LOSS PREVENTION SERVICES INC.

DEALER PROCEDURE MANUAL LOSS PREVENTION SERVICES INC. 2511 Neudorf Rd. Suite E Clemmons, NC 27012 Phone: 800-526-8781 Fax: 888-600-5800 www.lpssecurity.com

TABLE OF CONTENTS INTRODUCTION GETTING STARTED NEW ACCOUNTS Obtaining A New Account Number Communications Sending Test Signals Subscriber Training Service Agreement Making An Account Active UPDATING ACCOUNTS CANCELING ACCOUNTS 1 2 3 3 3 7 7 8 12 12 13 SERVICES OFFERED & PRICING Basic Alarm Monitoring Two Way Voice Video Monitoring Enhanced Call Verification Open/Close Auto-Test Post Alarm Dealer Notification False Alarm Call Tracking Subscriber Billing 14 15 15 16 16 16 16 17 17 17 BILLING PROCEDURES 18

INTRODUCTION Thank you for choosing Loss Prevention Services as a member of your customer service team. In that capacity it is our goal to provide the highest quality professional alarm monitoring service possible that will keep your Subscribers and their assets safe and secure. At the same time and equally important, we will do everything possible to help you keep them as a satisfied customer for many years to come. This manual is provided to illustrate the details of our service program and how best to work with our Central Station in order to achieve the maximum benefits of it. By following these procedures you and your staff will enable us to provide the best possible service that will in turn enable both our companies to grow and prosper. One of the first things you will notice about our service when compared to others is what we call our Smiling Voices style of service. When you or a Subscriber calls Loss Prevention Services, a live Operator will answer the phone in a timely manner and provide a thorough and friendly service. We do not and will not employ voice mail or a computerized prompt-driven answering machine. Please keep this manual handy as a reference and for maximum benefit, we highly recommend that your employees and technicians read, understand and follow the procedures. Again, we appreciate your business and look forward to working with you and your staff. Larry W. McClellan, C.P.P. President NCASLB Lic. #1244-CSA 1

GETTING STARTED In order to establish your account with our company, we ask that you first complete and submit via fax or mail a Dealer Registration Form, a copy of which is provided in this manual. This form provides us with the necessary information we need to properly set up your account in our system. A copy of the form is also available on our website at lpssecurity.com by clicking on the Dealer Login tab at the site. However, in order to access that area of our website you will need to contact our Central Station Manager for confidential User ID and Login codes. Once we receive the Dealer Registration Form, you will be contacted and provided with a confidential Dealer Number and asked to provide us with a secret Password. This establishes a two-fold private identification system for communications with our Central Station and protects the confidentiality of your customer information. While the Dealer Number will remain constant, for the protection of your account information, should you experience employee turnover or someone should attempt access to the information without your authorization, you can change the Password as often as necessary by submitting the change in writing via fax, email or snail-mail. When the registration process is completed a supply of our Service Agreements and other promotional materials will be provided. Additional forms and supplies can be obtained at any time by calling the Central Station and requesting they be mailed or coming by our office to pick them up. We always have a pot of coffee on! Submit Dealer Registration Form Create Dealer Password Get Dealer Number Receive Service Agreements and Promotionals 2

PLACING ACCOUNTS ON OUR SERVICE While we ve tried to simplify the process of placing accounts on our service as much as possible, the long-term success of our relationship with our Dealers and the Subscribers is established in the proper initial installation and programming of the system, the detailed information provided us at the time of installation and the accuracy of the information provided in the Alarm Monitoring Service Agreement. Therefore, to insure the success of our services and the total satisfaction of the Subscribers, we ask that the following procedures be adhered to as closely as possible. In addition, since the Alarm Monitoring Service Agreement provides a majority of the information the installing technician will need to program the control panel to properly communicate with the Central Station, it is recommended that the service agreement be completed by your office staff for the technician prior to their visit to the premises. If that is not possible, the technician will need to follow the procedures as closely as possible from the premises and have an agreement available at the premises for the Subscriber s signature. Obtaining An Account Number Call the LPS Central Station, provide the Operator your confidential Dealer Number and Password and request a new Subscriber account number. Provide the Operator with the name of the account and any special provisions such as two-way voice, video monitoring etc. The Operator will assign an account number and program the monitoring system to receive TEST signals. Communicating With Loss Prevention Services Telephones: Local Voice Line: 336-766-7698 Local Fax Line: 336-766-2841 Toll Free Voice : 800-526-8781 Toll Free Fax: 888-600-5800 Main Office: 336-766-5080 NOTE: All voice communications are digitally recorded. 3

Receiver Telephone Numbers You will be assigned a toll free phone number for your Subscriber s alarm panels to communicate with our receivers when you receive a dealer number and/or an account number from the Operator. Pre-Defined Code Template If most of your panels are programmed similarly, you may arrange a Pre-Defined Code Template with the Central Station. The template will be used to set up your new accounts in the automation software and your most commonly used signals will be automatically placed on all of your accounts. Contact the Central Station Manager to set up a template for your accounts. Multiple templates can be set up as needed. Communication Formats Our receivers and automation software can receive and interpret all of the most commonly used communication formats including Contact ID, SIA, Modem II, 4-2, 4-1, 3-2, 3-1 etc. When programming a panel to communicate with the Central Station, please ensure that you are aware of every signal the panel could possibly send so that you can provide detailed response instructions. To avoid critical time delays, errors and unnecessary communications with your office, it s important that our staff know how you and/or the Subscriber would like us to respond to each type of signal. When an undefined signal or Code Error is received, Operators will try to interpret the signal as best they can and respond accordingly. However, we cannot be held responsible for any erroneous response. The following pages provide reference tables of the industry standard formats of Contact ID and SIA. When using these formats, the control panel can send a variety of signals that are pre-programmed into each brand of control panel. Each brand of panel may be slightly different in regards to the more obscure signals but the most common signals are usually alike. 4

CONTACT ID Fire Events 100 - Medical Alarm 101 - Pendant Transmitter 102 - Fail to Check In 110 - Fire Alarm 111 - Smoke Alarm 112 - Combustion Alarm 113 - Water Flow Sensor Alarm 114 - Heat Sensor Alarm 115 - Pull Station Alarm 116 - Duct Sensor Alarm 117 - Flame Sensor Alarm 118 - Near Alarm Panic Events 120 - Panics Alarms 121 - Duress 122 - Silent Panic 123 - Audible Panic 124 - Duress Access Grant 125 - Duress Egress Grant Burglary Events 130 - Burglar Alarms 131 - Perimeter Burglary 132 - Interior Burglary 133-24 Hour Burglary 134 - Entry/Exit Burglary 135 - Day/Night Burglary 136 - Outdoor Burglary 137 - Tamper/Control Panel 138 - Near Alarm 139 - Intrusion Verifier General Events 140 - ACS Zone Alarm 141 - Polling Loop Open Alarm 142 - Polling Loop Short Alarm 143 - Expansion Module Failure 144 - Sensor Tamper 145 - Expansion Module Tamper 146 - Silent Burglary 24 Hour Non-Burglary Events 150-24 Hour Auxiliary 151 - Gas Detection 152 - Refrigeration 153 - Loss of Heat 154 - Water Leakage 155 - Foil Break 156 - Day Trouble 157 - Low Gas Level 158 - High Temperature 159 - Low Temperature 161 - Loss of Air Flow 162 - Carbon Monoxide Detected 163 - Tank Level System Events 300 - System Trouble 301 - AC Loss 302 - Low System Battery 303 - Bad RAM Checksum 304 - Bad ROM Checksum 305 - System Reset 306 - Program Tamper 307 - Self-Test Failure 308 - System Shutdown 309 - Battery Test Failure 310 - Ground Fault Sounder/Relay 311 - Battery Missing/Dead 312 - Power Supply Overcurrent 313 - System Engineer Reset Peripheral Events 320 - ACS Relay Supervision 321 - Bell 1 Trouble 322 - Bell 2 Trouble 323 - Alarm Relay Trouble 324 - Trouble Relay Trouble 325 - Reversion Relay Trouble 326 - Notification Appliance Ckt # 3 327 - Notification Appliance Ckt # 4 330 - System Peripheral Trouble 331 - Polling Loop Open Trouble 332 - Polling Loop Short Trouble 333 - RF Receiver Failure Trouble 334 - Repeater Failure Trouble 335 - Printer Paper Out Trouble 336 - Local Printer Trouble 337 - Expansion Module DC Loss Trouble 338 - ACS Module Low Battery 339 - ACS Module Reset 341 - Expansion Module Tamper 342 - ACS Module AC Loss 343 - ACS Module Self Test Failure 344 - RF Receiver Jam Detected Communicator Events 350 - Communication Trouble 351 - Main Dialer Trouble 352 - Backup Dialer Trouble 353 - Radio Transmitter Trouble 354 - ACS RS232 Failure 355 - Loss of Radio Supervision 356 - Central Radio Polling Trouble 357 - Radio Transmitter VSWR Trouble Loop Events 370 - Protection Loop Trouble 371 - Protection Loop Open 372 - Protection Loop Short 373 - Fire Loop Trouble 374 - Exit Alarm Sensor Events 380 - Global Trouble 381 - RF Loss of Supervisory 382 - RPM Loss of Supervisory 383 - RPM Sensor Tamper 384 - RF Transmitter Low Battery 385 - Smoke High Sensor Maint. 386 - Smoke Low Sensor Maintenance Signal 387 - Intrusion High Sensor Trouble 388 - Intrusion Low Sensor Trouble 389 - Detector Self Test Fail Trouble 391 - Sensor Watch Failure 392 - Drift Compensation Error 393 - Maintenance Alert Open/Close Events 400 - Open/Close 401 - Open/Close by User 402 - Group Open/Close 403 - Power Up Armed or Auto Arm 404 - Late Opening 405 - Open/Close Delayed by User 406 - Cancel by User 407 - Remote Arm/Disarm (Download) 408 - Quick Arm 409 - Keyswitch Open/Close Remote Access Events 411 - Download Call Back Requested 412 - Successful Download Access 413 - Unsuccessful Download Access 414 - System Shutdown by Download 415 - Dialer Shutdown by Download Special Events 421 - Access Denied by User 422 - Access Granted by User 423 - Door Force Open 424 - Egress Denied 425 - Egress Granted 426 - Door Prop Open 427 - Access Point DSM Trouble 428 - Access Point RTE Trouble 429 - ACS Program Entry 430 - ACS Program Exit 431 - ACS Threat Change 432 - Access Point Relay/Trigger Fail 433 - Access Point DSM Shunt/ Unshunt 434 - Access Point RTE Shunt 441 - Armed Stay 442 - Keyswitch Armed Stay 450 - Open/Close by Exception 451 - Early Open/Close 452 - Late Open/Close 453 - Fail to Open 454 - Fail to Close 455 - Auto Arm Fail 456 - Open/Close Partial Arm 457 - Exit Error by User 458 - User on Premisis 459 - Recent Close 461 - Wrong Code Entry 462 - Legal Code Entry Bypass Events 501 - ACS Reader Disable 520 - ACS Relay Disable 521 - Bell 1 Bypass 522 - Bell 2 Bypass 523 - Alarm Relay Bypass 524 - Auxiliary Relay Bypass 525 - Reversing Relay Bypass 530 - System Peripheral Disable 550 - Communication Disable 551 - Main/Backup Dialer Bypass 552 - Radio Transmitter Disable 560 - Communication Disable 570 - Zone Bypass 571 - Fire Zone Bypass 572-24 Hour Zone Bypass 573 - Burglary Zone Bypass 574 - Group Bypass Test/Misc Events 601 - Manual Trigger Test 602 - Communicator Test 603 - Periodic Ratio Test 604 - Fire Test 605 - Status Follows 606 - Listen-in Follows 607 - Burglary Walk Test 608 - Off Normal Test 609 - Video Transmitter Active 611 - Fire Walk Test - Point Tested 612 - Fire Walk Test - Point Not Tested 613 - Intrusion Zone Walk Tested 614 - Fire Zone Walk Test 615 - Panic Zone Walk Tested 616 - Service Request (FA145C Service Button) Trouble Event Log/Buffer Events 621 - Event Log Reset 622 - Event Log 50% Full 623 - Event Log 90% Full 624 - Event Log Overflow 625 - Time/Date Reset 626 - Time/Date Inaccurate 627 - Program Mode Entry Trouble 628 - Program Mode Exit Trouble 629-1 1/3 Day No Read Log Schedule Related Events 630 - Schedule Change Trouble 631 - Exception Shedule Change 632 - Access Schedule Change 641 - Senior Watch Trouble 642 - Latch-Key Supervision

SIA FORMAT CLASSIFICATIONS AR - AC Restoral AT - AC Trouble BA - Burglary Alarm BB - Burglary Bypass BC - Burglary Cancel BH - Burglary Alarm Restore BJ - Burglary Trouble Restore BR - Burglary Restoral BS - Burglary Supervisory BT - Burglary Trouble BU - Burglary Unbypass BX - Burglary Test CA - Automatic Closing CE - Closing Extend CF - Forced Closing CG - Close Area CI - Fail to Close CJ - Late to Close CK - Early Close CL - Closing Report CP - Automatic Closing CT - Late to Open CW - Was Force Armed CZ - Point Closing DC - Access Closed DD - Access Denied DF - Door Forced DG - Access Granted DK - Access Lockout DO - Access Open DR - Door Restoral DS - Door Station DT - Access Trouble DU - Dealer ID ER - Expansion Restoral ET - Expansion Trouble FA - Fire Alarm FB - Fire Bypass FH - Fire Alarm Restore FI - Fire Test Begin FJ - Fire Trouble Restore FK - Fire Test End FR - Fire Restoral FS - Fire Supervisory FT - Fire Trouble FU - Fire Unbypass FX - Fire Test FY - Missing Fire Trouble GA - Gas Alarm GB - Gas Bypass GH - Gas Alarm Restore GJ - Gas Trouble Restore GR - Gas Restoral GS - Gas Supervisory GT - Gas Trouble GU - Gas Unbypass GX - Gas Test HA - Holdup Alarm HB - Holdup Bypass HH - Holdup Alarm Restore HJ - Holdup Trouble Restore HR - Holdup Restoral HS - Holdup Supervisory HT - Holdup Trouble HU - Holdup Unbypass JA - User Code Tamper JD - Date Changed JH - Holiday Changed JL - Log Treshold JO - Log Overflow JR - Schedule Executed JS - Schedule Changed JT - Time Changed JV - User Code Changed JX - User Code Deleted KA - Heat Alarm KB - Heat Bypass KH - Heat Alarm Restore KJ - Heat Trouble restore KR - Heat Restoral KS - Heat Supervisory KT - Heat Trouble KU - Heat Unbypass LB - Local Program Begin LD - PROGRAM -Access Code Incorrect LE - Listen-in Ended LF - Listen-in Begin LR - Phone Line Restoral LS - Local program Success LT - Phone Line Trouble LU - Local Program Fail LX - Local Programming Ended MA - Medical Alarm MB - Medical Bypass MH - Medical Alarm Restore MJ - Medical Trouble Restore MR - Medical Restore MS - Medical Supervisory MT - Medical Trouble MU - Medical Unbypass NF - Forced Perimeter Arm NL - Perimeter Armed OA - Automatic Opening OC - Cancel Report OG - Open Area OI - Fail to Open OJ - Late Open OK - Early Open OP - Opening Report OR - Disarm from Alarm OT - Late to Close OZ - Point Opening PA - Panic Alarm PB - Panic Bypass PH - Panic Alarm Restore PJ - Panic Trouble Restore PR - Panic Restoral PS - Panic Supervisory PT - Panic Trouble PU - Panic Unbypass QA - Emergency Alarm QB - Emergency Bypass QH - Emergency Alarm Restore QJ - Emergency Trouble Restore QR - Emergency Restoral QS - Emergency Supervisory QT - Emergency Trouble QU - Emergency Unbypass RA - Remote Programmer Call Failed RB - Remote Program Begin RC - Relay Close RD - Remote Program Denied RN - Remote Reset RO - Relay Open RP - Automatic Test RR - Power Up RS - Remote Program Success RT - Data Lost RU - Remote program Fail RX - Manual Test SA - Sprinkler Alarm SB - Sprinkler Bypass SH - Sprinkler Alarm Restore SJ - Sprinkler Trouble Restore SR - Sprinler Restoral SS - Sprinkler Supervisory ST - Sprinkler Trouble SU - Sprinlker Unbypass TA - Tamper Alarm TB - Tamper Bypass TE - Test End TR - Tamper Restoral TS - Test Start TU - Tamper Unbypass TX - Test Report UA - Untyped Zone Alarm UB - Untyped Zone Bypass UH - Untyped Alarm Restore UJ - Untyped Trouble Restore UR - Untyped Zone Restoral US - Untyped Zone Supervisory UT - Untyped Zone Trouble UU - Untyped Zone Bypass UX - Undefined UY - Untyped Missing trouble UZ - Untyped Missing Alarm VI - Printer Paper In VO - Printer Paper Out VR - Printer Restore VT - Printer Trouble VX - Printer Test VY - Printer Online VZ - Printer Offline WA - Water Alarm WB - Water Bypass WH - Water Alarm Restore WJ - Water Trouble Restore WR - Water Restoral WS - Water Supervisory WT - Water Trouble WU - Water Unbypass XE - Extra Point XF - Extra RF Point XI - Sensor Reset XR - Transmitter Battery Restoral XT - Transmitter Battery Trouble XW - Forced Point YB - Busy Seconds YC - Communications Fail YD - Receiver Line Card Trouble YE - Receiver Line Card Restored YF - Parameter Checksum Fail YG - Parameter Changed YK - Communications Restoral YM - System Battery Missing YN - Invalid Report YO - Unknown Message YP - Power Supply Trouble YQ - Power Supply Restored YR - System Battery Restoral YS - Communications Trouble YT - System Battery Trouble YW - Watchdog Reset YX - Service Required YY - Status Report ZA - Freeze Alarm ZB - Freeze Bypass ZH - Freeze Alarm Restore ZJ - Freeze Trouble Restore ZR - Freeze Restoral ZS - Freeze Supervisory ZT - Freeze Trouble ZU - Freeze Unbypass

SENDING TEST SIGNALS After the account number and Central Station Receiver phone number is programmed in the control panel, transmit one non-emergency test signal to the Central Station. Call the Central Station to confirm proper receipt of the test signal. When the signal is successfully transmitted, test and confirm ALL signals. IMPORTANT: To help ensure customer satisfaction, all new accounts MUST be fully tested before activated for full service. As soon as possible after a successful test of all signals, the Alarm Monitoring Service Agreement must be submitted to the Central Station to activate the service. (See Making An Account Active) SUBSCRIBER TRAINING Critical to the long-term success of our relations with the Subscriber and their ability to gain maximum benefit from their system and avoid any fines as a result of false alarms, is their complete understanding of their responsibility in the use of their monitored alarm system. A Subscriber s Procedures handout for this purpose is available from our offices upon request. However, in any event, the Subscriber must sign and receive a copy of the Service Agreement and fully understand the following: The phone number of the Central Station. Their secret password. How to reset their panel. The Call-List member rules. How to test their system. How to update account information. Their local regulations and/or any fines for false alarms. 7

COMPLETING THE ALARM MONITORING SERVICE AGREEMENT The Alarm Monitoring Service Agreement is an integral part of the three-way obligation between the Subscriber, the Installation Company and Loss Prevention Services. It not only satisfies State regulations regarding Consumer Disclosure but insures the protection of the terms and conditions included in the agreement. The following is a step-by-step illustration of how to properly complete our service agreement. ***VERY IMPORTANT*** You and/or your technicians must print clearly and legibly in every section of the service agreement. When our data entry personnel receive a service agreement, if there is any question about the information written in, they must call your office for clarification, which can take up your valuable time. 1 2 3 5 4 6 7 9 8 10 8

Section 1 Date/Account Number Date Enter the date that the Subscriber signs the agreement. The account will become active in our system within 24 hours of our having received a properly completed service agreement with no unresolved discrepancies. Account # - Enter an account number assigned to you by our Central Station. (See New Accounts section for information on obtaining a new account number.) Section 2 - Subscriber/Premises Information Name Print clearly the name of the residence owner. If it is a business print the name of the business as recognized by the responding emergency authorities. Address, City, State & Zip Print the physical address of the protected site. P.O. Boxes can not be accepted. Include any secondary address information such as suite or apartment numbers or letters. Premises Phone # - Print clearly the number our Operators will use to contact the Premises when verification of an alarm is required. Be sure to always include an area code. Subscriber Password - Print clearly the Subscriber s password. This will be used to verify the identity of authorized individuals. It should be something unique that s easy to remember. Subscriber Signature - ***VERY IMPORTANT*** The Subscriber must sign here. The account cannot be put online without a Subscriber signature. Section 3 Installer Information Company Name & Number Print the name of your company and your assigned dealer number. Service agreements without a valid dealer number cannot be accepted. Address, City, State & Zip Print your business address. This should be the address by which your Subscriber will submit payment to you. Telephone Number Print the telephone number your Subscriber should use to contact you for service or inquiries. Dealer/Installer Print Full Name The installer who signs the agreement should print their name here. Installer s Signature - ***VERY IMPORTANT*** The installer must sign here. The account cannot be made active without an installer signature. 9

Section 4 Zone List Reporting Signal or Zone Print clearly the reporting signal the Central Station will receive. Double-check your test signals history to ensure your entries are accurate. (See New Accounts section for more information.) Alarm Type Print clearly the type of alarm i.e. fire, burg, medical etc. Zone Description Print clearly a description of the protected zone. Use descriptions that responding authorities will be able to identify easily in an emergency situation. Avoid abbreviations. Verify (Check for Yes) - If Verification is required for a zone, indicate by placing a check-mark inside the brackets. By checking for Verification, Operators will call the Premises first in the event of an alarm. If Verification is not checked Operators will dispatch authorities first. For Fire & Medical alarms, Operators will call the Premises after having dispatched. For Burglar, Panic, Duress, Hold-up and signals of the like...operators will not call the Premises at all. ***NOTE*** - In accordance with NFPA 72 Section 8.2.7.1.2, Operators cannot verify commercial Fire alarms. Section 5 Panel Information Panel Type Print clearly the brand and model number of the panel being used. Reporting Format Print clearly the type of format being used i.e. 4x2, Contact ID or SIA. If more than one format will be used, show each type. ***(Please ensure that there are no identical zones when using multiple formats.)*** Panel Ph # Print clearly the phone number that the panel will use to communicate with the Central Station. Our software can ensure that the signal originated from the proper premises, avoiding a false dispatch. UL Certified System Please indicate with a check-mark whether the installation is a Certified installation. Section 6 Premises Type Indicate with a check mark whether the premises is a residence or a business. If other, print clearly what type i.e. church, school etc. 10

Section 7 Supplemental Zone Sheet Attached We provide supplemental zone sheets in the event that the service agreement does not provide sufficient space for larger accounts. Please indicate with a check mark as to whether a supplemental zone sheet is being used for this account or not. This sheet must be sent with the Service Agreement. Section 8 Special Instructions Use this field to notate any alternative information required i.e. directions, pet information, gated community info etc. Section 9 Authorized Individuals To Be Notified Here you will clearly print the full name and telephone number of individuals able and willing to respond to the premises in the event of an alarm. You may only have three active call list members at any time however you may list as many telephone numbers as necessary for each call list member. Only individuals meeting the following criteria can be accepted: A. They must be aware they are on the call list. B. They must know the keypad code and know how to disarm/arm the alarm system. C. They must know the Subscriber s password. D. They must have a key to the premises. E. Their telephone number must be in the same area code as the premises. F. They must be willing to respond if at all possible. NOTE* - The purpose of a call list member is to be able to quickly respond in the event of an emergency and (if applicable) contact the owner of the premises to alert them as to the situation. Section 10 Local Authorities To Be Notified Here you will clearly print the name of the appropriate department having jurisdiction of the protected premises. The telephone number should be clearly printed with area code. If you are unsure about jurisdiction, call local authorities to verify accuracy. Many municipalities have the same dispatch number for all types of emergency s. If so, please indicate by writing the same number by each or writing quotes or the word same in each category following the first. If a category phone number is left blank, data entry personnel are required to call your office to clarify. 11

MAKING AN ACCOUNT ACTIVE Once the alarm system is installed, the Subscriber has been trained and the Service Agreement has been fully completed and executed with the Subscriber and Dealer/Installer signatures, fax or email a copy of the Service Agreement and any supplemental zone sheets to the Central Station. Once central receives the Service Agreement the account is made active within 24 hours. Mail Fully Executed Service Agreement As soon as possible after completion of the installation, mail a fully executed original of the Service Agreement to the LPS Main office at: Loss Prevention Services Inc. 2511 Neudorf Rd Suite E Clemmons, NC 27012 UPDATING AND MAINTAINING ACCOUNTS Placing An Account In Test Mode To place an account in test mode, contact Central Station and provide your confidential dealer number and password, the account number of the system to be tested and the expected duration of the test. If necessary, specific zones may be placed on test leaving all other zones active. Operators will place the account in a test mode that will automatically expire at the pre-designated time. You must call to extend the test mode if needed to avoid an unnecessary dispatch. Account Information Updates To insure accuracy, all updates to any account information must be made in writing. Updates can be faxed or communicated via Email at: update@lpssecurity.com. Dealers will be notified when a Subscriber provides update information to the Central Station. 12

CANCELLING ACCOUNTS To avoid confusion and misunderstandings, written instructions to cancel service on a subscriber is required. A notice of cancellation, identifying the account by name and number, faxed to the Central Station will suffice. Account cancellations may occur at any time, provided written notice is submitted on a timely basis. All accounts listed with an invoice should be reviewed to determine if the service should continue and a notice of cancellation may accompany payment of the invoice. ***EXTREMELY IMPORTANT*** When an account is canceled, the control panel must be modified to discontinue communications with the Central Station. If a canceled account dialer is not disabled within 30 days, and/or signals are continuing to be received at the Central Station, a nominal fee to cover phone expenses may be assessed on the Dealer s account until signals are no longer received. Invoice credits may be extended upon cancellation of cash accounts less than 60 days old, in lieu of cash. Credits or refunds cannot be extended on new or renewal accounts over 60 days old, or accounts under any Free Service programs. Loss Prevention Services, Inc. reserves the right, without liability, to terminate monitoring services, in accordance with regulatory guidelines, to any and all Subscribers of any installation company who fails to maintain a satisfactory invoice payment history. Said terminations may include Subscribers with unexpired terms. 13

SERVICES OFFERED AND PRICING Basic Alarm Monitoring Includes: 24 hour monitoring of all incoming signals (except Open/Close), with response where required, to include part or all of the following actions, not necessarily in this order: VERIFY: Calling the protected Premises to ascertain if the incoming signal is an actual emergency. DISPATCH: Retransmitting/calling the authorities to request response by authorities for assistance at the protected premises. CALL LIST: Notifying a key-holder of the situation and requesting they respond with authorities to assist with the property and/or alarm system in the absence of the premises owner. Reports The following types of reports are available via email, fax or direct mail. They can be sent daily, weekly or monthly as well as on demand. ALL EVENTS An all events report will include all three of the following types of reports. EMERGENCY An Emergency Signals Report will include details on any type of alarm that required dispatch such as Fire, Burglary, Panic, Hold Up, Medical etc. NON-EMERGENCY A Non-Emergency report will include details on any type of signal that does not require dispatch of authorities such a Trouble and Supervisory signals. (This report also includes open/close signals.) OPEN/CLOSE An Open/Close report includes detail on arming and disarming signals and details on response where required. Basic monitoring also includes 24-hour availability of our staff to place accounts in test mode, check history, data entry, updates and records keeping. 14

BASIC MONITORING RATES The chart below illustrates a compounded basic rate percentage discount for each increment of 200 active accounts online. % DISCOUNT NUMBER OF ACTIVE ACCOUNTS ONLINE ANNUAL RATE QUARTERLY RATE 0 Up to 200 $60.00 $18.00 2 200 $58.80 $17.64 6 400 $56.40 $16.92 11 600 $53.40 $16.02 18 800 $49.20 $14.76 26 1000 $44.40 $13.32 35 1200 $39.00 $11.70 44 1400 $33.60 $10.08 53 1600 $28.20 $8.46 61 1800 $23.40 $7.02 69 2000+ $18.60 $5.58 ADDITIONAL MONITORING SERVICES The following illustrates several monitoring services we offer that can enhance the value of alarm services to the Subscribers and increase revenues for Dealers. Many available at no additional charge. Two-Way Voice Monitoring [NO ADDITIONAL CHARGE] Two-Way Voice monitoring requires a specific type of account number. Please advise the Operator when requesting an account number that the account is a Two-Way Voice account. 15

Video Monitoring Video Verification [NO ADDITIONAL CHARGE] Our automation software is capable of accommodating the latest video monitoring software packages and can be integrated into any account video equipment to automatically provide images of an alarm condition for alarm verification. Video Guard Tour Service [$1.00 Per Tour] With a provided schedule, operators can log on via an Internet connection to a video system and visually monitor activities at a particular site then respond as prescribed. ENHANCED CALL VERIFICATION [NO ADDITIONAL CHARGE] As an added feature to avoid false alarm dispatches Operators can call up to two additional phone numbers to attempt alarm verification prior to dispatching authorities. This feature should not to be confused with the Key-Holder Call List. Enhanced Call Verification procedures occur prior to dispatch whereas calls to the Call List occur after dispatch. Enhanced Call Verification has proven to reduce false dispatches by up to 40%. OPEN/CLOSE REPORTS & RESPONSE REPORTS LOG ONLY ACTION RESPONSE NONE FREE FREE EMAILED FREE FREE FAXED MONTHLY $5.00 $10.00 FAXED WEEKLY $10.00 $15.00 MAILED MONTHLY $15.00 $20.00 MAILED WEEKLY $20.00 $25.00 AUTO TEST AUTO TEST MONITORING RATES Weekly or Monthly Daily No Charge $5.00 per Month 16

Post Alarm Dealer Notification Operators can call or page someone outside of the normal Verify, Dispatch and Call List procedures listed in Basic Monitoring. Post Alarm Call [DOUBLE MONITORING RATE] Operators will call the Dealer following the completion of any alarm requiring Operator action to provide details regarding the alarm. Post Alarm Page [MONITORING RATE + HALF] Our automation system can be set up to send a page or text message following the receipt of any alarm. FALSE ALARM CALL TRACKING (F.A.C.T.) [$2.00 Per Month] To avoid excessive false alarm fines imposed by many municipalities, which can cause Subscribers to cancel their service, our automation software offers a feature that enables our Central Station to track a pre-determined number of false alarms for a particular account. Once the pre-determined number of false alarms is met, the Operator will notify the Dealer and/or Subscriber, at which point measures can be taken to avoid additional false alarms where a fine may be imposed. FALSE ALARMS = HAPPY CUSTOMER SUBSCRIBER BILLING [$1.00 Per Account Per Billing Cycle] We can prepare, process and mail Subscriber invoices, statements and payments for our Dealers. Payments can be directed to the Dealer or processed net to the Dealer through our bank account. 17

BILLING PROCEDURES New accounts are invoiced at the end of each month. "First Year Free Service" coupons, available through selected equipment distributors, should not be submitted until receipt of the corresponding invoice. Renewals are invoiced in the month preceding the agreement anniversary date. "Free Service" coupons are NOT accepted on renewals. Invoices are payable upon receipt and are subject to a 1.5% late charge if not paid within 30 days of the invoice date. CENTRAL STATION STAFFING Last but by far not least, we have an exceptional staff of Operators. All Operators are carefully screened prior to employment, state licensed, and extensively trained in our Smiling Voices customer service commitment to our Dealers and Subscribers before being placed in live operations. Our Operator turnover is far below the industry average primarily due to our above-average wage levels and exceptional employee benefit plan. They are licensed by the North Carolina Alarm Systems Licensing Board and maintain a level of competency through the N.C. Licensing Board s mandatory continuing education training requirements. 18