1. When lactose is absent, LAC repressor binds tightly to the operator, preventing RNA polymerase from binding and causing transcription
2. When lactose is present, LAC repressor lets go of the operator, allows RNA polymerase to transcribe gene
3. When glucose is present, cAMP attaches to promoter increasing rate of transcription
4. When glucose is not present, cAMP is not made so transcription occurs at a slower rate