Document:

exv10w6

Exhibit 10.6

SETTLEMENT AGREEMENT

     This Settlement Agreement (this “Settlement Agreement”), dated as of ___, 2009, is
by and among the City of Detroit (the “City”), the Economic Development Corporation of the
City of Detroit (the “EDC”), Greektown Casino, L.L.C. (“Greektown Casino”),
Greektown Holdings, L.L.C., and the other affiliate debtors and debtors in possession
(collectively, the “Debtors”) in bankruptcy cases currently pending in the bankruptcy court
in the Eastern District of Michigan (the “Bankruptcy Court”), which are jointly
administered under Case No. 08-53104 (the “Bankruptcy Cases”), and Merrill Lynch Capital
Corporation, as administrative agent for the Debtors’ Pre-petition Lenders and the DIP Lenders (the
“Agent”). The City, the EDC, the Debtors, and the Agent are hereinafter collectively
referred to as the “Parties” or individually as a “Party.”

RECITALS

     A. Greektown Casino, the City, and the EDC are parties to a Revised Development Agreement
dated August 2, 2002 (as amended by the First Amendment dated July 2003, the “Current
Development Agreement”).

     B. On May 29, 2008 (the “Petition Date”), the Debtors filed their voluntary petitions
for relief pursuant to chapter 11 of title 11 of the United States Code (the “Bankruptcy
Code”).

     C. On August 26, 2009, the Debtors and the Agent, as joint plan proponents (the “Plan
Proponents”), filed the Second Amended Joint Plans of Reorganization (Docket No. 1443) (the
“Plan”) and the Debtors filed their Second Amended Disclosure Statement for Joint Plans of
Reorganization (Docket No. 1442) (the “Disclosure Statement”). All capitalized terms used
herein but not defined herein have the meanings ascribed to them in the Plan.

     D. On September 4, 2009, the Bankruptcy Court entered an order approving the Disclosure
Statement (Docket No. 1495) (the “Disclosure Statement Order”).

     E. A hearing on confirmation of the Plan is currently scheduled to begin on November 3, 2009
(the “Confirmation Hearing”). At the Confirmation Hearing, the Plan Proponents will seek
entry of a confirmation order approving the Plan (the “Confirmation Order”). The Plan
Proponents expect that the Plan will be consummated during 2009 or early 2010 (as defined in the
Plan, the “Effective Date”).

     F. Certain disputes and allegations have arisen between and among the Debtors and the City,
including:

	 	i.	 	The existence, occurrence, continuance and/or effectiveness of certain defaults, alleged
defaults or Events of Default (as defined in the Current Development Agreement) (the
“Defaults”) under the Current Development Agreement;
	 
	 	ii.	 	Whether the Debtors are in compliance with the Current Development Agreement;

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	 	iii.	 	Whether the Debtors were “fully operational” as of February 15, 2009, as that term is
defined in the Michigan Gaming Control and Revenue Act (“MGCRA”);
	 
	 	iv.	 	Whether the Current Development Agreement can be assumed or assigned by the Debtors;
	 
	 	v.	 	Whether the Debtors have achieved Completion and Final Completion of the hotel and Casino
and required Components of the Casino Complex by the required deadlines for completion, as such
terms are defined in the Current Development Agreement;
	 
	 	vi.	 	Whether the Michigan Gaming Control Board (the “MGCB”) should grant a rollback of
the wagering tax rate pursuant to the MGCRA and other applicable law, effective as of February 15,
2009 (the “Tax Rollback”);
	 
	 	vii.	 	Whether the Debtors are obligated to pay an additional 1% gaming tax, beginning July 1,
2009, based upon the alleged failure by the Debtors to be “fully operational” as defined by the
MGCRA as of that date (the “1% Tax Increase”); and
	 
	 	viii.	 	Whether the Debtors have: (a) violated applicable zoning ordinances because the Casino
Complex as constructed (including completion of the Event Center as a “white box” space) does not
allegedly comply with the site drawings that were the basis for City Council site plan approval;
(b) violated building permit requirements because the building permit issued for the Casino was
based on permit drawings showing the Event Center as finished space for a theater-type Event
Center; and/or (c) failed to obtain a final certificate of occupancy for the Casino (due to
completion of the Event Center as white box space).
	 
	 	ix.	 	The items i-viii above, and all other related disputes, differences of opinion or
inconsistent positions, whether asserted to date, or not, are hereinafter referred to as the
“Disputed Matters.”

     G. The Disputed Matters are the factual basis for litigation, threatened litigation and other
proceedings in the Bankruptcy Court, the District Court for the Eastern District of Michigan (the
“District Court”) and before the MGCB, including:

	 	i.	 	An appeal, pending in the District Court, of a Bankruptcy Court Order Approving Debtor’s
Assumption of Development Agreement (Docket No. 1207), along with the Bankruptcy Court ruling from
the bench as read into the record on April 7, 2009, styled In re Greektown Holdings, L.L.C., et
al., E.D. Mich., Appeal No. 09-CV-12460 (the “Appeal”);
	 
	 	ii.	 	An adversary proceeding, pending in the Bankruptcy Court, in which the City seeks various
forms of relief with respect to the Defaults, styled

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	 	 	 	Detroit v. Greektown Casino, L.L.C., Bankr. E.D. Mich., Adv. Pro. No. 09-05714 (the
“Adversary Proceeding”);
	 
	 	iii.	 	The Order Granting City of Detroit Partial Relief from the Automatic Stay to Serve
Notices of Default Under Development Agreement (Docket No. 1208);
	 
	 	iv.	 	A proceeding before the MGCB regarding the Debtors’ eligibility to receive the Tax
Rollback (the “Tax Rollback Hearing”);
	 
	 	v.	 	A letter dated July 24, 2009, from the City to the Debtors regarding the 1% Tax Increase,
the City’s July 28, 2009 Supplemental Filing Concerning Request for Certification of Tax Rollback
with the MGCB, and Greektown Casino’s August 10, 2009 response filed thereto (together, the “1%
Tax Increase Disputes”);
	 
	 	vi.	 	A letter dated August 10, 2009, from the City to the Debtors alleging certain defaults
under the Current Development Agreement (the “Default  Letter”);
	 
	 	vii.	 	The Disclosure Statement and the Bankruptcy Court’s approval thereof; and
	 
	 	viii.	 	The Plan, the Confirmation Hearing and discovery related thereto.
	 
	 	ix.	 	The items i-viii above hereinafter referred to as the “Dispute
Proceedings”.

     H. The Parties now desire to resolve and settle on the terms hereof amicably all matters
between them relating to the Disputed Matters and Dispute Proceedings on the terms hereof and to
release each other from all claims, potential claims, obligations and liabilities as provided
herein.

     NOW, THEREFORE, in consideration of the mutual covenants set forth herein, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1

PAYMENT AND AGREEMENTS

     Section 1.1 Settlement Payment. As consideration for the release and settlement of
all Disputed Matters and Dispute Proceedings, the Debtors agree to pay to the City the sum of
Fifteen Million, Three Hundred Thousand Dollars ($15,300,000) (the “Settlement Payment”),
less certain credits as set forth below, subject to the provisions and payable in the manner
described below:

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          (a) An initial nonrefundable cash payment of Three Million, Five Hundred Thousand Dollars
($3,500,000) to be paid by the Debtors within two Business Days of the entry of the Confirmation
Order (the “Initial Cash Payment”);

          (b) A credit, to be applied at the time of the Final Cash Payment (as defined and set forth
below) to reduce the Settlement Payment, in an amount equal to the difference between (i) the
amount of gaming taxes actually paid by the Debtors to the City between February 15, 2009, and the
date the MGCB grants the Tax Rollback, and (ii) the amount that would have been paid by the Debtors
between February 15, 2009, and the date that the MGCB grants the Tax Rollback had the Tax Rollback
been effective as of February 15, 2009 (the “Tax Rollback Credit”); and

          (c) A final cash payment, in an amount equal to the Settlement Payment, less the sum of (i)
the amount of the Initial Cash Payment, and (ii) the amount of the Tax Rollback Credit (the
“Final Cash Payment”). The Final Cash Payment shall be paid within two Business Days of
the later of (i) the Effective Date or (ii) the date when all Conditions Precedent set forth below
have been satisfied. The Debtors’ obligation to make the Final Cash Payment shall be subject to
the Conditions Precedent set forth in Section 1.3 below.

     Section 1.2 Other Agreements. The Parties shall take the following actions, as
applicable:

          (a) The Parties hereby agree to toll or seek to extend all deadlines for all actions in any
Dispute Proceeding or Disputed Matters from the date hereof through the entry of the Confirmation
Order. Upon entry of the Confirmation Order, the Parties hereby agree to toll or seek to extend
all deadlines for any Dispute Proceeding or Disputed Matters through the Effective Date at which
time all such deadlines shall no longer be applicable;

          (b) The Parties agree that an order approving the Settlement Agreement must be entered as part
of the Confirmation Order;

          (c) Greektown Casino, the City and the EDC shall use their best efforts to execute and deliver
a Revised Development Agreement as expeditiously as possible, but in any event no later than
October 29, 2009, approved by the City Council and the Mayor, substantially in the form attached to
this Settlement Agreement as Exhibit A, which shall amend and supersede in all respects,
the Current Development Agreement (the “Revised Development Agreement”);

          (d) Pending entry of the Confirmation Order, the City shall make no further demand seeking the
1% Tax Increase, and on the Effective Date, the City shall acknowledge and agree that the 1% Tax
Increase is neither applicable nor payable;

          (e) On or before the Effective Date, the City shall take all actions necessary to dismiss
voluntarily the Adversary Proceeding with prejudice;

          (f) On or before the Effective Date, the City shall take all actions necessary to dismiss
voluntarily the Appeal with prejudice;

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          (g) Pending entry of the Confirmation Order, the City shall take no actions with respect to
any notice of alleged defaults served on the Debtors. On the Effective Date, the City shall
dismiss and waive any and all claims of default under the Current Development Agreement, whether
asserted or not, including for Development Process Costs as defined by the Current Development
Agreement, or any other purported basis for reimbursement of fees and costs for attorneys or other
professionals associated with and/or hired by the City;

          (h) The City shall take all actions reasonably necessary to effect the agreements provided in
this Settlement Agreement and take such steps as are necessary to ensure that all required
approvals of relevant city government authorities, including but not limited to City Council and
the Mayor, are obtained;

          (i) The City shall not take any actions inconsistent with, and will use its best efforts to
support and cooperate publicly and actively with the Plan Proponents’ efforts to obtain approval of
this Settlement Agreement and Confirmation of the Plan to the exclusion of any other plan,
proposal, offer or term sheet submitted by a third party;

          (j) The City shall not take any actions inconsistent with, and will use its best efforts to
support and cooperate publicly and actively with the Debtors’ efforts to obtain the Tax Rollback
with the effective date of the Tax Rollback being February 15, 2009, including by written
submission to the MGCB affirmatively stating that the Debtors are in full compliance with the
Current Development Agreement and are fully operational, and have been so since at least February
15, 2009, as defined by the MGCRA;

          (k) To the extent any consent is required under any applicable law, contract, or otherwise,
including, but not limited to, under the Detroit City Code, the MGCRA, the Michigan Liquor Control
Act and the Current or Revised Development Agreement, by the City (including the consent of the
Mayor and the City Council), subject to the entry of the Confirmation Order and obtaining the
necessary City approvals on or before the Effective Date, the City shall consent to the transfer of
the ownership of the Casino and the Current or Revised Development Agreement, whichever is in
effect, to the Reorganized Debtors on the terms and in accordance with the Plan; and

          (l) The City shall (i) approve an amended site plan based on revised drawings dated July 27,
2009 that were previously submitted to the City, showing the Event Center as white box space (the
“Revised Event Center Drawings”); (ii) issue a revised building permit for the Casino based
on the Revised Event Center Drawings; and (iii) issue a final certificate of occupancy for the
Casino.

     Section 1.3 Conditions Precedent. The Parties’ obligations under the Settlement
Agreement, other than those contained in Section 1.1(a), shall be subject to the following
conditions precedent (collectively, the “Conditions Precedent”) being satisfied in all
material respects or waived by the Parties:

          (a) A Final Order is entered approving entry into the Settlement Agreement and Revised
Development Agreement. The order approving the Settlement Agreement and Revised Development
Agreement must be included as part of the Confirmation Order;

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          (b) A Confirmation Order which becomes a Final Order is entered which provides, inter alia,
the following:

               (i) An ownership structure for New Greektown Holdco LLC similar to that described in Exhibit A
to the Plan;

               (ii) In the event the Reorganized Debtors offer to sell shares to the public in an
underwritten public offering within three years of the Effective Date, to the extent permitted by
any rules and regulations regulating the Reorganized Debtors or the underwriters of such offering,
the Reorganized Debtors:

     (a) will recommend to the underwriters of such offering to allow City of
Detroit residents to participate in a “directed share program,” limited to
two-percent (2%) of the total offering; and

     (b) will consider, in their sole discretion, whether to request that the
underwriters, as to the 2% portion of the “directed share program,” offer the
directed shares to the directed share recipients at the discount price at which the
underwriter purchases such shares;

     provided; however, it being understood that any obligation of
the Reorganized Debtors to make or consider any recommendation or request as
provided above will not require any expense on the part of the Reorganized Debtors
nor cause or result in any delay in the offering should the underwriters decline to
follow such recommendations or requests.

               (iii) Reorganized Casino shall appoint an unpaid ombudsman, to be selected by the City and who
is reasonably acceptable to the Agent, who, upon execution and delivery of a suitable
confidentiality agreement, will be entitled to attend board of managers meetings (whether
telephonic or in-person), including board committee meetings, and receive all material notices,
minutes of meetings, requests for written consents of the board in lieu of a board meeting,
information and reports that are furnished to the board of managers at the same time as the same
are furnished to the board members; provided, however, that the board, in its sole
discretion, may restrict the ombudsman’s attendance at meetings and his/her receipt of information
with respect to: (i) matters involving actual or potential disputes, negotiations and/or litigation
between Reorganized Casino and the City are raised or discussed; and/or (ii) actual or threatened
third-party litigation involving Reorganized Casino, to the extent such attendance or receipt of
information could cause the company to lose the benefit of protection in respect of what would
otherwise be attorney-client privileged communications;

               (iv) Michael B. Rumbolz, Anthony J. Brolick, and G. Michael Brown shall constitute the initial
board of managers of the Reorganized Debtors, or others mutually acceptable to the Reorganized
Debtors, the Agent, and the City;

               (v) The person and/or entity that is named in Exhibit D to the Plan shall serve as the initial
CEO and/or as the initial management company for the Reorganized Debtors, or any other person or
entity mutually acceptable to the Reorganized Debtors, the Agent

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and the City (the acceptance of such other person shall not be unreasonably withheld by the
City); and

               (vi) The aggregate amount of the Reorganized Debtors’ secured debt upon the Effective Date
shall not exceed Three Hundred Fifty Million Dollars ($350,000,000).

               (vii) The City hereby acknowledges and agrees that the provisions described above in this
Section 1.3(b), including but not limited to the selection of the individuals and/or entities for
the initial board of managers and the initial CEO/management company, are acceptable to the City.

          (c) All approvals and consents have been obtained from the appropriate branches and offices of
the City’s government, including from the office of the Mayor and the City Council, that are
required (i) to enter into this Settlement Agreement and consummate the transactions contemplated
hereby; (ii) to approve the Plan and the actions contemplated thereby, including the
post-bankruptcy ownership structure and owners as set forth in the Plan; and (iii) to enter into
the Revised Development Agreement and to consummate the transactions contemplated thereby;

          (d) All approvals and consents have been obtained from the EDC that are required (i) to enter
into this Settlement Agreement and consummate the transactions contemplated hereby; and (ii) to
enter into the Revised Development Agreement and consummate the transactions contemplated thereby;

          (e) The Bankruptcy Court shall have dismissed the Adversary Proceeding with prejudice;

          (f) The District Court shall have dismissed the Appeal with prejudice;

          (g) The City has used its best efforts to support actively and publicly the Plan Proponents in
seeking confirmation of the Plan in the Bankruptcy Cases, to the exclusion of any other plan,
proposal, offer or term sheet submitted by a third party;

          (h) The City has used its best efforts to support actively and publicly the Debtors in seeking
the Tax Rollback effective as of February 15, 2009, including by written submission to the MGCB
affirmatively stating that the Debtors are in full compliance with the Current Development
Agreement and are fully operational, and have been so since at least February 15, 2009, as defined
by the MGCRA;

          (i) The Tax Rollback has been granted effective as of February 15, 2009; and

          (j) The City has issued all appropriate certificates of occupancy, permits, zoning approval or
variance or other similar regulatory approvals as contemplated by or required under the Current
Development Agreement and/or Revised Development Agreement, including, but not limited to,
approvals for the revised site plan based on drawings dated July 27, 2009 that were previously
submitted to the City showing the Event Center as white box space, a revised building permit and a
final certificate of occupancy based on the revised building permit.

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ARTICLE 2

MUTUAL WAIVER AND RELEASE

     Section 2.1 Mutual Limited Release. As of the Effective Date:

          (a) Release by Debtors. Except for the Parties’ obligations under this Settlement
Agreement, the Debtors, each of the Debtors’ Estates, the Reorganized Debtors, each of their
subsidiaries and affiliates and their respective successors and assigns, hereby waive, release and
forever discharge the City, the Agent, the Debtors’ Pre-petition Lenders and the DIP Lenders and
each of their respective officers, directors, partners, members, managers, employees, agents,
representatives, advisors, attorneys, and servants from any and all suits, legal or administrative
proceedings, claims, obligations, demands, actions, causes of action, damages, losses, costs,
interest, and liabilities, of whatever kind and nature, character and description, whether in law
or equity, whether sounding in tort, contract or under other applicable law, whether known or
unknown, and whether anticipated or unanticipated, arising from any event, transaction, matter,
circumstance or fact in any way arising out of, arising as a result of, related to, with respect to
or in connection with or based in whole or in part on the Disputed Matters and/or Dispute
Proceedings, existing as of the date hereof regardless of whether specifically raised or asserted
by the Debtors or addressed herein.

          (b) Release by City. Except for the Parties’ obligations under this Settlement
Agreement, the City and its respective successors and assigns, hereby waive, release and forever
discharge the Debtors, each of the Debtors’ Estates, the Reorganized Debtors, the Agent, the
Debtors’ Pre-petition Lenders and the DIP Lenders and each of their respective officers, directors,
partners, members, managers, employees, agents, representatives, advisors, attorneys and servants
from any and all suits, legal or administrative proceedings, claims, obligations, demands, actions,
causes of action, damages, losses, costs, interest, and liabilities, of whatever kind and nature,
character and description, whether in law or equity, whether sounding in tort, contract or under
other applicable law, whether known or unknown, and whether anticipated or unanticipated, arising
from any event, transaction, matter, circumstance or fact in any way arising out of, arising as a
result of, related to, with respect to or in connection with or based in whole or in part on the
Disputed Matters and/or Dispute Proceedings, along with any claims or potential claims that have
been or could have been asserted alleging violations or defaults under the Current Development
Agreement or based on circumstances giving rise to the Disputed Matters existing as of the date
hereof regardless of whether specifically raised or asserted by the City or addressed herein;
provided, however, that nothing in this release shall affect the Debtors’ ongoing
obligations to pay taxes owed to the City, their obligations arising under the Revised Development
Agreement or compliance with other applicable laws, rules or regulations of the City.

          (c) Release by Agent. Except for the Parties’ obligations under this Settlement
Agreement, the Agent, on behalf of itself and the Debtors’ Pre-petition Lenders and the DIP Lenders
and its and their respective successors and assigns, hereby waive, release and forever discharge
the Debtors, each of the Debtors’ Estates, the Reorganized Debtors and the City and each of their
officers, directors, partners, members, managers, employees, agents, representatives, advisors,
attorneys and servants from any and all suits, legal or administrative

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proceedings, claims, obligations, demands, actions, causes of action, damages, losses, costs,
interest, and liabilities, of whatever kind and nature, character and description, whether in law
or equity, whether sounding in tort, contract or under other applicable law, whether known or
unknown, and whether anticipated or unanticipated, arising from any event, transaction, matter,
circumstance or fact in any way arising out of, arising as a result of, related to, with respect to
or in connection with or based in whole or in part on the Disputed Matters and/or Dispute
Proceedings, existing as of the date hereof regardless of whether specifically raised or asserted
by the Agent or addressed herein.

     Section 2.2 Limitation of Mutual Release. The Parties hereby acknowledge and agree
that the provisions of Section 2.1 above and the waivers and releases therein shall be limited
solely to the Disputed Matters and/or Dispute Proceedings or the circumstances giving rise to the
Disputed Matters and/or Dispute Proceedings or any other claim related thereto that could have been
asserted or alleged as of the Effective Date. Section 2.1 above is not intended to be and shall
not be interpreted to be a release or waiver of any rights, remedies, claims, defenses or
obligations that any of the Parties and/or their affiliates has or may have against any other Party
and/or its affiliates arising out of, related to, or in connection with any other contracts,
agreements, arrangements, understandings, acts, or omissions, that are wholly unrelated to the
Current Development Agreement or the subject matter of this Settlement Agreement, including any
disputes that may arise in the future with respect to the Revised Development Agreement.

     Section 2.3 Representations Regarding the Mutual Release. As an inducement to the
other Parties to enter into this Settlement Agreement and grant the release, each Party represents
to the other that:

          (a) Such Party (i) has not sold, transferred, conveyed, abandoned or otherwise disposed of any
of the claims released by it under this Article 2, whether or not known, suspected or claimed that
such Party has, had or may have, against the other Parties and/or any of its or their successors,
predecessors (including, without limitation, all predecessors by virtue of merger) and assigns, as
the case may be, and (ii) has sought the advise of counsel with respect to the execution and
delivery of this release and understands the legal implications with respect to this release; and

          (b) Such Party hereby acknowledges that it may hereafter discover facts in addition to or
different from those which it now knows or believes to be true with respect to the subject matter
of this release, but that it is such Party’s intention to, and it does hereby fully, finally and
forever settle the claims released in this Article 2; in furtherance of such intention, such Party
acknowledges that this release shall be and remain in effect as a full and complete release with
respect to the claims released hereunder, notwithstanding the subsequent discovery or existence of
any such additional or different facts.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

     Section 3.1 Authorization and Validity of Settlement Agreement. Each Party represents
and warrants to each other Party that the execution, delivery and performance of this

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Settlement Agreement (a) are within the Party’s powers, (b) have been duly authorized by all
necessary action on its behalf and all necessary consents or approvals have been obtained and are
in full force and effect and (c) do not violate any of the terms and conditions of any applicable
law or any contracts to which it is a party.

     Section 3.2 Enforceability. Each Party represents and warrants to each other Party
that this Settlement Agreement has been duly executed and delivered on behalf of such Party and
constitutes a legal, valid and binding obligation of such Party enforceable against it in
accordance with its terms.

     Section 3.3 Reviewed by Attorneys. Each Party represents and warrants to each other
Party that it (a) understands fully the terms of this Settlement Agreement and the consequences of
the execution and delivery hereof, (b) has been afforded an opportunity to have this Settlement
Agreement reviewed by, and to discuss this Settlement Agreement with its attorneys, (c) has entered
into this Settlement Agreement of its own free will and accord and without threat, duress or other
coercion of any kind by any Person and (d) acknowledges that it and each other Party has negotiated
the terms of this Settlement Agreement in good faith.

ARTICLE 4

BANKRUPTCY COURT APPROVALS; TERMINATION OF SETTLEMENT AGREEMENT

     Section 4.1 Bankruptcy Court Approvals. This Settlement Agreement shall be binding on
the Parties as of the date set forth in the introductory paragraph of this Settlement Agreement,
subject to Bankruptcy Court approval and required consents from the appropriate branches of the
City, including City Council and the Mayor; provided, however, that Sections 1.2
(a), (b), (c), (h), (i) and (j) and Sections 4.1(a) and (b) shall be binding and in full force and
effect upon the Parties as of the date set forth in the introductory paragraph of this Settlement
Agreement.

          (a) The Parties will file a joint motion with the Bankruptcy Court for approval of this
Settlement Agreement pursuant to Federal Rule of Bankruptcy Procedure 9019 (the “Settlement
Motion”), and, if necessary, also seek entry of an order expediting the hearing on the
Settlement Motion, so that the Settlement Motion is heard prior to the conclusion of the Plan
Confirmation Hearing. The Settlement Motion shall (i) state that approval of this Settlement
Agreement by the Bankruptcy Court is required contemporaneous with Plan Confirmation, and (ii)
state that the City is supporting Confirmation of the Plan to the exclusion of any other plan of
reorganization, proposal, offer or term sheet submitted by a third party. An order approving the
Settlement Agreement shall be included as part of the Confirmation Order. The Parties shall use
their best efforts to obtain Bankruptcy Court approval of the Settlement Agreement and shall take
no actions inconsistent therewith.

          (b) Concomitantly, the Debtors will also seek authority to enter into the Revised Development
Agreement from the Bankruptcy Court in conjunction with the relief sought in the Settlement Motion.

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     Section 4.2 Effect of Non-Approval. In the event that (i) the Plan is not Confirmed,
(ii) subject to the requirements of Section 1.1(a) of this Settlement Agreement, the Plan is not
Consummated or the Conditions Precedent are not satisfied or waived by the Parties, or (iii)
Bankruptcy Court approval of this Settlement Agreement including the Revised Development Agreement
is not granted, this Settlement Agreement shall be deemed to be null and void and neither Party
shall have any obligations to the other Parties arising out of this Settlement Agreement, including
the Revised Development Agreement, nor shall the existence of the Settlement Agreement or its terms
be used as the basis for the assertion of the waiver or estoppel of any claim or defense by any
Party in any subsequent matter or proceeding.

ARTICLE 5

MISCELLANEOUS

     Section 5.1 Successors and Assigns. The rights and obligations of the Parties under
this Settlement Agreement shall be binding on and enforceable by the successors and assigns of each
Party.

     Section 5.2 Counterparts. This Settlement Agreement may be executed in one or more
counterparts, by either an original signature or signature transmitted by facsimile transmission or
other similar process and each copy so executed shall be deemed to be an original and all copies so
executed shall constitute one and the same agreement.

     Section 5.3 Headings. The headings of the articles, sections and paragraphs of this
Settlement Agreement are inserted for convenience only and shall not be deemed to constitute part
of this Settlement Agreement or to affect the construction hereof.

     Section 5.4 Entire Agreement; Modification and Waiver. This Settlement Agreement, as
it may be amended in accordance with its terms, and all other agreements delivered in connection
herewith, contain the entire agreement as among the Parties with respect to the subject matter
hereof. This Settlement Agreement may not be modified or amended except by an instrument or
instruments in writing signed by each of the Parties. The waiver by a Party of a breach of any
term or provision of this Settlement Agreement shall not be construed as a waiver of any subsequent
breach.

     Section 5.5 Covenant Not to Take Action in Breach of Representations and Warranties.
Each Party agrees not to take any actions from and including the date of execution of this
Settlement Agreement up to and including the Effective Date that will result, whether directly or
indirectly, in the breach of the representations, warranties, agreements, covenants or obligations
contained in this Settlement Agreement.

     Section 5.6 Notices. Any notice, communication, request, instruction or other
document required or permitted hereunder shall be deemed to have been duly given: (i) when
personally delivered; (ii) upon actual receipt (as established by confirmation of receipt or
otherwise) during normal business hours, otherwise on the first Business Day thereafter, if
transmitted by facsimile or telecopier with confirmation of receipt; (iii) when mailed by certified
mail, return receipt requested, postage prepaid; or (iv) when sent by overnight courier; in each

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case, to the following addresses, or to such other addresses as a Party may from time to time
specify by notice to the other Party given pursuant hereto.

If to the Debtors or Reorganized Debtors, to:

Greektown Casino, L.L.C.

555 E. Lafayette

Detroit, MI 48226

Attention: Chief Executive Officer

With copies to:

Schafer & Weiner, PLLC

40950 Woodward Ave., Ste. 100

Bloomfield Hills, MI 48304

Attention: Daniel Weiner

Phone: (248) 540-3340

Facsimile: (248) 282-2100

and

Honigman Miller Schwartz and Cohn LLP

2290 First National Building

660 Woodward Avenue

Detroit, MI 48226

Attention: G. Scott Romney

Phone: (313) 465-7000

Facsimile: (313) 465-8000

If to the City, to:

Mayor

City of Detroit

1126 Coleman A. Young Municipal Center

Two Woodward Avenue

Detroit, Michigan 48226

Phone:

Facsimile:

With a copies to:

Corporation Counsel

City of Detroit

First National Building

660 Woodward Avenue

Suite 1650

Detroit, Michigan 48226

Phone:

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Facsimile:

and

Shefsky & Froelich Ltd.

111 East Wacker Drive

Suite 2800

Chicago, IL 60601

Attention: Cezar M. Froelich and

Michael J. Schaller

Phone: (312) 527-4000

Facsimile: (312) 527-4011

If to the Agent, to:

Merrill Lynch Capital Corporation

335 Madison Avenue

5th Floor

New York, NY 10017

Attention: Michael O’Brien

Phone: (646) 556-0665

Facsimile: (646) 556-0351

With a copy to:

Mayer Brown LLP

1675 Broadway

New York, New York 10019-5820

Attention: J. Robert Stoll

Phone: (212) 506-2500

Facsimile: (212) 262-1910

     Section 5.7 GOVERNING LAW. THIS SETTLEMENT AGREEMENT AND THE RIGHTS AND DUTIES OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH APPLICABLE FEDERAL LAWS,
AND/OR THE SUBSTANTIVE LAWS OF THE STATE OF MICHIGAN, WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAWS THAT WOULD REQUIRE THE APPLICATION OF LAWS OF ANOTHER JURISDICTION. THE PARTIES
ACKNOWLEDGE AND AGREE THAT THE BANKRUPTCY COURT SHALL HAVE THE EXCLUSIVE JURISDICTION OVER THIS
SETTLEMENT AGREEMENT AND THAT ANY CLAIMS ARISING OUT OF OR RELATED IN ANY MANNER TO THIS SETTLEMENT
AGREEMENT SHALL BE PROPERLY BROUGHT ONLY BEFORE THE BANKRUPTCY COURT. FOR THE AVOIDANCE OF DOUBT,
THIS PROVISION APPLIES SOLELY TO DISPUTES ARISING OUT OF THIS SETTLEMENT AGREEMENT AND NOT TO ANY
DISPUTES ARISING OUT OF THE REVISED DEVELOPMENT AGREEMENT THAT IS ATTACHED AS AN EXHIBIT HERETO.

13

 

     Section 5.8 WAIVER OF JURY TRIAL. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SETTLEMENT AGREEMENT OR THE
RELATED AGREEMENTS AND FOR ANY COUNTERCLAIM THEREIN.

     Section 5.9 Severability. In case any provision of this Settlement Agreement shall be
determined to be invalid, illegal or unenforceable for any reason, the remaining provisions of this
Settlement Agreement shall be unaffected and unimpaired thereby, and shall remain in full force and
effect, to the fullest extent permitted by applicable law.

     Section 5.10 Interpretation. This Settlement Agreement has been jointly drafted by
the Parties at arm’s-length and each Party has had ample opportunity to consult with independent
legal counsel. No provision or ambiguity in this Settlement Agreement shall be resolved against
any Party solely by virtue of its participation in the drafting of this Settlement Agreement.

     Section 5.11 Survival of Representations. All representations, warranties,
agreements, acknowledgements, covenants and obligations herein are material, shall be deemed to
have been relied upon by the other Party, and shall survive the Effective Date.

     Section 5.12 No Admission of Liability. This Settlement Agreement is not an admission
of any liability but is a compromise and the settlement and this Settlement Agreement shall not be
treated as an admission of liability. All communications (whether oral or in writing) between
and/or among the Parties, their counsel and/or their respective representatives relating to,
concerning or in connection with this Settlement Agreement, or the matters covered hereby and
thereby, shall be governed and protected in accordance with Federal Rule of Evidence 408 to the
fullest extent permitted by law.

[SIGNATURE PAGES TO FOLLOW]

14

 

     IN WITNESS WHEREOF, this Settlement Agreement has been signed by or on behalf of each of the
Parties as of the day first above written.

	 	 	 	 	 
	 	MONROE PARTNERS, L.L.C., as debtor and debtor-in-possession

 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	KEWADIN GREEKTOWN CASINO, L.L.C., as debtor and debtor-in-possession

 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	GREEKTOWN HOLDINGS, L.L.C., as debtor and debtor-in-possession

 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	GREEKTOWN HOLDINGS II, INC., as debtor and debtor-in-possession

 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 

S-1

 

	 	 	 	 	 
	 	GREEKTOWN CASINO, L.L.C., as debtor and debtor-in-possession

 	 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	TRAPPERS GC PARTNER, L.L.C., as debtor and debtor-in-possession

By: GREEKTOWN CASINO, L.L.C.

Its: Sole Member

 	 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CONTRACT BUILDERS CORPORATION, as debtor and debtor-in-possession

 	 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	REALTY EQUITY COMPANY, INC., as debtor and debtor-in-possession

 	 
	 	By:  	 	 
	 	 	Name:  	Cliff Vallier 	 
	 	 	Title:  	Chief Financial Officer 	 

S-2

 

	 	 	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL CORPORATION,

as Administrative Agent for the Pre-petition Lenders and the DIP Lenders
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Name: Michael E. O’Brien
	 	 	 	 	Title: Vice President
	 
	 	 	 	 	 	 
	 	THE CITY OF DETROIT
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	THE ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF DETROIT
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

S-3

 

EXHIBIT A

REVISED DEVELOPMENT AGREEMENTexv10w1

Exhibit 10.1

Form of Subscription Agreement

Subscription No.                     

THE SHARES OF PREFERRED STOCK OFFERED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT
FOR AN INDEFINITE PERIOD OF TIME. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR
OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS
INVOLVED. THE SHARES OF PREFERRED STOCK OFFERED HEREBY HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR
STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE
NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT OR ANY OTHER DOCUMENT
DELIVERED HEREWITH. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

DRI CORPORATION

SUBSCRIPTION AGREEMENT

(the “Subscription Agreement”)

To be completed by Investors

     If and when accepted by DRI Corporation, a North Carolina corporation (the “Company”), and the
issuer of Series K Senior Convertible Preferred Stock (the “Series K Preferred Stock”), this
Subscription Agreement shall constitute a subscription for the number of shares of Preferred Stock
set forth herein. The Company is relying upon the accuracy and completeness of the information set
forth herein in complying with its obligation under applicable federal and state securities laws.

     The Preferred Stock being issued is Series K Senior Convertible Preferred Stock of the
Company. Each share has a preference upon a Liquidating Event. A Liquidation Event is defined in
the Company’s Articles of Incorporation to include any liquidation, dissolution or winding up of
the Company, either voluntary or involuntary. Upon a Liquidating Event, the holders of the Series
K Preferred Stock will be paid prior to any other currently outstanding equity holders Five
Thousand Dollars ($5,000) per share, plus all accrued but unpaid dividends. The Series K Preferred
Stock ranks prior and superior to the Series AAA Preferred Stock, the Series E Preferred Stock, the
Series G Preferred Stock, the Series H Preferred Stock and the

 

 

Series J. Preferred Stock with respect to payments upon liquidation, dissolution and winding up.

     The holders of Series K Preferred Stock shall receive dividends, as and if declared by the
Board of Directors of the Company, consistent with applicable law, which shall accrue quarterly at
an annual rate of nine and one-half percent (9-1/2%). Dividends shall accrue as of December 15,
March 15, June 15, and September 15 of each year. Dividends shall be cumulative if not paid when
and as they accrue. The Series K Preferred Stock shall rank prior and superior to the Series AAA
Preferred Stock, the Series E Preferred Stock, the Series G Preferred Stock, the Series H Preferred
Stock and the Series J Preferred Stock with respect to the payment of dividends.

     The shares of Series K Preferred Stock may be converted by the shareholder at any time or from
time to time into fully paid and nonassessable shares (calculated as to each conversion to the
largest whole share) of Common Stock at a conversion price of $3.00 per share. Further, if the
closing bid price for the Common Stock on The Nasdaq Stock Market (or other exchange or market on
which the Common Stock may from time to time be traded) for any period of twenty (20) consecutive
trading days exceeds $6.00, then all outstanding shares of Series K Preferred Stock shall
automatically convert, at the close of the market on the last trading day in such period, into a
number of fully paid and nonassessable shares (calculated to the largest whole share) of Common
Stock determined by multiplying the number of shares of Series K Preferred Stock then outstanding
by a fraction, the numerator of which is the Liquidation Preference of a share of Series K
Preferred Stock, plus an amount equal to accrued and unpaid dividends on such shares, if any, and
the denominator of which is the then applicable Conversion Price, provided that the resale of the
shares issuable upon conversion shall have been registered or shall be subject to available
exemption under applicable securities laws.

     In addition, the Company may redeem shares of its Series K Preferred Stock at any time in its
sole discretion for an amount equal to Five Thousand Dollars ($5,000) per share, plus all accrued
but unpaid dividends. The shareholder can always elect conversion as an alternative to redemption.

     Please read, complete, sign, date and deliver a completed Subscription Agreement with two (2)
copies of the Subscription Agreement signature page to DRI Corporation, 13760 Noel Road, Suite 830,
Dallas, TX 75240.

     Each subscriber hereto must complete this Subscription Agreement and the appendices hereto.

 

 

PART I — SUBSCRIPTION

1. METHOD OF SUBSCRIPTION: The undersigned, intending to be legally bound, hereby
irrevocably subscribes for and agrees to purchase the number of shares of Series K Preferred Stock
set forth below for a subscription price of $5,000 per share (the “Shares”) and to become a
stockholder of the Company on the terms and conditions described herein. A minimum total
investment of $50,000 shall be required by the Company unless waived by management because of a
strategic investment.

Before a subscription for Shares will be accepted, the following must be completed, executed and
returned to the Company.

     a. This Subscription Agreement with signature page executed in duplicate.

     b. Check or wire made payable to “DRI Corporation” in the amount of $5,000 for each share of
Series K Preferred Stock subscribed.

The undersigned agrees that this subscription is and shall be irrevocable, but the obligations
hereunder will terminate if this subscription is not accepted by the Company within fifteen (15)
days of receipt of monies from the Investors.

2. ACCEPTANCE BY THE COMPANY: Investor hereby acknowledges (i) that this subscription
shall not be deemed to have been accepted by the Company until the Company indicates its acceptance
by returning to Investor an executed copy of this subscription, and (ii) that acceptance by the
Company of this subscription is conditioned upon the information and representations of Investor
hereunder being complete, true and correct as of the date of this subscription and as of the date
of closing of sale of the shares to Investor.

3. RISKS OF INVESTMENT: The undersigned is aware that:

     a. There are substantial risks incident to the ownership of Shares.

     b. The Investor has been furnished and read the Company’s most recent public filings
(inclusive of risk considerations therein) and independent research reports as well as any
corporate documents requested by the Investor. Further, the Investor has been afforded the
opportunity to ask questions of, and receive answers from the Company’s management. The Investor
has not received any oral or written representations in connection with this offering by
the

 

 

Company, its officers, directors, or agents not contained in the business plan or legal documents.

     c. There are substantial risks of loss of investment incident to the purchase of the Series
K Preferred Stock, and the Investor must be capable of and prepared to lose all amounts invested in
the Series K Preferred Stock.

     d. The Company’s objectives contain projections that are hypothetical and based upon a
number of assumption and forward looking statements many of which are speculative; projections do
not and cannot take into account such factors as general economic conditions, the introduction of
new and better technologies, the entry into the Company’s line of business of competitors, the
terms and conditions of future financing of the Company, and other risks inherent to the business
of the Company; while management believes that the projections considered for its objectives and
business plan reflect possible future results of the Company’s operations, such results cannot be
guaranteed; further, Investors understand and are prepared for the substantial economic risks
involved in the purchase of the preferred shares, including the total loss of their investment.

     e. The Company is highly dependent on the services of its management team and the loss of
any of these individuals’ services for whatever reason could have a material adverse effect on the
Company. Further, the recruitment and retention of executives, qualified managers and appropriate
support personnel will be critical to the achievement of the Company’s objectives. There can be no
assurances the Company will be able to attract or retain qualified personnel on acceptable terms.

     f. No federal or state agency has passed upon the Series K Preferred Stock or made any
finding or determination concerning the merits or fairness of this investment.

     g. No promises or inducements have been made that the Company shall be successful in its
operations in the future.

4. INDEPENDENT TAX ADVICE: The undersigned acknowledges that he has been advised to
consult his own attorneys and advisors concerning this investment and to consult with an
independent tax counsel regarding the tax consequences of making such an investment.

5. LIMITATION ON TRANSFER OF SHARES: The undersigned recognizes and agrees that:

     a. Due to restrictions described below, the lack of any market existing or likely to exist
for the Shares, and the adverse

 

 

tax consequences in the event he should sell his Shares, his investment in the Company will be
highly illiquid and, most likely, must be held indefinitely.

     b. The undersigned represents that the Shares are being acquired without a view to, or for,
resale in connection with any distribution of the Shares or interests therein without registration
or compliance under the Securities Act of 1933, as amended (the “Act”), and applicable state
securities laws, and that the undersigned has no direct or indirect participation in any such
distribution or in the underwriting of such a distribution. The undersigned understands that the
Shares have not been registered, and are being acquired by means of a specific exemption under the
Act, as well as certain state statutes for transactions by an issuer not involving any public sale
of securities, and that any disposition of the Shares may, under certain circumstances, be
inconsistent with this exemption and make the undersigned an “underwriter” within the meaning of
the Act. Accordingly, the undersigned must bear the economic risk of investment in the Shares for
an indefinite period of time, since the Shares have not been registered under the Act, and
therefore, the Shares cannot be offered, sold, transferred, pledged or hypothecated to any person
unless they are either subsequently registered under said Act (which is not anticipated) or an
exemption from such registration is available and the Company is provided a favorable opinion of
counsel to that effect which is satisfactory to it. Further, the undersigned may not resell,
hypothecate, transfer, assign or make any other disposition of said Shares except in a transaction
exempt or excepted from the registration requirements of the securities laws of the state in which
the Shares are offered and sold, and that the specific approval of such sales is required in some
states.

6. REPRESENTATIONS OF THE SUBSCRIBER.

     a. The undersigned represents and warrants to the Company as follows:

     (i) that he is the sole and true party in interest and that he is not purchasing for the
benefit of any other person (or that he is purchasing for another person who meets all of the
conditions set forth herein); and

     (ii) that he (and his purchaser representative, if such a purchaser representative is
utilized by him) has (have) such knowledge and experience in financial and business matters
that he is (they are) capable of evaluating the merits and the risks of this investment.

     b. The undersigned understands the risks of, and other considerations relating to, the
purchase of Shares.

 

 

     c. The undersigned is acquiring the Shares for which he hereby subscribes for his own
account, as principal, for investment purposes only and not with a view to, or for, subdivision,
resale, distribution or fractionalization thereof in whole or in part, or for the account, in whole
or in part, of others, and no other person has a direct or indirect beneficial interest in such
Shares; further, the undersigned will hold the Shares as an investment and has no present
intention, agreement or arrangement to divide his participation with others or to resell, assign,
transfer or otherwise dispose of all or any part of the Shares subscribed for unless and until he
determines, at some future date, that changed circumstances, not in contemplation at the time of
this purchase, makes such disposition advisable.

     d. The undersigned has the financial ability to bear the economic risk of his investment, and
has adequate means for providing for his current needs and personal contingencies and has no need
for liquidity with respect to his investment in the shares.

     e. All of the information which is set forth below with respect to the undersigned is correct
and complete as of the date hereof, and if there should be any material change in such information
prior to the acceptance of this subscription by the Company, the undersigned will immediately
furnish the revised or corrected information to the Company.

     f. The undersigned has not been furnished any oral representation, warranty or information in
connection with the offering of the Shares by the Company or any of its officers, employees,
agents, affiliates or subsidiaries.

     g. The undersigned acknowledges that neither the United States Securities and Exchange
Commission nor the securities commissioner of any state has made any determination as to the merits
of a purchase of the Shares.

     h. The undersigned was at no time solicited by any leaflet, public promotional meeting,
circular, newspaper or magazine article, radio or television advertisement, or any other form of
general advertising or solicitation in connection with the offer, sale, or purchase of the
securities through this Agreement.

     i. The undersigned acknowledges that this Agreement may be accepted or rejected in whole or
in part by the Company and that, to the extent that the subscription may be rejected, the
accompanying subscription payment will be refunded.

     j. If the Investor is a corporation, partnership, limited liability company, trust, estate or
other entity, (i) it is duly organized, validly existing and in good standing under the laws of

 

 

its jurisdiction of organization and (ii) the execution, delivery and performance by it of this
Agreement are within its powers, have been duly authorized by all necessary action on its behalf
and require no action by or in respect of, or filing with, any governmental body, agency or
official and do not contravene, or constitute a default under any provision of applicable law or
regulation or of its certificate of incorporation or other comparable organizational documents or
any agreement, judgment, injunction, order, decree or other instrument binding upon it.

     k. If the Investor is a natural person, the execution, delivery and performance by such person
of this Agreement are within such person’s legal right and power, require no action by or in
respect of, or filing with, any governmental body, agency, or official and do not contravene, or
constitute a default under, any provision of applicable law or regulation or of any agreement,
judgment, injunction, order, decree or other instrument binding upon such person.

     l. The Investor is an “accredited investor” within the meaning of Rule 501 under the
Securities Act of 1933, as amended. See Investor Suitability Requirements attached for
reference to this representation of the Subscriber.

7. AGREEMENT TO BE BOUND BY TERMS AND CONDITIONS: The undersigned hereby adopts, accepts
and agrees to be bound by all of the terms and conditions of the offering and by all the terms and
conditions of this Subscription Agreement. Upon acceptance of this Subscription Agreement by the
Company the undersigned shall become a stockholder of the Company.

8. REPRESENTATIONS AS TO INVESTMENT EXPERIENCE: The undersigned further hereby represents
that he has such knowledge and experience in business and financial matters as to be capable of
evaluating the Company and the proposed activities thereof, the risks and merits of investment in
the Shares and of making an informed investment decision thereon or the undersigned is relying in
making the investment on the advice of a purchaser representative.

9. INDEMNITY OF COMPANY: The undersigned hereby agrees to indemnify the Company and any
person participating in the offering and hold them harmless from and against any and all liability,
damage, cost or expense (including, but not limited to, reasonable attorney’s fees) incurred on
account of or arising out of:

     a. Any inaccuracy in the declarations, representations and warranties set forth herein;

 

 

     b. The disposition of any of the Shares which he will receive, contrary to his foregoing
declarations, representations and warranties; and

     c. Any action, suit or proceeding based upon (i) the claim that said declarations,
representations, or warranties were inaccurate or misleading or otherwise cause for obtaining
damages or redress from the Company; or (ii) the disposition of any of the Shares or any part
thereof.

10. SETOFF: Notwithstanding the provisions of the last preceding section or the
enforceability thereof, the undersigned hereby grants to the Company the right of setoff against an
amount payable by the Company to the undersigned, for whatever reason, of any and all damages,
costs or expenses (including, but not limited to, reasonable attorney’s fees) which are incurred by
the Company on account of or arising out of any items referred to in the last preceding section.

11. MISCELLANEOUS: The undersigned further understands and acknowledges that:

     a. This Subscription Agreement is not transferable or assignable by the undersigned;

     b. If the undersigned is more than one person, the obligations of the undersigned shall be
joint and several and the representations and warranties herein contained shall be deemed to be
made by and be binding upon each such person and his heirs, executors, administrators, successors
and assigns;

     c. The subscription, upon acceptance by the Company, shall be binding upon the heirs,
executors, administrators, successors and assigns of the undersigned;

     d. This Subscription Agreement constitutes the entire agreement between the parties regarding
the subject matter hereof;

     e. Captions in this Subscription Agreement are for the convenience of reference only and
shall not limit or otherwise affect the interpretation or effect of any term or provision hereof;

     f. This Subscription Agreement shall be construed and governed under the laws of the State of
North Carolina; and

     g. Notwithstanding any of the representations, warranties, acknowledgments or agreements made
herein by the undersigned, the undersigned does not waive any rights granted to the undersigned
under applicable federal and state securities laws.

 

 

     IN WITNESS WHEREOF, the undersigned has completed this Subscription Agreement to evidence his
subscription to the Company pursuant to the terms hereof this
___ day of                     , 2009.

Number of shares of Series K Preferred Stock:                     

	 	 	 	 	 	 	 
	 

Subscriber #1 Signature (*)

	 	 	 	 

Subscriber #2 Signature (**)
	 	 
	 
	 	 	 	 	 	 
	 

Print or Type Name

	 	 	 	 

Print or Type Name
	 	 
	 
	 	 	 	 	 	 
	 

Address

	 	 	 	 

Address
	 	 
	 
	 	 	 	 	 	 
	 

Address

	 	 	 	 

Address
	 	 
	 
	 	 	 	 	 	 
	 

Social Security Number/EIN

	 	 	 	 

Social Security Number/EIN
	 	 

 

			
	(*)	 	If a partnership, corporation or other qualified association, the signature should be in the
name of such entity followed by the authorized signature and title of the signatory.
	 
	(**)	 	Second signature required for any joint investment.

     The Company has accepted this subscription in the amount of $                     this the                      day
of
                    , 2009, for                      shares of Series K Preferred Stock of DRI Corporation.

	 	 	 	 	 
	 	DRI CORPORATION

 	 
	 	By  	 	 
	 	 	President 	 
	 	 	 	 
	 

 

 

INVESTOR SUITABILITY REQUIREMENTS

This offering is made in reliance upon an exemption from registration under the Securities Act of
1933, as amended (the “Act”). The speculative nature of the success of the Company’s business,
together with the lack of liquidity of the preferred stock being offered, makes the purchase of the
preferred stock suitable only for investors who have adequate financial resources and who can
afford the total loss of their investment.

The suitability standards set forth below represent minimum suitability standards for prospective
investors. The satisfaction of such standards by a prospective investor does not necessarily mean
that the preferred stock being offered is a suitable investment for such prospective investor.
Prospective investors are encouraged to consult their personal financial advisors to determine
whether an investment in the preferred stock being offered is appropriate. The Company, at its
absolute discretion, may reject subscriptions, in whole or in part.

By signing the Subscription Agreement each investor represents in writing, among other things,
that: (i) by reason of the investor’s financial or business experience, or the investor’s financial
advisor, the investor has the capacity of evaluating the merits and risks of an investment in the
preferred stock and of protecting his/her own interests in connection with the transaction; (ii)
the investor is acquiring the preferred stock for his/her own account, for investment only and not
with a view toward the resale or distribution thereof, and that the investor is aware that the
preferred stock has not been registered under the Act and that the transfer of the preferred stock
is restricted by the Act, applicable state securities laws, the Subscription Agreement to be
entered into in connection with the purchase of the preferred stock and the absence of a market for
the preferred stock; and (iii) the investor meets the suitability requirements set forth below.

Each investor by singing the Subscription Agreement represents that such investor is qualified to
invest in the preferred stock. To be qualified, the investor must fall within any of the following
categories at the time of the offering for sale of preferred stock to that investor.

Accredited Investors:

	1.	 	Be a director or executive officer of the Company.
	 
	2.	 	Be a natural person whose individual net worth or joint net worth, with that of the person’s
spouse, at the time of purchase exceeds $1,000,000.

 

 

	3.	 	Be a natural person who had an individual income in excess of $200,000 in each of the two
most recent years or joint income with that person’s spouse in excess of $300,000 in each of
those years and has a reasonable expectation of reaching the same income level in the current
year (the year in which the purchase is made).
	 
	4.	 	Be an organization described in Section 501(c)(3) of the Internal Revenue Code, corporation,
Massachusetts or similar business trust, or partnership, not formed for the specific purpose
of acquiring the securities offered, with total assets in excess of $5,000,000.
	 
	5.	 	Be a bank as defined in Section 3(a)(2) of the Act, or a savings and loan association or
other institution as defined in Section 3(a)(5)(A) of the Act whether acting in its individual
or fiduciary capacity; a broker or dealer registered under the Securities Exchange Act of
1934; an insurance company as defined in Section 2(a)(13) of the Act; an investment company
registered under the Investment Company Act of 1940 or a business development company as
defined in Section 2(a)(48) of the Investment Company Act of 1940; a Small Business Investment
Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the
Small Business Investment Act of 1958; any employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan
fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan
association, insurance company, or registered investment adviser, or if the employee benefit
plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment
decisions made solely by persons that are accredited investors.
	 
	6.	 	Be a “private business development Company” as defined in Section 202(a)(22) of the
Investment Advisors Act of 1940.
	 
	7.	 	Be an entity in which all of the equity owners are accredited investors.
	 
	8.	 	Be a trust, with total assets in excess of $5,000,000 not formed for the specific purpose of
acquiring the securities offered, whose purchase is directed by a sophisticated person as
described in Rule 506(b)(2)(ii) under the Act.

INVESTORS MUST BE ABLE TO BEAR THE ECONOMIC RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME. THE PREFERRED STOCK HAS NOT BEEN REGISTERED UNDER THE ACT, AND THE PREFERRED STOCK CANNOT BE
SOLD UNLESS IT IS SUBSEQUENTLY REGISTERED THEREUNDER OR AN EXEMPTION FROM REGISTRATION IS
AVAILABLE.

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