Document:

RESTRUCTURING AGREEMENT (VODAFONE)

 Exhibit 4.14 
  
 RESTRUCTURING AGREEMENT 
 (Vodafone)

  
 This Restructuring Agreement (“Agreement”) is entered
into as of April 26, 2004 by and between ATX Technologies, Inc., a Texas corporation (“ATX”), ATX Group, Inc., a Delaware corporation (“ATX Group”), and Vodafone Deutschland GmbH, a German limited liability company
(“Vodafone”). 
  
 RECITALS: 
  
 WHEREAS, ATX and Vodafone are parties to the following: 
  

	 	•	that certain Investors’ Rights Agreement, dated as of June 13, 2000, by and among ATX, Vodafone (as successor in interest to Mannesmann TeleCommerce GmbH), James R. Leininger
(“Leininger”), Robert L. Cone (“Cone”) and Steven W. Riebel (“Riebel”), as amended by that certain Consent to Amendment of Investors’ Rights Agreement, dated as of November 1, 2000, and as
further amended by that certain Joinder Agreement to Investors’ Rights Agreement, dated as of November 8, 2000, by and among Siebel Systems, Inc., a Delaware corporation (“Siebel”), ATX, Vodafone, Leininger, Cone and Riebel (as
amended, the “Investors’ Rights Agreement”), copies of which are attached as Exhibit A hereto; 

  

	 	•	that certain Voting Agreement, dated as of May 4, 2000, by and among ATX, Vodafone, and certain holders of common stock, par value $.01 per share, of ATX (“ATX Common
Stock”), as amended by that certain Consent to Amendment of Voting Agreement, dated as of November 1, 2000, and as further amended by that certain Joinder Agreement to Voting Agreement, dated as of November 8, 2000, by and among Siebel,
ATX, Vodafone and certain holders of ATX Common Stock (as amended, the “Voting Agreement”), copies of which are attached as Exhibit B hereto; 

  

	 	•	that certain Right of First Refusal and Co-Sale Agreement, dated as of June 23, 2000, by and among ATX, Vodafone, and certain holders of ATX Common Stock, as amended by that certain
Consent to Amendment of Right of First Refusal and Co-Sale Agreement, dated as of November 1, 2000, as further amended by that certain Joinder Agreement to Right of First Refusal and Co-Sale Agreement, dated as of November 8, 2000, by and among
Siebel, ATX, Vodafone and certain other shareholders of ATX, and as further amended by that certain First Amendment to Right of First Refusal and Co-Sale Agreement, dated as of July 13, 2001, by and among ATX, Vodafone and certain other shareholders
of ATX (as amended, the “Co-Sale Agreement”), copies of which are attached as Exhibit C hereto; the Investors’ Rights Agreement, Voting Agreement and Co-Sale Agreement are sometimes collectively referred to herein as the
“Preferred Stock Financing Agreements”; 

  

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 WHEREAS, Vodafone holds 10,840,108 shares of Series B Convertible Preferred Stock, par value $.01 per share, of ATX which
is convertible into 11,557,510 shares of ATX common stock (the “Series B Preferred Stock”), and 6,060,606 shares of Series D Convertible Preferred Stock, par value $.01 per share, of ATX which is convertible into 6,060,606 shares of
ATX common stock (the “Series D Preferred Stock”); and 
  
 WHEREAS, in contemplation of (i) a reorganization of ATX pursuant to which ATX will become a wholly-owned subsidiary of ATX Group pursuant to the merger of a wholly-owned subsidiary of ATX Group with and into ATX (the “ATX
Reorganization”), whereby, effective simultaneously with, or immediately prior to, and contingent upon, the consummation (closing and funding) of the Qualified Public Offering (as defined below) (the “Qualified Public Offering
Closing”), all holders of outstanding ATX Common Stock and preferred stock will receive, in exchange therefor, shares of common stock, par value $.01 per share, of ATX Group (“ATX Group Common Stock”) all as provided in
that certain Agreement and Plan of Merger among ATX, ATX Group and ATX Merger Co, Inc. (the “Reorganization Agreement”), and (ii) a simultaneous underwritten public offering of shares of ATX Group Common Stock pursuant to a
registration statement under the Securities Act of 1933, as amended, which will result in aggregate gross proceeds to ATX Group (and to Vodafone if it elects to sell shares in such offering) of not less than $50,000,000 (a “Qualified Public
Offering”), the parties desire to enter into this Agreement and take the actions described herein. 
  
 AGREEMENT: 
  
 NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  

	1.	Exchange of Stock 

  
 In connection with the ATX Reorganization, Vodafone agrees to take all actions necessary to exchange, or cause to be exchanged, all shares of Series B Preferred Stock and Series D Preferred Stock of ATX owned by
Vodafone for shares of ATX Group Common Stock, pursuant to the terms of the ATX Reorganization. Vodafone shall surrender to ATX all certificates for such shares of capital stock of ATX, deliver all required notices and perform all other actions
required of Vodafone to cause such exchange to be consummated. 
  

	2.	Preferred Stock Financing Agreements 

  

	 	(a)	Subject to the satisfaction or waiver by Vodafone of all of the Vodafone Conditions (as defined below), Vodafone hereby forever and irrevocably waives any rights that might arise
under Section 3 of the Co-Sale Agreement or Section 2 of the Investors’ Rights Agreement as a result of or related in any way to the ATX Reorganization, the Qualified Public Offering, or any of the transactions contemplated thereby.

  

	 	(b)	Vodafone hereby agrees that effective as of the Qualified Public Offering Closing, each of the Investors’ Rights Agreement, the Co-Sale Agreement and the Voting Agreement shall
terminate in its entirety and be of no further force or effect. 

  

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	 	(c)	In furtherance of Section 2(b), Vodafone hereby agrees that (i) Section 2 of the Voting Agreement is hereby amended to add the following paragraph as Section 2(b), and the first
paragraph of Section 2 shall be numbered Section 2(a): “(b) In addition to the termination provision of Section 2(a), this Agreement shall terminate and be of no further force or effect as of the consummation (closing and funding) of a
Qualified Public Offering (as hereafter defined) on or prior to September 30, 2004. “Qualified Public Offering” means an underwritten public offering of shares of common stock, par value $.01 per share, of ATX Group, Inc., a Delaware
corporation (“ATX Group”) pursuant to a registration statement under the Securities Act of 1933, as amended, which will result in aggregate gross proceeds to ATX Group and any selling stockholders of not less than $50,000,000” and
(ii) Section 9 of the Co-Sale Agreement is hereby amended to add the following paragraph as Section 9(b), and the first paragraph of Section 9 shall be numbered Section 9(a).”(b) In addition to the termination provision of Section 9(a), this
Agreement shall terminate and be of no further force or effect as of the consummation (closing and funding) of a Qualified Public Offering (as hereafter defined) on or prior to September 30, 2004. “Qualified Public Offering” means an
underwritten public offering of shares of common stock, par value $.01 per share, of ATX Group, Inc., a Delaware corporation (“ATX Group”) pursuant to a registration statement under the Securities Act of 1933, as amended, which will result
in aggregate gross proceeds to ATX Group and any selling stockholders of not less than $50,000,000.” 

  

	3.	Board Designation and Observation Rights 

  

	 	(a)	Effective as of the Qualified Public Offering Closing, and continuing thereafter until such time as Vodafone (including its affiliates) ceases to beneficially own, directly or
indirectly, at least 10% of the voting power of the outstanding capital stock of ATX Group, Vodafone will be entitled to notify ATX Group of the name of one person as a nominee (the “Vodafone Designee”) to the board of directors of
ATX Group on the terms and conditions set forth in this Section 3, which nominee will be recommended by ATX Group’s management to the Nominating and Corporate Governance Committee (or any other appropriate committee) of said board;
provided, however, that if the size of the board of directors of ATX Group exceeds nine members, then Vodafone shall be entitled to name two Vodafone Designees so long as the size of said board continues to exceed nine members.

  

	 	(b)	Subject to subsection (h) below, ATX Group shall take all such action as may be required under applicable law so that, effective as of the Qualified Public Offering Closing (the
“Qualified Public Offering Date”), the board of directors of ATX Group will include the Vodafone Designee(s) designated to ATX Group by Vodafone pursuant to Section 3(a) above prior to such date, at least one Vodafone Designee shall
have been appointed to the Compensation Committee of the board of directors of ATX Group, and 

  

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	 	(i)	if as of the Qualified Public Offering Date the board of directors of ATX Group shall be structured as a classified board, then at least one Vodafone Designee shall be a member of
the class of directors having a term extending until the 2007 annual meeting of stockholders of ATX Group; and 

  

	 	(ii)	if as of the Qualified Public Offering Date the board of directors of ATX Group is not a classified board, then at such time as ATX’s board of directors may become classified,
at least one Vodafone Designee shall be included in the class of directors initially elected for the longest period of time. 

  
 ATX Group represents to Vodafone that the ATX Group board of directors will consist of nine members as of the Qualified Public Offering Date. 

 

	 	(c)	Subject to subsection (h) below, ATX Group (through its nominating committee or board of directors, as appropriate) shall cause each Vodafone Designee to be nominated for election
to the board of directors of ATX Group at each meeting of stockholders of ATX Group at which stockholders will vote on nominees for election to the class in which such Vodafone Designee is currently serving as a director (or in any action to elect
directors by written consent of the stockholders to take such a vote). ATX Group will inform Vodafone a reasonable time in advance of any date by which nominees must be submitted in order to be eligible for election to the ATX Group board of
directors, and if Vodafone fails to provide written notice of the names of the Vodafone Designee(s) on or before such date, then the Vodafone Designee(s) previously named by Vodafone shall be deemed to be the Vodafone Designee(s) without further
action by Vodafone. 

  

	 	(d)	Subject to subsection (h) below, ATX Group shall (i) cause the board of directors of ATX Group to consider the appointment of one Vodafone Designee then serving as a director to
each committee of the board of directors of ATX Group for which such appointment is reasonable and for which such Vodafone Designee is reasonably qualified and meets any requirements for membership as set forth by applicable law, the charter or
bylaws of ATX Group in effect on the date hereof, and the rules and regulations of any governing stock exchange or automated quotation service on which ATX Group’s securities are then listed, and (ii) recommend to the board of directors of ATX
Group, as appropriate in the reasonable opinion of ATX Group, the appointment of one Vodafone Designee to any executive, steering, strategy or other long-standing committees for which a Vodafone Designee is reasonably qualified and for which such
Vodafone Designee meets any requirements for membership as set forth by applicable law, the charter or bylaws of ATX Group in effect on the date hereof, and the rules and regulations of any governing stock exchange or automated quotation service on
which ATX Group’s securities are then listed. 

  

	 	(e)	Subject to subsection (h) below, in the event that a vacancy is created on the board of directors of ATX Group at any time by the death, disability, retirement,

  

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 resignation or removal (with or without cause) of a Vodafone Designee, ATX Group and the remaining
directors will cause the vacancy created thereby to be filled by a new designee of Vodafone as soon as possible, who is designated in the manner specified in this Section 3, and ATX Group hereby agrees to take, or cause to be taken, at any time and
from time to time, all actions necessary to accomplish the same. 
  

	 	(f)	Effective as of the Qualified Public Offering Closing, and continuing thereafter until such time as Vodafone ceases to beneficially own, directly or indirectly, at least 10% of the
voting power of the outstanding capital stock of ATX Group, a representative of Vodafone reasonably acceptable to the board of directors of ATX Group (the “Observer”) may attend, in a non-voting observer capacity, all meetings of
the board of directors of ATX Group. Vodafone shall be solely responsible for all expenses incurred by the Observer in connection with his travel to, and participation at, meetings of the board of directors of ATX Group. 

  

	 	(g)	Vodafone agrees, and shall cause each of its representatives (including each Vodafone Designee and the Observer) to agree, to hold in confidence and trust and not use (other than
for ATX Group’s benefit) or disclose (other than to employees and professional advisors of Vodafone and its direct and indirect parent companies who are bound by appropriate confidentiality obligations and have an ATX Group reason to know such
information) any confidential information provided to or learned by it in connection with the exercise of Vodafone’s rights under this Section 3, unless otherwise required by law or if such information has become publicly available through no
fault of Vodafone or is disclosed to Vodafone without restriction by a third party not known to Vodafone to be under a confidentiality obligation to ATX Group or ATX. 

  

	 	(h)	Notwithstanding anything to the contrary set forth herein, nothing contained in this Section 3 shall require ATX Group to take any action, either now or in the future, that, in the
opinion of its board of directors after consulting with outside counsel, is or is reasonably likely to be inconsistent with, conflict with, or violate (i) any applicable law, including the fiduciary duties of the ATX Group board of directors (or any
committee thereof) under Delaware law (or any such committee’s charter as in effect on the date hereof) when considering nominees for election to the board of directors, (ii) any provision of the charter or bylaws of ATX Group as in effect on
the date hereof, or (iii) the rules and regulations of any stock exchange or automated quotation service on which any securities of ATX Group are listed or quoted. 

  

	4.	Representations of Vodafone 

  
 Vodafone hereby represents and warrants to ATX and ATX Group as follows: 
  

	 	(a)	Vodafone owns, beneficially and of record, 10,840,108 shares of Series B Preferred Stock and 6,060,606 shares of Series D Preferred Stock. Vodafone has not sold, assigned or
otherwise transferred any rights in such shares of capital 

  

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 stock of ATX to any other person, and Vodafone is not a party to any agreement or instrument relating to
the sale, assignment or other transfer of any rights in such shares of capital stock of ATX, other than this Agreement and the Preferred Stock Financing Agreements, other than a lock-up agreement with the underwriters for the Qualified Public
Offering. 
  

	 	(b)	Except for this Agreement, the Preferred Stock Financing Agreements, and the other agreements expressly contemplated herein, neither Vodafone nor any of its affiliates has any
options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire from ATX or ATX Group any shares of capital stock of ATX or ATX Group, or
any securities convertible into or exchangeable for shares of capital stock of ATX or ATX Group. Vodafone has not granted any proxy or entered into any agreement or understanding with respect to the voting of any shares of capital stock of ATX or
ATX Group, except as provided in or contemplated by this Agreement. 

  

	5.	Limited Power of Attorney and Proxy 

  
 Subject to the satisfaction or waiver of the Vodafone Conditions, Vodafone hereby irrevocably appoints the Chief Executive Officer and Chief Financial Officer of
ATX, or either of them, as its sole and exclusive attorney and proxy to vote and exercise all voting rights (including, without limitation, the power to execute and deliver written consents) with respect to all of the shares of capital stock that
now are or hereafter may be beneficially owned by Vodafone, at every meeting of the shareholders of ATX, in every written consent in lieu of such meeting and in any other shareholder action needed to effect the purposes of this Section 5, on or
prior to September 30, 2004, in favor of approval of, the ATX Reorganization, pursuant to which, simultaneously with or immediately prior to and contingent upon the Qualified Public Offering Closing, (i) a wholly-owned subsidiary of ATX Group will
merge with and into ATX, (ii) ATX will be the surviving corporation in the merger and will become a wholly-owned subsidiary of ATX Group and (iii) all outstanding shares of capital stock and rights to purchase capital stock of ATX will be converted
into shares of common stock and rights to purchase capital stock of ATX Group. Any and all prior proxies given by Vodafone with respect to the voting of any shares on such matters are hereby revoked and Vodafone agrees not to grant any subsequent
proxies with respect to such matters. This proxy is irrevocable, is coupled with an interest, and is granted in consideration of ATX and ATX Group entering into this Agreement. The attorneys and proxies named above may not exercise this irrevocable
proxy on any other matter except as specifically provided above, and Vodafone may vote its shares in its discretion on all other matters. 
  

	6.	Conditions to Vodafone Obligations 

  
 Vodafone’s obligations and agreements under this Agreement (including, without limitation, the proxy set forth in Section 5) are subject to the satisfaction
of each of the following conditions (collectively, the “Vodafone Conditions”) (any of which may be waived by Vodafone, in whole or in part): 
  

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	 	(a)	The terms of the ATX Reorganization shall provide that all outstanding shares of preferred stock of ATX shall be canceled and exchanged for shares of ATX Group Common Stock as
provided in the Reorganization Agreement, effective upon the Qualified Public Offering Closing, and the ATX Reorganization shall have become effective in accordance with such terms. 

  

	 	(b)	ATX shall have entered into an agreement with Leininger which provides that, upon a Qualified Public Offering Closing on or prior to September 30, 2004: 

  

	 	(i)	all but $100,000 of the outstanding principal amount under that certain Amended and Restated Convertible Note, dated as of July 13, 2001, made by ATX in favor of Leininger (the
“Leininger Note”), and all accrued and unpaid interest under the Leininger Note other than Deferred Interest (as defined therein), shall be due and payable on the Qualified Public Offering Date; 

  

	 	(ii)	all Deferred Interest (as defined in the Leininger Note) shall automatically convert into ATX Group Common Stock on the Qualified Public Offering Date; and 

 

	 	(iii)	the remaining principal amount of $100,000 shall be due and payable on the first anniversary of the Qualified Public Offering Date, provided, that upon the written notice of
either ATX or Leininger to the other, such maturity date may be extended for up to, but not later than, the date six months after the first anniversary of the Qualified Public Offering Date. 

  

	 	(c)	Vodafone shall be reasonably satisfied, based on customary terms and conditions, with the terms of the underwriting agreement to be entered into in connection with a Qualified
Public Offering. 

  

	 	(d)	Vodafone shall have consented to the proposed price range (the “Approved Price Range”) and number of shares to be offered (the “Approved Offering
Size”) to be used in printing the preliminary “red herring” prospectus for a Qualified Public Offering after ATX communicates such information to Vodafone; provided, that such consent shall either be given without
condition, or withheld, within 48 hours of such communication, and provided further that the failure of Vodafone to affirmatively give such unconditional consent or effectively deny such consent within such 48 hour period shall be deemed an
irrevocable waiver of the condition set forth in this subsection (d). 

  

	 	(e)	Vodafone shall have a right of first refusal to include some or all of its shares of ATX Group Common Stock in the over-allotment option for the Qualified Public Offering,
provided, that such right must be exercised by Vodafone by affirmatively notifying ATX of its election to include some or all of its shares of ATX Group Common Stock in the over-allotment option, and the number of such shares to be so
included, within 48 hours of the communication by ATX to Vodafone of the proposed price range and aggregate offering size to be used in 

  

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 printing the preliminary “red herring” prospectus for the Qualified Public Offering. The
failure of Vodafone to affirmatively provide such notice ATX within such 48 hour period shall be deemed an irrevocable waiver by Vodafone of its right of first refusal with respect to such over-allotment option. ATX and ATX Group represent to
Vodafone that no rights of first refusal or other restrictions or rights granted by ATX or ATX Group in favor of any other party will apply to Vodafone’s sale of shares in the over-allotment option. 
  

	 	(f)	The pricing committee of the board of directors of ATX Group constituted in connection with the Qualified Public Offering shall include one member designated by Vodafone (which
designee shall be Gavin Darby unless and until Vodafone notifies ATX Group in writing of another designee), and all resolutions adopted or determinations otherwise made by such pricing committee relating to the terms of the Qualified Public Offering
(including the offering price and aggregate offering size) shall have been approved: 

  

	 	(i)	by a majority of the members of such pricing committee, in the event that (A) the actual offering price per share in the Qualified Public Offering is within the Approved Price
Range, and (B) the actual number of shares of ATX Group Common Stock offered in the Qualified Public Offering at least 85% of, and no more than 115% of, the Approved Offering Size; or 

  

	 	(ii)	unanimously by all members of such pricing committee, in the event that (A) the actual offering price per share in the Qualified Public Offering is outside of the Approved Price
Range, or (B) the actual number of shares of ATX Group Common Stock offered in the Qualified Public Offering is less than 85% of, or more than 115% of, the Approved Offering Size. 

  

	 	(g)	Each Vodafone Designee shall be (i) a beneficiary of one or more directors’ and officers’ insurance policy or policies and (ii) a party to an indemnification agreement
with ATX Group generally providing that ATX Group will indemnify such person, and advance expenses, to the full extent permitted by applicable law, and in the case of both (i) and (ii), in form and substance reasonably satisfactory to Vodafone.

  

	 	(h)	ATX Group’s certificate of incorporation, as the same will be in effect on the Qualified Public Offering Closing, shall contain provisions with respect to directors’ and
stockholders’ liability and responsibilities that are reasonably satisfactory to Vodafone. 

  

	 	(i)	No party to any of the Preferred Stock Financing Agreements shall have any rights thereunder as a result of or related in any way to the ATX Reorganization, the Qualified Public
Offering, or any of the transactions contemplated thereby, including, without limitation, pursuant to Section 3 of the Co-Sale Agreement and Section 2 of the Investors’ Rights Agreement, and as of the Qualified Public Offering Closing, the
Preferred Stock Financing Agreements shall have been 

  

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 terminated in accordance with their terms and shall be of no further force or effect. 
  

	7.	Other Agreements 

  

	 	(a)	Vodafone hereby consents to ATX Group’s filing, as an exhibit to its registration statement for the Qualified Public Offering, the agreements providing for the sale and
purchase of Vodafone Passo GmbH (“Vodafone Passo”) by ATX Europe GmbH (“ATX Europe”), constituting that certain Sale and Purchase Agreement, dated as of July 3, 2003, by and between Vodafone Holding GmbH, ATX
Europe, Vodafone Passo and ATX, as amended by that certain 1st Amendment to Share Purchase Agreement, dated as of
July 31, 2003 (collectively, the “Passo Purchase Agreement”). 

  

	 	(b)	Vodafone’s exercise of its rights under Section 6(e) above shall not be counted as a demand registration under Section 1.2 of the Investors’ Rights Agreement or under
Section 1.2 of the Registration Rights Agreement. 

  

	 	(c)	ATX and ATX Group agree to take all actions necessary to maintain the effectiveness of the over-allotment option for the Qualified Public Offering and to satisfy all conditions to
the closing of the option (if exercised by the underwriters), including the delivery of auditors’ “comfort letters,” opinions of counsel and other required documentation, so as to enable Vodafone to sell shares pursuant to such option
if Vodafone so elects as provided in Section 6(e) above. 

  

	 	(d)	ATX and ATX Group agree, jointly and severally, to indemnify Vodafone and its partners, officers, directors, shareholders, legal counsel, accountants and underwriters, and any
person who controls Vodafone or any such underwriter within the meaning of the Securities Exchange Act of 1934, as amended, against any losses, claims, damages or liabilities (or actions in respect thereof), joint or several (“Loss”),
which arise out of any Violation (as defined in Section 1.9(a) of the Registration Rights Agreement) relating to the registration statement, preliminary prospectus or prospectus for the Qualified Public Offering, and any amendment, including
post-effective amendments, or supplement thereto, fully to the same extent, and subject to the same limitations, as the Company agrees to indemnify the Holders (and their partners, officers and other persons named in such section) with respect to
other registered offerings in such Section 1.9. 

  

	 	(e)	Vodafone agrees to indemnify ATX and ATX Group, and their partners, officers, directors, shareholders, legal counsel, accountants and underwriters, and any person who controls ATX
or ATX Group or any such underwriter within the meaning of the Securities Exchange Act of 1934, as amended, against losses which arise out of any Violation (as defined in Section 1.9(c) of the Registration Rights Agreement) relating to the
registration statement, preliminary prospectus or prospectus for the Qualified Public Offering, and any amendment, including post-effective amendments, or supplement thereto, fully to the same extent, and subject to the same limitations, as Vodafone
as a “Holder”, agrees to indemnify 

  

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 the Company (and its partners, officers and other persons named in such section) with respect to other
registered offerings in such Section 1.9, provided that Vodafone has sold shares in the over-allotment option pursuant to Section 6(e) above. 
  

	 	(f)	Vodafone and Leininger intend to execute, effective upon the Qualified Public Offering Date, a voting agreement between Vodafone, Leininger and the other parties named therein in
the form attached hereto as Exhibit E (the “New Voting Agreement”). ATX and ATX Group agree to affix appropriate legends to certificates representing the shares of ATX Group capital stock owned by the Shareholders (as defined
therein) as provided in the New Voting Agreement and to promptly remove such legends from certificates representing shares no longer subject to obligations under the New Voting Agreement. 

  

	 	(g)	ATX and ATX Group agree, jointly and severally, to pay to Vodafone €6 million within 30 days of the Qualified Public Offering Date, which Vodafone and ATX acknowledge
represents the remaining portion of the purchase price payable by ATX under the Passo Purchase Agreement (as if the Qualified Public Offering were a “Qualified Public Offering” as provided in the Passo Purchase Agreement).

  

	 	(h)	As used in this Agreement, an “affiliate” of a specified person or entity (including correlative references to “affiliated” and “affiliation”) means a
person or entity that directly or indirectly controls, is controlled by or is under common control with such specified person or entity, whether by ownership of voting securities or otherwise. 

  

	8.	Termination 

	

  
 This Agreement (including,
without limitation, the proxy granted under Section 5) will automatically terminate in the event that the Qualified Public Offering Closing does not occur on or prior to September 30, 2004. 
  

	9.	Amendment and Waiver 

	

  
 Any term hereof may be
amended or waived only by the written consent of ATX, ATX Group and Vodafone. Any amendment or waiver not effected in accordance with this section shall be null and void and non-binding upon the parties hereto and their respective successors and
assigns. No waiver of any breach of this Agreement extended by any party hereto to any other party shall be construed as a waiver of any rights or remedies of such party or any other party hereto with respect to any subsequent breach. 
  

	10.	Adjustments 

	

  
 All share and per share
amounts herein are subject to proportional adjustment in the event of any stock split, reverse stock split, combination, recapitalization, reorganization or similar event occurring after the date hereof. 
  

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	11.	Entire Agreement 

	

  
 This Agreement and the
schedules and exhibits hereto constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject
matter hereof. 
  

	12.	Counterparts 

	

  
 This Agreement may be
executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each party and delivered to the other party, it being understood that all
parties need not sign the same counterpart. 
  

	13.	Assignment 

	

  
 Neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other party, it being understood and agreed that (i) a merger of ATX or any successor (whether pursuant to the ATX
Reorganization, for the purpose of reincorporation in another jurisdiction, or otherwise) shall not be deemed an assignment, and (ii) Vodafone may assign and transfer its rights under this Agreement to one or more direct or indirect affiliates of
Vodafone to which Vodafone transfers capital stock of ATX (or, subsequent to the ATX Reorganization, ATX Group), so long as each such transferee agrees in writing to be bound by this Agreement to the same extent as Vodafone. In the event of any such
assignment and transfer in which Vodafone will own fewer shares of ATX or ATX Group capital stock than its transferee, the party thereafter entitled to designate the Vodafone Designee(s) hereunder shall be such Vodafone affiliate transferee as
Vodafone may notify in writing to ATX Group (and if Vodafone fails to provide such notification, Vodafone will remain so entitled). Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by
the parties and their respective heirs, personal representatives, successors and assigns. 
  

	14.	Governing Law 

	

  
 This Agreement shall be
governed by and construed under the laws of the State of Delaware, without regard to its conflicts of law principles. 
  

	15.	Further Assurances 

	

  
 From time to time, at the
other party’s request and without consideration, each party hereto shall execute and deliver such additional documents and take all such further action as may be necessary or desirable to consummate and make fully effective the actions of such
party provided for in this Agreement. 
  

	16.	Severability 

	

  
 If one or more provisions of
or obligations under this Agreement are held to be invalid, illegal or unenforceable under applicable laws, rules or regulations (including the rules and regulations of 
  

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 any governing stock exchange or automated quotation service), then the parties shall negotiate in good faith a valid and
enforceable substitute provision that confers rights and obligations on the parties which are as similar as practicable to such invalid, illegal or unenforceable provision or obligation, and if the parties cannot agree on such substitute provision
within a reasonable time, then such invalid, illegal or unenforceable provision or obligation shall be excluded from this Agreement, and the remaining provisions of and obligations under this Agreement shall be enforceable in full accordance with
their terms. 
  

	17.	Notices. Unless otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed effectively given and received when
(a) delivered in person or by nationally recognized overnight delivery service, (b) received or rejected by the addressee if sent by certified or registered mail, return receipt requested, or (c) sent by facsimile, to the party to be notified at the
address indicated for such party on the signature pages hereof, or at such other address as such party may designate by ten days’ advance written notice to the other parties. 

  
 [Signature Page Follows] 
  

 12 

 IN WITNESS WHEREOF, the parties hereto have executed this Restructuring Agreement as of the date first set forth above.

  

			
	 ATX TECHNOLOGIES, INC.

		
	 By:
	 	 /s/    Steven A.
Millstein        

	 	 	 Steven A. Millstein
 President and Chief Executive
Officer

		
	 Address:
	 	 8550 Freeport Parkway
 Irving, Texas 75063
 Attn: Steven A. Millstein,
                       President
 Facsimile:     (972) 753-6275

		
	 With a copy to:
	 	 Andrews Kurth LLP
 1717 Main Street, Suite 3700
 Dallas, Texas 75201
 Attn: David Washburn
 Facsimile:     (214)
659-4401

  

			
	 ATX GROUP, INC.

		
	 By:
	 	 /s/    Steven A.
Millstein        

	 	 	 Steven A. Millstein
 President and Chief Executive
Officer

		
	 Address:
	 	 8550 Freeport Parkway
 Irving, Texas 75063
 Attn: Steven A. Millstein,
                       President
 Facsimile:     (972) 753-6275

		
	 With a copy to:
	 	 Andrews Kurth LLP
 1717 Main Street, Suite 3700
 Dallas, Texas 75201
 Attn: David Washburn
 Facsimile:     (214)
659-4401

  
 [Signature
Page to Restructuring Agreement] 

			
	 VODAFONE DEUTSCHLAND GMBH

		
	By:	 	/s/    Dr. Joachim Peters         /s/    Volker
Schmidt-Fehrenbacher
		
	 Name:
	 	         Dr. Joachim
Peters                  Volker Schmidt-Fehrenbacher

		
	 Title:
	 	         Officer                              
        Officer

		
	 Address:
	 	 Mannesmannufer 2
 40213 Deusseldorf-Germany

		
	 Facsimile:
	 	 +49-211-820 2493

		
	 With a copy to:
	 	 Vodafone Americas, Inc.
 Legal Department
 2999 Oak Road, 10th Floor
 Walnut Creek, CA 94957
 Attention: Eric Grossbard, Esq.
 Facsimile: 925-210-3599

  
 [Signature
Page to Restructuring Agreement] 
  

 EXHIBIT A 
  
 Investors’ Rights Agreement 
  

 EXHIBIT B 
  
 Voting Agreement 
  

 EXHIBIT C 
  
 Right of First Refusal and Co-Sale Agreement 
  

 EXHIBIT D 
  
 Form of Registration Rights Agreement 
  

 EXHIBIT E 
  
 Form of New Voting Agreement 
  

 EXHIBIT E 
  
 Form of Amendment to Voting Agreement2ND AMENDED AND RESTATED CONVERTIBLE NOTE

 Exhibit 10.26 
  
 This note was issued with “original issue discount.” The total amount of the original issue 
 discount, the issue date, and the yield to maturity on the issue date will be provided in 
 writing to the holder hereof promptly upon request to ATX Technologies, Inc., 
 8550 Freeport Parkway, Irving, Texas 75063, 
 attention Chief Financial Officer. 
  
 SECOND AMENDED AND RESTATED CONVERTIBLE NOTE 
  
 SECOND AMENDED AND RESTATED CONVERTIBLE NOTE (this “Note”),
dated as of April 24, 2004, between ATX TECHNOLOGIES, INC., a Texas corporation, and ATX GROUP, INC., a Delaware corporation, (collectively referred to herein as “Maker”), and James R. Leininger, an individual residing in San
Antonio, Texas, or his assigns (“Payee”). 
  
 WHEREAS, in contemplation of (i) the ATX Reorganization (as defined herein), and (ii) a Qualified Public Offering of shares of ATX Group (as defined herein) common stock, Maker and Payee have entered into a Restructuring Agreement dated
April 24, 2004; and 
  
 WHEREAS, Maker and Payee desire to amend
certain terms of and restate in its entirety the Amended and Restated Convertible Note, dated July 13, 2001, (the “First Amended Note”), by and between ATX Technologies, Inc. as Maker and Payee, in accordance with the terms of the
Restructuring Agreement; ; and 
  
 WHEREAS, as of the date hereof,
the principal amount outstanding under this Note is $23,213,283.08 (“the Principal Amount”); and 
  
 WHEREAS, the execution by Maker of this Note is a condition precedent to the ATX Reorganization. 
  
 NOW, THEREFORE, FOR VALUE RECEIVED, Maker, jointly and severally, hereby
promises to pay to Payee, on or before September 28, 2007 (the “Termination Date”), the Principal Amount outstanding under this Note, the Deferred Interest (as defined below), and the Non-Deferred Interest (as defined below) all as
provided herein. 
  
 This Note is subject to the following
provisions, terms and conditions: 
  

	 	1.	Definitions. 

  
 As used herein the following terms have the respective meanings set forth below: 
  
 “ATX Group” means ATX Group, Inc., a Delaware corporation. 

 “ATX Reorganization” means any transaction, or series of transactions, whereby the
Company becomes a wholly-owned direct or indirect subsidiary of ATX Group, whether effected by merger, share exchange or otherwise. 
  
 “Business Day” shall mean a day of the year on which national banks in the San Antonio, Texas area are open for business. 
  
 “Company” shall mean ATX Group, Inc. in the event the ATX
Reorganization occurs and shall mean ATX Technologies, Inc. in the event the ATX Reorganization does not occur. 
  
 “Deferred Interest” shall mean the amount of $6,026,799.14 which accrued and was not paid under the First Amended Note.

  
 “Exchange Ratio” means the number of shares
of common stock, par value $.01 per share, of ATX Group, issued pursuant to the ATX Reorganization in exchange for each outstanding share of common stock, par value of $.001 per share, of ATX Technologies, Inc., as determined by the board of
directors of ATX Technologies, Inc, such number to be at least 0.3 shares, but no more than 0.5 shares. 
  
 “Maximum Rate” shall mean the highest lawful rate of interest permitted to be charged or contracted for in transactions of this type
under applicable law. 
  
 “Non-Deferred Interest”
shall mean all interest payable under this Note other than Deferred Interest. 
  
 “Past Due Rate” shall mean, on any day, a rate per annum equal to the lesser of (i) 12% per annum or (ii) the Maximum Rate. 
  
 “Qualified Public Offering” means an underwritten public offering of shares of common stock of ATX
Technologies, Inc. or, in the event of an ATX Reorganization, shares of common stock of ATX Group, pursuant to a registration statement under the Securities Act of 1933, as amended, which results in aggregate gross proceeds to the registrant and any
selling shareholders of not less than $50,000,000. 
  
 “Qualified Public Offering Stock” means (i) the shares of common stock of the ATX Technologies, Inc., in the event of a Qualified Public Offering of its common stock, or (ii) the shares of common stock of ATX Group, in the
event of a Qualified Public Offering of its shares of common stock following an ATX Reorganization. 
  
 “Termination Date” shall mean the final maturity date of this Note on which all outstanding principal and accrued interest hereunder is
due and payable (as such maturity date may be accelerated under the terms of this Note or otherwise). 
  
 Without notice to Maker or anyone else, the Past Due Rate and the Maximum Rate shall each automatically fluctuate upward and downward as and in the amount
by which such maximum nonusurious rate of interest permitted by applicable law, respectively, fluctuate, subject always to limitations contained in this Note. 
  

 2 

	 	2.	The Draws 

  
 Maker’s ability to draw funds has expired. Maker may not draw any more funds under this Note. 
  

	3.	Interest and Payment. 

  
 (a) Accrual of Interest. Interest on this Note shall accrue from December 28, 2003 on the unpaid principal at the rate of 9% per annum, compounded
quarterly, subject to the provisions hereof limiting interest to the Maximum Rate. Any Deferred Interest shall not be considered past due if repaid or converted as provided herein and shall accrue interest at the rate of 9% per annum in the same
manner applicable to the unpaid principal. 
  
 (b) Conversion
of Deferred Interest. The amount of Deferred Interest shall be reduced in accordance with any and all elections by Payee from time to time and at any time to convert all or any portion of the Deferred Interest in accordance with Section 5
below. 
  
 (c) Payment Terms Prior to September 30, 2004.
Subject to subsection (d) below, interest accruing under this Note after December 28, 2003 (excluding Deferred Interest, but including interest accrued on such unpaid Deferred Interest) shall be due and payable quarterly on March 28, 2004,
June 28, 2004 and September 28, 2004. 
  
 (d) Payment Terms
Upon Qualified Public Offering. If the consummation (meaning closing and funding) of a Qualified Public Offering (a “Qualified Public Offering Closing”) occurs on or prior to September 30, 2004 (the actual date of the Qualified
Public Offering Closing being referred to herein as the “Qualified Public Offering Date”), then: 
  

	 	(i)	$23,113,283.08 of the Principal Amount and all Non-Deferred Interest shall be due and payable on the Qualified Public Offering Date; 

  

	 	(ii)	The remainder of the Principal Amount, $100,000, together with all interest accruing thereon from the Qualified Public Offering Date at the rate of 9% per annum compounded
quarterly, shall be due and payable on the first anniversary of the Qualified Public Offering Date (the “Remaining Principal Maturity Date”); provided, that upon the written notice of either Maker or Payee to the other party,
the Remaining Principal Maturity Date may be extended for up to, but not later than, the date six months after the first anniversary of the Qualified Public Offering Date; and 

  

	 	(iii)	The Deferred Interest shall automatically convert on the Qualified Public Offering Date in accordance with the provisions of Section 5 below. 

  

 3 

 (e) Payment Terms—No Qualified Public Offering. If a Qualified Public Offering Closing does
not occur on or prior to September 30, 2004, then: 
  

	 	(i)	$10,000,000 of the Principal Amount and all Non-Deferred Interest shall be due and payable on October 1, 2004. 

  

	 	(ii)	Interest shall continue to accrue on the remainder of the Principal Amount, $13,213,283.08, and on unpaid Deferred Interest in accordance with subsection (a) above at the rate of 9%
per annum. 

  

	 	(iii)	Unpaid principal, unpaid Deferred Interest, and accrued but unpaid interest thereon shall be due and payable in equal quarterly installments of $1,848,960.77, commencing on December
31, 2004 and on the last day of every third calendar month thereafter until September 30, 2007, at which time all unpaid principal, unpaid Deferred Interest and accrued but unpaid interest thereon shall be due and payable, all as more fully set
forth in the schedule attached hereto as Exhibit H (but subject to appropriate adjustment in the event of conversion of Deferred Interest in accordance with the provisions of Section 5 below). Payments made shall be applied first to the
repayment of interest, including interest on the Deferred Interest; then to the unpaid principal; and lastly to the Deferred Interest. 

  
 (f) Conversion of Interest. If, and only if, a Qualified Public Offering Closing does not occur on or prior to September 30, 2004, then commencing
October 1, 2004 and continuing thereafter, Payee may elect to have interest payable in Common Stock (as defined below). At least 30 days prior to Maker’s remittance of its quarterly installment payment, Maker shall make a written inquiry to
Payee of whether Payee will elect to be paid in Common Stock. This inquiry shall be directed to Mission City Management, Inc. ATTN: Thomas W. Lyles Jr., 8122 Datapoint Drive, Suite 1000, San Antonio, Texas 78229. Maker’s written inquiry shall
also state the Conversion Price, with an explanation of any adjustments to the Conversion Price (as defined in Section 6) as prescribed by Section 6. The number of shares of Common Stock issued as payment of interest shall be
determined by dividing the interest payment by the Conversion Price in effect on the interest payment date. If Payee elects payment in Common Stock, Payee shall give Maker written notice of this election within 15 days of Maker’s inquiry.
Payee’s election shall not be revocable. In the event Payee exercises such conversion rights, certificates representing Common Stock issued as payment therefor shall be delivered within five business days after the Conversion Date (as defined
in Section 6). 
  
 (g) Interest after Default or
Maturity. After Default (as defined below) or maturity, past due principal and past due interest to the extent permitted shall bear interest at the Past Due Rate. 
  
 (h) Prepayment. Except to the extent expressly contemplated below, Maker shall not have the right to prepay any of
the Principal Amount or Deferred Interest prior to September 30, 2004 without the express written consent of Payee. If a Qualified Public Offering occurs on or before September 30, 2004, Maker shall not have the right to prepay any of the remaining
$100,000 of the Principal Amount without the express written consent of Payee. In the event a Qualified Public Offering does not occur on or before September 30, 2004, Maker may prepay this Note in whole or in part without 
  

 4 

 penalty or premium provided that (i) a minimum of 30 calendar days’ written notice to Payee shall be required in
order for Maker to make any prepayment of this Note, and (ii) commencing on October 1, 2004 and continuing thereafter, Payee shall have the right to exercise the conversion rights set forth. Allowed prepayments (other than scheduled payments of
principal expressly required by this Note) shall be applied first to accrued and unpaid interest on this Note, including accrued and unpaid interest on the Deferred Interest, then to the unpaid principal amount of this Note and last to Deferred
Interest. 
  
 (i) Funding Event or Change of Control. Payee
may demand prepayment of this Note in whole or in part at any time within 30 days after a “Funding Event” or “Change of Control” (each as defined below). A “Funding Event” shall mean either Maker’s receipt
in one or a series of related transactions effected after the date of Closing under the Subscription Agreement of at least $30 million or 150% of the then outstanding principal balance of this Note, whichever is greater. A “Change of
Control” shall mean (i) the acquisition by a single entity or group of affiliated entities, other than James R. Leininger and his affiliates and relatives of more than 50% of the Common Stock issued and outstanding immediately prior to such
acquisition, or (ii) the consummation of any merger or consolidation of the Company or any sale or other disposition of all or substantially all of its assets, if the shareholders of the Company immediately before such transaction own, immediately
after consummation of such transaction, equity securities (other than options and other rights to acquire equity securities) possessing less than 50% of the voting power of the surviving or acquiring corporation. Notwithstanding the foregoing, the
ATX Reorganization shall not constitute a “Change of Control” or “Funding Event”. 
  

	 	4.	Default. 

  
 The occurrence of any one of the following shall be a default under this Note (“Default”): 
  
 (a) Any principal, interest or other amount of money due under this Note is
not paid in full when due, regardless of how such amount may have become due, and remains unpaid for a period of ten (10) business days following the delivery to Maker by Payee of written notice of the failure of any such amount to be so paid; or

  
 (b) The failure on the part of Maker to observe or perform any
of the obligations contained in this Note, provided Payee notified Maker in writing of the breach and Maker failed to cure or remedy within thirty (30) days of the written notice; or 
  
 (c) The occurrence of a material adverse change in Maker’s consolidated financial condition, operations, business,
properties or prospects of the Maker taken as a whole; or 
  
 (d)
The Mobile Services Agreement dated December 16, 1998 between Mercedes-Benz of North America, Inc., now known as Mercedes-Benz USA, L.L.C., and Protection One Mobile Services, a division of Protection One Alarm Monitoring, Inc., which assigned the
agreement to Maker, is terminated (without having been replaced or superseded); or 
  
 (e) A receiver is appointed for Maker or its property; Maker makes an assignment for the benefit of its creditors; any proceedings are commenced by or for Maker under any bankruptcy, insolvency or debtor’s relief
law; any proceedings are commenced against Maker 
  

 5 

 under any bankruptcy, insolvency or debtor’s law and such proceedings are not to be vacated or set aside within 60
days from the date of commencement thereof, or Maker is liquidated or dissolved; or 
  
 (f) Maker defaults under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any indebtedness of Maker for borrowed money which default results in the
acceleration of such indebtedness prior to its express maturity and the principal amount of any such indebtedness, together with the principal amount of any other such indebtedness for borrowed money under which the maturity has been accelerated,
exceeds $500,000; or 
  
 (g) One or more judgments in an aggregate
amount in excess of $500,000 (which are not covered by insurance) are rendered against Maker and such judgments are not discharged, stayed or satisfied within 90 days after such judgments become final and non-appealable. 
  
 This Note may be accelerated upon any Default. Upon the occurrence of a
Default, other than a Default with respect to Maker described in subsection (e) above, Payee shall have the right to declare the unpaid principal balance and accrued but unpaid interest on this Note at once due and payable (and upon such
declaration, the same shall be at once due and payable), to foreclose any liens and security interests securing payment hereof, to exercise its conversion rights under Sections 5 and 6 below, and/or to exercise any of its other rights, powers
and remedies then existing under this Note or at law or in equity. Upon the occurrence of a Default with respect to Maker in subsection (e) above, the unpaid principal balance and accrued but unpaid interest on this Note shall automatically
become due and payable without demand, presentment, protest or any other notice of any kind, all of which are expressly waived by the Maker. 
  

	 	5.	Conversion Right with Respect to Deferred Interest. 

  
 (a) Right to Convert. 
  
 (i) Effective upon a Qualified Public Offering Closing occurring on or prior to September 30, 2004, all unpaid Deferred Interest shall
automatically convert into such number of fully paid and nonassessable shares of Conversion Stock as is determined by dividing the total unpaid amount of Deferred Interest by the Deferred Interest Conversion Price at the time of conversion. In such
event, the “Deferred Interest Conversion Price” shall be an amount equal to the quotient of (x) $1.65 divided by (y) the Exchange Ratio, and shall not be subject to adjustment, notwithstanding any other provision of this
Section 5, and the term “Conversion Stock” shall mean the Qualified Public Offering Stock. The registrant of the Qualified Public Offering shall, as soon as practicable but no later than five business days after the Qualified Public
Offering Date, issue and deliver to Payee or Payee’s nominees, at the office of the registrant’s transfer agent, a certificate or certificates for the number of shares of Conversion Stock to which Payee shall be entitled, together with
cash in lieu of any fraction of a share for the portion converted. 
  
 (ii) In the event that a Qualified Public Offering Closing does not occur on or prior to September 30, 2004, then commencing October 1, 2004 and continuing thereafter, all or 
  

 6 

 any portion of the Deferred Interest on this Note shall be convertible, at any time and from time to
time, at the option of Payee, into such number of fully paid and nonassessable shares of Conversion Stock as is determined by dividing the Deferred Interest amount to be converted by the Deferred Interest Conversion Price at the time of conversion.
In such event, the “Deferred Interest Conversion Price” shall initially be $1.65 as of October 1, 2004, and shall be subject to adjustment as provided in this Section 5, and the term “Conversion Stock” shall mean
the Series C Convertible Preferred Stock of ATX Technologies, Inc. if the ATX Reorganization has not occurred, and the shares of common stock of ATX Group if the ATX Reorganization has occurred. 
  
 (iii) In the event of a liquidation of the Company, the
conversion rights provided in this Section 5 shall terminate at the close of business on the first full day preceding the date fixed for the payment of any amounts distributable on liquidation to the holders of Common Stock. 
  
 (b) Fractional Shares. No fractional shares of Conversion Stock shall
be issued upon conversion of any such interest or principal amount due under this Note. In lieu of fractional shares, the Company shall pay to Payee an amount in cash equal to such fraction multiplied by the then effective Deferred Interest
Conversion Price. The determination as to whether any fractional shares are issuable shall be based upon the total amount due under this Note being converted at any one time by Payee. 
  
 (c) Mechanics of Conversion. In order to convert any Deferred Interest due under this Note into shares of Conversion
Stock pursuant to the optional conversion rights provided herein, Payee shall make a written request for conversion substantially in the form of Annex II attached hereto. Such conversion notice shall state Payee’s name or the names of
the nominees in which Payee wishes the certificate or certificates for shares of Conversion Stock to be issued. The date of the receipt of the duly executed request for conversion in the form of Annex II by the transfer agent or the Company,
as the case may be, shall be the “Deferred Interest Conversion Date.” The Company shall, as soon as practicable but no later than five business days after the Deferred Interest Conversion Date, issue and deliver at such office to
Payee, or to Payee’s nominees, a certificate or certificates for the number of shares of Conversion Stock to which Payee shall be entitled, together with cash in lieu of any fraction of a share for the portion converted. 
  
 (d) Adjustment for Stock Splits and Combinations. If the Company shall
at any time or from time to time after the Original Issue Date (as defined in Section 6(d) below) effect a subdivision or combination of the Conversion Stock, the Deferred Interest Conversion Price shall be proportionately decreased or increased, as
the case may be. Any adjustments under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective. 
  
 (e) Adjustment for Reorganization, Reclassification or Exchange. If the Conversion Stock issuable upon conversion of
this Note shall be changed into or exchanged for the same or a different number of shares of any class or classes of stock of the Company or another entity, whether by capital reorganization, merger, consolidation, reclassification, sale of assets
or otherwise (other than a subdivision or combination of shares provided for above), then and in 
  

 7 

 each such event Payee shall have the right to convert the Deferred Interest into the kind and amount of shares of stock
and other securities and property receivable upon such capital reorganization, merger, consolidation, reclassification, sale of assets or other change, by holders of the number of shares of Conversion Stock into which the Deferred interest might
have been converted immediately prior to such capital reorganization, merger, consolidation, reclassification, sale of assets or change, all subject to further adjustment as provided herein. 
  
 (f) Adjustment for Certain Dividends and Distributions. In the event
the Company at any time or from time to time after the Original Issue Date shall make or issue a dividend or other distribution payable to the holders of Conversion Stock in shares of Conversion Stock, then and in each such event the Deferred
Interest Conversion Price shall be decreased as of the time of such issuance, by multiplying the Deferred Interest Conversion Price by a fraction: 
  
 (i) the numerator of which shall be the total number of shares of Conversion Stock issued and outstanding immediately prior to the time of
such issuance, and 
  
 (ii) the denominator of
which shall be the total number of shares of Conversion Stock issued and outstanding immediately prior to the time of such issuance plus the number of shares of Conversion Stock issuable in payment of such dividend or distribution. 
  
 (g) Adjustments for Other Dividends and Distributions. In the event
the Company at any time or from time to time after the Original Issue Date shall make or issue a dividend or other distribution payable to the holders of Conversion Stock in securities of the Company other than shares of Conversion Stock, then and
in each such event provision shall be made so that Payee shall receive upon conversion of the Deferred Interest in addition to the number of shares of Conversion Stock receivable thereupon, the amount of securities of the Company that they would
have received had the Deferred Interest been converted into Conversion Stock on the record date of such event or the date of such event if no record date is established and had thereafter, during the period from the date of such event to and
including the conversion date, retained such securities receivable by them as aforesaid during such period given application to all adjustments called for during such period, under this paragraph with respect to the rights of Payee. 
  
 (h) No Impairment. The Company will not, by amendment of its Articles
of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all time in good faith assist in the carrying out of all the provisions of this Section 5 and in taking of all such action as may be necessary or appropriate in order to protect the
conversion rights of Payee against impairment. 
  
 (i)
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment of the Deferred Interest Conversion Price pursuant to this Section 5, the Company at its expense shall promptly compute such adjustment or
readjustment in accordance with the terms hereof and furnish to Payee a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based and shall file a copy of such
certificate with its corporate records. The Company shall, upon written request at 
  

 8 

 any time of any holder hereof, furnish or cause to be furnished to such holder a similar certificate setting forth (1)
such adjustments and readjustments, (2) the Deferred Interest Conversion Price then in effect, and (3) the number of shares of Conversion Stock and the amount, if any, of other property which then would be received upon Conversion of this Note.

  
 (j) Notice of Record Date. In the event: 
  
 (i) that the Company declares a dividend (or any other
distribution) on its Conversion Stock payable in Conversion Stock or other securities of the Company; 
  
 (ii) of any reclassification of the Conversion Stock of the Company (other than a subdivision or combination of its outstanding shares of
Conversion Stock or a stock dividend or stock distribution thereon), or of any consolidation or merger of the Company into or with another corporation, or of the sale of all or substantially all of the assets of the Company; or 
  
 (iii) of the involuntary or voluntary dissolution,
liquidation or winding up of the Company; 
  
 then the Company
shall cause to be filed at its principal office and shall cause to be mailed to the holder hereof at its last addresses as shown on the records of the Company, at least ten days prior to the record date specified in (A) below or twenty days before
the date specified in (B) below, a notice stating: 
  
 a) the record date of such dividend, distribution, subdivision or combination, or, if a record is not to be taken, the date as of which the holders of Conversion Stock of record to be entitled to such dividend, distribution, subdivision or
combination are to be determined, or 
  
 b) the
date on which such reclassification, consolidation, merger, sale, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Conversion Stock of record shall be entitled to
exchange their shares of Conversion Stock for securities or other property deliverable upon such reclassification, consolidation, merger, sale, dissolution or winding up. 
  
 Failure to give such notice shall not, however, affect the validity of the action taken. 
  

	 	6.	Conversion Right with Respect to Unpaid Principal and Accrued Interest. 

  

(a) Right to Convert. In the event that a Qualified Public Offering Closing does not occur on or prior to September 30, 2004, then, commencing
October 1, 2004 and continuing thereafter, and subject to the conversion rights under Section 5 above, accrued interest on and unpaid principal of this Note shall be convertible, at the option of Payee, at any time and from time to time on
and after October 1, 2004, into such number of fully paid and nonassessable shares of Common Stock of the Company, $0.01 par value per share (the “Common Stock”) as determined by dividing the amount to be converted by the Conversion
Price (as defined below) in effect at the time of conversion. The price at which shares of Common Stock shall be deliverable upon conversion of any such interest and principal amounts due under this Note without the payment of additional
consideration by Payee (the “Conversion Price”) shall 
  

 9 

 initially be $5.00. The Conversion Price, and the rate at which any such interest and principal amounts due under this
Note may be converted into shares of Common Stock, shall be subject to adjustment as provided in this Section 6. Payee may not elect to convert less than all unpaid interest due on the Conversion Date (as defined below), while Payee may elect
to covert any principal amount, but not less than $100,000, due on the Conversion Date. Payee shall not elect to convert any principal amount of this Note without also electing to convert the accrued but unpaid interest on such principal amount to
be converted. Notwithstanding Section 3 above, from and after each partial conversion of principal of this Note, the scheduled payments shall be appropriately adjusted based on a new amortization schedule of equal quarterly payments of
principal and interest over the remaining term of the Note. 
  
 In
the event of a liquidation of the Company, the conversion rights provided in this Section 6 shall terminate at the close of business on the first full day preceding the date fixed for the payment of any amounts distributable on liquidation to
the holders of Common Stock. 
  
 (b) Fractional Shares. No
fractional shares of Common Stock shall be issued upon conversion of any such interest or principal amount due under this Note. In lieu of fractional shares, the Company shall pay to Payee an amount in cash equal to such fraction multiplied by the
then effective Conversion Price. The determination as to whether any fractional shares are issuable shall be based upon the total amount due under this Note being converted at any one time by Payee. 
  
 (c) Mechanics of Conversion. 
  
 (i) In order to convert any such interest and principal
amounts due under this Note into shares of Common Stock pursuant to the optional conversion rights provided herein, Payee shall surrender this Note at the office of the transfer agent (or at the principal office of the Company if the Company serves
as its own transfer agent), together with Payee’s written request for conversion substantially in the form of Annex I attached hereto. Such conversion notice shall state Payee’s name or the names of the nominees in which Payee
wishes the certificate or certificates for shares of Common Stock to be issued. The date of receipt of this Note and the duly executed request for conversion in the form of Annex I by the transfer agent or the Company, as the case may be,
shall be the conversion date (“Conversion Date”). The Company shall, as soon as practicable but no later than five business days after the Conversion Date, issue and deliver at such office to Payee, or to Payee’s nominees, a
certificate or certificates for the number of shares of Common Stock to which Payee shall be entitled, together with cash in lieu of any fraction of a share for the portion converted, and a new Note in the form hereof for the balance of the
principal amount hereof. 
  
 (ii) The Company
shall at all times during which this Note shall be outstanding, reserve and keep available out of its authorized but unissued stock, for the purpose of effecting the conversion of this Note, such number of its duly authorized shares of Common Stock
as shall from time to time be sufficient to effect the conversion of this Note. 
  

 10 

 (d) Adjustments to Conversion Price for Diluting Issues. 
  
 (i) Special Definitions. For purposes of this
Subsection 6(d), the following definitions shall apply: 
  
 “Additional Shares of Common Stock” shall mean all shares of Common Stock issued (or, pursuant to Subsection 6(d)(iii) below, deemed to be issued) by the Company after the Original Issue Date
(as defined below), other than shares of Common Stock issued or issuable: 
  
 (A) as a dividend or distribution on the Common Stock resulting in an adjustment pursuant to Subsection 6(e), (f), (g) or (h) below; 
  
 (B) upon issuance or conversion of the shares of Series C Preferred Stock issued pursuant to the
Subscription Agreement by and between Company Payee and Vodafone TeleCommerce GmGH dated July 6, 2001, or this Note; 
  
 (C) upon issuance or exercise of either of the “Purchase Options” referred to in Section 4 of the Reimbursement Agreement
entered into by ATX Technologies, Inc. and Payee pursuant to the Subscription Agreement; 
  
 (D) to directors, officers or employees of, or individuals who are consultants or advisors to, the Company or any subsidiary of the
Company pursuant to a stock option plan, restricted stock plan, stock purchase plan or other employee benefit plan approved by the Board of Directors in connection with services to the Company; or 
  
 (E) pursuant to the exercise of Rights to Acquire Common
Stock (as defined below) or the conversion or exchange of Convertible Securities (as defined below) which are outstanding on the Original Issue Date (as defined below). 
  
 “Base Price” shall initially mean $4.00 and shall be subject to adjustment as provided in
Subsections 6(e) and 6(f). 
  
 “Convertible Securities” shall mean any evidences of indebtedness, shares or other securities directly or indirectly convertible into or exchangeable for Common Stock. 
  
 “Dilution Price” shall mean, as of any
date, the lesser of the Base Price and the Conversion Price in effect on such date. 
  
 “Original Issue Date” shall mean June 28, 1999, the original issuance date of this Note. 
  
 “Rights to Acquire Common Stock” (or
“Rights”) shall mean all rights issued by the Company to acquire Common Stock whether by exercise of a warrant, option or similar call or conversion of securities. 
  

 11 

 (ii) No Adjustment of Conversion Price. Adjustment in the Conversion Price shall
be made as a result of the issuance of Additional Shares of Common Stock unless prior to such issuance, the Company receives written notice from Payee agreeing that no such adjustment shall be made as the result of the issuance or deemed issuance of
Additional Shares of Common Stock. 
  
 (iii)
Issuance of Securities Deemed Issuance of Additional Shares of Common Stock. If the Company at any time or from time to time after the Original Issue Date shall issue any Convertible Securities or other Rights to Acquire Common Stock, then
the maximum number of shares of Common Stock (as set forth in the instrument relating thereto without regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the full exercise of such Rights or, in the
case of Convertible Securities, the full conversion or exchange of such Convertible Securities, shall be deemed to be Additional Shares of Common Stock issued as of the time of such issue, provided that in any such case in which Additional Shares of
Common Stock are deemed to be issued: 
  
 (A) No
further adjustment in the Conversion Price shall be made upon the subsequent issuance of shares of Common Stock upon the exercise of such Rights or conversion or exchange of such Convertible Securities; 
  
 (B) Upon the expiration or termination of any such
unexercised Right to Acquire Common Stock or the expiration or termination of the right to convert or exchange any such Convertible Security which are still outstanding, the Conversion Price shall be readjusted, and the Additional Shares of Common
Stock deemed issued as the result of the original issue of such Right or Convertible Security shall not be deemed issued for the purposes of any subsequent adjustment of the Conversion Price; and 
  
 (C) In the event of any change in the number of shares of
Common Stock issuable upon the exercise of any such Right to Acquire Common Stock or the conversion or exchange of any such Convertible Security, in accordance with the terms of such Right or Convertible Security, other than the Excluded Securities
(defined below), the Conversion Price then in effect shall forthwith be readjusted to such Conversion Price as would have obtained had the adjustment that was made upon the issuance of such Right to Acquire Common Stock or Convertible Security not
exercised, converted or exchanged prior to such change been made upon the basis of such change, but no further adjustment shall be made for the actual issuance of Common Stock upon the exercise of any such Right or the conversion or exchange of any
such Convertible Security. “Excluded Securities” means the Company’s Series A Convertible Preferred Stock, the Company’s Series B Convertible Preferred, the Secured Convertible Note dated August 25, 1999, payable to
Protection One Alarm Monitoring, Inc. and the three Amended and Restated Warrants issued to James R. Leininger currently with the date of this Amended and Restated Note. 
  
 (iv) Adjustment of Conversion Price upon Issuance of Additional Shares of Common Stock. If the
Company shall at any time after the Original Issue Date issue Additional 
  

 12 

 Shares of Common Stock (including Additional Shares of Common Stock deemed to be issued pursuant to
Subsection 6(d)(iii), but excluding shares issued upon a stock split or combination as provided in Subsection 6(e) or as a dividend or distribution as provided in Subsection 6(f)) without consideration or for a consideration per
share less than the Dilution Price in effect on the date of and immediately prior to such issue, then and in such event, the Conversion Price shall be reduced, concurrently with such issue to a price (calculated to the nearest cent) determined by
multiplying such Conversion Price by a fraction, (a) the numerator of which shall be (1) the number of shares of Common Stock deemed outstanding (as provided below) immediately prior to such issue plus (2) the number of shares of Common Stock which
the aggregate consideration received by the Company for the total number of Additional Shares of Common Stock so issued would purchase at an amount equal to the Dilution Price; and (b) the denominator of which shall be (1) the number of shares of
Common Stock deemed outstanding (as provided below) immediately prior to such issue plus (2) the number of such Additional Shares of Common Stock so issued. For purposes of the preceding sentence, the number of shares of Common Stock deemed
outstanding as of a given date shall be the sum of (A) the number of shares of Common Stock actually outstanding, (B) the number of shares of Common Stock into which this Note could be converted if fully converted on the day immediately preceding
the given date, and (C) the number of shares of Common Stock issuable upon the full exercise of Rights and the full conversion or exchange of Convertible Securities (other than this Note) outstanding on the day immediately preceding the given date.

  
 Notwithstanding the foregoing, the applicable Conversion Price
shall not be reduced if the amount of such reduction would be an amount less than $.01, but any such amount shall be carried forward and reduction with respect thereto made at the time of and together with any subsequent reduction which, together
with such amount and any other amount or amounts so carried forward, shall aggregate $.01 or more. 
  
 (v) Determination of Consideration. For purposes of this Subsection 6(d), the consideration received by the Company for the
issuance of any Additional Shares of Common Stock shall be computed before deduction for discounts, commissions or expenses, as follows: 
  
 (A) Cash and Property: Such consideration shall: 
  
 (1) insofar as it consists of cash, be computed at the aggregate of cash received by the Company, excluding
amounts paid or payable for accrued interest or accrued dividends; 
  
 (2) insofar as it consists of property, services or other non-cash consideration, be computed at the fair market value thereof at the time of such issue, as determined in good faith by the Board of Directors; and

  
 (3) in the event Additional Shares of Common
Stock are issued together with other shares or securities or other assets of the Company for consideration which covers both, be the proportion of such consideration so received, computed as provided in clauses (1) and (2) above, as determined in
good faith by the Board of Directors. 
  

 13 

 (B) Rights and Convertible Securities. The consideration per share received by the
Company for Additional Shares of Common Stock deemed to have been issued pursuant to Subsection 6(d)(iii), relating to Rights and Convertible Securities, shall be determined by dividing: 
  
 (1) the total amount, if any, received or receivable by the
Company as consideration for the issue of such Rights or Convertible Securities, plus the minimum aggregate amount of additional consideration (as set forth in the instruments relating thereto, without regard to any provision contained therein for a
subsequent adjustment of such consideration) payable to the Company upon the full exercise of such Rights or the full conversion or exchange of such Convertible Securities, by 
  
 (2) the maximum number of shares of Common Stock (as set forth in the instruments relating thereto, without
regard to any provision contained therein for a subsequent adjustment of such number) issuable upon the full exercise of such Rights or the full conversion or exchange of such Convertible Securities. 
  
 (e) Adjustment for Stock Splits and Combinations. If the Company shall
at any time or from time to time after the Original Issue Date effect a subdivision of the outstanding Common Stock, the Conversion Price and the Base Price then in effect immediately before that subdivision shall each be proportionately decreased.
If the Company shall at any time or from time to time after the Original Issue Date combine the outstanding shares of Common Stock, the Conversion Price and the Base Price then in effect immediately before the combination shall each be
proportionately increased. Any adjustments under this paragraph shall become effective at the close of business on the date the subdivision or combination becomes effective. 
  
 (f) Adjustment for Certain Dividends and Distributions. In the event the Company at any time or from time to time
after the Original Issue Date shall make or issue a dividend or other distribution payable to the holders of Common Stock in shares of Common Stock, then and in each such event the Conversion Price and the Base Price shall each be decreased as of
the time of such issuance, by multiplying the Conversion Price and the Base Price, respectively, by a fraction: 
  
 (i) the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of
such issuance, and 
  
 (ii) the denominator of
which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance plus the number of shares of Common Stock issuable in payment of such dividend or distribution. 
  
 (g) Adjustments for Other Dividends and Distributions. In the event
the Company at any time or from time to time after the Original Issue Date shall make or issue a dividend or other distribution payable to the holders of Common Stock in securities of the Company other than shares of Common Stock, then and in each
such event provision shall be made so that Payee shall receive upon conversion hereof in addition to the number of shares of Common Stock 
  

 14 

 receivable thereupon, the amount of securities of the Company that they would have received had this Note been converted
into Common Stock on the record date of such event or the date of such event if no record date is established and had thereafter, during the period from the date of such event to and including the conversion date, retained such securities receivable
by them as aforesaid during such period given application to all adjustments called for during such period, under this paragraph with respect to the rights of Payee. 
  
 (h) Adjustment for Reorganization, Reclassification, or Exchange. If the Common Stock issuable upon the conversion of
this Note shall be changed into or exchanged for the same or a different number of shares of any class or classes of stock of the Company or another entity, whether by capital reorganization, merger, consolidation, reclassification, sale of assets
or otherwise (other than a subdivision or combination of shares or stock dividend provided for above), then and in each such event Payee shall have the right thereafter to convert this Note into the kind and amount of shares of stock and other
securities and property receivable upon such capital reorganization, merger, consolidation, reclassification, sale of assets or other change, by holders of the number of shares of Common Stock into which this Note might have been converted
immediately prior to such capital reorganization, merger, consolidation, reclassification, sale of assets or change, all subject to further adjustment as provided herein. 
  
 (i) No Impairment. The Company will not, by amendment of its Articles of Incorporation or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but
will at all times in good faith assist in the carrying out of all the provisions of this Section 5 and in the taking of all such action as may be necessary or appropriate in order to protect the conversion rights of Payee against impairment.

  
 (j) Certificate as to Adjustments. Upon the occurrence
of each adjustment or readjustment of the Conversion Price pursuant to this Section 6, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to Payee, a certificate
setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based and shall file a copy of such certificate with its corporate records. The Company shall, upon written request at any
time of any holder hereof, furnish or cause to be furnished to such holder a similar certificate setting forth (1) such adjustments and readjustments, (2) the Conversion Price then in effect, and (3) the number of shares of Common Stock and the
amount, if any, of other property which then would be received upon the conversion of this Note. 
  
 (k) Notice of Record Date. In the event: 
  
 (iii) that the Company declares a dividend (or any other distribution) on its Common Stock payable in Common Stock or other securities of
the Company; 
  
 (iv) of any reclassification of
the Common Stock of the Company (other than a subdivision or combination of its outstanding shares of Common Stock or a stock dividend or stock distribution thereon), or of any consolidation or merger of the Company into or with another corporation,
or of the sale of all or substantially all of the assets of the Company; or 
  

 15 

 (v) of the involuntary or voluntary dissolution, liquidation or winding up of the
Company; 
  
 then the Company shall cause to be filed at its
principal office and shall cause to be mailed to the holder hereof at its last addresses as shown on the records of the Company, at least ten days prior to the record date specified in (A) below or twenty days before the date specified in (B) below,
a notice stating: 
  
 c) the record date of such
dividend, distribution, subdivision or combination, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such dividend, distribution, subdivision or combination are to be determined, or

  
 d) the date on which such reclassification,
consolidation, merger, sale, dissolution, liquidation or winding up is expected to become effective, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their shares of Common Stock for
securities or other property deliverable upon such reclassification, consolidation, merger, sale, dissolution or winding up. 
  
 Failure to give such notice shall not, however, affect the validity of the action taken. 
  

	 	7.	Mandatory Conversion. 

  
 Upon the closing of an underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering
the offer and sale of Common Stock for the account of the Company (a “Public Offering”), (a) the entire unpaid balance of the Deferred Interest shall convert automatically into the number of shares of Common Stock into which the
shares of Series C Preferred Stock to which Payee would be entitled upon the conversion of such balance pursuant to Section 5 are then convertible, and (b) the entire unpaid principal balance, plus all accrued but unpaid interest, shall
convert automatically into the number of shares of Common Stock into which such outstanding principal plus interest is then convertible pursuant to Section 6, all without any further action by Payee. Notwithstanding the foregoing, the
preceding sentence of this Section 7 shall have no force or effect unless a Qualified Public Offering Closing does not occur on or prior to September 30, 2004. 
  

	 	8.	General Provisions. 

  
 Whenever any payment shall be due under this Note on a day which is not a Business Day, the date on which such payment is due shall be extended to the
next succeeding Business Day, and such extension of time shall be included in the computation of the amount of interest then payable. 
  
 All principal, interest and other sums payable under this Note shall be paid, not later than 5:00 p.m. (San Antonio, Texas time) on the day when due, in
immediately available funds in lawful money of the United States of America. Any payment under this Note other than in the required amount in good, unrestricted U.S. funds immediately available to Payee shall not, regardless of any receipt or credit
issued therefor, constitute payment until the required amount is 
  

 16 

 actually received by or made available to Payee in such funds and shall be made and accepted subject to the condition
that any check or draft may be handled for collection in accordance with the practice of the collecting bank or banks. 
  
 All payments made as scheduled on this Note shall be applied, to the extent thereof, first to accrued but unpaid interest (other than Deferred Interest),
second to unpaid principal, and last to Deferred Interest. 
  
 Maker and all sureties, endorsers and guarantors, if any, and any other party hereafter liable for the payment of this Note in whole or in part, hereby severally (i) waive demand, presentment for payment, notice of dishonor and of
nonpayment, protest, notice of protest, notice of intent to accelerate, notice of acceleration and all other notice (except only for any notices which are specifically required by this Note), filing of suit and diligence in collecting this Note or
enforcing any of the security heretofore; (ii) agree to any substitution, subordination, exchange or release of any such security or the release of any party primarily or secondarily liable hereon; (iii) agree that Payee shall not be required first
to institute suit or exhaust its remedies hereon against Maker or others liable or to become liable hereon or to enforce its rights against them or any security heretofore; and (iv) consent to any extension or postponement of time of payment of this
Note for any period or periods of time and to any partial payments, before or after maturity, and to any other indulgences with respect hereto, without notice thereof to any of them. 
  
 Neither the failure by Payee to give notice of default as provided in Section 4 nor the failure to exercise, nor
delay by Payee in exercising, the right to accelerate the maturity of this Note or any other right, power or remedy upon any Default shall be construed as a waiver of such Default or as a waiver of the right to exercise any such right, power or
remedy at any time. No single or partial exercise by Payee of any right, power or remedy shall exhaust the same or shall preclude any other or further exercise thereof, and every such right, power or remedy may be exercised at any time and from time
to time. All rights and remedies provided for in this Note are cumulative of each other and of any and all other rights and remedies existing at law or in equity, and Payee shall, in addition to the rights and remedies provided herein, be entitled
to avail itself of all such other rights and remedies as may now or hereafter exist at law or in equity for the collection of the indebtedness owing hereunder, and the resort to any right or remedy provided for or provided for by law or in equity
shall not prevent the concurrent or subsequent employment of any other appropriate rights or remedies. 
  
 It is the intent of Maker and Payee to conform to and contract in strict compliance with applicable usury law from time to time in effect. All agreements
between Payee and Maker are hereby limited by the provisions of this paragraph which shall override and control all such agreements, whether now existing or hereafter arising and whether written or oral. In no way, nor in any event or contingency
(including but not limited to prepayment, default, demand for payment, or acceleration of the maturity of any obligation), shall the interest then taken, reserved, contracted for, charged or received under this Note or otherwise, exceed the Maximum
Rate. If, from any possible construction of any document, interest would otherwise be payable in excess of the Maximum Rate, any such construction shall be subject to the provisions of this paragraph and such document shall be automatically reformed
and the interest payable shall be automatically reduced to the Maximum Rate, without the necessity of execution of any 
  

 17 

 amendment or new document. If Payee shall ever receive anything of value which is characterized as interest under
applicable law and which would apart from this provision be in excess of the Maximum Rate amount, an amount equal to the amount which would have been excessive interest shall, without penalty, be applied to the reduction of the principal amount
owing on the indebtedness evidenced hereby in the inverse order of its maturity and not to the payment of interest, or refunded to Maker or the other payor thereof if and to the extent such amount which would have been excessive exceeds such unpaid
principal. The right to accelerate maturity of this Note or any other indebtedness does not include the right to accelerate any interest which has not otherwise accrued on the date of such acceleration, and Payee does not intend to charge or receive
any unearned interest in the event of acceleration. All interest paid or agreed to be paid to Payee shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term (including any renewal
or extension) of such indebtedness so that the amount of interest on account of such indebtedness does not exceed the Maximum Rate. 
  
 This Note may not be changed, amended or modified without: (a) a writing expressly intended for such purpose and executed by the party against whom
enforcement of the change, amendment or modification is sought; and (b) the approval of 75% of entire board of directors of ATX Technologies, Inc. 
  
 THIS NOTE, AND ITS VALIDITY, ENFORCEMENT AND INTERPRETATION, SHALL BE GOVERNED BY TEXAS LAW (WITHOUT REGARD TO ANY CONFLICT OF LAWS PRINCIPLES) AND
APPLICABLE UNITED STATES FEDERAL LAW. 
  
 [signatures on next page]

  

 18 

 IN WITNESS WHEREOF, Maker and Payee have duly executed this Amended and Restated Convertible Note as of
the date first above written. 
  

			
	
	 ATX TECHNOLOGIES, INC.

		
	By:	 	 /s/    Steven A.
Millstein        

	 	 	Steven A. Millstein, President and CEO
	
	 ATX GROUP, INC.

		
	By:	 	 /s/    Steven A.
Millstein      

	 	 	Steven A. Millstein, President and CEO
	
	 /s/    James R.
Leininger        

	JAMES R. LEININGER

  

 19 

 Annex I 
  

[Form of Conversion Notice] 
  
 To the Company.: 
  
 The undersigned owner of this Note hereby irrevocably exercises the option to convert this Note, or the portion hereof below designated, into shares of
Common Stock of the Company. in accordance with the terms of the Note, and directs that the shares issuable and deliverable upon the conversion and any Note representing any unconverted amount hereof, be issued and delivered to the registered holder
hereof unless a different name has been indicated below (in which case the terms and conditions of transfer shall have been complied with). If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto. 
  
 Dated:                          
  

	
	 Signature                                     
                                    

  
 Fill in for registration of
shares of Common Stock and Note if to be issued otherwise than to the registered holder. 
  

	
	
	 
	Name
	
	 
	 Social Security or other Taxpayer
 Identification Number

  

	
	
	 Amount to be Converted

	 $                                      
                                        
      

  

	
	
	 
	
	 
	
	 
	 Please print name and address
 (including zip code number)

  

 20 

 Annex II [Form of Deferred Interest Conversion Notice] 
  
 To The Company 
  
 The undersigned owner of this Note hereby irrevocably exercises the option to convert the Deferred Interest due and payable
under this Note, or the portion hereof below designated, into shares of Series C Preferred Stock of ATX Technologies, Inc.[or into shares of Common Stock of ATX Group if the ATX Reorganization has occurred] in accordance with the terms of the Note,
and directs that the shares issuable and deliverable upon the conversion be issued and delivered to the registered holder hereof unless a different name has been indicated below (in which case the terms and conditions of transfer shall have been
complied with). If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto. 
  
 Dated:                          
  

	
	 Signature                                     
                                    

  
 Fill in for registration of
shares if to be issued otherwise than to the registered holder. 
  

	
	
	 
	Name
	
	 
	 Social Security or other Taxpayer
 Identification Number

  

	
	
	 Amount to be Converted

	 $                                      
                                        
      

  

	
	
	 
	
	 
	
	 
	 Please print name and address
 (including zip code number)

  

 21 

			
	Three year term with $10m balloon payment on 10/1/04	 	Exhibit H

  

					
	 Principal outstanding
	  	$	23,213,283.08	 
	 Accrued and unpaid interest
	  	$	6,026,799.14	 
	 	  	
	
	

	 Total amount owed
	  	$	29,240,082.22	 
		
	 Annual Interest rate
	  	 	9.0	%
	 Interest rate per day
	  	 	0.0247	%

																							
	 	  	 1-Jan-04

	  	Payment

	  	Interest

	  	Principal

	  	Balance

	  	Annual Interest

	  	Annual Payment

	  	# of Days

	  1	  	28-Mar-04	  	$	—  	  	$	627,259.85	  	$	—  	  	$	29,240,082.22	  	 	 	  	 	 	  	87
	  2	  	28-Jun-04	  	$	—  	  	$	663,309.26	  	$	—  	  	$	29,240,082.22	  	 	 	  	 	 	  	92
	  3	  	28-Sep-04	  	$	—  	  	$	663,309.26	  	$	—  	  	$	29,240,082.22	  	 	 	  	 	 	  	92
	  4	  	1-Oct-04	  	$	10,000,000.00	  	$	21,629.65	  	$	9,978,370.35	  	$	19,261,711.87	  	 	 	  	 	 	  	3
	  5	  	31-Dec-04	  	$	1,848,960.77	  	$	432,201.15	  	$	1,416,759.62	  	$	17,844,952.25	  	$	2,407,709.17	  	$	11,848,960.77	  	91
	  6	  	31-Mar-05	  	$	1,848,960.77	  	$	396,011.27	  	$	1,452,949.50	  	$	16,392,002.75	  	 	 	  	 	 	  	90
	  7	  	30-Jun-05	  	$	1,848,960.77	  	$	367,809.60	  	$	1,481,151.17	  	$	14,910,851.58	  	 	 	  	 	 	  	91
	  8	  	30-Sep-05	  	$	1,848,960.77	  	$	338,251.65	  	$	1,510,709.12	  	$	13,400,142.45	  	 	 	  	 	 	  	92
	  9	  	31-Dec-05	  	$	1,848,960.77	  	$	303,981.31	  	$	1,544,979.46	  	$	11,855,163.00	  	$	1,406,053.83	  	$	7,395,843.08	  	92
	10	  	31-Mar-06	  	$	1,848,960.77	  	$	263,087.18	  	$	1,585,873.59	  	$	10,269,289.41	  	 	 	  	 	 	  	90
	11	  	30-Jun-06	  	$	1,848,960.77	  	$	230,425.97	  	$	1,618,534.80	  	$	8,650,754.61	  	 	 	  	 	 	  	91
	12	  	30-Sep-06	  	$	1,848,960.77	  	$	196,241.78	  	$	1,652,718.99	  	$	6,998,035.61	  	 	 	  	 	 	  	92
	13	  	31-Dec-06	  	$	1,848,960.77	  	$	158,749.96	  	$	1,690,210.81	  	$	5,307,824.80	  	$	848,504.89	  	$	7,395,843.08	  	92
	14	  	31-Mar-07	  	$	1,848,960.77	  	$	117,790.08	  	$	1,731,170.69	  	$	3,576,654.12	  	 	 	  	 	 	  	90
	15	  	30-Jun-07	  	$	1,848,960.77	  	$	80,254.24	  	$	1,768,706.53	  	$	1,807,947.59	  	 	 	  	 	 	  	91
	16	  	30-Sep-07	  	$	1,848,960.75	  	$	41,013.17	  	$	1,807,947.58	  	$	0.00	  	$	239,057.49	  	$	5,546,882.29	  	92

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