Document:

Exhibit 10.4

 

JOINDER AGREEMENT

JOINDER
AGREEMENT dated as of April 18, 2005, between Laddcap Value Partners L.P. (the
"Additional Investor"), Petra Mezzanine Fund, L.P. ("Petra"),  Home Solutions
of America, Inc. (the "Company") and Frank J. Fradella and Rick J. O'Brien
(collectively, the "Management Stockholders").  The Company, Petra and the
Management Stockholders are parties to an Investors' Rights Agreement dated as
of March 31, 2005, as amended by a First Amendment to Investors' Rights
Agreement dated as of April 15, 2005 (together, the "Investors' Rights
Agreement") and wish to provide for the Additional Investor to become party
thereto.  Accordingly, the parties hereto hereby agree as follows:

1.         Except
as otherwise defined herein, terms defined in the Investors' Rights Agreement
are used herein as defined therein.

            2.         The
Additional Investor is hereby (a) deemed to be a party to the Investors' Rights
Agreement and (b) granted the rights of and bound in all respects by the terms
of the Investors' Rights Agreement, as an Investor thereunder.

3.         This
Joinder Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware.

4.         This
Joinder Agreement may be executed in any number of counterparts, including
counterparts transmitted by telecopier or telefax, and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and both of which taken together shall constitute one and the
same agreement.  

*          *          *

 

 

 

 

 

 

 

	
  A-1

  

IN
WITNESS WHEREOF, the undersigned have executed this Joinder Agreement as of the
date first above written.

THE
COMPANY:

HOME
SOLUTIONS OF AMERICA, INC.

By_________________________________

 
          Rick J. O'Brien, Chief Financial Officer

PETRA:

                                                                        PETRA MEZZANINE FUND, L.P.

                        

                                                                        By: 
  Petra Partners, LLC, its General Partner

                                                                        

By:  ________________________________

            Name:
______________________________

            Title: 
______________________________

                                                                        MANAGEMENT
STOCKHOLDERS:

____________________________

Frank
J. Fradella

____________________________

Rick
J. O'Brien

ADDITIONAL
INVESTOR:

LADDCAP
VALUE PARTNERS L.P.

By_________________________________

            Robert B.
Ladd, Managing Partner

 

 

 

	
  A-2Exhibit 10.5

AMENDED AND RESTATED PROMISSORY NOTE

$4,000,000.00                                                                                                     
March 31, 2005

            FOR VALUE RECEIVED, on or before March
31, 2010 (the "Maturity Date"), the undersigned, HOME
SOLUTIONS OF AMERICA, INC., a Delaware corporation ("Maker"),
promises to pay to the order of PETRA MEZZANINE FUND, L.P., a Delaware limited
partnership ("Payee"; Payee and any subsequent holder[s]
hereof are hereinafter referred to individually and collectively as "Holder"),
to Payee's account number 1011832 at Pinnacle National Bank, Nashville,
Tennessee, ABA Routing Number 064008637, or at such other place as Holder may
designate to Maker in writing from time to time, the principal sum of FOUR
MILLION AND NO/100THS DOLLARS ($4,000,000.00), together with interest on the outstanding
principal balance hereof from the date hereof at the rate of twelve percent
(12%) per annum (computed on the basis of a 360-day year and the actual number
of days elapsed, to the extent permitted by applicable law).

            Interest on the outstanding principal balance
hereof shall be due and payable quarterly, in arrears, with the first
installment being payable on the last business day of June, 2005, and
subsequent installments being payable on the last business day of each
succeeding Fiscal Quarter thereafter.  On the Maturity Date, the entire
outstanding principal balance, together with all accrued and unpaid interest,
shall be immediately due and payable in full.

            The indebtedness evidenced hereby may be prepaid
in whole or in part, at any time and from time to time, without premium or
penalty.  Any such prepayments shall be credited first to any accrued and
unpaid interest and then to the outstanding principal balance hereof, in
inverse order of maturity.

            Reference is here made to that certain Loan
Agreement of even date herewith, by and between Maker, Payee, certain Lenders
and Petra Mezzanine Fund, L.P., as Administrative Agent (together with any and
all amendments, modifications, supplements, extensions, renewals, substitutions
and/or replacements thereof, herein referred to as the "Loan Agreement";
capitalized terms used but not otherwise defined herein shall have the same
meanings as in the Loan Agreement).  This Note is a "Note" as defined
and referred to in the Loan Agreement, and this Note is entitled to the
benefits and security of, and is secured by, the Loan Agreement, the other
Security Documents and the other Loan Documents.

Upon the occurrence of an Event
of Default, the entire outstanding principal balance of the indebtedness evidenced
hereby, together with all accrued and unpaid interest thereon, may be declared,
and immediately shall become, due and payable in full, as provided in the Loan
Agreement.

 

PAGE 1 OF A 4 PAGE NOTE

Upon the occurrence of any Event
of Default, at the option of Holder and without notice to Maker, all accrued
and unpaid interest, if any, shall be added to the outstanding principal
balance hereof, and the entire outstanding principal balance, as so adjusted,
shall bear interest thereafter until paid at an annual rate (the "Default
Rate") equal to the lesser of (1) the rate that is two percentage
points (2.0%) in excess of the above-specified interest rate, or (2) the
maximum rate of interest allowed to be charged under applicable law (the "Maximum
Rate"), regardless of whether there has been an acceleration of the
payment of principal as set forth herein.  All such interest shall be paid at
the time of and as a condition precedent to the curing of any such Event of
Default.

            In the event this Note is placed in the hands of
an attorney for collection or for enforcement or protection of the security, or
if Holder incurs any costs incident to the collection of the indebtedness
evidenced hereby or the enforcement or protection of the security, Maker and
any indorsers hereof agree to pay to Holder an amount equal to all such costs,
including without limitation reasonable attorney's fees and all court and other
costs.

            Presentment for payment, demand, protest and
notice of demand, protest and nonpayment are hereby waived by Maker and all other
parties hereto.  No failure to accelerate the indebtedness evidenced hereby by
reason of default hereunder, acceptance of a past-due installment or other
indulgences granted from time to time, shall be construed as a novation of this
Note or as a waiver of such right of acceleration or of the right of Holder
thereafter to insist upon strict compliance with the terms of this Note or to
prevent the exercise of such right of acceleration or any other right granted
hereunder or by applicable laws.  No extension of the time for payment of the
indebtedness evidenced hereby or any installment due hereunder, made by
agreement with any person now or hereafter liable for payment of the
indebtedness evidenced hereby, shall operate to release, discharge, modify, change
or affect the original liability of Maker hereunder or that of any other person
now or hereafter liable for payment of the indebtedness evidenced hereby,
either in whole or in part, unless Holder agrees otherwise in writing.  This
Note may not be changed orally, but only by an agreement in writing signed by
the party against whom enforcement of any waiver, change, modification or
discharge is sought.

            All agreements herein made are expressly limited
so that in no event whatsoever, whether by reason of advancement of proceeds
hereof, acceleration of maturity of the unpaid balance hereof or otherwise,
shall the interest and loan charges agreed to be paid to Holder for the use of
the money advanced or to be advanced hereunder exceed the maximum amounts collectible
under applicable laws in effect from time to time.  If for any reason
whatsoever the interest or loan charges paid or contracted to be paid in
respect of the indebtedness evidenced hereby shall exceed the maximum amounts
collectible under applicable laws in effect from time to time, then, ipso
facto, the obligation to pay such interest and/or loan charges shall be
reduced to the maximum amounts collectible under applicable laws in effect from
time to time, and any amounts collected by Holder that exceed such maximum
amounts shall be applied to the reduction of the principal balance remaining
unpaid hereunder and/or refunded to Maker so that at no time shall the interest
or loan charges paid or payable in respect of the indebtedness evidenced hereby
exceed the maximum amounts permitted from time to time by applicable law.  This
provision shall control every other provision in any and all other agreements
and instruments now existing or hereafter arising between Maker and Holder with
respect to the indebtedness evidenced hereby.

PAGE 2 OF A 4 PAGE NOTE

 

            This Note constitutes an amendment and
restatement of that certain Promissory Note dated March 31, 2005, executed by Maker and payable to the order of Payee, in the original principal amount of
$4,000,000.

            This Note is intended as a contract under and shall
be construed and enforceable in accordance with the laws of the State of
Tennessee, without reference to the conflicts or choice of law principles
thereof, except that with respect to the maximum amount of interest collectable
by Holder in respect of the indebtedness evidenced hereby, the law of the
jurisdiction in which Payee's principal place of business is located shall
govern the rights and duties of Maker and Holder as to such matters.

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PAGE 3 OF A 4 PAGE NOTE

            IN WITNESS WHEREOF, Maker has executed
this Note, or has caused this Note to be executed by its duly authorized
officer or other representative, as of the date first above written.

                                                                        MAKER:

                                                                        Home
Solutions of America, Inc.

                                                                        By:_______________________________________

                                                                                    Rick
J. O'Brien

                                                                                    Chief
Financial Officer

 

 

 

 

 

 

 

PAGE 4 OF A 4 PAGE NOTE

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