Document:

EXHIBIT 4.40.6

                          (ALL AMOUNTS IN U.S. DOLLARS)

                              E.DIGITAL CORPORATION

                                 PROMISSORY NOTE

Note Date: June 30, 2006                                        US $290,164.36
San Diego, California

FOR VALUE RECEIVED, e.Digital Corporation, the undersigned Delaware corporation
(together with all successors, the "Company"), hereby promises to pay to Davric
Corporation, or order ("Noteholder") at 980 American Pacific Drive, Suite #111
Henderson, NV 89014, or at such other address as Noteholder may subsequently
designate in writing to the Company, the principal sum of Two Hundred Ninety
Thousand One Hundred Sixty Four Dollars and Thirty Six Cents ($290,164.36),
together with interest on unpaid principal as provided below.

      The following is a statement of the rights of the Noteholder and the
conditions to which this Note is subject, and to which the Noteholder, by the
acceptance of this Note, agrees:

      1. The unpaid principal balance of this Note outstanding from time to time
shall bear interest from the date hereof until paid at a rate equal to the lower
of (a) fifteen percent (15%) per annum; or (b) the maximum legal rate permitted
under applicable law. Notwithstanding the foregoing, however, during any period
during which there is an uncured Event of Default, as defined below, the unpaid
principal balance of this Note outstanding from time to time during that period
shall bear interest at a rate equal to the lower of (i) eighteen percent (18%)
per annum; or (b) the maximum legal rate permitted under applicable law.
Interest shall be computed on a 360 day year and 30 day months.

      2. Principal and interest on this Note shall be paid in monthly
installments of Five Thousand Dollars ($5,000.00), commencing on July 31, 2006
and continuing on the same day of each calendar month thereafter to and
including November 30, 2006, and a final payment of Two Hundred Eighty Six
Thousand Six Hundred Sixty Four Dollars and Ninety-Three Cents ($286,664.93) on
December 31, 2006; provided, however, that if any of the foregoing dates for any
monthly installment falls on a weekend or national holiday, the due date for
that installment shall be the following business day. Any payment shall be
deemed timely made if received by Noteholder within fifteen (15) calendar days
of the due date. All payments made on this Note shall be applied first to
accrued interest, and the balance of such payment, if any, shall be applied to
principal, and interest shall thereupon cease upon the principal so credited.

      3. An "Event of Default" shall occur if (a) the Company does not make any
monthly installment on this Note when the same becomes due and payable and such
default shall continue for a period of fifteen (15) calendar days; or (b)
pursuant to or within the meaning of any Bankruptcy Law (as hereinafter
defined), the Company: (i) commences a voluntary case; (ii) consents to the
entry of an order for relief against it in an involuntary case; (iii) consents
to the appointment of a Custodian (as hereinafter defined) of it or for all or
substantially all of its property; (iv) makes a general assignment for the
benefit of its creditors; or (v) a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that: (A) is for relief against the
Company in an involuntary case; (B) appoints a Custodian of the Company or for
all or substantially all of its property; or (C) orders the liquidation of the
Company, and any such order or decree remains unstayed and in effect for a
period of sixty (60) days. As used herein, the term "Bankruptcy Law" means Title
11 of the United States Code or any similar federal or state law for the relief
of debtors. The term "Custodian" means any receiver, trustee, assignee,
liquidator or similar official under any Bankruptcy Law.

      4. If an Event of Default occurs and is continuing, the Noteholder, by
written notice to the Company, may declare the principal of and accrued interest
on this Note to be due and payable immediately.

      5. This Note assumes and therefore retires and cancels in full all amounts
due and payable related to the note between the parties dated January 31, 2005
in the original principal amount of $150,000 with an outstanding balance of
$121,414.36 as of the effective date of assumption of June 30, 2006. The balance
of this note of $168,750.00 incorporates all accrued and unpaid interest as of
June 30, 2006 related to that certain September 11, 2002 Note, as amended,
between the parties in the principal amount of $750,000.
<PAGE>

      6. The Company may prepay this Note at any time and from time to time, in
whole or in part, without premium or penalty. Upon payment in full of the
principal amount of this Note and interest thereon, the Noteholder shall
surrender this Note for cancellation.

      7. If the indebtedness represented by this Note or any part thereof is
collected in bankruptcy, receivership or other judicial proceedings or if this
Note is placed in the hands of attorneys for collection after an Event of
Default, the Company agrees to pay, in addition to the principal and interest
payable hereunder, reasonable attorneys' fees and costs incurred by the
Noteholder.

      8. Any notice, demand, consent or other communication hereunder shall be
in writing addressed to the Company at its principal office or, in the case of
the Noteholder, at the Noteholder's address appearing above, or to such other
address as such party shall have theretofore furnished by like notice, and
either served personally, sent by express, registered or certified first class
mail, postage prepaid, sent by facsimile transmission, or delivered by reputable
commercial courier. Such notice shall be deemed given (a) when so personally
delivered, or (b) if mailed as aforesaid, five (5) days after the same shall
have been posted, or (c) if sent by facsimile transmission, as soon as the
sender receives written or telephonic confirmation that the message has been
received and such facsimile is followed the same day by mailing by prepaid first
class mail, or (d) if delivered by commercial courier, upon receipt.

      9. The Company hereby waives presentment, demand for performance, notice
of non-performance, protest, notice of protest and notice of dishonor. No delay
on the part of Noteholder in exercising any right hereunder shall operate as a
waiver of such right or any other right.

      10. This Note shall be governed by and construed in accordance with the
laws of the State of California applicable to contracts between residents of
such state entered into and to be performed entirely within such state.

      11. Each provision of this Note shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Note
is held to be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating the remainder of this Note.

      IN WITNESS WHEREOF, the Company has executed this Note and has affixed
hereto its corporate seal.

                                    "COMPANY"

                                    E.DIGITAL CORPORATION, a Delaware
                                    corporation

                                    By:   /s/ WILLIAM BLAKELEY
                                          --------------------------------------
                                    Title: President and CTO

                                    "NOTEHOLDER"
                                    DAVRIC CORPORATION, a Nevada corporation

                                    By:   /s/ JERRY E. POLIS
                                          --------------------------------------
                                    Title: President

                                       2EXHIBIT 10.1

                       Non-Employee Director Compesntaion

                               Equity Compensation
                                  (as revised)
<TABLE>
<CAPTION>

------------------------------------------------------- -----------------------------------------------------
<S>                                                                 <C>
              Board Annual Equity Award                             $80,000 in restricted stock
------------------------------------------------------- -----------------------------------------------------

------------------------------------------------------- -----------------------------------------------------
        Committee Member Annual Equity Awards:
------------------------------------------------------- -----------------------------------------------------
                   Audit Committee                      Chairman $10,000 in restricted stock/Members $5,000
                                                                        in restricted stock
------------------------------------------------------- -----------------------------------------------------
                Compensation Committee                  Chairman $10,000 in restricted stock/Members $5,000
                                                                        in restricted stock
------------------------------------------------------- -----------------------------------------------------
         Nominating and Governance Committee                                    N/A
------------------------------------------------------- -----------------------------------------------------
</TABLE>

Provided that an individual remains a Board/committee member on such date, the
Company will grant fully vested equity awards annually to its non-employee
directors and committee members upon the earlier of: (1) the last day of each
Board year (with Board years running from the respective dates of the Company's
annual shareholders' meetings) for recognition of service for the prior Board
year; or (2) upon a "Change in Control" of the Company (as such term is defined
below). The number of shares of the Company's common stock to be granted as
equity compensation will be determined by dividing the dollar amount of the
applicable annual award(s) by the fair market value per share of the Company's
common stock on the grant date, with any partial shares to be paid in cash.

"Change in Control" shall mean the occurrence of any of the following events:

         (i) An acquisition (other than directly from the Company) of any voting
securities of the Company ("Voting Securities") by any "Person" (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (the "1934 Act")) immediately after which such Person
has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under
the 1934 Act) of fifty percent (50%) or more of the combined voting power of the
Company's then outstanding Voting Securities; provided, however, that in
determining whether a Change in Control has occurred, Voting Securities that are
acquired in an acquisition by (A) an employee benefit plan (or a trust forming a
part thereof) maintained by (I) the Company or (II) any corporation or other
person of which a majority of its voting power or its equity securities or
equity interests are owned directly or indirectly by the Company (a
"Subsidiary"), or (B) the Company or any Subsidiary, or (C) any Person in
connection with a "Non-Control Transaction" (as hereinafter defined), shall not
constitute an acquisition for purposes for this clause (i); or

<PAGE>

         (ii) The individuals who, as of the date of this Agreement, are members
of the Board of Directors of the Company (the "Incumbent Board") cease for any
reason to constitute at least sixty percent (60%) of the Board; provided,
however, that if the election, or nomination for election by the Company's
shareholders, of any new director was approved by a vote of at least eighty
percent (80%) of the Incumbent Board, such new director shall for purposes of
this Agreement, be considered as a member of the Incumbent Board; provided,
further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened "Election Contest" (as described in Rule 14a-11
promulgated under the 1934 Act) or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board (a "Proxy
Contest"), including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or

         (iii) Approval by the shareholders of the Company of:

         (A) a merger, consolidation or reorganization involving the Company,
unless:

                  (I) the shareholders of the Company, immediately before such
         merger, consolidation or reorganization, own, directly or indirectly,
         immediately following such a merger, consolidation or reorganization,
         at least fifty one percent (51%) of the combined voting power of the
         outstanding voting securities of the corporation resulting from such
         merger, consolidation or reorganization (the "Surviving Corporation")
         in substantially the same proportion as their ownership of the Voting
         Securities immediately before such merger, consolidation or
         reorganization, and

                  (II) the individuals who were members of the Incumbent Board
         immediately prior to the execution of the agreement providing for such
         merger, consolidation or reorganization constitute at least two thirds
         (2/3) of the members of the board of directors of the Surviving
         Corporation. (A transaction in which both of clauses (I) and (II) above
         shall be applicable is hereinafter referred to as a "Non-Control
         Transaction."); or

         (B) A complete liquidation or dissolution of the Company; or

         (C) An agreement for the sale or other disposition of all or
         substantially all of the assets of the Company to any Person (other
         than a transfer to a Subsidiary).

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