shall be in writing and shall be deemed to have
been sufficiently given or served for all purposes hereof if personally
delivered or mailed by first class mail, postage prepaid, as follows:

          (a)  if to the Pledgor:

               The Northwestern Mutual Life Insurance Company
               N18SE
               720 East Wisconsin Avenue
               Milwaukee, Wisconsin 53202
               Attention: Tim Wegener

          with a copy to:

               Schiff Hardin & Waite
               6600 Sears Tower
               Chicago, Illinois 60606-6473
               Attention: Andrew A. Kling, Esquire

          (b)  if to the Secured Party:

               Fleet National Bank
               100 Federal Street
               Boston, MA 02110
               Attention: John F. Lynch, Senior Vice President

          with a copy to:

               Choate, Hall & Stewart
               Exchange Place
               53 State Street
               Boston, Massachusetts 02109
               Attention: Peter M. Palladino, Esquire

or at such other address as the party to whom such notice is directed may have
designated in writing to the other party hereto. A notice shall be deemed to
have been given upon the earlier to

                                       8

<PAGE>

occur of (i) three (3) days after the date on which it is deposited in the U.S.
mails or (ii) receipt by the party to whom such notice is directed.

     18. Miscellaneous. This Agreement shall inure to the benefit of and be
binding upon the Secured Party, the Credit Parties and the Pledgor and their
respective successors and assigns, and the term "Credit Parties" shall be deemed
to include any other holder or holders of any of the Secured Obligations and the
term "Secured Party" shall be deemed to include any successor agent for the
Credit Parties. In case any provision in this Agreement 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. This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which shall be an original, but
all of which together shall constitute one instrument.

     19. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement,
including the validity hereof and the rights and obligations of the parties
hereunder, shall be governed by, and construed in accordance with, the internal
laws (as opposed to the conflicts of law provisions, but including sections
5-1401 and 5-1402 of the general obligations law of the State of New York) and
decisions of the State of New York. Each party hereto hereby irrevocably submits
to the nonexclusive jurisdiction of any New York or Federal court sitting in the
City of New York, New York over any suit, action or proceeding arising out of or
relating to this Agreement and waives, to the fullest extent permitted or not
prohibited by law, any objection which it may now or hereafter have to the
laying of the venue of any such suit, action or proceeding brought in such a
court and any claim that any such suit, action or proceeding brought in such a
court has been brought in an inconvenient forum. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 19.

                            [Signature pages follow]

                                       9

<PAGE>

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

                                        THE NORTHWESTERN MUTUAL LIFE
                                        INSURANCE COMPANY

                                        By: /s/ Mark E. Kishler
                                            ------------------------------------
                                            Name: Mark E. Kishler
                                            Title: Its Authorized Representative

ACKNOWLEDGED AND ACCEPTED:

FLEET NATIONAL BANK, as
Administrative Agent

By:
    ------------------------------
    Name:
    Title:

<PAGE>

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

                                        THE NORTHWESTERN MUTUAL LIFE
                                        INSURANCE COMPANY

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

ACKNOWLEDGED AND ACCEPTED:

FLEET NATIONAL BANK, as
Administrative Agent

By: /s/ John F. Lynch
    ------------------------------
    Name: John F. Lynch
    Title: Senior Vice President

<PAGE>

ACKNOWLEDGEMENT:

     The Borrower acknowledges the provisions of the within Agreement and
covenants to the Secured Party that in the event any shares of Capital Stock of
the Borrower are to be issued to any Pledgor such shares will be delivered
directly to the Secured Party.

MONITRONICS INTERNATIONAL, INC.

By: /s/ James R. Hull
    ------------------------------
    James R. Hull, President

<PAGE>

                                   SCHEDULE I

=============================================================================
                               PLEDGED SECURITIES
-----------------------------------------------------------------------------
                                                         No.      Certificate
      Owner and Address            Description        of Shares      No(s).
-----------------------------------------------------------------------------
The Northwestern Mutual Life        Warrant for       1,133,328       W-12
Insurance Company              Class A Common Stock
N18SE
720 East Wisconsin Avenue
Milwaukee, Wisconsin 53202
-----------------------------------------------------------------------------

=============================================================================

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