Document:

exv4w8w3

Exhibit 4.8.3

THIRD AMENDMENT TO WARRANT

     THIRD AMENDMENT dated effective as of December 29, 2009 (this “Amendment”), between
DRI CORPORATION, a North Carolina corporation (“DRI”), and BHC INTERIM FUNDING III, L.P.
(“Holder”) to that certain Warrant dated as of June 30, 2008 (as amended, modified,
supplemented or restated from time to time, the “Warrant”).

     WHEREAS, DRI sold the Warrant to Holder, in which Holder purchased certain Capital Stock of
DRI in connection with that certain Loan and Security Agreement dated as of June 30, 2008, among
DRI, Digital Recorders Inc., a North Carolina corporation, TwinVision of North America, Inc., a
North Carolina corporation, and Holder, as lender (as amended, restated, supplemented or otherwise
modified from time to time, the “Loan Agreement”). Capitalized terms used without further
definition herein shall have the respective meanings set forth in the Loan Agreement and the Loan
Documents;

     WHEREAS, in consideration of and as a condition precedent to that certain Fifth Amendment to
the Loan and Security Agreement dated as of the date hereof, DRI and Holder have agreed to amend
the Warrant on the terms and subject to satisfaction of the conditions contained herein.

     NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

     Section 1. Amendment to Warrant.

          (a) Paragraph (A). Paragraph (A) of the Warrant is hereby deleted in its entirety
and the following is hereby substituted therefor:

     THIS IS TO CERTIFY THAT, for value received, BHC INTERIM FUNDING III, L.P., a
Delaware limited partnership, or its registered assigns, (the “Holder”) is
entitled to purchase from DRI CORPORATION, a North Carolina corporation (the
“Company”), at any time on or after the date hereof and before 5:00 p.m.
(New York time) on June 30, 2013, (i) Two Hundred Thousand (200,000) fully paid and
non-assessable shares of the Company’s common stock, $0.10 par value per share (the
“A Common Stock”) at a price (the “A Exercise Price”) equal to
$1.00 per share, and (ii) One Hundred Fifty Thousand (150,000) fully paid and
non-assessable shares of the Company’s common stock, $0.10 par value per share (the
“B Common Stock” and, together with the A Common Stock, the “Common
Stock”) at a price (the “B Exercise Price” and, together with the A
Exercise Price, the “Exercise Price”) equal to $1.75 per share, payable as
provided below and subject to adjustment pursuant to Article III hereof. The shares
of Common Stock issuable upon exercise of this Warrant are herein called the
“Warrant Shares.”

 

 

     Section 2. Representations and Warranties by DRI. DRI warrants and represents to
Holder that:

          (a) all of the representations and warranties contained in the Warrant and each other Loan
Document to which DRI is a party continue to be true and correct in all material respects as of
the date hereof, as if repeated as of the date hereof, except for such representations and
warranties which, by their terms, are expressly made only as of a previous date;

          (b) the execution, delivery and performance of this Amendment by DRI is within its
corporate powers, has been duly authorized by all necessary corporate action on its part, and
DRI has received all necessary consents and approvals (if any are required) for the execution
and delivery of this Amendment;

          (c) the Organizational Documents of DRI previously delivered to Holder by DRI have not been
amended or modified in any respect as of the date hereof;

          (d) upon its execution, this Amendment shall constitute the legal, valid and binding
obligation of DRI, enforceable against DRI in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency or similar laws affecting creditors’
rights generally and (ii) general principles of equity;

          (e) except as set forth herein or as DRI or its representatives shall have notified Holder
of in writing, DRI is not in default under any indenture, mortgage, deed of trust, or other
material agreement or material instrument to which it is a party or by which it may be bound
which could have a Material Adverse Effect;

          (f) neither the execution and delivery of this Amendment, nor the consummation of the
transactions herein contemplated, nor compliance with the provisions hereof will (i) violate any
law or regulation applicable to DRI, (ii) cause a violation by DRI of any order or decree of any
court or government instrumentality applicable to them, (iii) conflict with, or result in the
breach of, or constitute a default under, any indenture, mortgage, deed of trust, or other
material agreement or material instrument to which DRI is a party or by which it may be bound,
or (iv) result in the creation or imposition of any lien, charge, or encumbrance upon any
property of DRI, except in favor of Holder, to secure the Obligations;

          (g) no Default or Event of Default has occurred and is continuing;

          (h) since the date of the Loan Parties’ most recent financial statements delivered to
Holder, no change or event has occurred which has had, or is reasonably likely to have, a
Material Adverse Effect; and

          (i) this Amendment and any assignment or other instrument, document or agreement executed
and delivered in connection herewith, will be valid, binding and

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enforceable in accordance with their respective terms.

     Section 3. Miscellaneous.

          (a) This Amendment shall become effective on the date on which Lender shall have received
this Amendment duly executed by DRI and Lender shall have received an amendment fee in the
amount of $5,000.

          (b) The provisions of this Amendment are to be deemed severable, and the invalidity or
unenforceability of any provision shall not affect or impair the remaining provisions which
shall continue in full force and effect.

          (c) This Amendment may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original, and such counterparts together shall constitute one
and the same respective agreement. Signature by facsimile shall also bind the parties hereto.

          (d) This Amendment is a Loan Document.

          (e) The headings of this Amendment are for the purposes of reference only and shall not
affect the construction of this Amendment.

          (f) THIS AMENDMENT AND ALL MATTERS RELATING HERETO AND ARISING HEREFROM (WHETHER ARISING
UNDER CONTRACT LAW, TORT LAW OR OTHERWISE) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

          (g) DRI FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES HEREBY CONSENTS TO THE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK, STATE OF NEW YORK, AND
IRREVOCABLY AGREES THAT, SUBJECT TO HOLDER’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF
OR RELATING TO THIS AMENDMENT SHALL BE LITIGATED IN SUCH COURTS. DRI FOR ITSELF AND ON BEHALF OF
ITS SUBSIDIARIES ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE
OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN
CONNECTION WITH THIS AMENDMENT. DRI FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES HEREBY WAIVES
PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE
UPON SUCH PERSON BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO SUCH
PERSON AT SUCH PERSON’S ADDRESS AS SET FORTH IN SECTION 8.6

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OF THE LOAN AGREEMENT OR AS MOST RECENTLY NOTIFIED BY SUCH PERSON IN WRITING PURSUANT TO
SECTION 8.6 OF THE LOAN AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS
AFTER THE SAME HAS BEEN POSTED AS AFORESAID.

          (h) DRI FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES AND HOLDER HEREBY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AMENDMENT. DRI FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES AND HOLDER FURTHER WARRANT AND
REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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     Dated effective as of the date and year first written above.

	 	 	 	 	 
	 	DRI CORPORATION

 	 
	 	By:  	/s/
David L. Turney 	 
	 	 	David L. Turney 	 
	 	 	CEO, President and Chairman 	 
	 

Accepted as of the day and year first above written:

BHC INTERIM FUNDING III, L.P.

By: BHC Interim Funding Management III, L.P., its General Partner

By: BHC Investors III, L.L.C., its Managing Member

By: GHH Holdings III, L.L.C.

	 	 	 	 	 
	 	 	 
	By:  	/s/
Gerald H. Houghton 	 	 
	 	Gerald H. Houghton 	 	 
	 	Managing Member 	 	 
	 

SIGNATURE PAGE TO SECOND AMENDMENT TO WARRANTexv10w37w5

Exhibit 10.37.5

AMENDMENT NO. 6

TO REVOLVING CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT NO. 6 (this “Agreement”) is entered into as of December 29, 2009, by and
between DIGITAL RECORDERS, INC. (“DR”), TWINVISION OF NORTH AMERICA, INC. (“TVna”, collectively
with DR, each a “Borrower”, and collectively the “Borrowers”), DRI CORPORATION (“DRI”, DRI and the
Borrowers, each a “Loan Party, and collectively, the “Loan Parties”), the financial institutions
party hereto (collectively, the “Lenders” and individually a “Lender”) and PNC BANK, NATIONAL
ASSOCIATION (“PNC”), as agent for Lenders (PNC, in such capacity, the “Agent”).

BACKGROUND

     Loan Parties, Lenders and Agent are parties to that certain Revolving Credit and Security
Agreement dated June 30, 2008 (as amended, restated, supplemented or otherwise modified from time
to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrowers with certain
financial accommodations.

     Loan Parties have requested that Agent and Lenders amend certain provisions of the Loan
Agreement as hereafter provided, and Agent and Lenders are willing to do so on the terms and
conditions hereafter set forth.

     NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or
hereafter made to or for the account of Borrowers by Agent or Lenders, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Definitions. All capitalized terms not otherwise defined or amended herein shall
have the meanings given to them in the Loan Agreement.

     2. Amendment. Subject to the satisfaction of Section 3 below, the Loan Agreement is
hereby amended as follows:

          (a) The table appearing in Section 6.5(b) of the Loan Agreement is hereby amended to read in
its entirety as set forth below:

	 	 	 	 	 
	Fiscal Quarter Ending:	 	Leverage Ratio:
	September 30, 2009
	 	 	5.25 to 1.0	 
	December 31, 2009
	 	 	5.00 to 1.0	 
	March 31, 2010
	 	 	6.75 to 1.0	 
	June 30, 2010
	 	 	8.25 to 1.0	 
	September 30, 2010
	 	 	7.00 to 1.0	 
	December 31, 2010 and each fiscal quarter ending thereafter
	 	 	5.50 to 1.0	 

 

 

     3. Conditions of Effectiveness. This Agreement shall become effective when Agent
shall have received (x) four (4) copies of this Agreement executed by the Required Lenders and each
Loan Party, (y) an amendment fee of $15,000, which may be charged to Borrowers’ Account as a
Revolving Advance and (z) an executed copy of an amendment to the Subordinated Loan Documentation
in form and substance satisfactory to Agent.

     4. Representations, Warranties and Covenants. Each Loan Party hereby represents,
warrants and covenants as follows:

     (a) This Agreement, the Loan Agreement and the Other Documents constitute legal, valid and
binding obligations of such Loan Party and are enforceable against such Loan Party in accordance
with their respective terms.

     (b) Upon the effectiveness of this Agreement, each Loan Party hereby reaffirms all covenants,
representations and warranties made in the Loan Agreement and the Other Documents to the extent the
same are not amended hereby and agrees that all such covenants, representations and warranties
shall be deemed to have been remade as of the effective date of this Agreement.

     (c) The execution, delivery and performance of this Agreement and all other documents in
connection therewith has been duly authorized by all necessary corporate action, and does not
contravene, violate or cause the breach of any agreement, judgment, order, law or regulation
applicable to any Loan Party

     (d) No Event of Default or Default has occurred and is continuing or would exist after giving
effect to this letter amendment.

     (e) No Loan Party has any defense, counterclaim or offset with respect to the Loan Agreement
or the Obligations.

     5. Effect on the Loan Agreement.

     (a) Upon the effectiveness of this Agreement, each reference in the Loan Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference
to the Loan Agreement as amended hereby. Except as specifically amended herein, the Loan
Agreement, and all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.
This Agreement shall constitute an “Other Document” for all purposes under the Loan Agreement.

     (b) The execution, delivery and effectiveness of this Agreement shall not operate as a waiver
of any right, power or remedy of Agent or any Lender, nor constitute a waiver of any provision of
the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered
under or in connection therewith.

2

 

     6. Release. The Loan Parties hereby acknowledge and agree that: (a) neither they nor
any of their Affiliates have any claim or cause of action against Agent or any Lender (or any of
Agent’s or any Lender’s Affiliates, officers, directors, employees, attorneys, consultants or
agents) and (b) Agent and each Lender have heretofore properly performed and satisfied in a timely
manner all of their respective obligations to the Loan Parties under the Loan Agreement and the
Other Documents. Notwithstanding the foregoing, Agent and each Lender wish (and the Loan Parties
agree) to eliminate any possibility that any past conditions, acts, omissions, events or
circumstances would impair or otherwise adversely affect any of Agent’s or such Lender’s rights,
interests, security and/or remedies under the Loan Agreement and the Other Documents. Accordingly,
for and in consideration of the agreements contained in this Agreement and other good and valuable
consideration, the Loan Parties (for themselves and their Affiliates and the successors, assigns,
heirs and representatives of each of the foregoing) (each a “Releasor” and collectively, the
“Releasors”) does hereby fully, finally, unconditionally and irrevocably release and forever
discharge Agent, each Lender and each of their respective Affiliates, officers, directors,
employees, attorneys, consultants and agents (each a “Released Party” and collectively, the
“Released Parties”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees,
suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known
or unknown, contingent of fixed, direct or indirect, and of whatever nature or description, and
whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has
heretofore had or now or hereafter can, shall or may have against any Released Party by reason of
any act, omission or thing whatsoever done or omitted to be done on or prior to the date hereof
arising out of, connected with or related in any way to this Agreement, the Loan Agreement or any
Other Document, or any act, event or transaction related or attendant thereto, or Agent’s or any
Lender’s agreements contained therein, or the possession, use, operation or control of any of the
assets of agreements contained therein, or the possession, use, operation or control of any of the
assets of the Loan Parties, or the making of any advance, or the management of such advance or the
Collateral.

     7. Governing Law. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns and shall be governed by and
construed in accordance with the laws of the State of New York (other than those conflict of law
rules that would defer to the substantive law of another jurisdiction).

     8. Cost and Expenses. Loan Parties hereby agree to pay the Agent, on demand, all
costs and reasonable expenses (including reasonable attorneys’ fees and legal expenses) incurred in
connection with this Agreement and any instruments or documents contemplated hereunder.

     9. Headings. Section headings in this Agreement are included herein for convenience
of reference only and shall not constitute a part of this Agreement for any other purpose.

3

 

     10. Counterparts; Facsimile Signatures. This Agreement may be executed by the parties
hereto in one or more counterparts of the entire document or of the signature pages hereto, each of
which shall be deemed an original and all of which taken together shall constitute one and the same
agreement. Any signature received by facsimile or electronic transmission shall be deemed an
original signature hereto.

[Remainder of page intentionally left blank]

4

 

     IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and year first written
above.

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as Lender and as Agent

 	 
	 	By:  	
/s/ John Trieu	 
	 	 	Name:  	 John Trieu	 
	 	 	Title:  	VP	 
	 
	 	DRI CORPORATION

 	 
	 	By:  	
/s/ David L. Turney	 
	 	 	Name:  	David L. Turney	 
	 	 	Title:  	President, CEO, Chairman	 
	 
	 	DIGITAL RECORDERS, INC.

 	 
	 	By:  	
/s/ David L. Turney	 
	 	 	Name:  	David L. Turney	 
	 	 	Title:  	President, CEO, Chairman	 
	 
	 	TWINVISION OF NORTH AMERICA, INC.

 	 
	 	By:  	
/s/ David L. Turney	 
	 	 	Name:  	David L. Turney	 
	 	 	Title:  	President, CEO, Chairman	 
	 

[Signature Page to Amendment No. 6]

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