Document:

exv10w6

Exhibit 10.6

AMENDMENT NO. 7

TO REVOLVING CREDIT AND SECURITY AGREEMENT

     THIS AMENDMENT NO. 7 (this “Agreement”) is entered into as of November 12, 2010, 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) Section 1.2 of the Credit Agreement is hereby amended by inserting the following defined
terms in their appropriate alphabetical order:

“Seventh Amendment” means that certain Amendment No. 7 to Revolving
Credit and Security Agreement, dated as of November 12, 2010, among the Loan
Parties, the Agent and the Lenders.

“Seventh Amendment Effective Date” means the date that the
conditions of effectiveness to the Seventh Amendment have been satisfied.

          (b) Section 2.22 of the Loan Agreement is hereby amended by deleting the word “and” where it
appears immediately before sub-clause (iv) of clause (a) thereof, and by inserting the following
sub-clause immediately prior to the period at the end of such clause (a):

 

 

and (v) make a recallable equity investment in Mobitec AB on or after the
Seventh Amendment Effective Date in an amount not to exceed $1,000,000

          (c) Section 2.6(b) of the Loan Agreement is hereby amended in its entirety to provide as
follows:

Each Borrower recognizes that the amounts evidenced by checks, notes, drafts
or any other items of payment relating to and/or proceeds of Collateral may
not be collectible by Agent on the date received. In consideration of
Agent’s agreement to conditionally credit Borrowers’ Account as of the next
Business Day following the Agent’s receipt of those items of payment, each
Borrower agrees that, in computing the charges under this Agreement, all
items of payment shall be deemed applied by Agent on account of the
Obligations one (1) Business Day after (i) the Business Day following the
Agent’s receipt of such payments via wire transfer or electronic depository
check or (ii) in the case of payments received by Agent in any other form,
the Business Day such payment constitutes good funds in Agent’s account.
Agent is not, however, required to credit Borrowers’ Account for the amount
of any item of payment which is unsatisfactory to Agent and Agent may charge
Borrowers’ Account for the amount of any item of payment which is returned
to Agent unpaid.

          (d) Section 6.5(a) of the Loan Agreement is hereby amended in its entirety to provide as
follows:

Fixed Charge Coverage Ratio. Cause to be maintained as of the end
of each fiscal quarter, for the twelve month period ending on the last day
of such fiscal quarter, a Fixed Charge Coverage Ratio of not less than the
ratio set forth below opposite such period:

	 	 	 
	 	 	Fixed Charge
	Fiscal Quarter Ending:	 	Coverage Ratio:
	September 30, 2010

	 	0.70 to 1.0
	December 31, 2010

	 	0.85 to 1.0
	March 31, 2011

	 	1.00 to 1.0
	June 30, 2011

	 	1.05 to 1.0

          (e) The table appearing in Section 6.5(b) of the Loan Agreement is hereby amended in its
entirety to provide as follows:

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	Fiscal Quarter Ending:	 	Leverage Ratio:
	September 30, 2010

	 	8.85 to 1.0
	December 31, 2010

	 	8.25 to 1.0
	March 31, 2011

	 	7.25 to 1.0
	June 30, 2011

	 	7.00 to 1.0

          (f) Section 6.5(c) of the Loan Agreement is hereby amended in its entirety to provide as
follows:

Minimum EBITDA. Maintain as of the end of each fiscal quarter, for
the twelve month period ending on the last day of such fiscal quarter,
EBITDA of DRI on a Consolidated Basis of not less than the amount set forth
below opposite such period:

	 	 	 
	Fiscal Quarter Ending:	 	Minimum EBITDA:
	September 30, 2010
	 	$4,750,000
	December 31, 2010
	 	$4,250,000
	March 31, 2011 and each fiscal quarter ending thereafter
	 	$5,000,000

          (g) Section 7.4 of the Loan Agreement is hereby amended in its entirety to provide as follows:

Investments. Purchase or acquire obligations or Equity Interests
of, or any other interest in, any Person, except (a) obligations issued or
guaranteed by the United States of America or any agency thereof, (b)
commercial paper with maturities of not more than 180 days and a published
rating of not less than A-1 or P-1 (or the equivalent rating), (c)
certificates of time deposit and bankers’ acceptances having maturities of
not more than 180 days and repurchase agreements backed by United States
government securities of a commercial bank if (i) such bank has a combined
capital and surplus of at least $500,000,000, or (ii) its debt obligations,
or those of a holding company of which it is a Subsidiary, are rated not
less than A (or the equivalent rating) by a nationally recognized investment
rating agency, (d) U.S. money market funds that invest solely in obligations
issued or guaranteed by the United States of America or an agency thereof,
(e) so long as no Default or Event of Default has occurred and is continuing
or would result therefrom, Investments by a Loan Party in any other Loan
Party (other than DRI), (f) loans permitted by Section 7.5, (g) a recallable
equity investment in Mobitec AB in an amount not to exceed the Contribution
Amount and (h) a recallable equity investment in Mobitec AB on or after the
Seventh Amendment Effective Date in an amount not to exceed $1,000,000,
provided that both prior to and after giving effect to such recallable
equity investment, (x) no Default or Event of Default has

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occurred and is continuing and (y) the Borrowers have at least $500,000 of
Undrawn Availability.

          (h) Clause (y) of the second sentence of Section 7.10 of the Loan Agreement is hereby amended
by deleting the amount of “2,000,000” appearing therein and inserting the amount of “$3,000,000” in
lieu thereof.

          (i) Schedule 5.9 to the Loan Agreement is hereby restated in its entirety by Schedule 5.9
attached hereto.

     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 $30,000, 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 Agreement.

     (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

4

 

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.

     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.

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     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.

     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]

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     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:  	Vice President 	 
	 
	 	DRI CORPORATION

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

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

 	 
	 	By:  	/s/ David L. Turney
 	 
	 	 	Name:  	David L. Turney 	 
	 	 	Title:  	CEO 	 
	 

[Signature Page to Amendment No. 7]exv10w7

Exhibit 10.7

SEVENTH AMENDMENT TO THE LOAN AND SECURITY AGREEMENT

     THIS SEVENTH AMENDMENT is entered into as of November 12, 2010 (this “Amendment”)
among DIGITAL RECORDERS, INC., a North Carolina corporation (“Digital”), TWINVISION OF
NORTH AMERICA, INC., a North Carolina corporation (“TwinVision” and, together with Digital,
the “Borrowers”), DRI CORPORATION, a North Carolina corporation (“Guarantor” and,
together with the Borrowers, the “Loan Parties”), and BHC INTERIM FUNDING III, L.P., a
Delaware limited partnership (“Lender”), to that certain Loan and Security Agreement dated
as of June 30, 2008 (as amended, modified, supplemented or restated from time to time, the
“Loan Agreement”) among the Loan Parties and Lender.

     WHEREAS, the Loan Parties have requested that Lender amend certain provisions of the Loan
Agreement as hereafter provided, and Lender is willing to do so on the terms and conditions
hereafter set forth;

     NOW, THEREFORE, in consideration of the mutual promises contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Loan
Parties and Lender hereby agree as follows:

     Section One. Definitions. Terms which are capitalized in this Amendment and
not otherwise defined shall have the meanings ascribed to such terms in the Loan Agreement as
amended by this Amendment.

     Section Two. Amendment to Loan Agreement. Effective upon satisfaction of the
conditions precedent set forth in Section Four hereof, the Loan Agreement is hereby amended
as follows:

     (a) Section 1.3 (Certain Defined Terms) of the Loan Agreement is hereby amended by inserting
the following definitions in the appropriate alphabetical order:

     “Seventh Amendment” means that certain Seventh Amendment to the Loan
and Security Agreement, dated as of November 12, 2010, among the Loan Parties and
the Lender, as the same may be amended, restated, supplemented or otherwise modified
or extended or renewed from time to time.

     “Seventh Amendment Effective Date” has the meaning set forth in the
Seventh Amendment.

     (b) Section 6.18(B) (Fixed Charge Coverage Ratio) of the Loan Agreement is hereby deleted in
its entirety and the following is hereby substituted therefor:

(D) Fixed Charge Coverage Ratio. Loan Parties shall maintain as of the end
of each fiscal quarter, for the twelve month period ending on the last day of such
fiscal quarter, a Fixed Charge Coverage Ratio of not less than the ratio set forth
below opposite such period:

 

 

	 	 	 
	 	 	Fixed Charge
	Fiscal Quarter Ending:	 	Coverage Ratio:
	September 30, 2010

	 	0.70 to 1.0
	December 31, 2010

	 	0.85 to 1.0
	March 31, 2011

	 	1.00 to 1.0
	June 30, 2011

	 	1.05 to 1.0

     (c) The table appearing in Section 6.18(D) (Leverage Ratio) of the Loan Agreement is hereby
amended in its entirety to provide as follows:

	 	 	 
	Fiscal Quarter Ending:	 	Leverage Ratio:
	September 30, 2010

	 	8.85 to 1.0
	December 31, 2010

	 	8.25 to 1.0
	March 31, 2011

	 	7.25 to 1.0
	June 30, 2011

	 	7.00 to 1.0

     (d) The table appearing in Section 6.18(F) (EBITDA) of the Loan Agreement is hereby amended in
its entirety to provide as follows:

	 	 	 	 	 
	Fiscal Quarter Ending:	 	Minimum EBITDA:
	September 30, 2010

	 	$	4,750,000	 
	December 31, 2010

	 	$	4,250,000	 
	March 31, 2011 and each fiscal quarter ending thereafter

	 	$	5,000,000	 

     (e) Section 6.16 (Advances, Loans or Investments) of the Loan Agreement is hereby amended by
inserting the following clause immediately before sub-clause (y) of clause (i):

(x) a recallable equity investment in Mobitec AB on or after the Seventh
Amendment Effective Date in an amount not to exceed $1,000,000, provided
that both prior to and after giving effect to such recallable equity
investment, (i) no Default or Event of Default has occurred and is
continuing and (ii) the Borrowers have at least $500,000 of Undrawn
Availability (as defined in the Senior Lien Financing Documents),

     (f) Clause (y) of Section 6.6 (Transactions with Affiliates) of the Loan Agreement is hereby
amended by deleting the amount of “$2,000,000” appearing therein and inserting the amount of
“$3,000,000” in lieu thereof.

     Section Three. Representations and Warranties. To induce Lender to enter into
this Amendment, the Loan Parties hereby warrant and represent to Lender as follows:

     (a) all of the representations and warranties contained in the Loan Agreement and each other
Loan Document to which the Loan Parties are 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

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

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

     (d) except as set forth herein or as the Loan Parties or their representatives shall have
notified Lender in writing, none of the Loan Parties are in default under any indenture, mortgage,
deed of trust, or other material agreement or material instrument to which they are a party or by
which they may be bound which could have a Material Adverse Effect. 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 any of
the Loan Parties, (ii) cause a violation by any of the Loan Parties 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 any of the Loan Parties is a party or by which they may
be bound, or (iv) result in the creation or imposition of any lien, charge, or encumbrance upon any
property of any of the Loan Parties, except in favor of Lender, to secure the Obligations;

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

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

     Section Four. Conditions Precedent. This Amendment shall become effective on
the date (the “Seventh Amendment Effective Date”) on which the following conditions
precedent are satisfied, as determined by Lender in its sole discretion:

     (a) Lender shall have received this Amendment, in form and substance satisfactory to Lender,
duly executed by the Loan Parties;

     (b) Lender shall have received that certain Amendment No. 7 to the Senior Lien Financing
Agreement, duly executed by the parties thereto;

     (c) Lender shall have received a non-refundable fee in the amount of Fifty Thousand Dollars
($50,000), which fee shall be fully earned and payable on the date hereof;

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     (d) the Loan Parties shall have paid all amounts outstanding on or prior to the date of this
Amendment, including reimbursement or payment of all out-of-pocket expenses (including the legal
fees and expenses of Blank Rome LLP), incurred in connection with this Amendment, the Loan
Documents and the transactions contemplated hereby and thereby; and

     (e) no Default or Event of Default shall have occurred be continuing, and no event or
development which has had or is reasonably likely to have a Material Adverse Effect shall have
occurred, in each case, since the date of the Loan Parties’ most recent financial statements
delivered to Lender.

     Section Five. 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 Lender (or
any of Lender’s Affiliates, officers, directors, employees, attorneys, consultants or agents) and
(b) Lender has heretofore properly performed and satisfied in a timely manner all of its
obligations to the Loan Parties under the Loan Agreement and the other Loan Documents.
Notwithstanding the foregoing, Lender wishes (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 Lender’s rights, interests, security and/or remedies under the
Loan Agreement and the other Loan Documents. Accordingly, for and in consideration of the
agreements contained in this Amendment 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”) do hereby fully, finally, unconditionally and
irrevocably release and forever discharge Lender and each of its Affiliates, officers, directors,
employees, attorneys, consultants and agents (each a “Released Party”) 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 or 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 Amendment, the Loan Agreement or any other Loan Document, or any act,
event or transaction related or attendant thereto, or 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.

     Section Six. General Provisions.

     (a) Except as herein expressly amended, each of the Loan Agreement and all of the other Loan
Documents are ratified and confirmed in all respects and shall remain in full force and effect in
accordance with their respective terms.

     (b) All references to the Loan Agreement in the Loan Agreement and each other Loan Document
shall mean such Loan Agreement as amended as of the effective date hereof, and as amended hereby
and as hereafter amended, supplemented and modified from time to time.

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     (c) This Amendment embodies the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements, commitments, arrangements,
negotiations or understandings, whether written or oral, of the parties with respect thereto.

     (d) Section and subsection headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose or be given
any substantive effect.

     (e) 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.

     (f) EACH LOAN PARTY 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 LENDER’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING
OUT OF OR RELATING TO THIS AMENDMENT SHALL BE LITIGATED IN SUCH COURTS. EACH LOAN PARTY 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. IF ANY LOAN PARTY OR ANY SUBSIDIARY PRESENTLY IS, OR IN
THE FUTURE BECOMES, A NONRESIDENT OF THE STATE OF NEW YORK, EACH LOAN PARTY 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 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.

     (g) EACH LOAN PARTY FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES AND LENDER HEREBY WAIVES
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS AMENDMENT. EACH LOAN PARTY FOR ITSELF AND ON BEHALF OF ITS SUBSIDIARIES AND LENDER FURTHER
WARRANTS AND REPRESENTS 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.

     (h) This Amendment is a Loan Document.

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     (i) Nothing contained in this Amendment shall operate as a waiver of any right, power, or
remedy to which Lender may be entitled, nor constitute a waiver of any provision of the Loan
Agreement or any of the other Loan Documents, or any other documents, instruments or agreements
executed and/or delivered under or in connection therewith.

     (j) This Amendment may be executed by the parties hereto in one or more counterparts, each of
which when so executed shall be deemed an original; and such counterparts taken together shall
constitute one and the same agreement. Any signatures delivered by a party by facsimile or
electronic transmission shall be deemed an original signature hereto.

(This space is intentionally left blank signature page follows.)

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     IN WITNESS WHEREOF, Loan Parties and Lender have signed below to indicate their agreement with
the foregoing and their intent to be bound thereby.

	 	 	 	 	 	 	 

	LENDER:	 	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	 	 
	 
	 	 	 	 	 	 
	BORROWERS:	 	DIGITAL RECORDERS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David L. Turney
 

David L. Turney
	 	 
	 

	 	 	 	CEO, President	 	 
	 
	 	 	 	 	 	 
	 	 	TWINVISION OF NORTH AMERICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David L. Turney
 

David L. Turney
	 	 
	 

	 	 	 	CEO, President	 	 
	 
	 	 	 	 	 	 
	GUARANTOR:	 	DRI CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David L. Turney
 

David L. Turney
	 	 
	 

	 	 	 	CEO, President	 	 

Signature Page to Seventh Amendment to Loan and Security Agreement

 

 

	 	 	 	 	 

	Consented to and Acknowledged by:	 	 
	 
	 	 	 	 
	DRI EUROPA AKTIEBOLAG	 	 
	 
	 	 	 	 
	By:

	 	/s/ David L. Turney
 

David L. Turney
	 	 
	 

	 	Chairman	 	 
	 
	 	 	 	 
	MOBITEC AB	 	 
	 
	 	 	 	 
	By:

	 	/s/ David L. Turney	 	 
	 

	 	 	 	 
	 

	 	David L. Turney	 	 
	 

	 	Director	 	 

Acknowledgement to Seventh Amendment to Loan and Security Agreement

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