Document:

PROMISSORY NOTE

PROMISSORY NOTE

$95,000.00

May 25, 2007

FOR VALUE RECEIVED, on or before April 30, 2008 (“Maturity Date”), the undersigned and if more than one, each of them, jointly and severally (hereinafter referred to as “Borrower”), promises to pay to the order of MONET ACQUISITION, LLC, a Delaware limited liability company (“Lender”) at its offices in Denton County, Texas at 2504 Green Oak Dr., Carrolton, Texas 75010, the principal amount of NINETY FIVE THOUSAND DOLLARS ($95,000.00) (“Total Principal Amount”) together with interest on such portion of the Total Principal Amount which has been advanced to Borrower from the date advanced until paid at a fixed rate per annum equal to the lesser of (a) the Maximum Rate (as hereinafter defined) or (b) ten percent (10%), calculated on the basis of actual days elapsed but computed as if each year consisted of 360 days.

Borrower acknowledges that Lender has already advanced and Borrower has already received SEVENTY SEVEN THOUSAND FIVE HUNDRED AND FIFTY-NINE DOLLARS ($77,559.00), subject to the terms and conditions of this Promissory Note (this “Note”).

The term “Maximum Rate,” as used herein, shall mean at the particular time in question the maximum rate of interest that, under applicable law, may then be charged on this Note.  If applicable law ceases to provide for such a maximum rate of interest, the Maximum Rate shall be equal to eighteen percent (18%) per annum.

The outstanding principal balance of this Note, together with all accrued but unpaid interest, shall be due and payable on the Maturity Date.

If a payment is more than three (3) days late, Borrower will pay a delinquency charge in an amount equal to the greater of (i) 5.0% of the amount of the delinquent payment, or (ii) $25.00.  Upon an Event of Default, including failure to pay upon final maturity, Lender, at its option, may also, if permitted under applicable law, do one or both of the following: (a) increase the interest rate otherwise provided herein by three (3.00) percentage points, and (b) add any unpaid accrued interest to principal and such sum will bear interest therefrom until paid at the rate provided in this Note (including the rate determined under “(a)” above).

Borrower may from time to time prepay all or any portion of the principal of this Note without premium or penalty.  Unless otherwise agreed to in writing, or otherwise required by applicable law, payments will be applied first to unpaid accrued interest, then to principal, and any remaining amount to any unpaid collection costs, delinquency charges and other charges; provided, however, upon delinquency or other Event of Default, Lender reserves the right to apply payments among principal, interest, delinquency charges, collection costs and other charges, at its discretion.  All prepayments shall be applied to the indebtedness owing hereunder in such order and manner as Lender may from time to time determine in its sole discretion.  All payments and prepayments of principal of or interest on this Note shall be made in lawful money of the United States of America in immediately available funds, at the address of Lender indicated above, or such other place as the holder of this Note shall designate in writing to Borrower.  If any payment of principal of or interest on this Note shall become due on a day which is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day and any such extension of time shall be included in computing interest 

in connection with such payment.  As used herein, the term “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed.  The books and records of Lender shall be prima facie evidence of all outstanding principal of and accrued and unpaid interest on this Note.

This Note is secured by, inter alia, the GUARANTY, of even date herewith, executed by Peter Ubaldi in favor of Lender (the “Guaranty”).

This Note, the Guaranty and all other documents evidencing, securing, governing, guaranteeing and/or pertaining to this Note, including but not limited to those documents described above, are hereinafter collectively referred to as the “Loan Documents.”  The holder of this Note is entitled to the benefits and security provided in the Loan Documents.

Borrower agrees that no advances under this Note shall be used for personal, family or household purposes, and that all advances hereunder shall be used solely for business, commercial, investment, or other similar purposes.

Borrower agrees that upon the occurrence of any one or more of the following events of default (“Event of Default”):

(a)

failure of Borrower to pay any installment of principal of or interest on this Note or on any other indebtedness of Borrower to Lender when due; or

(b)

the occurrence of any event of default specified in any of the other Loan Documents; or

(c)

the bankruptcy or insolvency of, the assignment for the benefit of creditors by, or the appointment of a receiver for any of the property of, or the liquidation, termination, dissolution or death or legal incapacity of, any party liable for the payment of this Note, whether as maker, endorser, guarantor, surety or otherwise;

the holder of this Note may, at its option, without further notice or demand, (i) declare the outstanding principal balance of and accrued but unpaid interest on this Note at once due and payable, (ii) refuse to advance any additional amounts under this Note, (iii) foreclose all liens securing payment hereof, (iv) pursue any and all other rights, remedies and recourses available to the holder hereof, including but not limited to any such rights, remedies or recourses under the Loan Documents, at law or in equity, or (v) pursue any combination of the foregoing.

The failure to exercise the option to accelerate the maturity of this Note or any other right, remedy or recourse available to the holder hereof upon the occurrence of an Event of Default hereunder shall not constitute a waiver of the right of the holder of this Note to exercise the same at that time or at any subsequent time with respect to such Event of Default or any other Event of Default.  The rights, remedies and recourses of the holder hereof, as provided in this Note and in any of the other Loan Documents, shall be cumulative and concurrent and may be pursued separately, successively or together as often as occasion therefore shall arise, at the sole discretion of the holder hereof.  The acceptance by the holder hereof of any payment under this Note which is less than the payment in full of all amounts due and payable at the time of such payment shall not (i) constitute a waiver of or impair, reduce, release or extinguish any right, 

remedy or recourse of the holder hereof, or nullify any prior exercise of any such right, remedy or recourse, or (ii) impair, reduce, release or extinguish the obligations of any party liable under any of the Loan Documents as originally provided herein or therein.

This Note and all of the other Loan Documents are intended to be performed in accordance with, and only to the extent permitted by, all applicable usury laws.  If any provision hereof or of any of the other Loan Documents or the application thereof to any person or circumstance shall, for any reason and to any extent, be invalid or unenforceable, neither the application of such provision to any other person or circumstance nor the remainder of the instrument in which such provision is contained shall be affected thereby and shall be enforced to the greatest extent permitted by law.  It is expressly stipulated and agreed to be the intent of the holder hereof to at all times comply with the usury and other applicable laws now or hereafter governing the interest payable on the indebtedness evidenced by this Note.  If the applicable law is ever revised, repealed or judicially interpreted so as to render usurious any amount called for under this Note or under any of the other Loan Documents, or contracted for, charged, taken, reserved or received with respect to the indebtedness evidenced by this Note, or if Lender’s exercise of the option to accelerate the maturity of this Note, or if any prepayment by Borrower results in Borrower having paid any interest in excess of that permitted by law, then it is the express intent of Borrower and Lender that all excess amounts theretofore collected by Lender be credited on the principal balance of this Note (or, if this Note and all other indebtedness arising under or pursuant to the other Loan Documents have been paid in full, refunded to Borrower), and the provisions of this Note and the other Loan Documents immediately be deemed reformed and the amounts thereafter collectable hereunder and thereunder reduced, without the necessity of the execution of any new document, so as to comply with the then applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder or thereunder.  All sums paid, or agreed to be paid, by Borrower for the use, forbearance, detention, taking, charging, receiving or reserving of the indebtedness of Borrower to Lender under this Note or arising under or pursuant to the other Loan Documents shall, to the maximum extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the rate or amount of interest on account of such indebtedness does not exceed the usury ceiling from time to time in effect and applicable to such indebtedness for so long as such indebtedness is outstanding.  To the extent federal law permits Lender to contract for, charge or receive a greater amount of interest, Lender will rely on federal law instead of the Texas Finance Code for the purpose of determining the Maximum Rate.  Additionally, to the maximum extent permitted by applicable law now or hereafter in effect, Lender may, at its option and from time to time, implement any other method of computing the Maximum Rate under the Texas Finance Code or under other applicable law, by giving notice, if required, to Borrower as provided by applicable law now or hereafter in effect.  Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, it is not the intention of Lender to accelerate the maturity of any interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such acceleration.

If this Note is placed in the hands of an attorney for collection, or is collected in whole or in part by suit or through probate, bankruptcy or other legal proceedings of any kind, Borrower agrees to pay, in addition to all other sums payable hereunder, all costs and expenses of collection, including but not limited to reasonable attorneys’ fees.

Borrower and any and all endorsers and guarantors of this Note severally waive presentment for payment, notice of nonpayment, protest, demand, notice of protest, notice of intent to accelerate, notice of acceleration and dishonor, diligence in enforcement and indulgences of every kind and without further notice hereby agree to renewals, extensions, exchanges or releases of collateral, taking of additional collateral, indulgences or partial payments, either before or after maturity.

THIS NOTE HAS BEEN EXECUTED UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

BORROWER:

HOMELAND SECURITY NETWORK, INC.,

By:

Name:  Peter Ubaldi

Title:

  PresidentGUARANTY

GUARANTY

This GUARANTY (this “Guaranty”), dated as of May 25, 2007, is made by PETER UBALDI, an individual and resident of Essex County, New Jersey (the “Guarantor”), in favor of MONET ACQUISITION, LLC, a Delaware limited liability company (the “Beneficiary”).

WHEREAS, the Beneficiary has loaned NINETY FIVE THOUSAND DOLLARS ($95,000.00) to HOMELAND SECURITY NETWORK, INC., a Nevada corporation (“HSNi”) as evidenced by that certain PROMISSORY NOTE (the “Note”) of even date herewith, by HSNi in favor of the Beneficiary, as may hereafter be amended, supplemented or otherwise modified from time to time (collectively, with this Guaranty, the “Loan Documents”).

WHEREAS, the Guarantor is a shareholder, officer, and director of HSNi; and

WHEREAS, the Guarantor has agreed to execute and deliver this Guaranty with respect to the Guaranteed Obligations (as defined below).

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Guarantor hereby agrees as follows:

1.  

Guaranty: Limitation of Liability. 

(a) Guarantor hereby unconditionally and irrevocably guarantees HSNi’s punctual performance of all of HSNi’s obligations under the Loan Documents (the “Guaranteed Obligations”).  Guarantor further agrees to pay any and all reasonable out-of-pocket expenses (including reasonable counsel fees and expenses) incurred by the Beneficiary in enforcing any rights under this Guaranty.

(b) If for any reason any of the Guaranteed Obligations to be performed by HSNi shall not be performed in accordance with the terms of the Loan Documents, the Guarantor shall, no later than 10 business days following receipt of written notice from the Beneficiary of such nonperformance, cure such default, perform any and all of HSNi’s obligations under the Loan Documents, and provide Beneficiary with such other remedies and relief as are contemplated by the Loan Documents.  For purposes of this Guaranty, “business day” shall mean any day that is not a Saturday, Sunday or other day in which commercial banks in Dallas, Texas are authorized or required by law or regulation to be closed.

2.  

Guaranty Absolute.  The obligations of the Guarantor under this Guaranty are independent of the Guaranteed Obligations and a separate action or actions may be brought against the Guarantor to enforce this Guaranty, irrespective of whether any action is brought against Company or whether HSNi is joined in any such action or actions.  The liability of the Guarantor under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and the Guarantor hereby irrevocably waives any defenses that it may now or hereafter have hereunder in any way relating to, any or all of the following:

(a) any change in the time manner or place of performance, or in any other term, of all or any of the Guaranteed Obligations or any other obligations of any other party to the Loan Documents;

(b) except pursuant to Section 5 hereof, any taking, release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;

(c) except as provided in Section 8 hereof, any change in or restructuring of the corporate structure of HSNi; 

(d) any other circumstances (other than performance) that might otherwise constitute a defense available to, or a discharge of the Guarantor under this Guaranty or of a guarantor or surety with respect to the Guaranteed Obligations; or

(e) HSNi’s insolvency, bankruptcy, assignment for the benefit of its creditors or other event that excuses, discharges or has the effect of relieving HSNi from performing the Guaranteed Obligations.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any performance of any of the Guaranteed Obligations is rescinded, excused or must otherwise be forgiven, relinquished, ceased or returned by the Beneficiary upon the insolvency, bankruptcy or reorganization of HSNi or otherwise, all as though such performance had not been made. 

3.  

Waivers and Acknowledgments.  

(a) The Guarantor hereby waives promptness, diligence, notice of acceptance and any other notice with respect to any of the Guaranteed Obligations and this Guaranty, except that the Guarantor does not waive the notices provided for in Section 1(b) hereof.

(b)  The Guarantor hereby waives any right it may have to require the Beneficiary to exhaust any remedy within the power of the Beneficiary or to take any action against HSNi or any other person.

(c) The Guarantor hereby waives any and all right to assert any set-off, counterclaim, reduction, or diminution of any Guaranteed Obligation.

4.  

Representations and Warranties.  The Guarantor hereby represents and warrants as follows:

(a)

The execution, delivery and performance by the Guarantor of this Guaranty, and the consummation of the transaction contemplated hereby, are within the Guarantor’s powers, and do not: (i) violate any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award applicable to it; (ii) result in the breach of, or constitute a default under, any contact, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on the Guarantor; or (iii) result in or require the creation or imposition of any lien upon or with respect to any of the properties of the Guarantor.

(b)

No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery or performance by the Guarantor of this Guaranty, or for the consummation of the transactions contemplated hereby.

(c)

This Guaranty has been duly executed and delivered by the Guarantor and constitutes the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, liquidation, moratorium or similar laws affecting creditors’ rights generally and by the application of general equitable principles which may limit the availability of certain remedies.

(d)

Guarantor acknowledges warrants and represents that as sufficient and adequate consideration for its undertaking of the Guaranteed Obligations, Guarantor shall, directly and indirectly, receive substantial benefit from the Beneficiary’s loan to HSNi, in accordance to the Loan Documents.  

5.  

Amendments, Etc.  No release, amendment, waiver, modification or other change of any provision of this Guaranty and no consent to any departure by the Guarantor therefrom shall in any event be effective unless the same shall be in writing and signed by the Beneficiary and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

6.       Notices, Etc. Any notice, request, consent, direction, and other instruments and communications required or permitted to be given pursuant to this Guaranty shall be in writing, which shall include, without limitation, telex, telecopy or other electronic transmission reduced to written form.  Notice given by telex, telecopy or other electronic transmission shall be deemed to have been given and received when sent if confirmation received.  Notice by mail shall be deemed to have been given and received four calendar days after the day first deposited in the United States mail, certified, first class postage prepaid, return receipt requested, and as addressed as shown below.  Notices by overnight service shall be deemed to have been given and received the day after they are sent.  All notices shall be to the following addresses, unless changed in writing by the respective addressee:

		
	If to Guarantor

	If to Beneficiary

	Peter Ubaldi 

5 Dawson Terrace

Livingston, NJ  07039

	Monet Acquisition LLC

2504 Green Oak Drive

Carrollton, TX 75010

7.  

No Waiver; Remedies.  No failure on the part of the Beneficiary to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise or any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

8. 

Continuing Guaranty; Assignments; Termination.  

(a) This Guaranty is a continuing guaranty and shall: (i) remain in full force and effect until the performance in full of the Guaranteed Obligations and all other obligations under this Guaranty; (ii) be binding upon the Guarantor, its successors and assigns; and (iii) inure to the benefit of and be enforceable by the Beneficiary and its successors and permitted assign. 

(b)  The rights of the Beneficiary under this Guaranty may be assigned, upon notice to the Guarantor, to the same extent as assignment of the rights and obligations of the Beneficiary is permitted by the Loan Documents.

(c)  Guarantor may not assign, transfer or otherwise convey its obligations hereunder without the Beneficiary’s prior written consent.  Any such assignment, transfer or conveyance shall be void ab initio and of no effect.

9. 

Survival of Obligations.  Unless otherwise terminated modified or amended, this Guaranty and the obligations and commitments established hereby shall remain in full force and effect until one year after the Loan Documents’ termination.

10.

Governing Law. This Guaranty and all issues relating hereto shall be governed by, enforced under, and construed in accordance with the laws of the State of Texas without regard to the conflicts of laws principles of any jurisdiction. The exclusive venue of any action, suit, or proceeding relating to this Guaranty or any rights or obligations under this Guaranty shall lie in the courts of the State of Texas or the United States of America located in Dallas County, Texas.  Guarantor hereby expressly consents to the personal and subject matter jurisdictions of such courts, and unequivocally waives any objection thereto. 

11.      Counterpart Signatures.  This Guaranty may be signed in counterparts, with the same effect as if both Parties had signed the same paper; all counterparts are to be construed together to be one, and the same, document.

12.  

Entire Agreement.  This Guaranty constitutes the entire understanding between Guarantor and Beneficiary regarding the Loan Documents, and supersedes all previous understandings, agreements, and communications (whether written or oral) between the parties, regarding HSNi’s performance of the Guaranteed Obligations to which this Guaranty relates.

IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to by duly executed by it duly authorized officers and delivered to Beneficiary as of the date first written above.

GUARANTOR

By:

PAGE 1 OF 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]