Document:

Amendment No.1 to Amended and Restated Credit Agreement

 Exhibit 10.3 
 AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT 
 This Amendment No. 1 to Amended and
Restated Credit Agreement (this “Amendment”) dated as of January 11, 2007, is made among TRX, INC., a Georgia corporation (the “Borrower”), each of the Subsidiaries of the Borrower signatory hereto
(collectively, the “Guarantors”), and BANK OF AMERICA, N.A. (the “Lender”). 
 W I T N E S S E T H:

 WHEREAS, the Borrower and the Lender have entered into that certain Amended and Restated Credit Agreement dated as of
November 7, 2005 (the “Credit Agreement”; capitalized terms used in this Amendment not otherwise defined herein shall have the definition given thereto in the Credit Agreement), pursuant to which the Lender has made available
to the Borrower a revolving credit facility, including a letter of credit subfacility; 
 WHEREAS, each of the Guarantors has entered
into a Guaranty pursuant to which it has guaranteed the payment and performance of the obligations of the Borrower under the Credit Agreement and the other Loan Documents; and 
 WHEREAS, the Borrower has advised the Lender that it desires to amend certain provisions of the Credit Agreement as set forth below and the Lender
is willing to effect such amendments on the terms and conditions contained in this Amendment; 
 NOW, THEREFORE, in consideration of
the premises and further valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  

	1.	Amendment to Credit Agreement. Subject to the terms and conditions set forth herein, and in reliance upon the representations and warranties of the Borrower made
herein, the Credit Agreement is hereby amended as follows: 

  

	 	(a)	The existing definitions of “Consolidated Senior Leverage Ratio”, “Subordination Agreement” and “Subordinated Indebtedness” are
deleted from Section 1.01 of the Credit Agreement and the following definitions are inserted in lieu thereof: 

 “Consolidated Senior Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness (including the Obligations and excluding any portion of Subordinated
Indebtedness that by its terms or by the terms of any instrument or agreement relating thereto does not mature on demand or within one year from the date of determination) as of such date to (b) Consolidated EBITDA for the Measurement
Period most recently ended. Notwithstanding the foregoing, for the purpose of computing the Consolidated Senior Leverage Ratio for each of the four Measurement Periods following the date of any Acquisition, Consolidated EBITDA shall include the
results of operations of the Person or assets so acquired on Pro Forma Basis to the extent information in sufficient detail concerning the historical results of such Person or assets so acquired is reasonably available. 

 “Subordination Agreement” means, collectively, (a) the Hi-Mark
Subordination Agreement, and (b) each other agreement now or hereafter in effect that subordinates the payment and performance of any Indebtedness (including any Permitted Parent Subordinated Indebtedness) to the Obligations, including any such
provisions contained within the instrument or agreement evidencing such Indebtedness. 
 “Subordinated
Indebtedness” means (a) any Permitted Parent Subordinated Indebtedness, (b) so long as the Hi-Mark Subordination Agreement is in effect, the Hi-Mark Note, and (c) any other Indebtedness that is subordinated to the Obligations
in a manner acceptable to Lender in its sole discretion; provided, that such term shall not include the Seller Indebtedness. 
  

	 	(b)	The existing definition of “Convertible Notes” is deleted from Section 1.01 of the Credit Agreement and all references to the Convertible Notes are
deleted from the Credit Agreement wherever such references appear. 

  

	 	(c)	The following definitions are added to Section 1.01 of the Credit Agreement in the appropriate alphabetical positions therein: 

 “Consolidated Fixed Charge Coverage Ratio” means, with respect to the Borrower and its Subsidiaries for any Measurement
Period, the ratio of (a) the remainder of (i) Consolidated EBITDA, minus (ii) Non-Financed Capital Expenditures during such Measurement Period, minus (iii) 50% of the aggregate amount of Restricted Payments made
pursuant to Section 7.06(e) during such Measurement Period, to (b) Consolidated Fixed Charges. 
 “Consolidated Fixed Charges” means, for any period, the sum of (a) the principal amount of Indebtedness (including the principal portion of any Attributable Indebtedness and excluding Obligations under the Loan
Documents) of the Borrower and its Subsidiaries that is paid or required to be paid during such period and (b) Consolidated Interest Charges that are paid or required to be paid during such period. 
 “Cost of Acquisition” means, with respect to any Acquisition, as at the date of entering into any agreement therefor, the
sum of the following (without duplication): (i) the value of the Equity Interests of the Borrower or any Subsidiary to be transferred in connection therewith, (ii) the amount of any cash and fair market value of other property (excluding
property described in clause (i) and the unpaid principal amount of any debt instrument) given as consideration, (iii) the amount (determined by using the face amount or the amount payable at maturity, whichever is greater) of any
Indebtedness incurred, assumed or acquired by the Borrower or any Subsidiary in connection with such Acquisition, (iv) all additional purchase price amounts in the form of earnouts and other contingent obligations that should be recorded on the
financial statements of the Borrower and its Subsidiaries in accordance with GAAP, and (v) the aggregate fair market value of all other consideration given by the Borrower or any 

  

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Subsidiary in connection with such Acquisition. For purposes of determining the Cost of Acquisition for any transaction, (A) the Equity Interests of the
Borrower shall be valued (I) in the case of any Equity Interests then designated as a national market system security by the National Association of Securities Dealers, Inc. (“NASDAQ”) or listed on a national securities
exchange, the average of the last reported bid and ask quotations or the last prices reported thereon, and (II) with respect to any other Equity Interests, as determined by the Board of Directors of the Borrower and, if requested by the Lender,
determined to be a reasonable valuation by the independent public accountants referred to in Section 6.01(a), (B) the Equity Interests of any Subsidiary shall be valued as determined by the Board of Directors of such Subsidiary and,
if requested by the Lender, determined to be a reasonable valuation by the independent certified public accountants referred to in Section 6.01(a), and (C) with respect to any Acquisition accomplished pursuant to the exercise of
options or warrants or the conversion of securities, the Cost of Acquisition shall include both the cost of acquiring such option, warrant or convertible security as well as the cost of exercise or conversion. 
 “Hi-Mark” means Hi-Mark, LLC, a Delaware limited liability company. 
 “Hi-Mark Acquisition” means the acquisition by the Borrower of substantially all of the assets of Hi-Mark on the terms
set forth in the Hi-Mark Asset Purchase Agreement (without any amendment to, or waiver of, any of the material terms or conditions thereof not approved by the Lender). 
 “Hi-Mark Asset Purchase Agreement” means the Asset Purchase Agreement dated as of December 7, 2006, among the
Borrower, Hi-Mark, Hi-Mark Travel Systems, Inc., Integrated Profitmark Corporation, LLC, Kevin Austin, Diane Austin and Charles Bradsher. 
 “Hi-Mark Note” means the Promissory Note from the Borrower to Hi-Mark in an original aggregate principal amount of $7,000,000, which promissory note shall be in form and substance acceptable to the
Lender. 
 “Hi-Mark Subordination Agreement” means an Intercreditor and Subordination Agreement dated as of
the date of the Hi-Mark Note between Hi-Mark and the Lender, which agreement shall be in form and substance acceptable to the Lender. 
 “Measurement Period” means, with respect to any date, the most recently ended four consecutive fiscal quarter period of the Borrower for which financial statements have been or were required to have
been delivered to the Lender pursuant to Section 6.01(a) or (b) on or prior to such date. 
 “Non-Financed Capital Expenditure” means a Capital Expenditure except to the extent paid for with the proceeds of casualty insurance or Indebtedness described in Section 7.03(b) or (e). 
  

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 “Pro Forma Basis” means, with respect to any transaction or event, to
give effect to such transaction or event as if such transaction or event occurred on the first day of the applicable Measurement Period. Any such calculation shall be made in good faith by the Borrower pursuant to methodology satisfactory to the
Lender and, upon request of the Lender, shall be set forth in an officer’s certificate furnished to the Lender showing such calculation (and the methodology used) in reasonable detail (with supporting schedules as to the results of operations
of the Person or assets acquired, if applicable). 
  

	 	(d)	Section 7.02 of the Credit Agreement is amended to (i) delete the word “and” at the end of clause (f), (ii) delete the period at the end of clause
(g) and insert a semicolon and the word “and” in lieu thereof, (iii) delete the last paragraph in its entirety, and (iv) insert a new clause (h) that reads as follows: 

 “(h) Acquisitions permitted by Section 7.15.” 
  

	 	(e)	Section 7.03 of the Credit Agreement is amended to delete the existing clause (f) in its entirety and insert the following in lieu thereof:

 “(f) the Seller Indebtedness, Permitted Parent Subordinated Indebtedness and, so long as the Hi-Mark
Subordination Agreement is in effect, the Hi-Mark Note;” 
  

	 	(f)	Section 7.06 of the Credit Agreement is amended to delete the existing clause (e) in its entirety and insert the following in lieu thereof:

 “(e) the Borrower may repurchase shares of its common stock; provided, that (i) the amount
of repurchases made pursuant to this clause (e) while this Agreement is in effect shall not exceed $10,000,000 in the aggregate, and (ii) the Borrower would have been in compliance with the covenants set forth in Section 7.13
as of the Measurement Period most recently ended after giving effect to such repurchase on a Pro Forma Basis.” 
  

	 	(g)	Section 7.13 of the Credit Agreement is amended to add a new subsection (c) that reads as follows: 

 “(c) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal
quarter of the Borrower to be less than 1.20 to 1.00.” 
  

	 	(h)	A new Section 7.15 that reads as follows is added to the Credit Agreement: 

 “7.15 Acquisitions. Consummate any Acquisition, unless (i) the Person to be (or whose assets are to be) acquired does not oppose such Acquisition and the line or lines of business of the Person to be
acquired are substantially the same as one or more line or lines of business conducted by the Borrower and its Subsidiaries, or substantially related or 

  

 4 

 
incidental thereto, (ii) no Default or Event of Default shall have occurred and be continuing either immediately prior to or immediately after giving
effect to such Acquisition, (iii) the Person acquired shall be a wholly-owned Subsidiary, or be merged into the Borrower or a wholly-owned Subsidiary, immediately upon consummation of the Acquisition (or if assets are being acquired, the
acquirer shall be the Borrower or a wholly-owned Subsidiary), (iv) after giving effect to such Acquisition, the aggregate Costs of Acquisition for all Acquisitions occurring on or after December 31, 2006 (other than the Hi-Mark
Acquisition) shall not exceed $12,500,000, and (v) the Borrower would have been in compliance with the covenants set forth in Section 7.13 as of the Measurement Period most recently ended after giving effect to such Acquisition on a
Pro Forma Basis.” 
  

	 	(i)	The existing Exhibit B to the Credit Agreement is deleted in its entirety and Exhibit A attached hereto is inserted in lieu thereof. 

  

	2.	Effectiveness; Conditions Precedent. The amendments herein provided shall be effective (as of the date of this Amendment) upon the satisfaction of the following
conditions precedent: 

  

	 	(a)	The Lender shall have received each of the following documents or instruments in form and substance acceptable to the Lender: 

  

	 	(i)	one or more counterparts of this Amendment, duly executed by the Borrower and each Guarantor; and 

  

	 	(ii)	such other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Lender shall reasonably request. 

  

	 	(b)	All fees and expenses payable to the Lender (including the fees and expenses of counsel to the Lender) estimated to date shall have been paid in full (without prejudice to final
settling of accounts for such fees and expenses). 

  

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	3.	Consent of the Guarantors. Notwithstanding that such consent is not required by the Loan Documents, each of the Guarantors hereby consents, acknowledges and
agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Person is a party (including without limitation the continuation of such Person’s payment and performance obligations
and the effectiveness and priority of any Liens granted thereunder, in each case upon and after the effectiveness of this Amendment and the amendments contemplated hereby) and the enforceability of such Loan Documents against such Person in
accordance with its terms. 

  

	4.	Representations and Warranties. In order to induce the Lender to enter into this Amendment, the Borrower represents and warrants to the Lender as follows:

  

	 	(a)	The representations and warranties made by it in Article V of the Credit Agreement, and by each Loan Party and in each of the Loan Documents to which such Loan Party is a
party are true and correct on and as of the date hereof, except to the extent that such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct as of such earlier
date; 

  

	 	(b)	Since the date of the most recent financial reports of the Borrower delivered pursuant to Section 6.01 of the Credit Agreement, no act, event, condition or circumstance
has occurred or arisen which, singly or in the aggregate with one or more other acts, events, occurrences or conditions (whenever occurring or arising), has had or could reasonably be expected to have a Material Adverse Effect;

  

	 	(c)	This Amendment has been duly authorized, executed and delivered by the Borrower and the Guarantors and constitutes a legal, valid and binding obligation of such Persons, except as
may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally; and 

  

	 	(d)	No Default or Event of Default has occurred and is continuing. 

  

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	5.	Entire Agreement. This Amendment, together with all the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire
understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty,
express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise
expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other. 

  

	6.	Full Force and Effect of Agreement. Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all other Loan Documents are hereby
confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. 

  

	7.	Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears
thereon, and all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy shall be effective as delivery of a manually executed counterpart of this
Amendment. 

  

	8.	Governing Law; Arbitration; Jury Trial Waiver. This Amendment shall in all respects be governed by, and construed in accordance with, the laws of the State of Georgia
applicable to contracts executed and to be performed entirely within such State, and shall be further subject to the provisions of Section 9.13 of the Credit Agreement. 

  

	9.	Enforceability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one or more of the parties hereto, all
other provisions nevertheless shall remain effective and binding on the parties hereto. 

  

	10.	References. All references in any of the Loan Documents to the “Credit Agreement” shall mean the Credit Agreement, as amended hereby.

  

	11.	Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower, each Guarantor, the Lender and their respective successors and
assignees to the extent such assignees are permitted assignees as provided in Section 9.06 of the Credit Agreement. 

 [Signature pages follow.] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be made, executed and delivered by
their duly authorized officers as of the day and year first above written. 
  

			
	BORROWER:
	
	TRX, INC.
		
	By:	 	/s/ Timothy J. Severt
	Name:	 	Timothy J. Severt
	Title:	 	Executive Vice President & Secretary

  

			
	GUARANTORS:
	
	 Technology Licensing Company, LLC, a Georgia limited liability company
 Travel Technology, LLC, a Georgia limited liability company
 TRX
Data Services, Inc., a Virginia corporation
 TRX Fulfillment Services, LLC, a Georgia limited liability company

		
	By:	 	/s/ Timothy J. Severt
	Name:	 	Timothy J. Severt
	Title:	 	Executive Vice President & Secretary

  

			
	TRX Technology Services, L.P., a Georgia limited partnership
		
	By:	 	TRX Fulfillment Services, LLC, its general partner

					
			
		 	By:	 	/s/ Timothy J. Severt
		 		 	 Name: Timothy J. Severt
 Title: Executive Vice
President & Secretary

  

			
	LENDER:
	
	BANK OF AMERICA, N.A.
		
	By:	 	/s/ Ken Bauchle
		 	 Name: Ken Bauchle
 Title: Senior Vice
President

 Exhibit A 
 FORM OF COMPLIANCE CERTIFICATE 
 Financial Statement Date:
                , 
 To: Bank of America, N. A. 
 Ladies and Gentlemen: 
 Reference is made to that certain
Amended and Restated Credit Agreement, dated as of November 7, 2005 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein
as therein defined), between TRX, INC., a Georgia corporation (the “Borrower”), and Bank of America, N.A. (the “Lender”). 
 The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                     of the Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the Lender on the behalf
of the Borrower, and that: 
 [Use following paragraph 1 for fiscal year-end financial statements] 
 1. [Attached hereto as Schedule 1 are the] [The] year-end audited financial statements required by Section 6.01(a) of the
Agreement for the fiscal year of the Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section [have been filed with the SEC and a link thereto is available on
the Borrower’s website on the Internet at the website address listed on Schedule 9.02]. 
 [Use following paragraph 1 for
fiscal quarter-end financial statements] 
 1. [Attached hereto as Schedule 1 are the] [The] unaudited
financial statements required by Section 6.0 l(b) of the Agreement for the fiscal quarter of the Borrower ended as of the above date [have been filed with the SEC and a link thereto is available on the Borrower’s website on the
Internet at the website address listed on Schedule 9.02]. Such financial statements fairly present the financial condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such date
and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 2. The undersigned has reviewed and
is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by the
attached financial statements. 
 3. A review of the activities of the Borrower during such fiscal period has been made under the supervision
of the undersigned with a view to determining whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents, and 

 [select one:] 
 [to the best knowledge of the undersigned during such fiscal period, the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it.] 
 —or— 
 [the
following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:] 
 4. The representations and warranties of the Borrower contained in Article V of the Agreement, and any representations and warranties of any Loan Party that are contained in any document furnished at any time
under or in connection with the Loan Documents, are true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered. 
 5. The financial covenant analyses and information set forth on Schedule [1][2] attached hereto are true and accurate on and as of the date
of this Certificate. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
            ,         . 
  

			
	TRX, INC.
		
	By:	 	  
	Name:	 	  
	Title:	 	  

 For the Month/Quarter/Year ended
                     (“Statement Date”) 
 SCHEDULE [1][2] 
 TO THE COMPLIANCE CERTIFICATE 
 ($ IN 000’S) 
  

									
	 I.      Section 7.13(a) – Consolidated Senior Leverage Ratio.
	  	
				
		 	A.	  	Consolidated Funded Indebtedness at Statement Date (including the Obligations and excluding any
portion of Subordinated Indebtedness that by its terms or by the terms of any
instrument or agreement
relating thereto does not mature on demand or within one year from the date of determination):	  	$                    
				
		 	B.	  	Consolidated EBITDA for period of twelve calendar months ending on above date (“Subject Period”):	  	$                    
					
		 		  	1.	  	Consolidated Net Income for Subject Period:	  	$                    
					
		 		  	2.	  	Consolidated Interest Charges for Subject Period:	  	$                    
					
		 		  	3.	  	Provision for income taxes for Subject Period:	  	$                    
					
		 		  	4.	  	Depreciation expenses for Subject Period:	  	$                    
					
		 		  	5.	  	Amortization expenses for Subject Period:	  	$                    
					
		 		  	6.	  	Non-recurring non-cash reductions of Consolidated Net Income for Subject Period:	  	$                    
					
		 		  	7.	  	Specified Non-Recurring Items for Subject Period:	  	$                    
					
		 		  	8.	  	Income tax credits for Subject Period:	  	$                    
					
		 		  	9.	  	Non-cash additions to Consolidated Net Income for Subject Period:	  	$                    
					
		 		  	10.	  	Cash expenditures during Subject Period related to non-cash reductions of Consolidated Net Income in prior periods added in determining Consolidated EBITDA in such prior periods:	  	$                    
					
		 		  	11.	  	Consolidated EBITDA (Lines I.B.1 + 2 + 3 + 4 + 5 + 6 + 7 - 8 - 9 - 10):	  	$                    
				
		 	C.	  	Consolidated Leverage Ratio (Line I.A ÷ Line I.B.11):	  	                     to 1
				
		 		  	Maximum permitted:	  	1:00 to 1:00

	II.	Section 7.13(b) – Clean Down Period. 

 The Outstanding
Amount of Loans under the Agreement have been reduced to $2,000,000 or less for at least [                    ] consecutive days during the
fiscal quarter ended on the Statement Date. 
  

									
		 		  	Minimum required: 30	  	
		
	 III.   Section 7.13(c) – Consolidated Fixed Charge Coverage Ratio.
	  	
				
		 	A.	  	EBITDA available to pay Fixed Charges	  	
					
		 		  	1.	  	Consolidated EBITDA for Subject Period (See Line I.B.11):	  	$                    
					
		 		  	2.	  	Non-Financed Capital Expenditures for Subject Period:	  	$                    
					
		 		  	3.	  	50% of the aggregate amount of Restricted Payments made pursuant to Section 7.06(e) during Subject Period:	  	$                    
					
		 		  	4.	  	EBITDA available to pay Fixed Charges (Line III.A.1 - Line III.A.2 - Line III.A.3):	  	$                    
				
		 	B.	  	Consolidated Fixed Charges	  	$                    
					
		 		  	1.	  	Principal amount of Indebtedness paid or required to be paid during Subject Period (excluding Indebtedness under the Loan Documents):	  	
					
		 		  	2.	  	Consolidated Interest Charges paid or required to be paid during such period:	  	$                    
					
		 		  	3.	  	Consolidated Fixed Charges (Line III.B.1 + Line III.B.2):	  	$                    
				
		 	C.	  	Consolidated Fixed Charge Coverage Ratio (Line III.A.4 ÷ Line III.B.3):	  	                     to 1
				
		 		  	Minimum required:	  	1:20 to 1:00

							
	 IV.   Section 7.14 – Capital Expenditures.
	  	
				
		 	A.	  	Capital expenditures made during fiscal year to date:	  	$                    
				
		 	B.	  	Capital expenditures that could have been made during prior fiscal year but which were not made (£$5,000,000):	  	$                    
				
		 	C.	  	Maximum permitted capital expenditures ($12,000,000 + Line IV.B.):	  	$                    
				
		 	D.	  	Excess (deficit) for covenant compliance (Line IV.C.- IV.A.):	  	$Promissory Note made by TRX, Inc. in favor of Hi-Mark

 Exhibit 10.4 
 THIS INSTRUMENT IS SUBJECT TO THE TERMS OF AN INTERCREDITOR AND SUBORDINATION AGREEMENT, DATED AS OF JANUARY 11, 2007, MADE AMONG BANK OF AMERICA, N.A. (THE “SENIOR LENDER”), AND HI-MARK, LLC (THE “INTERCREDITOR AND
SUBORDINATION AGREEMENT”), WHICH AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE. 
 PROMISSORY NOTE 
  

			
	$7,000,000	  	January 11, 2007

  

			
	Borrower:	  	TRX, Inc., herein called “Borrower”
		
	Lender:	  	Hi-Mark, LLC, herein collectively called “Lender”

 1. Payment Amount 
 Subject to the terms and conditions of this Promissory Note (the “Note”), including without limitation Section 4 hereof, for value received, the Borrower agrees to pay to Lender the sum of Seven Million
Dollars ($7,000,000) (the “Principal Amount”). Borrower and Lender acknowledge and agree that the Principal Amount of this Note may be restated or otherwise adjusted, as contemplated by Section 4 below. 
 2. Interest 
 This Note shall bear interest on the
principal balance outstanding from time to time at a rate per annum equal to the Prime Rate as published in the Money Rates section of The Wall Street Journal, and, if more than one such rate is published, at the average of all such rates so
published, with each change in Prime Rate being effective on the published effective date of such change. Interest shall begin to accrue on January 11, 2007. Interest shall be calculated based on a 365-day calendar year compounded quarterly and
paid for actual days elapsed. 
 3. Payment Terms 
 For a period of three (3) years commencing on the date hereof, Borrower shall make quarterly principal payments of Five Hundred Eighty Three Thousand Three Hundred Thirty Three Dollars and Thirty Three Cents ($583,333.33) and quarterly
interest payments on the outstanding balance of the Principal Amount of the Note; the first payment of which shall be made on April 10, 2007, and subsequent payments of which shall be made on July 10, 2007 and October 10, 2007 and
January 10, April 10, July 10, and October 10 of each year thereafter, until the whole remaining sum of principal and interest has been paid in full. Upon an “Event of Default” (as defined in Section 8
hereof), the whole sum of both principal and interest shall be immediately due and collectible at the option of the holder of this Note. Subject to Section 4 

 
hereof, unless the balance is sooner accelerated upon an Event of Default as provided herein, the full balance of the Note shall be due and payable on or
before January 10, 2010. 
 4. Adjustment 
 This Note is the “Promissory Note” referred to in Section 2.02(b) of that certain asset purchase agreement by and among Borrower, Lender, and certain other parties, dated as of December 7, 2006 (the “Asset Purchase
Agreement”). Accordingly, this Note is subject to adjustment in accordance with the terms and conditions set forth herein and in the Asset Purchase Agreement, including, without limitation, the net working capital adjustment in
Section 3.02 of the Asset Purchase Agreement, the collection of Purchased Accounts Receivable in Section 3.03 of the Asset Purchase Agreement and the right of set-off in Section 10.06 of the Asset Purchase Agreement. 
 A. Any amount owed by Lender to Borrower pursuant to the net working capital adjustment set forth in Section 3.02 of the Asset Purchase Agreement
shall be credited as principal payments made by Borrower with respect to the next payment(s) due under the Note and the Principal Amount shall be automatically adjusted accordingly. 
 B. Any amount owed by Lender to Borrower for any Uncollected A/R pursuant to Section 3.03 of the Asset Purchase Agreement shall be credited as
principal payments made by Borrower with respect to the next payment(s) due under the Note and the Principal Amount shall be automatically adjusted accordingly. 
 C. In accordance with Section 10.06 of the Asset Purchase Agreement, if Borrower, in good faith, believes that Lender owes any amounts to Borrower pursuant to or in connection with the Asset Purchase Agreement
(including any agreement or exhibit referred to therein), then, in such case, Borrower may prior to any “Final Judgment” (as defined in Article XII of the Asset Purchase Agreement), at its election, deduct such amount from any payment
due under this Note (the “Setoff Amount”). In the event Borrower sets-off any amount otherwise due hereunder pursuant to the foregoing, such non-payment by Borrower shall not be deemed to be a default, an Event of Default or otherwise;
provided, however, that to the extent that pursuant to a Final Judgment, all or any portion of such Setoff Amount (the “Applicable Portion”) is deemed not to be owed to Borrower pursuant to the Asset Purchase Agreement, then
Borrower shall, within ten (10) days of such Final Judgment, pay Lender the Applicable Portion plus interest accrued thereon. 
 Any adjustment or
setoff made pursuant to this Section 4 shall be applied first against any accrued and unpaid interest and second against the next installment(s) of principal due hereunder. 
 5. Prepayment 
 Borrower may prepay, without penalty, all or part of the unpaid balance of this Note
at any time and from time to time. Any partial prepayment made pursuant to this Section 5 shall be applied first against any accrued and unpaid interest and second against the next installment(s) of principal due hereunder. 
  

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 6. Application of Payments 
 Payments will be applied first to accrued interest to date of payment, and then to principal. 
 7. Place of Payment

 All payments shall be made payable to Lender and delivered or sent to the following address, or at such other place as Lender may
hereafter designate in writing: 
 Hi-Mark, LLC 
 5905 Windward Parkway 
 Lower Level 
 Alpharetta, Georgia 30005 
 Attn: Kevin Austin 
 8. Default

 A. The following shall constitute “Events of Default” under this Note: 
 (1) Failure by Borrower to make any payment required under this Note when the same shall become due and payable (whether at maturity, by
acceleration, or otherwise) which failure shall continue for a period of five (5) days after the date on which written notice specifying such failure shall have been given by Lender to Borrower. 
 (2) Breach by Borrower of any covenant under Section 9 of this Note, which breach shall continue uncured for a period of thirty
(30) days after the date on which written notice specifying such breach, and stating that such notice is a “Notice of Default” hereunder, shall have been given by Lender to Borrower; or 
 (3) Borrower institutes or consents to the institution of any proceeding under any “Debtor Relief Law” (as hereinafter defined),
or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property;
or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such person and the appointment continues undischarged or unstayed for 90 calendar days; or any
proceeding under any Debtor Relief Law relating to any such person or to all or any material part of its property is instituted without the consent of such person and continues undismissed or unstayed for 90 calendar days, or an order for relief is
entered in any such proceeding. For purposes hereof, “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally. 
  

 3 

 B. If an Event of Default specified in Section 8.A.(1) or (2) occurs, Lender may, at its
option, by notice in writing to the holder of Senior Debt and Borrower (the “Acceleration Notice”), declare the entire principal and accrued but unpaid interest of this Note to be due and payable upon the earlier of: (1) ninety
(90) days after the delivery of the Acceleration Notice to Borrower and the holders of Senior Debt, or (2) an acceleration under the Senior Debt. Upon such declaration by Lender, the entire principal and accrued but unpaid interest of this
Note shall become due and payable at such time. 
 C. If an Event of Default specified in Section 8.A.(1) or (2) occurs and no
Senior Default exists, Lender may, at its option, by Acceleration Notice, declare the entire principal and accrued but unpaid interest on this Note to be due and payable upon the date that is five (5) business days after the delivery of the
Acceleration Notice to Borrower and the holders of the Senior Indebtedness. Upon such declaration by Lender, the entire principal and accrued but unpaid interest of this Note shall become due and payable at such time. 
 D. If an Event of Default specified in Section 8.A.(3) occurs, the entire principal and accrued but unpaid interest on this Note shall become due
and payable immediately, without any declaration or other act on the part of Lender. 
 E. If an Event of Default specified in any subsection
of Section 8.A. occurs: 
 (1) This Note shall accrue interest at a rate that is four percent (4%) above the rate
effective immediately before such Event of Default (the “Default Rate of Interest”); and 
 (2) Borrower shall be
liable for, and shall pay to Lender, Lender’s reasonable collection costs including reasonable attorneys’ fees. 
 9. Covenants 

Borrower covenants and agrees that for so long as any indebtedness evidenced by, or other obligations arising under this Note remains outstanding: 
 A. Borrower will provide Lender with notice of any event of a Senior Default not later than one (1) business day after Borrower receives notice
thereof; 
 B. Borrower will provide Lender with prompt notice (which shall in any event be provided not later than the date that notice of
such event is provided to the Senior Creditor) regarding any and all material events that constitute a material impairment of Borrower’s ability to perform its obligations under this Note and/or the Senior Debt. 
 C. Borrower will not liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution); provided, however, that the foregoing shall not
apply in any way to the foreclosure, sale, or other disposition of collateral pledged to secure Senior Debt pursuant to any judicial proceeding or by or at the direction of the holders of the Senior Debt. 
  

 4 

 10. Notices 
 Any notices and other communications given with regard to this Note shall be in writing. Delivery of such notices and communications shall be made by hand delivery, overnight delivery service, or by United States certified or registered
mail, return receipt requested, at the address specified below or at such other address as the receiving party may have specified by prior notice in writing: 
  

							
		  	Borrower:	  	 TRX, Inc.
 6 West Druid Hills Drive
 Atlanta, Georgia 30329
 Attn: Chief Financial Officer
	  	
			
		  	with a copy to (which shall not constitute notice):	  	
				
		  		  	 McKenna Long & Aldridge LLP
 303 Peachtree Street,
NE
 Suite 5300
 Atlanta, Georgia 30308
 Attention: Jeremy C. Silverman
	  	
				
		  	Lender:	  	 Hi-Mark, LLC
 5905 Windward Parkway
 Lower Level
 Alpharetta, Georgia 30005
 Attn: Kevin Austin
	  	
			
		  	with a copy to (which shall not constitute notice):	  	
				
		  		  	 Garson Claxton LLC
 7910 Woodmont Avenue
 Suite 650
 Bethesda, Maryland 20814
 Attn: Andrew Milne
	  	

 Notices and other communications shall be deemed delivered as of the earlier of: (a) the date
of actual receipt; or (b) the date on which delivery is attempted by the delivering party but refused by the receiving party or returned by the overnight delivery service or United States mail as undeliverable. 
 11. Attorney Fees 
 In case litigation is instituted, including any
bankruptcy or arbitration proceedings, arising out of this Note, the losing party shall pay the prevailing party’s reasonable attorney fees, together with all expenses which may reasonably be incurred in taking such action, including but not
limited to, costs incurred in searching records, the costs of title reports and expert witness fees, and anticipated post judgment collection services. If an appeal is taken from any judgment 
  

 5 

 
of the trial court, (a) the losing party shall pay the prevailing party in the appeal its reasonable attorney’s fees and costs in such appeal; and
(b) if the appeal results in a final decision that reverses the lower court’s decision so that the prevailing party at the lower court is not the prevailing party after the appellate decision, the losing party on appeal shall pay the
prevailing party its reasonable attorney’s fees and costs in the lower court litigation. 
 12. Jurisdiction and Venue 
 In any action or proceeding, including any arbitration (if arbitration is mutually agreed to by the parties), seeking to enforce any provision(s) of, or
based on any right(s) arising out of, or related to or concerning this Note, the parties hereto consent to the jurisdiction of the courts of the State of Georgia and of any duly appointed arbitrator. In any such action or proceeding, venue shall lie
in Fulton County, Georgia. 
 13. Amendments 
 This Note may be amended, waived or modified only upon the written consent of the Borrower and the Lender. This Note is non-negotiable and may not be assigned by the Lender or the Borrower, including by operation of law, without the
prior written consent of the non-assigning party. Any attempted assignment not in accordance with this Section shall be void and without effect. 
 14.
Subordination 
 A. This Note and the indebtedness evidenced hereby shall be subject and subordinate in right of payment to the prior
payment in full of the “Senior Debt” (as defined in the Intercreditor and Subordination Agreement), including without limitation money borrowed from the Senior Creditor, pursuant to the terms of the Intercreditor and Subordination
Agreement. If any event of default occurs and is continuing with respect to any Senior Debt (a “Senior Default”), then, unless and until all such events of default have been cured or waived or have ceased to exist, neither Borrower nor any
other person on its behalf shall make any payment of any kind or character with respect to any obligations on this Note. 
 B. Nothing
contained in this Note is intended to or shall impair, as among Borrower, Borrower’s creditors other than the holders of the Senior Debt, and Lender, the obligation of Borrower, which is absolute and unconditional, to pay to Lender the
principal of and interest on and all other amounts due under this Note in accordance with its terms, or is intended to or shall affect the relative rights of Lender and creditors of Borrower, other than the holders of Senior Debt, nor shall anything
herein prevent Lender from exercising all remedies otherwise permitted by applicable law upon default under this Note, subject to the provisions of this Section 12 and to the rights of the holders of Senior Debt to receive distributions and
payments otherwise payable to Lender. 
 15. Defined Terms 
 Capitalized terms used herein but not otherwise defined shall have the meaning ascribed to them in the Asset Purchase Agreement. 
  

 6 

 16. Amendments and Waiver 
 No provision of this Note may be amended or waived unless Borrower shall have obtained the written agreement of Lender. No failure or delay in exercising any right, power, or privilege hereunder shall imply or
otherwise operate as a waiver of any rights of Lender, nor shall any exercise thereof preclude any other or future exercise of any other right, power, or privilege. 
 17. Governing Law 
 This Note shall be governed by, and construed in accordance with, the laws of the
State of Georgia without giving effect to any conflicts of laws principles thereof that would otherwise require the application of the law of any other jurisdiction. All actions and proceedings arising out of or relating to this Note shall be heard
and determined in a Georgia state court sitting in the County of Fulton or the United States District Court for the Northern District of Georgia, Atlanta Division. 
 18. Severability 
 Whenever possible, each provision of this Note will be interpreted in such a manner as to be effective and
valid under applicable law, but if any provision of this Note is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Note. 
 19. Waiver of Jury Trial 
 BORROWER AND LENDER HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREIN, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BORROWER AND LENDER AGREE THAT EITHER OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING,
VOLUNTARY, AND BARGAINED-FOR AGREEMENT BETWEEN THEM IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS NOTE OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN SHALL INSTEAD BE TRIED IN A COURT OF
COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
 20. Lost, Stolen, Destroyed, or Mutilated Note 
 Upon receipt of evidence reasonably satisfactory to Borrower of the loss, theft, destruction, or mutilation of this Note and of indemnity arrangements
reasonably satisfactory to Borrower from or on behalf of the holder of this Note, and upon surrender or cancellation of this Note if mutilated, Borrower shall make a new note of like tenor in lieu of such lost, stolen, destroyed, or mutilated Note.

  

 7 

 21. Usury 
 Nothing contained in this Note shall be deemed to establish or require the payment of a rate of interest in excess of the maximum rate legally enforceable. If the rate of interest called for under this Note at any time exceeds the maximum
rate legally enforceable, the rate of interest required to be paid hereunder shall be automatically reduced to the maximum rate legally enforceable. If such rate is so reduced and thereafter the maximum rate legally enforceable is increased, the
rate of interest required to be paid hereunder shall be automatically increased to the lesser of the maximum rate legally enforceable and the rate otherwise provided for in this Note. 
 22. Further Assurances 
 Upon the reasonable request of either party hereto, the other party hereto
shall take any and all actions necessary or appropriate to give effect to the terms and conditions set forth in this Note. 
 [Signatures on
following page] 
  

 8 

			
	Borrower:
	
	TRX, Inc.
		
	By:	 	 /s/ Norwood H. Davis

	Name:	 	Norwood H. Davis
	Title:	 	CEO & President
	
	Lender:
	
	Hi-Mark, LLC
		
	By:	 	 /s/ Kevin Austin

	Name:	 	Kevin Austin
	Title:	 	President

 SIGNATURE PAGE TO PROMISSORY NOTE

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