ITEM 1.01 Entry into Material Definitive Agreement.
On August 18, 2009, DRI Corporation (the "Company") and BHC Interim Funding III, L.P. ("BHC") entered into a modification (the "Loan Modification") to that certain Loan and Security Agreement, dated as of June 30, 2008, by and among Digital Recorders, Inc. and TwinVision of North America, Inc., the Company's wholly-owned subsidiaries, as borrowers (collectively, the "Borrowers"), the Company, as guarantor, and BHC, as lender, as amended from time to time (the "Loan Agreement").
The material terms of the Loan Modification are described in Item 2.03 - Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant, below.
ITEM 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant. Loan Modification
Pursuant to terms of the Loan Agreement, the Borrowers must repay $1,000,000 of the outstanding principal balance on a term loan with BHC if Mobitec AB, the Company's wholly-owned Swedish subsidiary, has not purchased the outstanding fifty percent (50%) equity interest of Mobitec Brasil Ltda., Mobitec AB's fifty percent (50%) owned subsidiary in Brazil, by September 30, 2009. On August 18, 2009, the Company and BHC agreed to the Loan Modification which extends the reference date by which Mobitec AB must purchase the outstanding fifty percent (50%) equity interest of Mobitec Brasil Ltda. (the "Acquisition"), and, if the Acquisition is not made, repay $1,000,000 of the outstanding principal balance of the term loan from September 30, 2009 to October 31, 2009. The Loan Modification effectively provides the Company additional time to meet certain Brazilian legal and regulatory requirements prior to completion of the Acquisition.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
10.1 Letter of Amendment to Loan and Security Agreement, dated as of August 18, 2009, by and among DRI Corporation and BHC Interim Funding III, L.P.

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