Document:

<PAGE>

                                                                   Exhibit 10.25

                            SIXTH AMENDMENT AGREEMENT

     This Sixth Amendment Agreement (the "Agreement") is entered into as of
April 27, 2001 by and among Monitronics International, Inc., a Texas corporation
(the "Company"), the holders of Preferred Stock listed on the Schedule of
Preferred Holders attached hereto (the "Preferred Holders"), the holders of
Common Stock Purchase Warrants listed on the Schedule of Warrant Holders
attached hereto (the "Warrant Holders"), the holders of Common Stock listed on
the Schedule of Common Shareholders attached hereto (the "Common Shareholders"
and, together with the Preferred Holders and the Warrant Holders, the "Security
Holders").

                                    Recitals

     The Company and certain of the Security Holders are parties to, among other
agreements, the Preferred Stock Subordination Agreement, dated as of May 10,
1996, as amended by that certain Amendment Agreement, dated as of November 22,
1996, that certain Second Amendment Agreement, dated as of May 19, 1997, that
certain Transfer, Assignment and Assumption Agreement and Third Amendment
Agreement, dated as of January 1, 1998, that certain Transfer, Assignment and
Assumption Agreement and Fourth Amendment Agreement dated, as of July 22, 1998,
and that certain Fifth Amendment Agreement dated as of March 9, 1999 (as so
amended, the "Preferred Subordination Agreement").

     The Company and certain of the Security Holders have entered into a Series
D-1Preferred Stock Purchase Agreement, dated as of April 27, 2001 (the "Series
D-1 Purchase Agreement"), providing, among other things, for the purchase by
such Security Holders of up to 70,000 shares of Series D-1 Preferred Stock of
the Company (such Security Holders hereinafter referred to as the "Purchasers").

     The Company and certain of the Preferred Holders are parties to a Series C
Preferred Stock Exchange Agreement (the "Series C Exchange Agreement"), dated as
of April 27, 2001, providing, among other things, for the exchange by certain
Preferred Holders of 1,409,375 shares of Series C Preferred Stock of the Company
for 1,409,375 shares of Series C Preferred Stock and 251,420 shares of Series
C-i Preferred Stock of the Company.

     The Company and the Security Holders are parties to a Third Amended and
Restated Shareholders Agreement, dated as of April 27, 2001 (as in effect from
time to time, the "Shareholders Agreement").

     The parties hereto desire to take the actions contemplated by this
Agreement in order to facilitate the transactions contemplated by the Series D-1
Purchase Agreement.

     Capitalized terms not defined elsewhere herein shall have the respective
meanings assigned to them in the Shareholders Agreement or in the Articles of
Incorporation of the Company, as amended (the "Articles of Incorporation"), as
applicable.

     In consideration of the premises and the agreements herein contained, and
intending to be bound hereby, the parties hereby agree as follows:

     1. Addition of Purchasers as Parties to the Preferred Subordination
Agreement. The

<PAGE>

parties hereto hereby consent to and approve of the addition of the Purchasers
as parties to the Preferred Subordination Agreement, and acknowledge and agree
that such Purchasers shall be bound by all of the terms and conditions of such
agreement, as amended hereby and as from time to time in effect, and that such
terms and conditions shall inure to the benefit of the Purchasers.

     2. Amendments to the Preferred Subordination Agreement.

     (a) The parties hereto that are parties to the Preferred Subordination
Agreement hereby agree that the Preferred Subordination Agreement shall be
amended by deleting the definitions of the terms "Preferred Stock" and "Purchase
Agreement" in their entirety and substituting the following in lieu thereof:

     "Preferred Stock" shall mean the Company's preferred stock, $.01 par value
     per share, as authorized by the Company's Articles of Incorporation as
     filed and in effect on April 27, 2001, and as the same may be amended from
     time to time.

     "Purchase Agreement" shall mean the Senior Subordinated Note and Warrant
     Purchase Agreement, dated as of May 10, 1996, as supplemented and modified
     by (i) the Senior Subordinated Note and Warrant Purchase Agreement, dated
     as of November 22, 1996, and (ii) the Senior Subordinated Note and Warrant
     Purchase Agreement, dated as of May 19, 1997, as amended by that certain
     Amendment, dated as of March 13, 1998, that certain Second Amendment, dated
     as of January 13, 1999, that certain Termination of Put Rights, dated as of
     June 15, 1998, that certain Third Amendment, dated as of March 9, 1999, and
     that certain Fourth Amendment, dated as of February 4, 2000.

     (b) Except as amended hereby, the Preferred Subordination Agreement shall
remain in full force and effect.

     3. Amendments to the Series A Purchase Agreement.

     (a) The parties hereto that are parties to the Series A Purchase Agreement
hereby agree that the Series A Purchase Agreement shall be amended as follows:

          (i) Section 4D(iv) shall be amended by deleting such section in its
entirety and substituting the following in lieu thereof:

          "(iv) issue any capital stock, options, warrants or rights to purchase
          or acquire capital stock, or any other Equity Securities, other than
          (A) pursuant to the 1999 Stock Plan and the 2001 Stock Plan, (B) upon
          conversion of shares of Series A Preferred Stock, (C) upon conversion
          of shares of Series B Preferred Stock, (D) upon conversion of shares
          of Series C Preferred Stock, (E) pursuant to the Series C Exchange
          Agreement, (F) upon conversion of the Series D-l Preferred Stock, (G)
          pursuant to the Series D-1 Purchase Agreement, (H) the issuance of the
          Warrant Shares upon the exercise of the Warrants or (I) the Class A
          Common Stock issuable upon conversion of any outstanding

                                       1

<PAGE>

          Class B Common Stock (capitalized terms used in this section shall
          have the meanings ascribed to them in the Articles of
          Incorporation);".

          (ii) Section 4D(vi) shall be amended by deleting such section in its
entirety and substituting the following in lieu thereof:

          "(vi) purchase, redeem or otherwise acquire or retire for value any of
          its capital stock or other Equity Securities or declare or make any
          dividend or other distribution with respect to any of its capital
          stock or other Equity Securities (other than dividends or
          distributions on shares of Common Stock and consisting solely of
          shares of Common Stock of the same class), except that this section
          shall not prevent the repurchase by the Company of (A) capital stock
          from employees at cost pursuant to agreements with such employees
          approved by the Board of Directors (with a majority of the Purchaser
          Directors concurring) or (B) Preferred Stock and Common Stock required
          under Article IV, Part 3 of the Articles of Incorporation (capitalized
          terms used in this section shall have the meanings ascribed to them in
          the Articles of Incorporation);".

          (iii) Section 6 shall be amended by inserting the following
definition:

          "Articles of Incorporation" means the Articles of Incorporation of the
          Company, as amended."

     (b) Except as amended hereby, the Series A Purchase Agreement shall remain
in full force and effect.

     4. Amendments to the Series B Purchase Agreement.

     (a) The parties hereto that are parties to the Series B Purchase Agreement
hereby agree that the Series B Purchase Agreement shall be amended as follows:

          (i) Section 7D(ii) shall be amended by deleting such section in its
entirety and substituting the following in lieu thereof:

          "(ii) issue any capital stock, options, warrants or rights to purchase
          or acquire capital stock, or any other Equity Securities, other than
          (A) pursuant to the 1999 Stock Plan and the 2001 Stock Plan, (B) upon
          conversion of shares of Series A Preferred Stock, (C) upon conversion
          of shares of Series B Preferred Stock, (D) upon conversion of shares
          of Series C Preferred Stock, (E) pursuant to the Series C Exchange
          Agreement, (F) upon conversion of the Series D-l Preferred Stock, (G)
          pursuant to the Series D-l Purchase Agreement, (H) the issuance of the
          Warrant Shares upon the exercise of the Warrants or (I) the Class A

                                       2

<PAGE>

          Common Stock issuable upon conversion of any outstanding Class B
          Common Stock (capitalized terms used in this section shall have the
          meanings ascribed to them in the Articles of Incorporation);".

          (ii) Section 7D(viii) shall be amended by deleting such section in its
entirety and substituting the following in lieu thereof:

          "(viii) purchase, redeem or otherwise acquire or retire for value any
          of its capital stock or other Equity Securities or declare or make any
          dividend or other distribution with respect to any of its capital
          stock or other Equity Securities (other than dividends or
          distributions on shares of Common Stock and consisting solely of
          shares of Common Stock of the same class), except that this section
          shall not prevent the repurchase by the Company of (A) capital stock
          from employees at cost pursuant to agreements with such employees
          approved by the Board of Directors (with a majority of the Purchaser
          Directors concurring) or (B) Preferred Stock and Common Stock required
          under Article IV, Part 3 of the Articles of Incorporation (capitalized
          terms used in this section shall have the meanings ascribed to them in
          the Articles of Incorporation);".

     (b) Except as amended hereby, the Series B Purchase Agreement shall remain
in full force and effect.

     5. Amendments to the Note Agreement.

     (a) The parties hereto that are parties to the Note Agreement hereby agree
that the Note Agreement shall be amended as follows:

          (i) Section 1.01 shall be amended by inserting the following
definition:

          "Articles of Incorporation" means the Articles of Incorporation of the
          Company, as amended."

          (ii) Section 7.02(g) shall be amended by deleting the text "Without
the written consent of the Purchasers," the first time it appears in such
provision and substituting the following in lieu thereof:

          "Without the written consent of the holders of the Notes,"

          (iii) Section 7.02(g)(iv) shall be amended by deleting such subsection
in its entirety and substituting the following in lieu thereof:

          "the Company from issuing Equity Securities (A) pursuant to the 1999
          Stock Plan and the 2001 Stock Plan, (B) upon conversion of shares of
          Series A Preferred Stock, (C) upon conversion of shares of Series B
          Preferred Stock, (D) upon conversion of shares of

                                       3

<PAGE>

          Series C Preferred Stock, (E) pursuant to the Series C Exchange
          Agreement, (F) upon conversion of the Series D-1 Preferred Stock, (G)
          pursuant to the Series DI Purchase Agreement, (H) the issuance of the
          Warrant Shares upon the exercise of the Warrants or (I) the Class A
          Common Stock issuable upon conversion of any outstanding Class B
          Common Stock (capitalized terms used in this section shall have the
          meanings ascribed to them in the Articles of Incorporation).".

          (iv) Section 7.02(1) shall be amended by deleting such subsection in
its entirety and substituting the following in lieu thereof:

          "Make, or permit any Subsidiary to make, any Capital Expenditure
          during the fiscal year ending June 30, 2001 if, after giving effect
          thereto, the aggregate amount of all Capital Expenditures made by the
          Company and its Subsidiaries during such fiscal year would exceed Four
          Million Eight Hundred Thousand Dollars ($4,800,000), provided that the
          Company may, during the fiscal year ending June 30, 2001, carry
          forward up to Four Hundred Thousand Dollars ($400,000) of permitted
          but unused Capital Expenditures from the immediately preceding fiscal
          year, and provided further, that in no event shall Capital
          Expenditures exceed Five Million Two Hundred Thousand Dollars
          ($5,200,000) in such fiscal year. During the fiscal year ending June
          30, 2002 and during each fiscal year thereafter, the Company will not,
          and will not permit any Subsidiary to, make any Capital Expenditure
          if, after giving effect thereto, the aggregate amount of all Capital
          Expenditures made by the Company and its Subsidiaries during such
          fiscal year would exceed Two Million Three Hundred Thousand Dollars
          ($2,300,000), provided that the Company may, during the fiscal year
          ending June 30, 2002 and during any fiscal year thereafter, carry
          forward up to Four Hundred Thousand Dollars ($400,000) of permitted
          but unused Capital Expenditures from the immediately preceding fiscal
          year, and provided further, that in no event shall Capital
          Expenditures exceed Two Million Seven Hundred Thousand Dollars
          ($2,700,000) in any such fiscal year."

     (b) Except as amended hereby, the Note Agreement shall remain in full force
and effect.

     6. Consents, Waivers and Non-Contravention. Subject to compliance by the
Purchasers with the terms of this Agreement, each of the Security Holders (other
than the Purchasers, and, with respect to clause (e) only, the holders of the
Series C Preferred Stock) hereby (a) consents to the issuance of the shares of
Series D-1 Preferred Stock to the Purchasers pursuant to the terms of the Series
D-1 Purchase Agreement and the adoption of the Articles of Amendment (as defined
in the Series D-l Purchase Agreement), (b) consents to the exchange of

                                       4

<PAGE>

the existing Series C Preferred Stock for the newly designated Series C
Preferred Stock and Series C-i Preferred Stock pursuant to the Series C Exchange
Agreement, (c) agrees that such issuance and adoption and such exchange will not
constitute a breach or default under any of the Series A Purchase Agreement, the
Series B Purchase Agreement, the Series C Purchase Agreement, the Note Agreement
or the Credit Agreement, (d) other than with respect to the Series C Preferred
Stock, agrees that such issuance and adoption and such exchange will not trigger
any anti-dilution provisions under the Series A Purchase Agreement, the Series B
Purchase Agreement, the Note Agreement, the Preferred B Warrants, the Heller
Warrant Agreement, the Mezzanine Warrants or any other agreement, (e) waives any
anti-dilution rights arising as a result of such issuance and adoption or such
exchange that such Security Holder may have pursuant to any agreement and (f)
waives any preemptive or similar rights arising as a result of such issuance and
adoption or such exchange that such Security Holder may have pursuant to any
other agreement.

     7. Miscellaneous.

     (a) Notices. All notices, demands or other communications to be given or
delivered under or by reason of the provisions of this Agreement will be in
writing and will be deemed to have been given when delivered personally or by
cable, telex, facsimile transmission, telegram or overnight delivery service, or
72 hours after having been mailed by certified or registered mail, return
receipt requested and postage prepaid, to the recipient. Such notices, demands
and other communications will be sent to each party at such party's address set
forth on the Schedule of Preferred Holders, Schedule of Warrant Holders or
Schedule of Common Shareholders, as the case may.

     (b) Governing Law. The construction, validity and interpretation of this
Agreement will be governed by the internal laws of the State of Texas without
giving effect to any choice of law or conflict of law provision or rule (whether
of the State of Texas or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Texas.

     (c) Entire Agreement. This Agreement and the addendum, exhibits and
schedules hereto embody the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to such subject matter.

     (d) Amendment and Waiver. No amendment, modification or waiver of this
Agreement or any provision hereof shall be effective unless made by the written
agreement of all of the parties hereto.

     (e) Further Assurances. Each party to this Agreement hereby covenants and
agrees, without the necessity of any further consideration, to execute and
deliver any and all such further documents and take any and all such other
actions as may be necessary or appropriate to carry out the intent and purposes
of this Agreement and to consummate the transactions contemplated herein.

     (f) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
be one and the same document

                                       5

<PAGE>

     (g) Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.

                                     * * * *

                                       6

<PAGE>

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

                                       COMPANY:

                                       MONITRONICS INTERNATIONAL, INC.

                                       By:  /s/ James R. Hull
                                           -------------------------------------
                                           President and CEO

                                       SECURITY HOLDERS:

                                       AUSTIN VENTURES III-A, L.P.

                                       By: AV Partners III, L.P.,
                                           Its General Partner

                                           By: /s/ Blaine F. Wesner
                                               ---------------------------------
                                               Blaine F. Wesner,
                                               Authorized Signatory

                                       AUSTIN VENTURES III-B, L.P.

                                       By: AV Partners III, L.P.,
                                           Its General Partner

                                           By: /s/ Blaine F. Wesner
                                               ---------------------------------
                                               Blaine F. Wesner,
                                               Authorized Signatory

                                       AUSTIN VENTURES V, L.P.

                                       By: AV Partners V, L.P.,
                                           Its General Partner

                                           By: /s/ Blaine F. Wesner
                                               ---------------------------------
                                               Blaine F. Wesner,
                                               General Partner

<PAGE>

                                       AUSTIN VENTURES V AFFILIATES FUND, L.P.

                                       By: AV Partner V, L.P.,
                                           Its General Partner

                                           By: /s/Blaine F. Wesner
                                               ---------------------------------
                                               Blaine F. Wesner
                                               General Partner

                                       CAPITAL RESOURCE LENDERS II L.P.

                                       By: Capital Resource Partners H, L.P.,
                                           Its General Partner

                                           By:  /s/ illegible signature
                                               ---------------------------------
                                               General Partner

                                       WINDWARD CAPITAL PARTNERS II, L.P.

                                       By: Windward Capital GP II, LLC,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               Peter S. Macdonald,
                                               Managing Member

                                       WINDWARD CAPITAL LP II, LLC

                                       By:
                                           -------------------------------------
                                           Peter S. Macdonald,
                                           Managing Member

                                       HULL FAMILY LIMITED PARTNERSHIP, L.P.

                                       By: James R. Hull Management Trust,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               James R. Hull, Trustee

<PAGE>

                                       AUSTIN VENTURES V AFFILIATES FUND, L.P.

                                       By: AV Partner V, L.P.,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               Blaine F. Wesner
                                               General Partner

                                       CAPITAL RESOURCE LENDERS II L.P.

                                       By: Capital Resource Partners H, L.P.,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               General Partner

                                       WINDWARD CAPITAL PARTNERS II, L.P.

                                       By: Windward Capital GP II, LLC,
                                           Its General Partner

                                           By: /s/ Peter S. Macdonald
                                               ---------------------------------
                                               Peter S. Macdonald,
                                               Managing Member

                                       WINDWARD CAPITAL LP II, LLC

                                       By: /s/ Peter S. Macdonald
                                           -------------------------------------
                                           Peter S. Macdonald,
                                           Managing Member

                                       HULL FAMILY LIMITED PARTNERSHIP, L.P.

                                       By: James R. Hull Management Trust,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               James R. Hull, Trustee

<PAGE>

                                       AUSTIN VENTURES V AFFILIATES FUND, L.P.

                                       By: AV Partner V, L.P.,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               Blaine F. Wesner
                                               General Partner

                                       CAPITAL RESOURCE LENDERS II L.P.

                                       By: Capital Resource Partners H, L.P.,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               General Partner

                                       WINDWARD CAPITAL PARTNERS II, L.P.

                                       By: Windward Capital GP II, LLC,
                                           Its General Partner

                                           By:
                                               ---------------------------------
                                               Peter S. Macdonald,
                                               Managing Member

                                       WINDWARD CAPITAL LP II, LLC

                                       By:
                                           -------------------------------------
                                           Peter S. Macdonald,
                                           Managing Member

                                       HULL FAMILY LIMITED PARTNERSHIP, L.P.

                                       By: James R. Hull Management Trust,
                                           Its General Partner

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

<PAGE>

                                       /s/ Robert N. Sherman
                                       -----------------------------------------
                                       Robert N. Sherman

                                       /s/ Michael Meyers
                                       -----------------------------------------
                                       Michael Meyers

                                       /s/ Stephen Hedrick
                                       -----------------------------------------
                                       Stephen Hedrick

                                       /s/ Michael Gregory
                                       -----------------------------------------
                                       Michael Gregory

                                       PURCHASERS:

                                       ABRY PARTNERS IV, L.P.

                                       By: ABRY Capital Partners, L.P.,
                                           Its General Partner

                                           By: ABRY Capital Partners, LLC,
                                               Its General Partner

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

                                       ABRY INVESTMENT PARTNERSHIP, L.P.

                                       By: ABRY Investment GP, LLC,
                                           Its General Partner

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

<PAGE>

                                       -----------------------------------------
                                       Robert N. Sherman

                                       -----------------------------------------
                                       Michael Meyers

                                       -----------------------------------------
                                       Stephen Hedrick

                                       -----------------------------------------
                                       Michael Gregory

                                       PURCHASERS:

                                       ABRY PARTNERS IV, L.P.

                                       By: ABRY Capital Partners, L.P.,
                                           Its General Partner

                                           By: ABRY Capital Partners, LLC,
                                               Its General Partner

                                               By: /s/ Jay Grossman
                                                   -----------------------------
                                                   Name: Jay Grossman
                                                   Title: Vice President

                                       ABRY INVESTMENT PARTNERSHIP, L.P.

                                       By: ABRY Investment GP, LLC,
                                           Its General Partner

                                           By: /s/ Jay Grossman
                                               ---------------------------------
                                               Name: Jay Grossman
                                               Title: Vice President

<PAGE>

                         SCHEDULE OF PREFERRED HOLDERS

Austin Ventures III-A, L.P.
Austin Ventures III-B, L.P.
Austin Ventures V, L.P.
Austin Ventures V Affiliates Fund, L.P.
701 Brazos
Suite 1400
Austin, TX 78701
Facsimile: (512) 476-3952
Attn: Blaine F. Wesner

Capital Resource Lenders II, L.P.
c/o Capital Resource Partners
85 Merrimac Street
Suite 200
Boston, MA 02114
Facsimile: (617) 723-9819
Attn: Stephen M. Jenks

Windward Capital Partners II, L.P.
Windward Capital II L.P., LLC
1177 Avenue of the Americas
42nd Floor
New York, NY 10036
Facsimile: (212) 382-6534
Attn: Peter S. Macdonald

ABRY Partners IV, L.P.
ABRY Investment Partnership, L.P.
18 Newbury Street
Boston, MA 02116
Facsimile: (617) 859-7205
Attn: Jay Grossman

<PAGE>

                          SCHEDULE OF WARRANT HOLDERS

Capital Resource Lenders II, L.P.
c/o Capital Resource Partners
85 Merrimac Street
Suite 200
Boston, MA 02114
Facsimile: (617) 723-9819
Attn: Stephen M. Jenks

Austin Ventures III-A, L.P.
Austin Ventures III-B, L.P.
Austin Ventures V, L.P.
Austin Ventures V Affiliates Fund, L.P.
701 Brazos
Suite 1400
Austin, TX 78701
Facsimile: (512) 476-3952
Attn: Blaine F. Wesner

<PAGE>

                        SCHEDULE OF COMMON SHAREHOLDERS

1.   Hull Family Limited Partnership, L.P.
     c/o Monitronics International, Inc.
     12801 Stemmons Freeway
     Suite 821
     Dallas, TX 75234
     Facsimile: (972) 919-1985

3.   Michael Meyers
     c/o Monitronics International, Inc.
     12801 Stemmons Freeway
     Suite 821
     Dallas, TX 75234
     Facsimile: (972) 919-1985

4.   Stephen Hedrick
     c/o Monitronics International, Inc.
     12801 Stemmons Freeway
     Suite 821
     Dallas, TX 75234
     Facsimile: (972) 919-1985

5.   Michael Gregory
     c/o Monitronics International, Inc.
     12801 Stemmons Freeway
     Suite 821
     Dallas, TX 75234
     Facsimile: (972) 919-1985<PAGE>

                                                                   EXHIBIT 10.26

                           SEVENTH AMENDMENT AGREEMENT

         This Seventh Amendment Agreement (the "Agreement") is entered into as
of January 18, 2002 by and among Monitronics International, Inc., a Texas
corporation (the "Company"), the holders of Preferred Stock listed on Schedule
of Preferred Holders attached hereto (the "Preferred Holders"), the holders of
Common Stock Purchase Warrants listed on the Schedule of Warrant Holders
attached hereto (the "Warrant Holders"), the holders of Common Stock listed on
the Schedule of Common Shareholders attached hereto (the "Common Shareholders"
and, together with the Preferred Holders and the Warrant Holders, the "Security
Holders").

                                    Recitals

         The Company and certain of the Security Holders are parties to, among
other agreements, the Preferred Stock Subordination Agreement, dated as of May
10, 1996 as amended by that certain Amendment Agreement, dated as of November
22, 1996 (the "First Amendment Agreement"), that certain Second Amendment
Agreement, dated as of May 19, 1997 (the "Second Amendment Agreement"), that
certain Transfer, Assignment and Assumption Agreement and Third Amendment
Agreement, dated as of January 1, 1998 (the "Third Amendment Agreement"), that
certain Transfer, Assignment and Assumption Agreement and Fourth Amendment
Agreement, dated as of July 22, 1998 (the "Fourth Amendment Agreement"), that
certain Fifth Amendment Agreement dated as of March 9, 1999 (the "Fifth
Amendment Agreement"), and that certain Sixth Amendment Agreement dated as of
April 27, 2001 (the "Sixth Amendment Agreement") (as so amended the "Preferred
Subordination Agreement").

         The Company and certain of the Preferred Holders are parties to a Stock
Purchase Agreement, dated as of October 21, 1994, as amended by that certain
Amendment No. 1 to Stock Purchase Agreement, dated as of November 10, 1994, that
certain Amendment No. 2 to Stock Purchase Agreement, dated as of May 10, 1996,
the First Amendment Agreement, the Second Amendment Agreement, the Third
Amendment Agreement, that certain Consent to Various Actions under Various
Documents, dated as of May 13, 1998, that certain Consent to Various Actions
under Various Documents and Amendment to Stock Purchase Agreement, dated as of
January 6, 1999, and the Sixth Amendment Agreement (as so amended, the "Series A
Purchase Agreement"), providing, among other things, for the purchase by such
Preferred Holders of 4,000,000 shares of Series A Preferred Stock of the
Company.

         The Company and certain of the Common Stockholders are parties to an
Amended and Restated Affiliate Registration Agreement, dated May 19, 1996, as
amended by the First Amendment Agreement, the Second Amendment Agreement, the
Third Amendment Agreement and the Fourth Amendment Agreement (as so amended, the
"Affiliate Registration Agreement").

         The Company and certain of the Warrant Holders are parties to a Senior
Subordinated Note and Warrant Purchase Agreement, dated as of May 10, 1996, as
supplemented and modified by (i) the Senior Subordinated Note and Warrant
Purchase Agreement, dated as of November 22, 1996, (ii) the Senior Subordinated
Note and Warrant Purchase Agreement, dated as of May 19, 1997, as amended by
that certain Amendment, dated as of March 13, 1998, that certain Second
Amendment, dated as of January 13, 1999, that certain Termination of Put Rights,

<PAGE>

dated as of June 15, 1998, that certain Third Amendment, dated as of March 9,
1999, and that certain Fourth Amendment, dated as of February 4, 2000 and (iii)
the Sixth Amendment Agreement (as so supplemented and modified, the "Note
Agreement"), providing, among other things, for the purchase by such Warrant
Holders of warrants (the "Mezzanine Warrants") to acquire up to 569,757 shares
(subject to adjustment as provided in such Warrants) of Class A Common Stock of
the Company.

         The Company and certain of the Preferred Holders are parties to a
Series B Preferred Stock Purchase Agreement, dated as of May 19, 1997, as
amended by the Third Amendment Agreement, that certain Termination of Put
Rights, dated as of June 15, 1998 and the Sixth Amendment Agreement (as so
amended, the "Series B Purchase Agreement"), providing, among other things, for
the purchase by such Preferred Holders of 5,000,000 shares of Series B Preferred
Stock and warrants (the "Preferred B Warrants") to acquire up to 961,700 shares
(subject to adjustment as provided in such Warrants) of Class A Common Stock of
the Company.

         The Company and certain of the Preferred Holders are parties to a
Series C Preferred Stock Purchase Agreement (the "Series C Purchase Agreement"),
dated as of February 22, 1999, providing, among other things, for the purchase
by such Preferred Holders of 1,409,375 shares of Series C Preferred Stock of the
Company.

         The Company and certain of the Preferred Holders are parties to a
Series C Preferred Stock Exchange Agreement, dated as of April 27, 2001,
providing, among other things, for the exchange by such Preferred Holders of
1,409,375 shares of Series C Preferred Stock of the Company for 1,409,375 shares
of Series C Preferred Stock and 251,420 shares of Series C-1 Preferred Stock of
the Company.

         The Company and certain of the Preferred Holders have entered into a
Series D-1 Preferred Stock Purchase Agreement, dated as of April 27, 2001, as
amended by that certain First Amendment to Series D-1 Preferred Stock Purchase
Agreement, dated as of January 18, 2002 (as so amended, the "Series D-1 Purchase
Agreement"), providing, among other things, for the purchase by such Preferred
Holders of up to 70,000 shares of Series D-1 Preferred Stock of the Company.

         The Company and the Security Holders are parties to a Fourth Amended
and Restated Shareholders Agreement, dated as of January 18, 2002 (as in effect
from time to time, the "Shareholders Agreement").

         The Company and a certain Warrant Holder are parties to a Subordinated
Note and Warrant Purchase Agreement, dated as of January 18, 2002 (the "2001
Note Agreement"), providing, among other things, for the purchase by such
Warrant Holder (referred to herein as the "Purchaser") of (i) $40 million of the
Company's 13.5% Subordinated Notes (the "Subordinated Notes") and (ii) warrants
(the "2001 Warrants") to acquire up to 1,133,328 shares (subject to adjustment
as provided by such Warrants) of Class A Common Stock of the Company (the "2001
Warrant Shares").

         The parties hereto desire to take the actions contemplated by this
Agreement in order to facilitate the transactions contemplated by the 2001 Note
Agreement.

                                       2

<PAGE>

         Capitalized terms not defined elsewhere herein shall have the
respective meanings assigned to them in the Shareholders Agreement or in the
Articles of Incorporation of the Company, as amended (the "Articles of
Incorporation"), as applicable.

         In consideration of the premises and the agreements herein contained,
and intending to be bound hereby, the parties hereby agree as follows:

         1.    Addition of Purchaser as a Party to the Preferred Subordination
Agreement. The parties hereto hereby consent to and approve of the addition of
the Purchaser as a party to the Preferred Subordination Agreement, and
acknowledge and agree that such Purchaser shall be bound by all of the terms and
conditions of such agreement, as amended hereby and as from time to time in
effect, and that such terms and conditions shall inure to the benefit of the
Purchaser.

         2.    Amendments to the Preferred Subordination Agreement.

         (a)   The parties hereto that are parties to the Preferred
Subordination Agreement hereby agree that the Preferred Subordination Agreement
shall be amended as follows:

               (i)     Section 1 shall be amended by deleting the definitions of
the terms "Notes" and "Purchase Agreement' in their entirety and substituting
the following in lieu thereof:

               "'Notes' shall mean (i) the 12.0% Senior Subordinated Notes due
               June 30, 2007 and (ii) the 13.5% Subordinated Notes due 2009
               issued by the Company pursuant to the Purchase Agreements, and
               any notes issued in exchange therefore or in replacement thereof,
               as the same may be amended, modified or supplemented."

               "'Purchase Agreements' shall mean (i) the Senior Subordinated
               Note and Warrant Purchase Agreement, dated as of May 10, 1996, as
               supplemented and modified by (a) the Senior Subordinated Note and
               Warrant Purchase Agreement, dated as of November 22, 1996, (b)
               the Senior Subordinated Note and Warrant Purchase Agreement,
               dated as of May 19, 1997, as amended by that certain Amendment,
               dated as of March 13, 1998, that certain Second Amendment, dated
               as of January 13, 1999, that certain Termination of Put Rights,
               dated as of June 15, 1998, that certain Third Amendment, dated as
               of March 9, 1999, and that certain Fourth Amendment, dated as of
               February 4, 2000, (c) the Sixth Amendment Agreement, dated as of
               April 27, 2001, and (d) the Seventh Amendment Agreement, dated as
               of January 18, 2002 and (ii) the Subordinated Note and Warrant
               Purchase Agreement, dated as of January 18, 2002."

               (ii)    Section 2.5 shall be amended by deleting "June 30, 2003"
and replacing it with "January 18, 2009."

               (iii)   Exhibit A shall be amended by adding the following notice
information for the Purchaser:

                                       3

<PAGE>

               "The Northwestern Mutual Life Insurance Company
               720 East Wisconsin Avenue
               Milwaukee, WI 53202
               Facsimile: 414-299-7124
               Attn: Securities Department

               With a copy to:

               Schiff Hardin & Waite
               6600 Sears Tower
               Chicago, Illinois 60606-6473
               Facsimile: 312-258-5600
               Attn: Andrew Kling"

               (iv)    Exhibt A shall be further amended by deleting the notice
information for Glast, Phillips & Murray, P.C. and Hughes & Luce, L.L.P. and
substituting the following in lieu thereof, respectively:

               "Vinson & Elkins L.L.P.
               2001 Ross Avenue
               Suite 3700
               Dallas, Texas 75201
               Attention: Christine A. Hathaway
               Fax Number: (214) 999-7714"

               "Vinson & Elkins L.L.P.
               One American Center
               600 Congress Avenue, Suite 2700
               Austin, Texas 78701-3200
               Attention: William R. Volk
               Fax Number: (512) 236-3450"

         (b)   Except as amended hereby, the Preferred Subordination Agreement
shall remain in full force and effect.

         3.    Amendments to the Series A Purchase Agreement.

         (a)   The parties hereto that are parties to the Series A Purchase
Agreement hereby agree that the Series A Purchase Agreement shall be amended as
follows:

               (i)     All references to the term "Notes" in the Series A
Purchase Agreement shall be deemed to include the "Subordinated Notes" (as such
term is defined herein).

               (ii)    All references to the term "Mezzanine Warrants" in the
Series A Purchase Agreement shall be deemed to include the "2001 Warrants" (as
such term is defined herein).

                                       4

<PAGE>

               (iii)   All references to the term "Mezzanine Warrant Shares" in
the Series A Purchase Agreement shall be deemed to include the "2001 Warrant
Shares" ( as such term is defined herein).

               (iv)    All references to the term "Note Agreement" in the Series
A Purchase Agreement, shall be deemed to include the "2001 Note Agreement" (as
such term is defined herein).

               (v)     Section 4D(iv) shall be amended by deleting such
subsection in its entirety and substituting in lieu thereof:

               "(iv)   the Company from issuing (A) Class A Common Stock
               pursuant to the 1999 Stock Plan and the 2001 Stock Plan (as in
               effect on January 18, 2002), (B) Class A Common Stock upon
               conversion of shares of Series A Preferred Stock pursuant to the
               Articles of Incorporation, (C) Class A Common Stock upon
               conversion of shares of Series B Preferred Stock pursuant to the
               Articles of Incorporation, (D) Class A Common Stock upon
               conversion of shares of Series C Preferred Stock pursuant to the
               Articles of Incorporation, (E) Class A Common Stock and Series
               D-2 Preferred Stock upon conversion of the Series D-1 Preferred
               Stock pursuant to the Articles of Incorporation, (F) the issuance
               of the Warrant Shares upon the exercise of the Warrants
               (capitalized terms used in this clause (F) shall have the
               meanings ascribed to them in the Articles of Incorporation), or
               (G) Class A Common Stock issuable upon conversion of any
               outstanding Class B Common Stock."

               (vi)    Section 7J shall be amended by requiring that a copy of
any notice delivered to the Company under the Stock Purchase Agreement should be
sent to the Company's counsel as set forth below:

               "Vinson & Elkins L.L.P.
               2001 Ross Avenue
               Suite 3700
               Dallas, Texas 75201
               Facsimile: (214) 999-7714
               Attn: Christine A. Hathaway"

         (b)   Except as amended hereby, the Series A Purchase Agreement shall
remain in full force and effect.

         4.    Amendments to the Series B Purchase Agreement.

         (a)   The parties hereto that are parties to the Series B Purchase
Agreement hereby agree that the Series B Purchase Agreement shall be amended as
follows:

               (i)     Section 7D(ii) shall amended by deleting such section in
its entirety and substituting the following in lieu thereof:

                                        5

<PAGE>

               "(iv)   the Company from issuing (A) Class A Common Stock
               pursuant to the 1999 Stock Plan and the 2001 Stock Plan (as in
               effect on January 18, 2002), (B) Class A Common Stock upon
               conversion of shares of Series A Preferred Stock pursuant to the
               Articles of Incorporation, (C) Class A Common Stock upon
               conversion of shares of Series B Preferred Stock pursuant to the
               Articles of Incorporation, (D) Class A Common Stock upon
               conversion of shares of Series C Preferred Stock pursuant to the
               Articles of Incorporation, (E) Class A Common Stock and Series
               D-2 Preferred Stock upon conversion of the Series D-1 Preferred
               Stock pursuant to the Articles of Incorporation, (F) the issuance
               of the Warrant Shares upon the exercise of the Warrants
               (capitalized terms used in this clause (F) shall have the
               meanings ascribed to them in the Articles of Incorporation), or
               (G) Class A Common Stock issuable upon conversion of any
               outstanding Class B Common Stock."

               (ii)    Section 11E shall be amended by deleting the notice
address for Glast, Phillips & Murray, P.C. in its entirety and substituting the
following in lieu thereof:

               "Vinson & Elkins L.L.P.
               2001 Ross Avenue
               Suite 3700
               Dallas, Texas 75201
               Facsimile: (214) 999-7714
               Attn: Christine A. Hathaway"

         (b)   Except as amended hereby, the Series B Purchase Agreement shall
remain in full force and effect.

         5.    Amendments to the Affiliate Registration Agreement.

         (a)   The parties that are parties to the Affiliated Registration
Agreement hereby agree that the Affiliate Registration Agreement shall be
amended as follows:

               (i)     All references to the term "Warrants" in the Affiliate
Registration Agreement shall be deemed to include the "2001 Warrants" (as such
term is defined herein).

               (ii)    All references to the term "Warrant Shares" in the
Affiliate Registration Agreement shall be deemed to include the "2001 Warrant
Shares" (as such term is defined herein).

               (iii)   All references to the term "Note Agreement" in the
Affiliate Registration Agreement shall be deemed to include the 2001 Note
Agreement (as such term is defined herein).

               (iv)    All references to the term "Underlying Common Stock" in
the Affiliate Registration Agreement shall be deemed to include the shares of
Class A Common Stock issued or issuable upon the conversion of the Series A
Preferred Stock, the Series B Preferred Stock, the Series C Preferred Stock and
the Series D-1 Preferred Stock.

                                        6

<PAGE>

               (v)     Section 6(c) shall be amended by deleting the notice
address for Glast, Phillips & Murray, P.C. in its entirety and substituting the
following in lieu thereof:

               "Vinson & Elkins L.L.P.
               2001 Ross Avenue
               Suite 3700
               Dallas, Texas 75201
               Facsimile: (214) 999-7714
               Attn: Christine A. Hathaway"

         (b)   Except as amended hereby, the Affiliate Registration Agreement
shall remain in full force and effect.

         6.    Amendments to the Note Agreement.

         (a)   The parties hereto that are parties to the Note Agreement hereby
agree that the Note Agreement shall be amended as follows:

               (i)     Section 1.01 shall be amended by deleting the definitions
of "Change in Control," "Class A Preferred Stock," Class B Preferred Stock,"
"Net Operating Income," "Purchasers" and "Qualified IPO" and inserting the
following:

               "'Change in Control' means any transaction or any event as a
               result of which (i) any one or more Persons (other than a
               Purchaser or a stockholder or a holder of warrants or options to
               acquire capital stock of the Company on the closing date of the
               Subordinated Note Agreement) acquires or for the first time
               controls or is able to vote (directly or through nominees or
               beneficial ownership) after the closing date of the Subordinated
               Note Agreement (other than as the direct result of a transfer by
               descent or distribution of a decedent's estate) fifty percent
               (50%) or more of the deemed issued and outstanding stock of the
               Company having power ordinarily to vote for directors of the
               Company (on a fully-diluted, as converted basis); or (ii) Austin
               Ventures and its Affiliates no longer own at least twenty-five
               percent (25%) of the then issued and outstanding shares of the
               Class A Common Stock of the Company, calculated on a
               fully-diluted, as converted basis; or (iii) James R. Hull is no
               longer the chief executive officer of the Company and the Company
               has not obtained a replacement chief executive officer,
               satisfactory to the Purchasers in their reasonable judgment,
               within 120 days of Mr. Hull's ceasing to so serve."

               "'Net Operating Income' for any period means Net Income for such
               period, plus an amount equal to the aggregate of all taxes,
               depreciation, amortization and interest expense for such period
               (in each case to the extent deducted in determining Net Income
               for such period), plus, solely for the fiscal year ended June 30,
               2002, up to five hundred fifty thousand dollars ($550,000) in one
               time expenses attributable to the Company's

                                        7

<PAGE>

               proposed Rule 144A offering if such offering is terminated prior
               to June 30, 2002 minus Out of Holdback Revenue and extraordinary
               income."

               "'Preferred Stock' shall mean the Company's preferred stock, $.01
               par value per share, as authorized by the Company's Articles of
               Incorporation as filed and in effect on April 27, 2001, and as
               the same may be amended from time to time."

               "Purchasers" means and shall include CRL, Austin III-A, Austin
               III-B (with respect to each entity, for as long as such entity
               holds any of the Notes or Warrants) and any other holder or
               holders from time to time of any of the Notes or Warrants.

               "Qualified IPO means a firm commitment underwritten public
               offering of shares of the Company's Common Stock in which (i) the
               aggregate proceeds to the Company and/or any shareholders
               participating in the offering, if any, are at least $20 million
               and (ii) the aggregate market valuation of the Company's Common
               Stock is then not less than $60 million."

               "'Series A Preferred Stock' means the 4,000,000 shares of the
               Company's Series A Preferred Stock, $.01 par value per share,
               outstanding as of January 18, 2002."

               "'Series B Preferred Stock' means the Company's Series B
               Preferred Stock, $.01 par value per share, outstanding as of
               January 18, 2002."

               "'Series C Preferred Stock' means the 1,409,375 shares of the
               Company's Series C Preferred Stock, $.01 par value per share,
               outstanding as of January 18, 2002."

               "'Series C-1 Preferred Stock' means the 251,420 shares of the
               Company's Series C-1 Preferred Stock, $.01 par value per share,
               outstanding as of January 18, 2002."

               "'Series D-1 Preferred Stock' means the 70,000 shares of the
               Company's Series D-1 Preferred Stock, $.01 par value per share,
               outstanding as of January 18, 2002."

               "'Series D-2 Preferred Stock' means the 70,000 shares of the
               Company's Series D-2 Preferred Stock, $.01 par value per share,
               authorized by the Company's Articles of Incorporation as filed
               and in effect on April 27, 2001, and as the same may be amended
               from time to time."

               "'Subordinated Note Agreement' means the Subordinated Note and
               Warrant Purchase Agreement dated January 18, 2002 between the
               Company and The Northwestern Mutual Life Insurance Company."

                                       8

<PAGE>

               (ii)    Section 2.12 shall be amended by deleting such subsection
in its entirety and substituting the following in lieu thereof:

               "Subordination. The indebtedness evidenced by the Notes and the
               rights and remedies of the Purchasers under this Agreement shall
               be subordinate and junior to certain Indebtedness of the Company
               to the Banks in the manner and to the extent provided in the
               Fifth Amended and Restated Intercreditor and Subordination
               Agreement dated January 18, 2002 by and among the Banks, the
               Company and the Purchasers (the "Subordination Agreement")."

               (iii)   Section 3.09 shall be amended by deleting such subsection
in its entirety and substituting the following in lieu thereof:

               "Right to Purchase New Mezzanine Securities. Prior to issuing any
               Subordinated Debt after the Closing Date that is not issued in
               connection with any capital stock or similar security, including
               without limitation, securities containing equity features and
               securities containing profit participation features, or any
               security convertible or exchangeable, with or without
               consideration, into or for any stock or similar security, or any
               security carrying any warrant or right to subscribe for or
               purchase any stock or similar security, or any such warrant or
               right (such Subordinated Debt herein referred to as "Mezzanine
               Securities"), of the Company or any of its Subsidiaries to any
               Person, the Company will first give, or cause such Subsidiary to
               give to each of the holders of the Warrants and the Warrant
               Shares the right to purchase, on the same terms, the same
               proportion of the Mezzanine Securities proposed to be sold by the
               Company or such Subsidiary as the number of Warrants and Warrant
               Shares owned by such holder bears to the total number of shares
               of Outstanding Common Stock at that time. Persons electing to
               purchase Mezzanine Securities pursuant to this Section shall also
               be entitled to purchase (pro rata according to their holdings of
               Warrants and Warrant Shares) offered Mezzanine Securities that
               other holders decline to purchase. Any such right of purchase
               shall be exercisable for a period of twenty (20) days after the
               holders receive written notice of a proposed issuance of
               Mezzanine Securities (and any such notice by the Company or a
               Subsidiary shall be given not less than twenty (20) no more than
               ninety (90) days prior to any such issuance). The Company shall
               be entitled to sell any Mezzanine Securities not purchased by the
               holders of Warrants and Warrant Shares pursuant to this Section
               3.09: (i) during the period ending six (6) months after the date
               of the Company's notice to such holders and (ii) at not less than
               the same price and upon terms not materially less favorable to
               the Company than those offered to the holders of Warrants and
               Warrant Shares, but may not otherwise sell such Mezzanine
               Securities without renewed compliance with this Section 3.09."

                                       9

<PAGE>

               (iv)    Section 3.10 is deleted in its entirety.

               (v)     Section 3.11 shall be amended by deleting such subsection
in its entirety and substituting the following in lieu thereof:

               "Termination Upon Qualified IPO. Each of the Purchasers' right to
               purchase new Mezzanine Securities set forth in Section 3.09 shall
               terminate immediately prior to the closing of a Qualified IPO."

               (vi)    Section 7.01(p) is deleted in its entirety.

               (vii)   Section 7.01(r) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

               "Maximum Total Debt to Annualized Net Operating Income Ratio.
               Maintain a ratio of (i) Total Debt outstanding as of the end of
               the month immediately preceding the last day of each fiscal
               quarter of the Company to (ii) an amount equal to four (4) times
               Net Operating Income for the three months ending on the last day
               of such fiscal quarter of not greater than the following ratios
               for the periods indicated (such compliance to be determined as of
               the last day of each fiscal quarter of the Company ending during
               such period):

                                                 Maximum Ratio of Total Debt to
                                                 Four times (4x) trailing three
                    Period                        months' Net Operating Income
                    ------                        ----------------------------

         From the Closing Date through
         December 31, 2002                                  4.31 to 1

         From January 1, 2003 through
         December 31, 2003                                  4.03 to 1

         From January 1, 2004 through
         June 30, 2004                                      3.74 to 1

         Thereafter                                         3.45 to 1"

               (viii)  Section 7.01(s) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

               "Maximum Total Senior Debt to Annualized Net Operating Income
               Ratio. Maintain a ratio of (i) Total Senior Debt outstanding as
               of the end of the immediately preceding month to (ii) an amount
               equal to twelve (12) times Net Operating Income for the month
               then ending of not greater than the following ratios for the
               periods indicated (such compliance to be determined as of the
               last day of any month ending during such period):

                                       10

<PAGE>

                                               Maximum Ratio of Total Senior
                                              Debt to Twelve times (12x) Net
                                                                         ---
                    Period                Operating Income for Month then Ending
                    ------                --------------------------------------

         From the Closing Date through
         January 31, 2002                                4.31 to 1

         From February 1, 2002 through
         December 31, 2002                               3.74 to 1

         From January 1, 2003 through
         December 31, 2003                               3.45 to 1

         Thereafter                                      3.16 to 1"

               (ix)    Section 7.01(v) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

                       "Minimum Fixed Charge Coverage Ratio. Maintain a ratio of
               (i) an amount equal to Net Operating Income for the period of
               twelve (12) consecutive months ended on the date of determination
               to (ii) Fixed Charges for the same twelve (12) month period of
               not less than the following ratios for the periods indicated
               (such compliance to be determined as of the last day of each
               fiscal quarter of the Company ending during such period):

                    Period                       Fixed Charge Coverage Ratio
                    ------                       ---------------------------

         From the Closing Date through
         December 31, 2003                                1.49 to 1

         From January 1, 2004 through
         June 30, 2004                                    1.06 to 1

         Thereafter                                       0.89 to 1"

               (x)     Section 7.02(b) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

               "Indebtedness. Without the prior written consent of the
               Purchasers, create, incur, assume, or suffer to exist, or permit
               any Subsidiary to create, incur, assume or suffer to exist, any
               liability with respect to Indebtedness for borrowed money
               (including, without limitation, the amount of any purchase price
               which is secured by a purchase money security interest) other
               than (i) Senior Debt in an amount not to exceed $359,500,000

                                       11

<PAGE>

               million, (ii) the Notes, (iii) Holdback Debt incurred in the
               ordinary course of business, (iv) the Company's 13.5%
               Subordinated Notes issued pursuant to the Subordinated Note
               Agreement and (v) an unlimited amount of Junior Subordinated Debt
               (excluding any amounts referenced in clause (iv))outstanding at
               any time on a consolidated basis, provided that the incurrence
               and maintenance of all such Indebtedness does not result in the
               Company's or any Subsidiary's failure to comply with any of the
               other provisions of Article VII hereof."

               (xi)    Section 7.02(c) shall be amended be deleting the
reference to $1,150,000 and inserting $1,725,000 in lieu thereof.

               (xii)   Section 7.02(f)(vi) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

               "acquisitions of assets, capital stock or other property which
               individually and in the aggregate are not material to the Company
               or such Subsidiary (assets, capital stock and other property with
               a fair market value of less than $100,000 acquired in any
               one-year period in the aggregate shall not be deemed "material");
               provided, however, that each such acquisition can be made in
               compliance with the other terms of this Agreement, including,
               without limitation, Section 7.02(l); and provided further,
               however, that this Section 7.02(f)(vi) shall not prohibit the
               acquisition (either directly or indirectly through the purchase
               of 100% of the outstanding ownership interests of a Person) of
               alarm system monitoring contracts in the ordinary course of
               business."

               (xiii)  Section 7.02(g)(iv) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

               "(iv) the Company from issuing (A) Class A Common Stock pursuant
               to the 1999 Stock Plan and the 2001 Stock Plan (as in effect on
               January 18, 2002), (B) Class A Common Stock upon conversion of
               shares of Series A Preferred Stock pursuant to the Articles of
               Incorporation, (C) Class A Common Stock upon conversion of shares
               of Series B Preferred Stock pursuant to the Articles of
               Incorporation, (D) Class A Common Stock upon conversion of shares
               of Series C Preferred Stock pursuant to the Articles of
               Incorporation, (E) Class A Common Stock and Series D-2 Preferred
               Stock upon conversion of the Series D-1 Preferred Stock pursuant
               to the Articles of Incorporation, (F) the issuance of the Warrant
               Shares upon the exercise of the Warrants (capitalized terms used
               in this clause (F) shall have the meanings ascribed to them in
               the Articles of Incorporation), or (G) Class A Common Stock
               issuable upon conversion of any outstanding Class B Common
               Stock;"

               (xiv)   Section 7.02(l) shall be amended by deleting such
subsection in its entirety and substituting the following in lieu thereof:

                                       12

<PAGE>

               "During the fiscal year ending June 30, 2002 and during each
               fiscal year thereafter, the Company will not, and will not permit
               any Subsidiary to, make any Capital Expenditure if, after giving
               effect thereto, the aggregate amount of all Capital Expenditures
               made by the Company and its Subsidiaries during such fiscal year
               would exceed Three Million Four Hundred Fifty Thousand Dollars
               ($3,450,000), provided, that the Company may, during the fiscal
               year ending June 30, 2002 and during any fiscal year thereafter,
               carry forward up to Four Hundred Thousand Dollars ($400,000) of
               permitted but unused Capital Expenditures from the immediately
               preceding fiscal year, and provided further, that in no event
               shall Capital Expenditures exceed Three Million Eight Hundred
               Fifty Thousand Dollars ($3,850,000) in any such fiscal year."

               (xv)    Section 7.03(c) shall be amended by replacing the
reference to Purchasers therein with the phrase "holders of sixty-six and
two-thirds percent (66 2/3%) in principal amount of Notes then outstanding."

               (xvi)   Section 7.03(e) shall be amended by deleting the phrase
"and setting forth the calculation of "Borrowing Base" under the Loan
Agreement."

               (xvii)  Section 9.03 shall be amended by deleting the notice
information for Glast, Phillips & Murray, P.C. and substituting the following in
lieu thereof:

               "Vinson & Elkins L.L.P.
               2001 Ross Avenue
               Suite 3700
               Dallas, Texas 75201
               Attention: Christine A. Hathaway
               Telecopy No.: (214) 999-7714"

               (xviii) Section 8.01(c) shall be amended by deleting such
subsection in its entirety and substituting in lieu thereof:

               "(c) The Company (i) shall default in the performance of any
               covenant contained in Sections 7.01(r), (s), (t) and (v) or
               Sections 7.02(a), (b) or (g) or Section 7.03(a) or (ii) shall
               default in the performance of any other covenant contained in
               Section 7.02 and such default shall remain unremedied for ten
               (10) days; or"

               (xix)   Section 8.01 shall be amended by adding an additional
subsection (j) as set forth below:

               "(j) Any event of default shall exist under the Subordinated Note
               Agreement and shall not be cured within any applicable grace or
               cure period."

         (b)   Except as amended hereby, the Note Agreement shall remain in
full force and effect.

                                       13

<PAGE>

         7.    Consents, Waivers and Non-Contravention. Subject to compliance by
the Purchaser with the terms of this Agreement, each of the Security Holders
(other than the Purchaser) hereby (a) consents to the issuance of the 2001 Notes
and 2001 Warrants to the Purchaser pursuant to the terms of the 2001 Note
Agreement and the adoption of the Articles of Amendment of the Company's
Articles of Incorporation, (b) agrees that such issuance and adoption will not
constitute a breach or default under any of the Series A Purchase Agreement, the
Series B Purchase Agreement, the Series C Purchase Agreement, the Series D-1
Purchase Agreement, the Note Agreement or the Credit Agreement (c) agrees that
the issuance of 522,953 shares of Class A Common Stock to employees of the
Company in connection with the anti-dilution adjustments made in connection with
the transactions contemplated by the Subordinated Note Agreement (the
"Restricted Shares") will not trigger any anti-dilution provisions under the
Series A Purchase Agreement, the Series B Purchase Agreement, the Note
Agreement, the Preferred B Warrants, the Heller Warrant Agreement, the Mezzanine
Warrants, the 2001 Warrants or any other agreement, (d) agrees that the issuance
of the Restricted Shares shall not be deemed to be an issuance of Additional
Shares of Common Stock for purposes of determining the number of Fully Diluted
Shares of Common Stock and (e) waives any preemptive or similar rights arising
as a result of such issuances and adoption that such Security Holder may have
pursuant to any other agreement.

         8.    Miscellaneous.

         (a)   Notices. All notices, demands or other communications to be given
or delivered under or by reason of the provisions of this Agreement will be in
writing and will be deemed to have been given when delivered personally or by
cable, telex, facsimile transmission, telegram or overnight delivery service, or
72 hours after having been mailed by certified or registered mail, return
receipt requested and postage prepaid, to the recipient. Such notices, demands
and other communications will be sent to each party at such party's address set
forth on the Schedule of Preferred Holders, Schedule of Warrant Holders or
Schedule of Common Shareholders, as the case may be.

         (b)   Governing Law. The construction, validity and interpretation of
this Agreement will be governed by the internal laws of the State of Texas
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Texas or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Texas.

         (c)   Entire Agreement. This Agreement and the addendum, exhibits and
schedules hereto embody the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to such subject matter.

         (d)   Amendment and Waiver. No amendment, modification or waiver of
this Agreement or any provision hereof shall be effective unless made by the
written agreement of all of the parties hereto.

         (e)   Further Assurance. Each party to this Agreement hereby covenants
and agrees, without the necessity of any further consideration, to execute and
deliver any and all such further documents and take any and all such other
actions as may be necessary or appropriate to carry

                                       14

<PAGE>

out the intent and purposes of this Agreement and to consummate the transactions
contemplated herein.

         (f)   Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
be one and the same document.

         (g)   Descriptive Headings. The descriptive headings of this Agreement
are inserted for conveniences only and do not constitute a part of this
Agreement.

                                     * * * *

                                       15

<PAGE>

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

                                        COMPANY:

                                        MONITRONICS INTERNATIONAL, INC.

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

                                        SECURITY HOLDERS:

                                        AUSTIN VENTURES III-A, L.P.

                                        By:   AV Partners III, L.P.,
                                              Its General Partner

                                              By: /s/ Blaine F. Wesner
                                                  ------------------------------
                                                    Blaine F. Wesner,
                                                    Authorized Signatory

                                        AUSTIN VENTURES III-B, L.P.

                                        By:   AV Partners III, L.P.,
                                              Its General Partner

                                              By: /s/ Blaine F. Wesner
                                                  ------------------------------
                                                    Blaine F. Wesner,
                                                    Authorized Signatory

                                        AUSTIN VENTURES V. L.P.

                                        By:   AV Partners V, L.P.,
                                              Its General Partner

                                              By: /s/ Blaine F. Wesner
                                                  ------------------------------
                                                    Blaine F. Wesner,
                                                    General Partner

<PAGE>

                                       AUSTIN VENTURES V AFFILIATES FUND, L.P.

                                       By:   AV Partners V. L.P.,
                                             Its General Partner

                                             By: /s/ Blaine F. Wesner
                                                 -------------------------------
                                                   Blaine F. Wesner,
                                                   General Partner

                                       CAPITAL RESOURCE LENDERS II, L.P.

                                       By:   Capital Resource Partners II, L.P.,
                                             Its General Partner

                                             By: /s/ Stephen M. Jenks
                                                 -------------------------------
                                                   Stephen M. Jenks
                                                   General Partner

                                       WINDWARD CAPITAL PARTNERS II, L.P.

                                       By:   Windward Capital GP II, LLC,
                                             Its General Partner

                                             By: /s/ Peter S. Macdonald
                                                 -------------------------------
                                                   Peter S. Macdonald,
                                                   Managing Member

                                       WINDWARD CAPITAL LP II, LLC

                                       By: /s/ Peter S. Macdonald
                                           -------------------------------------
                                             Peter S. Macdonald,
                                             Managing Member

<PAGE>

                                        ABRY PARTNERS IV, L.P.

                                        By:   ABRY Capital Partners, L.P.,
                                              Its General Partner

                                              By:   ABRY Capital Partners, LLC,
                                                    Its General Partner

                                                    By: /s/ Jay Grossman
                                                        ------------------------
                                                        Name: Jay Grossman
                                                        Title:

                                        ABRY INVESTMENT PARTNERSHIP, L.P.

                                        By:   ABRY Investment GP, LLC,
                                              Its General Partner

                                              By: /s/ Jay Grossman
                                                  ------------------------------
                                                  Name: Jay Grossman
                                                  Title:

                                        HULL FAMILY LIMITED PARTNERSHIP, L.P.

                                        By:   James R. Hull Management Trust,
                                              Its General Partner

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

                                                /s/ Robert N. Sherman
                                        ----------------------------------------
                                                    ROBERT N. SHERMAN

                                                /s/ Michael Meyers
                                        ----------------------------------------
                                                    MICHAEL MEYERS

                                                /s/ Stephen Hedrick
                                        ----------------------------------------
                                                    STEPHEN HEDRICK

<PAGE>

                                                /s/ Michael Gregory
                                        ----------------------------------------
                                                    MICHAEL GREGORY

                                        PURCHASER:

                                        THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                        COMPANY

                                        By: /s/ Jeffrey J. Lueken
                                            ------------------------------------
                                        Name:    Jeffrey J. Lueken
                                        Title: Authorized Representative

<PAGE>

                          SCHEDULE OF PREFERRED HOLDERS

Austin Ventures III-A, L.P.
Austin Ventures III-B, L.P.
Austin Ventures V, L.P.
Austin Ventures V Affiliates Fund, L.P.
701 Brazos
Suite 1400
Austin, TX 78701
Facsimile: (512) 476-3952
Attn:  Blaine F. Wesner

Capital Resource Lenders II, L.P.
c/o Capital Resource Partners
85 Merrimac Street
Suite 200
Boston, MA 02114
Facsimile: (617) 723-9819
Attn:  Stephen M. Jenks

Windward Capital Partners II, L.P.
Windward Capital II L.P., LLC
1177 Avenue of the Americas
42nd Floor
New York, NY 10036
Facsimile: (212) 382-6534
Attn: Peter S. Macdonald

ABRY Partners IV, L.P.
ABRY Investment Partnership, L.P.
18 Newbury Street
Boston, MA 02116
Facsimile: (617) 859-7205
Attn: Jay Grossman

<PAGE>

                           SCHEDULE OF WARRANT HOLDERS

Capital Resource Lenders II, L.P.
c/o Capital Resource Partners
85 Merrimac Street
Suite 200
Boston, MA 02114
Facsimile: (617) 723-9819
Attn: Stephen M. Jenks

Austin Ventures III-A, L.P.
Austin Ventures III-B, L.P.
Austin Ventures V, L.P.
Austin Ventures V Affiliates Fund, L.P.
701 Brazos
Suite 1400
Austin, TX 78701
Facsimile: (512) 476-3952
Attn: Blaine F. Wesner

The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI 53202
Facsimile: (414) 299-7124
Attn: Securities Department

<PAGE>

                         SCHEDULE OF COMMON SHAREHOLDERS

1.       Hull Family Limited Partnership, L.P.
         c/o Monitronics International, Inc.
         12801 Stemmons Freeway
         Suite 821
         Dallas, TX 75234
         Facsimile: (972) 919-1985

2.       Michael Meyers
         c/o Monitronics International, Inc.
         12801 Stemmons Freeway
         Suite 821
         Dallas, TX 75234
         Facsimile: (972) 919-1985

3.       Stephen Hedrick
         c/o Monitronics International, Inc.
         12801 Stemmons Freeway
         Suite 821
         Dallas, TX 75234
         Facsimile: (972) 919-1985

4.       Michael Gregory
         c/o Monitronics International, Inc.
         12801 Stemmons Freeway
         Suite 821
         Dallas, TX 75234
         Facsimile: (972) 919-1985

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