Document:

First Amended and Restated Loan Agreement

			
	

	  	Exhibit 10.55

  
 FIRST AMENDED AND
RESTATED LOAN AGREEMENT 
  

					
	 	 	 Between
	  	 
			
	 U.S. HOME SYSTEMS, INC.
	 	 	  	 THE FROST NATIONAL BANK

	 750 State Highway 121 Bypass, Suite 170
	 	 and
	  	 100 W. Houston Street

	 Lewisville, Texas 75067
	 	 	  	 San Antonio, Texas 78205

  
 February 9, 2006,
to be effective for all purposes as of February 10, 2006 
  
 THIS FIRST AMENDED AND RESTATED LOAN AGREEMENT (the “Loan Agreement”) will serve to set forth
the terms of the financing transactions by and between U.S. HOME SYSTEMS, Inc., a Delaware corporation (“Borrower”), and THE FROST NATIONAL BANK, a national banking association (“Lender”): 
  
 1. Credit Facilities. Subject to the terms and conditions set
forth in this Loan Agreement and the other agreements, instruments and documents evidencing, securing, governing, guaranteeing and/or pertaining to the Loans, as hereinafter defined (collectively, together with the Loan Agreement, referred to
hereinafter as the “Loan Documents”), Lender hereby agrees to provide to Borrower the credit facility or facilities hereinbelow (whether one or more, the “Credit Facilities”): 
  
 (a) Revolving Line of Credit. Subject to the terms
and conditions set forth herein, Lender agrees to lend to Borrower, on a revolving basis from time to time during the period commencing on the date hereof and continuing through the maturity date of the promissory note evidencing this Credit
Facility from time to time, such amounts as Borrower may request hereunder; provided, however, the total principal amount outstanding at any time shall not exceed the lesser of (i) the Collateral Value of the Eligible Installment
Contracts (as defined below) or (ii) $3,000,000 (the “Revolving Line of Credit”). Subject to the terms and conditions hereof, Borrower may borrow, repay and reborrow hereunder. If at any time the aggregate principal amount
outstanding under the Revolving Line of Credit shall exceed the Collateral Value of the Eligible Installment Contracts, Borrower agrees to immediately repay to Lender such excess amount, plus all accrued unpaid interest thereon. The initial advance
under the Revolving Line of Credit shall be used to refinance a portion of the sums outstanding on the date hereof under the revolving line of credit under the Existing Loan Agreement (as defined below) and all subsequent advances under the
Revolving Line of Credit shall be used to acquire Installment Contracts, for working capital of FCC (as defined below) and other general corporate purposes. 

 Borrower shall immediately pay or cause to be paid to Lender the proceeds of any
Installment Contract sold or otherwise transferred, and with respect to any Eligible Installment Contract sold or otherwise transferred for less than its Collateral Value, Borrower shall immediately pay Lender the difference between the Collateral
Value of such Eligible Installment Contract and the proceeds received from the sale or other transfer of such Eligible Installment Contract. In the event Borrower desires to substitute any Eligible Installment Contract (the “Replacement
Contract”) for an Installment Contract previously delivered and purchased or contributed pursuant to the Securitization, Borrower shall provide notice of its intention to Lender and pay Lender the Collateral Value of the Replacement
Contract. Upon receipt of the Collateral Value of the Replacement Contract, Lender shall execute such documents evidencing Lender’s release of its lien on the Replacement Contract as Borrower may reasonably request. Upon notice from U.S. Bank
(as defined below) that any Eligible Installment Contract delivered to U.S. Bank is not eligible for purchase under the Securitization (as defined below), Borrower and FCC shall deliver written notice to Lender of the documentation deficiencies
noted by U.S. Bank. If Lender determines in its reasonable discretion that such deficiencies materially impair such Eligible Installment Contract’s Collateral Value, Borrower will pay Lender the Collateral Value of such Eligible Installment
Contract or cure such deficiency within fifteen days after notice by Lender to Borrower. 
  
 With respect to any sale by FCC of an Installment Contract other than pursuant to the Securitization, prior to the occurrence of an Event
of Default, upon delivery by Borrower of a transmittal request substantially in the form attached hereto as Exhibit 1 (a “Transmittal Request”), Lender will execute and deliver a transmittal to the purchaser identified in the
Transmittal Request in substantially the form of Exhibit 2 (a “Bailee Letter”) and direct U.S. Bank to deliver such Installment Contracts to the purchaser named in such Bailee Letter. All Installment Contracts delivered to
any purchaser (other than a purchaser under the Securitization) shall be delivered under cover of a Bailee Letter, along with a copy of the applicable Transmittal Request. Borrower and FCC shall cause all purchasers to pay all amounts payable (other
than any such amount being loaned or contributed as capital by FCC to FCC Acceptance Corp. in connection with the Securitization) on account of the sale of Installment Contracts directly to Lender. Borrower will not be credited for any amount due
from any purchaser (including any purchase under the Securitization) until Lender has actually received immediately available funds. 
  
 FCC, Lender, U.S. Bank, FCC Acceptance Corp. and DZ Bank AG Deutsche Zentral - Genossenschaftsbank, Frankfurt Am Main (“DZ
Bank”) have entered into a Letter Agreement dated as of May 30, 2003 (as from time to time amended, modified or restated, the “Letter Agreement”), regarding the delivery and sale of Installment Contracts by FCC pursuant to the
Securitization. Borrower shall, and shall cause FCC to, deliver to Lender (a) simultaneously with each delivery of Installment Contracts to U.S. Bank, a list of each Installment Contract so delivered, and (b) upon FCC’s receipt
thereof, a copy of each notice from U.S. Bank as to which delivered Installment Contracts will be eligible for purchase under the Securitization. 
  

					
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 (b) Borrowing Base Line of Credit. Subject to the terms and conditions set forth
herein, Lender agrees to lend to Borrower, on a revolving basis from time to time during the period commencing on the date hereof and continuing through the maturity date of the promissory note evidencing this Credit Facility from time to time, such
amounts as Borrower may request hereunder; provided, however, the total principal amount outstanding at any time shall not exceed the lesser of (i) an amount equal to the Borrowing Base (as defined below), or
(ii) $4,000,000 (the “Borrowing Base Line of Credit”). If at any time the aggregate principal amount outstanding under the Borrowing Base Line of Credit shall exceed an amount equal to the Borrowing Base, Borrower agrees to
immediately repay to Lender such excess amount, plus all accrued but unpaid interest thereon. Subject to the terms and conditions hereof, Borrower may borrow, repay and reborrow hereunder. The initial advance under the Borrowing Base Line of Credit
shall be used to refinance the sums outstanding on the date hereof under the borrowing base line of credit under the Existing Loan Agreement and all subsequent advances under the Borrowing Base Line of Credit shall be used for working capital and
other general business purposes of Borrower and its operating subsidiaries. Borrower understands and agrees that for a period of not less than 30 consecutive days during the term of the promissory note evidencing this Credit Facility the outstanding
principal amount of the Revolving Line of Credit must be below $1,800,000. 
  
 (c) Equipment Advances. Subject to the terms and conditions set forth herein, Lender agrees to make advances (each an “Equipment Advance”) to Borrower. The aggregate amount of Equipment
Advances shall not exceed $875,000. Each Equipment Advance shall not exceed 80% of the invoice amount of equipment approved by Lender from any time to time (including any such equipment acquired by Borrower after February 9, 2005 and prior to
February 11, 2007), excluding taxes, shipping, warranty charges, freight discounts and installation expense. Equipment Advances, once repaid, may not be reborrowed. 
  
 (d) Term Loan. Subject to the terms and conditions set forth herein, Lender agrees to lend to
Borrower, and Borrower agrees to borrower from Lender, the amount of $1,200,000 (the “Term Loan”) in a single advance on the date hereof. The sums advanced under the Term Loan shall be used to (i) refinance U.S.
Remodeler’s indebtedness that is secured by U.S. Remodeler’s real property in Charles City County, Virginia, (ii) reduce the outstanding principal amount under the borrowing base line of credit under the Existing Credit Agreement, and
(iii) refinance a portion of the revolving line of credit outstanding under the Existing Credit Agreement. 
  
 (e) Existing Term Loan. Lender has heretofore made a term loan to Borrower in the original principal amount of $775,000, as
evidenced by that certain Promissory Note dated as of May 30, 2003, executed by Borrower payable to the order of Lender. 
  

					
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 2. Defined Terms. As used in this Loan Agreement, the following terms have the meanings given
below: 
  
 (a) “Borrowing Base”
means an amount equal to 80% of the Eligible Accounts, plus 50% of the Eligible Inventory. 
  
 (b) “Change of Control” means that at any time (i) Borrower shall fail to own, directly or indirectly, at least 51%
of all of the outstanding Capital Stock of any Guarantor or shall cease to have the right or ability by voting power, contract or otherwise, to elect or designate for election a majority of the Board of Directors of any Guarantor, (ii) there
are not at least two of the following individuals, Murray H. Gross, James D. Borschow, Robert A. DeFronzo or Peter Bulger, who are employed in senior management positions at Borrower and its subsidiaries, involved in the day-to-day operations of
Borrower and its subsidiaries and able to perform substantially all of the material business decisions of Borrower and its subsidiaries as employees of Borrower or (iii) any “person” or “group” (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), shall become or obtain rights (whether by means of warrants, options or otherwise) to become, the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, as amended), directly or indirectly, of more than 50% of the outstanding Capital Stock of Borrower. For purposes of this definition, the following terms have the following meaning: 
  
 “Board of Directors” means, with respect to
any Person, such Person’s Board of Directors or any committee thereof duly authorized to act on behalf of such Board of Directors. 
  
 “Capital Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, contingent
share issuances, participations or other equivalents of or interest in equity (however designated) of such Person. 
  
 (c) “Collateral Value” means with respect to each Eligible Installment Contract, as of the date of determination, 90% of
the outstanding principal balance of such Installment Contract. 
  
 (d) “DZ Bank” means DZ Bank AG Deutshe Zentral - Genossenschaftsbank, Frankfurt Am Main. 
  
 (e) “Eligible Accounts” means at any time, an amount equal to the aggregate net invoice or ledger amount owing on all
trade accounts receivable of any of Borrower or U.S. Remodelers, for goods sold or leased or services rendered in the ordinary course of business, in which the Lender has a perfected, first priority lien, after deducting (without duplication):
(i) each such account that is unpaid sixty (60) days or more after the original invoice date thereof, (ii) the amount of all discounts, allowances, rebates, credits and adjustments to such accounts (iii) the amount of all contra
accounts, setoffs, defenses or counterclaims asserted by or available to the account debtors, (iv) all accounts with respect to which goods are placed on consignment or subject to a guaranteed sale or other terms by reason of which payment by
the account debtor may be 

  

					
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conditional, (v) all accounts with respect to which any of Borrower or U.S. Remodelers has furnished a payment and/or performance bond and that portion
of any account for or representing retainage, if any, until all prerequisites to the immediate payment of retainage have been satisfied, (vi) all accounts owing by account debtors for which there has been instituted a proceeding in bankruptcy
or reorganization under the United States Bankruptcy Code or other law, whether state or federal, now or hereafter existing for relief of debtors, (vii) all accounts owing by any affiliates of Borrower, (viii) all accounts in which the
account debtor is the United States or any department, agency or instrumentality of the United States, except to the extent an acknowledgment of assignment to Lender of such account in compliance with the Federal Assignment of Claims Act and other
applicable laws has been received by Lender, (ix) all accounts due any of Borrower or U.S. Remodelers by any account debtor whose principal place of business is located outside the United States of America and its territories, (x) all
accounts subject to any provision prohibiting assignment or requiring notice of or consent to such assignment, and (xii) any other accounts deemed unacceptable by Lender in its sole and absolute discretion. 
  
 (f) “Eligible Installment Contract” means
an Installment Contract with respect to which each of the following statements is accurate and complete (and FCC and Borrower by including such Installment Contract in any computation of the Collateral Value shall be deemed to so represent to
Lender): 
  
 (i) such Installment Contract is a binding and valid
obligation of the debtor or obligor named therein to FCC, as holder of the Installment Contract, in full force and effect and enforceable in accordance with its terms; 
  
 (ii) such Installment Contract is genuine in all respects as appearing on its face and as represented in the books and
records of FCC, and all information set forth therein is true and correct; 
  
 (iii) to the best knowledge of FCC, such Installment Contract is free of any default of any party thereto, offsets and defenses, including the defense of usury, and from any rescission, cancellation or avoidance;

  
 (iv) such Installment Contract is free and clear of all
security interests and liens, except in favor of Lender; 
  
 (v)
such Installment Contract complies in all respects with all requirements of law applicable thereto, and any notice or act required by law or regulation to be given or performed, in connection with such Installment Contract has been given and
performed in full; 
  
 (vi) no payment under such Installment
Contract is more than thirty (30) days past due the payment due date set forth therein; 
  

					
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 (vii) FCC acquired such Installment Contract no more than ninety (90) days prior to
the date of determination; 
  
 (viii) such
Installment Contract is payable in monthly installments of principal and interest, and requires a monthly payment which is sufficient to amortize the original principal balance over the original term and to pay interest at the related interest rate;
provided that such Installment Contract may provide that the first monthly installment shall not be due and payable for a period of time not to exceed ninety (90) days from the date of FCC’s acquisition of such Installment Contract;

  
 provided, however, that with respect to any Installment
Contract in the event U.S. Bank notifies Lender that each item listed in the definition of Individual Receivable File with respect to such Installment Contract is not delivered to U.S. Bank within seven (7) business days of the date such
Installment Contract is first included as an Eligible Installment Contract and such document deficiency is not cured by Borrower and FCC or waived by Lender within fifteen (15) days of notice of such deficiency by U.S. Bank, such Installment
Contract shall no longer constitute an Eligible Installment Contract. 
  
 (g) “Eligible Inventory” means as of any date, the aggregate value of all inventory of raw materials and finished goods (excluding work in progress and packaging materials, supplies and any
advertising costs capitalized into inventory) then owned by Borrower or U.S. Remodelers and held for sale, lease or other disposition in the ordinary course of its business, in which Lender has a first priority lien, excluding (i) inventory
which is damaged, defective, obsolete or otherwise unsaleable in the ordinary course of business of Borrower or U.S. Remodelers, as applicable, (ii) inventory which has been returned or rejected, and (iii) inventory subject to any
consignment arrangement between Borrower or U.S. Remodelers, as applicable, and any other person or entity. For purposes of this definition, Eligible Inventory shall be valued at the lower of cost (excluding the cost of labor) or market value.

  
 (h) “Existing Loan
Agreement” means the Loan Agreement dated May 30, 2003, between Borrower and Lender, as amended or modified prior to the date hereof. 
  
 (i) “Individual Receivables File” means with respect to each Eligible Installment Contract, a file containing each of the
following items: 
  
 (i) if such Installment
Contract is not secured by a mortgage or deed of trust or other instrument creating a lien on real property: 
  
 (1) the sole original, executed copy of the related Installment Contract (including any amendments, extensions, modifications or waivers
with respect thereto) with original assignments of such Installment Contract showing a complete chain of assignments from the applicable contractor to FCC; 
  

					
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 (2) an executed copy of a certificate executed by the obligor under such Installment
Contract and the applicable contractor certifying that the related home improvements have been fully completed; and 
  
 (3) a copy of the original credit application of the obligor related to such Installment Contract. 
  
 (ii) if such Installment Contract is secured by a mortgage
or deed of trust or other instrument creating a lien on real property: 
  
 (1) the sole original, executed copy of the related Installment Contract (including any amendments, extensions, modifications or waivers with respect thereto) with original assignments of such Installment Contract
showing a complete chain of assignments from the applicable contractor to FCC; 
  
 (2) a copy of the mortgage, deed of trust or other similar instrument (a “Mortgage”) related to such Installment
Contract (together with evidence of transmittal of such Mortgage to the appropriate recording office) and original assignments of such Mortgage showing a complete chain of assignments of such Mortgage from origination to FCC (in each case, together
with evidence of transmittal of such assignments of mortgage to the appropriate recording office); 
  
 (3) a copy of the title report related to the underlying collateral related to such Installment Contract; and 
  
 (4) a copy of the original credit application of the
obligor related to such Installment Contract. 
  
 (j) “Installment Contract” means a consumer home improvement contract or loan which is evidenced by an installment contract or similar agreement, and which is owned by FCC, together with the rights and obligations of a
holder thereof and payments thereon and proceeds therefrom. 
  
 (k) “Loans” means all advances under the Credit Facilities. 
  
 (l) “Person” means an individual, corporation, partnership, limited liability company, association, joint stock company,
trust or trustee thereof, estate or executor thereof, unincorporated organization or joint venture, or any other legally recognizable entity. 
  
 (m) “Purchase Agreement” means the Purchase and Contribution Agreement dated as of February 11, 2003, by and between
FCC and FCC Acceptance Corp. 
  

					
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 (n) “Receivables Agreement” means the Receivables Loan and Security
Agreement dated as of February 11, 2003, among FCC Acceptance Corp., FCC, as servicer, Autobahn Funding Company LLC, DZ Bank, as Agent, U.S. Bank, as Custodian, and Compu-Link Corporation, as back-up servicer. 
  
 (o) “Securitization” means the sale or
contribution from time to time by FCC of Installment Contracts to FCC Acceptance Corp, pursuant to the Purchase Agreement. 
  
 (p) “U.S. Bank” means U.S. Bank National Association. 
  
 3. Promissory Notes. The Loans shall be evidenced by one or more promissory notes (whether one or more,
together with any renewals, extensions and increases thereof, the “Notes”) duly executed by Borrower and payable to the order of Lender, in form and substance acceptable to Lender. Interest on the Notes shall accrue at the rate set
forth therein. The principal of and interest on the Notes shall be due and payable in accordance with the terms and conditions set forth in the Notes and in this Loan Agreement. 
  
 4. Requesting Advances. 
  
 (a) All Advances. In Lender’s discretion, Lender may require Borrower to give Lender not less
than one (1) business day prior notice of each requested advance under the Credit Facilities specifying (i) the aggregate amount of such requested advance, (ii) the requested date of such advance, and (iii) the purpose for such
advance, with such advances to be requested in a form satisfactory to Lender. 
  
 (b) Advances under the Revolving Line of Credit. In addition to the notice described in the immediately preceding clause (a) (if such notice is required by Lender), Borrower shall give to Lender not less
than one (1) business day prior to each advance under the Revolving Line of Credit, (i) an Installment Contract Certificate in the form attached hereto as Exhibit A as of the date of Borrower’s request for such advance, (ii) a
listing of all Installment Contracts purchased by FCC since the date of the last report delivered to Lender pursuant to Section 12(e), (iii) a listing of all Installment Contracts sold by FCC since the date of the last report delivered to
Lender pursuant to Section 12(e), and (iv) an Installment Contract aging report dated as of the date of Borrower’s request for such advance. 
  
 Within seven (7) business days of each advance under the Revolving Line of Credit, Borrower shall cause FCC to deliver to U.S. Bank all Eligible
Installment Contracts with respect to which such advance was made, together with the complete Individual Receivable File relating to each such Eligible Installment Contract. 
  
 (c) Equipment Advances. In addition to the notice described in clause (a) above (if such notice
is required by Lender), Borrower shall give to Lender not less than one (1) business day prior to each Equipment Advance, a copy of the invoice for the equipment to be financed with such Equipment Advance. 
  

					
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 5. Collateral. As collateral and security for the indebtedness evidenced by the Notes and
any and all other indebtedness or obligations from time to time owing by Borrower to Lender, Borrower shall grant, and hereby grants, to Lender, its successors and assigns, a first and prior lien and security interest in and to the property
described hereinbelow, together with any and all PRODUCTS AND PROCEEDS thereof (the “Collateral”): 
  
 (a) All present and future accounts, chattel paper, documents, instruments, deposit accounts and general intangibles (including any right
to payment for goods sold or services rendered arising out of the sale or delivery of personal property or work done or labor performed by Borrower), now or hereafter owned, held, or acquired by Borrower, together with any and all books of account,
customer lists and other records relating in any way to the foregoing. 
  
 (b) All present and hereafter acquired inventory (including without limitation, all raw materials, work in process and finished goods) held, possessed, owned, held on consignment, or held for sale, lease, return or to
be furnished under contracts of service, in whole or in part, by Borrower wherever located. 
  
 (c) All equipment and fixtures of whatsoever kind and character now or hereafter possessed, held, acquired, leased or owned by Borrower
and used or usable in Borrower’s business, together with all replacements, accessories, additions, substitutions and accessions to all of the foregoing. 
  

(d) That certain real property located at 125 Roxbury Industrial Court, Charles City County, Virginia, together with all improvements,
fixtures, equipment and other appurtenances attached thereto. 
  
 The term
“Collateral” shall also include all records and data relating to any of the foregoing (including, without limitation, any computer software on which such records and data may be located). Borrower agrees to execute such security
agreements, assignments, deeds of trust and other agreements and documents as Lender shall deem appropriate and otherwise require from time to time to more fully create and perfect Lender’s lien and security interests in the Collateral;
provided that, “Collateral” shall not include the real property owned by Borrower or any of its subsidiaries that is located in Woodbridge, Virginia. 
  

6. Guarantors. As a condition precedent to the Lender’s obligation to make the Loans to Borrower, Borrower agrees to cause U.S.
Remodelers, Inc. (“U.S. Remodelers”) and First Consumer Credit, Inc. (“FCC”) (U.S. Remodelers and FCC are sometimes collectively referred to herein as the “Guarantors”) to each execute and deliver to Lender
contemporaneously herewith a guaranty agreement (collectively, the “Guaranties”), in form and substance satisfactory to Lender. 
  

					
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 7. Representations and Warranties. Borrower hereby represents and warrants, and upon each
request for an advance under the Credit Facilities further represents and warrants, to Lender as follows: 
  
 (a) Existence. Borrower and each of the Guarantors is a corporation duly organized, validly existing and in good standing under the
laws of the state of its incorporation and all other states where it is doing business unless failure to be so qualified would not have a material adverse effect on the Borrower, and has all requisite power and authority to execute and deliver the
Loan Documents. 
  
 (b) Binding
Obligations. The execution, delivery, and performance of this Loan Agreement and all of the other Loan Documents by Borrower and the Guarantors have been duly authorized by all necessary action by Borrower and the Guarantors, and constitute
legal, valid and binding obligations of Borrower and the Guarantors (to the extent each is a party thereto) enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application
relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles. 
  
 (c) No Consent. The execution, delivery and performance of this Loan Agreement and the other Loan Documents, and the
consummation of the transactions contemplated hereby and thereby, do not (i) conflict with, result in a violation of, or constitute a default under (A) any provision of Borrower’s or any Guarantor’s articles or certificate of
incorporation or bylaws, or any agreement or other instrument binding upon Borrower or any Guarantor, or (B) any law, governmental regulation, court decree or order applicable to Borrower or any Guarantor, or (ii) require the consent,
approval or authorization of any third party. 
  
 (d) Financial Condition. Each financial statement of Borrower supplied to the Lender truly discloses and fairly presents Borrower’s consolidated financial condition as of the date of each such statement. There has been no
material adverse change in such financial condition or results of operations of Borrower subsequent to the date of the most recent financial statement supplied to Lender. 
  
 (e) Litigation. There are no actions, suits or proceedings, pending or, to the knowledge of Borrower
or any Guarantor, threatened against or affecting Borrower or any Guarantor or the properties of Borrower or any Guarantor, before any court or governmental department, commission or board, which, if determined adversely to Borrower or any
Guarantor, could reasonably be expected to result in either a money judgment of $50,000 per action, suit or proceeding or an aggregate amount of $100,000 for all such actions, suits and proceedings. 
  
 (f) Taxes; Governmental Charges. Borrower
and each Guarantor has filed all federal, state and local tax reports and returns required by any law or regulation to be filed by it and has either duly paid all taxes, duties and charges indicated due on the basis of such returns and reports, or
made adequate provision for the payment thereof, and the assessment of any material amount of additional taxes in excess of those paid and reported is not reasonably expected. 
  

					
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 8. Conditions Precedent to Advances. Lender’s obligation to make the first advance
hereunder shall be subject to, in addition to the conditions specified below, delivery to Lender of the following, in form and substance satisfactory to Lender: 
  
 (a) a counterpart of this Agreement; 
  
 (b) the Notes; 
  
 (c) Deed of Trust, Security Agreement - Assignment of Rents covering the real property of U.S. Remodelers located at 128 Roxbury
Industrial Court, Charles City County, Virginia, of even date herewith executed by U.S. Remodelers in favor of Lender; 
  
 (d) the First Amended and Restated Security Agreement of even date herewith between Borrower and Lender; 
  
 (e) the Guaranties; 
  
 (f) the First Amended and Restated Security Agreements of
even date herewith between each Guarantor and Lender; 
  
 (g) a Certificate of Corporate Resolutions of Borrower and each Guarantor; 
  
 (h) a copy of the charter documents of Borrower and each Guarantor certified by the appropriate official of such Person’s state of
organization; 
  
 (i) an Arbitration and Notice
of Final Agreement among Borrower, Guarantors and Lender; 
  
 (j) a certificate (or certificates) of the due incorporation, valid existence and good standing of Borrower and each Guarantor in their respective states of incorporation, issued by the appropriate authorities of such
jurisdiction, and certificates of Borrower’s and each Guarantor’s good standing and due qualification to do business, issued by appropriate officials in any state in which the character of the properties owned or held by such Person or the
nature of the business transacted by it makes such qualification necessary; 
  
 (k) an appraisal of the real property of U.S. Remodelers located at 125 Roxbury Industrial Court, Charles City County, Virginia; 
  
 (l) a title policy; and 
  
 (m) such other documents as Lender may reasonably request. 
  
 Lender’s obligation to make any advance (including the first) under this
Loan Agreement and the other Loan Documents shall be subject to the conditions precedent that, as of the date of 

  

					
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such advance and after giving effect thereto (a) all representations and warranties made to Lender in this Loan Agreement and the other Loan Documents
shall be true and correct, as of and as if made on such date, (b) no material adverse change in the consolidated financial condition of Borrower or the financial condition of any Guarantors since the effective date of the most recent financial
statements furnished to Lender by Borrower shall have occurred and be continuing, and (c) no event has occurred and is continuing, or would result from the requested advance, which with notice or lapse of time, or both, would constitute an
Event of Default (as such term is defined hereinbelow). 
  
 9.
Affirmative Covenants. Until (i) the Notes and all other obligations and liabilities of Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further
commitment to lend hereunder, Borrower agrees and covenants that it will, and will cause each Guarantor to, unless Lender shall otherwise consent in writing: 
  

(a) Accounts and Records. Maintain its books and records in accordance with generally accepted accounting principles.

  
 (b) Right of Inspection. Permit Lender
to visit its properties and installations and to examine, audit and make and take away copies or reproductions of Borrower’s or any Guarantor’s books and records, at all reasonable times; provided that, so long as no Event of Default is
continuing, (i) Lender shall give Borrower three (3) days’ prior notice of the date and time of such visit and (ii) each such visit shall be at Lender’s expenses. 
  
 (c) Right to Additional Information. Furnish Lender
with such additional information and statements, lists of assets and liabilities, tax returns, and other reports with respect to Borrower’s and each Guarantor’s financial condition and business operations as Lender may request from time to
time. 
  
 (d) Compliance with Laws.
Conduct its business in an orderly and efficient manner consistent with good business practices, and perform and comply with all statutes, rules, regulations and/or ordinances imposed by any governmental unit upon Borrower, each Guarantor and their
businesses, operations and properties (including without limitation, all applicable environmental statutes, rules, regulations and ordinances). 
  
 (e) Taxes. Pay and discharge when due all of its indebtedness and obligations, including without limitation, all assessments,
taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower, any Guarantor or their properties, income, or profits, prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might
become a lien or charge upon any of Borrower’s or any Guarantor’s properties, income, or profits; provided, however, neither Borrower nor any Guarantor will be required to pay and discharge any such assessment, tax, charge, levy, lien or
claim so long as (i) the legality of the same shall be contested in good faith by appropriate judicial, administrative or other legal proceedings, and (ii) Borrower or such Guarantor shall have established on its books adequate reserves
with respect to such 

  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	12	 	 
	 Rev. June ‘97
	 	 	 	 

 
contested assessment, tax, charge, levy, lien or claim in accordance with generally accepted accounting principles, consistently applied. 
  
 (f) Insurance. Maintain insurance, including but not
limited to, fire insurance, comprehensive property damage, public liability and worker’s compensation. 
  
 (g) Notice of Indebtedness. Promptly inform Lender of the creation, incurrence or assumption by Borrower or any Guarantor
of any indebtedness for borrowed money in excess of $50,000, other than obligations relative to the leasing of office space or other real property in connection with Borrower’s business operations, the purchase or lease of office equipment, or
employment contracts entered into in the ordinary course of its business. 
  
 (h) Notice of Litigation. Promptly after the commencement thereof, notify Lender of all actions, suits and proceedings before any court or any governmental department, commission or board affecting Borrower,
any Guarantor or any of their properties and, if adversely determined, could result in a money judgment in excess of $50,000, or when aggregated with all such other actions, suits and proceedings result in an aggregate money judgment in excess of
$100,000. 
  
 (i) Notice of Material Adverse
Change. Promptly inform Lender of (i) any and all material adverse changes in any Guarantor’s financial condition or Borrower’s consolidated financial condition, (ii) all claims made against Borrower or any Guarantor which
could materially affect the consolidated financial condition of Borrower or the financial condition of such Guarantor, and (iii) the acceleration of the maturity of any indebtedness or of any default by Guarantor, Borrower or FCC Acceptance
Corp. under any indenture, mortgage, agreement, contract or other instrument to which any of them is a party or by which any of them or any of their properties is bound, if such acceleration or default could cause a material adverse change in such
Person’s financial condition. 
  
 (j)
Additional Documentation. Execute and deliver, or cause to be executed and delivered, any and all other agreements, instruments or documents which Lender may reasonably request in order to give effect to the transactions contemplated under
this Loan Agreement and the other Loan Documents. 
  
 10.
Negative Covenants. Until (i) the Notes and all other obligations and liabilities of Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment
to lend hereunder, Borrower will not, and will not permit any Guarantor to, without the prior written consent of Lender: 
  
 (a) Nature of Business. Make any material change in the nature of its business as carried on as of the date hereof, provided that
the Securitization shall not be deemed to constitute a material change in the nature of FCC’s business. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	13	 	 
	 Rev. June ‘97
	 	 	 	 

 (b) Liquidations, Mergers, Consolidations. Liquidate, merge or consolidate with or
into any other entity, provided that any Guarantor may merge into or consolidate with Borrower so long as Borrower is the surviving entity. 
  
 (c) Acquisitions. Acquire by purchase or otherwise all or substantially all of the assets of or capital stock of any Person if
(i) after giving effect to such acquisition, either the aggregate cash consideration paid by Borrower and Guarantors in the fiscal year in which such acquisition occurs exceeds $1,000,000 or the aggregate cash and non-cash consideration paid to
Borrower and Guarantors in the fiscal year in which such acquisition occurs exceeds $2,000,000, or (ii) immediately before or after giving effect to such acquisition an Event of Default shall exist; provided that with respect to any acquisition
for which Lender’s consent is required, such consent shall not be unreasonably withheld. 
  
 (d) Sale of Assets. Sell, transfer or otherwise dispose of any of its assets or properties, other than in the ordinary course of
business and sales of Installment Contracts and related assets by FCC in respect of the Securitization. 
  
 (e) Liens. Create or incur any lien or encumbrance on any of its assets, other than (i) liens and security interests securing
indebtedness owing to Lender, (ii) liens for taxes, assessments or similar charges that are (1) not yet due or (2) being contested in good faith by appropriate proceedings and for which Borrower or such Guarantor has established
adequate reserves, (iii) liens and security interests existing as of the date hereof and set forth in Schedule 1 attached hereto, (iv) liens on office equipment and furniture acquired, purchased or leased by Borrower and Guarantors in the
ordinary course of their business operations, to the extent that such liens relate to indebtedness that does not exceed $500,000 in the aggregate and such liens extend only to the equipment and furniture so acquired, purchased or leased, and
(v) liens on Installment Contracts and related assets sold or contributed by FCC in the Securitization. 
  
 (f) Indebtedness. Create, incur or assume any indebtedness for borrowed money or issue or assume any other note, debenture, bond or
other evidences of indebtedness, or guarantee any such indebtedness or such evidences of indebtedness of others other than (i) borrowings from Lender, (ii) borrowings outstanding on the date hereof and described on Schedule 1 attached
hereto, (iii) borrowings relative to operating leases, (iv) subject to the limitations set forth in Paragraph 10(e) above, the purchase or leasing of office equipment or furniture in the ordinary course of its business, (v) employment
contracts in the ordinary course of its business, (vi) obligations of FCC incurred in respect of the Securitizations, (vii) indebtedness that has been subordinated to all obligations of Borrower and Guarantors owing to Lender on terms and
conditions satisfactory to Lender, and (viii) borrowings, with respect to Borrower, from any Guarantor and, with respect to any Guarantor, from Borrower or another Guarantor. 
  
 (g) Loans. Make any loans to any person or entity except for (i) loans made in the ordinary
course of FCC’s business, (ii) loans made to employees of Borrower and 

  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	14	 	 
	 Rev. June ‘97
	 	 	 	 

 
Guarantor that do not exceed $100,000 in the aggregate outstanding at any time, (iii) loans made by FCC to FCC Acceptance Corp. for the purpose of
(1) funding up to ten percent (10%) of the purchase price of each Installment Contract of FCC purchased by FCC Acceptance Corp. under the Securitization, or (2) funding any fees or expenses incurred by FCC Acceptance Corp. in
connection with the Securitization, and (iv) loans made by any Guarantor to Borrower or any other Guarantor and loans made by Borrower to any Guarantor. 
  

(h) Transactions with Affiliates. Enter into any transaction, including, without limitation, the purchase, sale or exchange of
property or the rendering of any service, with any Affiliate (as hereinafter defined) of Borrower, except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s business and upon fair and reasonable terms no less
favorable to Borrower than would be obtained in a comparable arm’s-length transaction with a person or entity not an Affiliate of Borrower. As used herein, the term “Affiliate” means any individual or entity directly or
indirectly controlling, controlled by, or under common control with, another individual or entity. 
  
 (i) Redemptions; Transfer of Assets. Declare or make any payment on account of the purchase, redemption, or other acquisition or
retirement of any shares of Borrower’s or any Guarantor’s capital stock, or make any other distribution, sale, transfer or lease of any of Borrower’s or any Guarantor’s assets other than in the ordinary course of business, unless
any such amounts are directly utilized for the payment of principal or interest on indebtedness and obligations owing from time to time by Borrower to Lender. 
  

(j) Investment in FCC Acceptance Corp. Permit the aggregate investment in FCC Acceptance Corp. made by Borrower, FCC and the
other Guarantors by virtue of capital contribution to exceed the amount required for start-up costs incurred by FCC Acceptance Corp. in connection with the Securitization, working capital and the ten percent (10%) of the purchase price of each
Installment Contract purchased by FCC Acceptance Corp. under the Securitization. 
  
 11. Financial Covenants. Until (i) the Notes and all other obligations and liabilities of Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and
(ii) the Lender has no further commitment to lend hereunder, Borrower will maintain the following financial covenants: 
  
 (a) Tangible Net Worth. Borrower will maintain, at all times, its Tangible Net Worth at not less than $11,500,000. 
  
 (b) Debt to Adjusted Tangible Net Worth Ratio.
Borrower will maintain, at the end of each fiscal quarter, a ratio of (a) total liabilities (excluding any Subordinated Debt and all indebtedness of FCC Acceptance Corp. under the Receivables Agreement), to (b) Adjusted Tangible Net Worth
of not greater than 3.0 to 1.0. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	15	 	 
	 Rev. June ‘97
	 	 	 	 

 (c) Fixed Charge Coverage Ratio. Borrower will maintain, as of the end of each
fiscal quarter, a ratio calculated on an annualized basis during the period beginning September 30, 2005 and ending June 30, 2006, and beginning on September 30, 2006, and at all times thereafter, calculated on a trailing twelve-month
period of (i) net income before taxes for the period ending with such fiscal quarter plus depreciation, amortization and interest expense deducted in the calculation of such net income plus the increase in the Loan Loss Reserve for the
twelve month period ending with such fiscal quarter, to (ii) taxes plus interest expense plus current maturities of long-term debt (excluding, without duplication, any current maturities of debt under the Revolving Line of Credit
and the Borrowing Base Line of Credit, all amounts outstanding under the Securitization and all indebtedness of FCC Acceptance Corp. under the Receivables Agreement) plus current maturities of long-term capital leases plus
Distributions plus capital expenditures (excluding any capital expenditures for which Borrower or any of its consolidated subsidiaries has incurred indebtedness) of not less than 1.1 to 1 for each fiscal quarter of Borrower through and
including the fiscal quarter ending September 30, 2006, and 1.25 to 1 for Borrower’s fiscal year ending December 31, 2006, and each fiscal quarter of Borrower thereafter. 
  
 As used herein, the term “Tangible Net Worth” means, as of any date, Borrower’s total assets excluding all intangible
assets, less total liabilities excluding any Subordinated Debt. As used herein, the term “Subordinated Debt” means any indebtedness owing by Borrower or any Guarantor which has been subordinated by written agreement to all
indebtedness now or hereafter owing by Borrower or such Guarantor to Lender, such agreement to be in form and substance acceptable to Lender. As used herein, “Distributions” shall mean all dividends and other distributions made by
Borrower to its shareholders or partners, as the case may be, other than salary, bonuses and other compensation for services. Unless otherwise specified, all accounting and financial terms and covenants set forth above are to be determined according
to generally accepted accounting principles, consistently applied. As used herein, the term “Adjusted Tangible Net Worth” means, as of any date, Borrower’s Tangible Net Worth minus FCC’s ownership interest in FCC
Acceptance Corp. 
  
 12. Reporting Requirements.
Until (i) the Notes and all other obligations and liabilities of Borrower under this Loan Agreement and the other Loan Documents are fully paid and satisfied, and (ii) the Lender has no further commitment to lend hereunder, Borrower will,
unless Lender shall otherwise consent in writing, furnish to Lender: 
  
 (a) Interim Financial Statements. As soon as available, and in any event within sixty (60) days after the end of each fiscal quarter of each fiscal year of Borrower, a balance sheet and income
statement of Borrower as of the end of such fiscal quarter, all in form and substance and in reasonable detail satisfactory to Lender and duly certified (subject to year-end review adjustments) by the President and/or Chief Financial Officer of
Borrower (i) as being true and correct in all material aspects to the best of his or her knowledge and (ii) as having been prepared in accordance with generally accepted accounting principles, consistently applied. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	16	 	 
	 Rev. June ‘97
	 	 	 	 

 (b) Annual Financial Statements. As soon as available and in any event
within one hundred twenty (120) days after the end of each fiscal year of Borrower, a consolidated and consolidating balance sheet and income statement of Borrower as of the end of such fiscal year, in each case the consolidated balance sheet
and income statement audited by independent public accountants of recognized standing acceptable to Lender. 
  
 (c) Compliance Certificate. A certificate signed by the chief financial officer of Borrower, within sixty (60) days after
the end of each quarter of each fiscal year, stating that Borrower is in full compliance with all of its obligations under this Loan Agreement and all other Loan Documents and is not in default of any term or provisions hereof or thereof, and
demonstrating compliance with all financial ratios and covenants set forth in this Loan Agreement. 
  
 (d) Installment Contract Certificate. An Installment Contract Certificate substantially in the form attached hereto as Exhibit A,
signed by an authorized officer of each of Borrower and FCC, within thirty (30) days after the end of each calendar month. 
  
 (e) Installment Contract Aging. An Installment Contract aging report within thirty (30) days after the end of each calendar
month, together with a list of all Installment Contracts then owned by FCC, each in form and detail satisfactory to Lender. 
  
 (f) Borrowing Base Report. At any time any amount is outstanding under the Borrowing Base Line of Credit, a borrowing
base report signed by an authorized officer of each of Borrower or U.S. Remodelers substantially in the form attached as Exhibit B, within thirty (30) days after the end of each calendar month of each fiscal year, in form and detail
satisfactory to Lender. 
  
 (g) Accounts
Aging. At any time any amount is outstanding under the Borrowing Base Line of Credit, an accounts receivable aging report of Borrower or U.S. Remodelers within thirty (30) days after the end of each calendar month of each fiscal year, in
form and detail satisfactory to Lender. 
  
 (h)
SEC Filings. Promptly upon their becoming available, copies of all registration statements, periodic reports and other statements and schedules filed by Borrower or any Guarantor with any securities exchange, the Securities and Exchange
Commission or any similar governmental authority. 
  
 13.
Events of Default. Each of the following shall constitute an “Event of Default” under this Loan Agreement: 
  
 (a) The failure, refusal or neglect of Borrower or any Guarantor to pay when due any part of the principal of, or interest on, the Notes
or any other indebtedness or obligations owing to Lender by Borrower or any Guarantor from time to time within five (5) days after the same become due. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	17	 	 
	 Rev. June ‘97
	 	 	 	 

 (b) The failure of Borrower or any Guarantor to timely and properly observe, keep or
perform any covenant, agreement, warranty or condition under subparagraph 8(i) or paragraph 9. 
  
 (c) The occurrence of an event of default under any of the other Loan Documents or under any other agreement now existing or hereafter
arising between Lender and Borrower or any Guarantor, and the same is not remedied within the applicable period of grace (if any) provided in such Loan Documents. 
  
 (d) The failure (other than as referred to in subparagraphs (a), (b) or (c) above) of Borrower or
any Guarantor to timely and properly observe, keep or perform any covenant, agreement, warranty or condition required herein or in any of the other Loan Documents, and such failure remains unremedied for a period of thirty (30) days after
notice of such failure is given by Lender to Borrower. 
  
 (e) Any representation contained herein or in any of the other Loan Documents made by Borrower or any Guarantor is false or misleading in any material respect. 
  
 (f) The occurrence of any event which permits the acceleration of the maturity of any indebtedness in excess
of $100,000 owing by Borrower or any Guarantor to any third party under any agreement or understanding. 
  
 (g) If Borrower or any Guarantor: (i) becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the
benefit of creditors, or admits in writing its inability to pay its debts as they become due; (ii) generally is not paying its debts as such debts become due; (iii) has a receiver, trustee or custodian appointed for, or take possession of,
all or substantially all of the assets of such party, either in a proceeding brought by such party or in a proceeding brought against such party and such appointment is not discharged or such possession is not terminated within sixty (60) days
after the effective date thereof or such party consents to or acquiesces in such appointment or possession; (iv) files a petition for relief under the United States Bankruptcy Code or any other present or future federal or state insolvency,
bankruptcy or similar laws (all of the foregoing hereinafter collectively called “Applicable Bankruptcy Law”) or an involuntary petition for relief is filed against such party under any Applicable Bankruptcy Law and such involuntary
petition is not dismissed within sixty (60) days after the filing thereof, or an order for relief naming such party is entered under any Applicable Bankruptcy Law, or any composition, rearrangement, extension, reorganization or other relief of
debtors now or hereafter existing is requested or consented to by such party; (v) fails to have discharged within a period of thirty (30) days any attachment, sequestration or similar writ levied upon any property of such party; or
(vi) fails to pay within thirty (30) days any final money judgment against such party. 
  
 (h) Except as expressly permitted herein, the liquidation, dissolution, merger or consolidation of any of Borrower or any Guarantor.

  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	18	 	 
	 Rev. June ‘97
	 	 	 	 

 (i) The entry of any judgment against Borrower or any Guarantor or the issuance or entry
of any attachment or other lien against any of the property of Borrower or any Guarantor for an amount in excess of $100,000, if undischarged, unbonded or undismissed within thirty (30) days after such entry. 
  
 (j) The occurrence of an “Event of Default” under
the Receivables Agreement (as such term is defined therein) which permits DZ Bank to declare that an Early Amortization Commencement Date (as such term is defined in the Receivables Agreement) has occurred. 
  
 (k) If on any day Lender is authorized by the terms of
Direction Letter to withdraw funds from a deposit account of FCC or Borrower with Lender, the collected funds in such deposit account are less than the amount Lender is authorized to withdraw. 
  
 (l) The occurrence of a Change of Control. 
  
 Nothing contained in this Loan Agreement shall be construed to limit the events of default
enumerated in any of the other Loan Documents and all such events of default shall be cumulative. 
  
 14. Remedies. Upon the occurrence of any one or more of the foregoing Events of Default, (a) the entire unpaid balance of principal of
the Notes, together with all accrued but unpaid interest thereon, and all other indebtedness owing to Lender by Borrower at such time shall, at the option of Lender, become immediately due and payable without further notice, demand, presentation,
notice of dishonor, notice of intent to accelerate, notice of acceleration, protest or notice of protest of any kind, all of which are expressly waived by Borrower, and (b) Lender may, at its option, cease further advances under any of the
Notes. All rights and remedies of Lender set forth in this Loan Agreement and in any of the other Loan Documents may also be exercised by Lender, at its option to be exercised in its sole discretion, upon the occurrence of an Event of Default.

  
 If an Event of Default shall occur and be continuing, Lender
by notice given in writing to Borrower and FCC (a “Termination Notice”) may terminate all servicing rights and obligations of FCC with respect to the Eligible Installment Contracts. Upon receipt by Borrower and FCC of such
Termination Notice, all servicing rights and obligations with respect to the Eligible Installment Contracts automatically shall pass to Compu-Link (the “Successor Servicer”), provided that Successor Servicer shall have no liability
with respect to any claim based on any alleged action or inaction of FCC. Borrower agrees to cause FCC to cooperate with the Successor Servicer in effecting the termination of the responsibilities and rights of FCC with respect to the servicing,
including without limitation, the transfer to Successor Servicer of all files, collection records and a computer tape in a readable form containing all information necessary to enable Successor Servicer to service the Eligible Installment Contracts.
Borrower shall reimburse Lender and Successor Servicer for all costs incurred by them in connection with a transfer of servicing from FCC to Successor Servicer, and Borrower shall reimburse Lender for 

  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	19	 	 
	 Rev. June ‘97
	 	 	 	 

 
all servicing costs charged by Successor Servicer for the servicing of the Eligible Installment Contracts. 
  
 15. Rights Cumulative. All rights of Lender under the terms of
this Loan Agreement shall be cumulative of, and in addition to, the rights of Lender under any and all other agreements between Borrower, Guarantors and Lender (including, but not limited to, the other Loan Documents), and not in substitution or
diminution of any rights now or hereafter held by Lender under the terms of any other agreement. 
  
 16. Waiver and Agreement. Neither the failure nor any delay on the part of Lender to exercise any right, power or privilege herein or under
any of the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. No
waiver of any provision in this Loan Agreement or in any of the other Loan Documents and no departure by Borrower or any Guarantor therefrom shall be effective unless the same shall be in writing and signed by Lender, and then shall be effective
only in the specific instance and for the purpose for which given and to the extent specified in such writing. No modification or amendment to this Loan Agreement or to any of the other Loan Documents shall be valid or effective unless the same is
signed by the party against whom it is sought to be enforced. 
  
 17. Benefits. This Loan Agreement shall be binding upon and inure to the benefit of Lender and Borrower, and their respective successors and assigns, provided, however, that Borrower may not, without the prior written consent
of Lender, assign any rights, powers, duties or obligations under this Loan Agreement or any of the other Loan Documents. 
  
 18. Notices. All notices, requests, demands or other communications required or permitted to be given pursuant to this Agreement shall be in
writing and given by (i) personal delivery, (ii) expedited delivery service with proof of delivery, or (iii) United States mail, postage prepaid, registered or certified mail, return receipt requested, sent to the intended addressee
at the address set forth on the first page hereof and shall be deemed to have been received either, in the case of personal delivery, as of the time of personal delivery, in the case of expedited delivery service, as of the date of first attempted
delivery at the address and in the manner provided herein, or in the case of mail, upon deposit in a depository receptacle under the care and custody of the United States Postal Service. Either party shall have the right to change its address for
notice hereunder to any other location within the continental United States by notice to the other party of such new address at least thirty (30) days prior to the effective date of such new address. 
  
 19. Construction. This Loan Agreement and the other Loan
Documents have been executed and delivered in the State of Texas, shall be governed by and construed in accordance with the laws of the State of Texas, and shall be performable by the parties hereto in the county in Texas where the Lender’s
address set forth on the first page hereof is located. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	20	 	 
	 Rev. June ‘97
	 	 	 	 

 20. Invalid Provisions. If any provision of this Loan Agreement or any of the other Loan
Documents is held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable and the remaining provisions of this Loan Agreement or any of the other Loan Documents shall remain in full force and
effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance. 
  
 21. Expenses. Borrower shall pay all costs and expenses (including, without limitation, reasonable attorneys’ fees) in connection with
(i) any action required in the course of administration of the indebtedness and obligations evidenced by the Loan Documents, and (ii) any action in the enforcement of Lender’s rights upon the occurrence of Event of Default.

  
 22. Participation of the Loans. Borrower agrees
that Lender may, at its option, sell interests in the Loans and its rights under this Loan Agreement to a financial institution or institutions and, in connection with each such sale, Lender may disclose any financial and other information available
to Lender concerning Borrower to each prospective purchaser. 
  
 23. Conflicts. In the event any term or provision hereof is inconsistent with or conflicts with any provision of the other Loan Documents, the terms and provisions contained in this Loan Agreement shall be controlling.

  
 24. Counterparts. This Loan Agreement may be
separately executed in any number of counterparts, each of which shall be an original, but all of which, taken together, shall be deemed to constitute one and the same instrument. 
  
 25. Facsimile Documents and Signatures. For purposes of negotiating and finalizing this Loan Agreement, if
this document or any document executed in connection with it is transmitted by facsimile machine (“fax”), it shall be treated for all purposes as an original document. Additionally, the signature of any party on this document
transmitted by way of a facsimile machine shall be considered for all purposes as an original signature. Any such faxed document shall be considered to have the same binding legal effect as an original document. At the request of any party, any
faxed document shall be re-executed by each signatory party in an original form. 
  
 If the foregoing correctly sets forth our mutual agreement, please so acknowledge by signing and returning this Loan Agreement to the undersigned. 
  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	21	 	 
	 Rev. June ‘97
	 	 	 	 

 NOTICE TO COMPLY WITH STATE LAW 
  
 For the purpose of this Notice, the term “WRITTEN AGREEMENT” shall include the document set forth above, together
with each and every other document relating to and/or securing the same loan transaction, regardless of the date of execution. 
  
 THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. 
  
 THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  

									
	BORROWER	 	 	 	LENDER:
			
	U.S. HOME SYSTEMS, INC.	 	 	 	THE FROST NATIONAL BANK,
a national banking association
					
	By:	 	 	 	 	 	By:	 	 
	Name:	 	 	 	 	 	Name:	 	 
	Title:	 	 	 	 	 	Title:	 	 

  

					
	FIRST AMENDED AND RESTATED LOAN AGREEMENT	 	22	 	 
	 Rev. June ‘97
	 	 	 	 

 Exhibit 1 
  
 Form of Transmittal Request 
  
 [Date] 
  
 The Frost National Bank 
 2727 North Harwood, 10th Floor 
 Dallas, Texas 
  
 Attn: ________________ 
  

	 	RE:	First Amended and Restated Loan Agreement dated as of February 9, 2006, to be effective for all purposes as of February 10, 2006, between U.S. Home Systems, Inc. and The
Frost National Bank, as from time to time amended, modified or restated, the “Loan Agreement.” Capitalized terms used and not otherwise defined herein have meanings given them in the Loan Agreement. 

  
 This letter is to notify you that we intend to sell the Installment Contracts
set forth on the attached Schedule A to the following purchaser (“Purchaser”): 
  

					
	 Name: 
	  	__________________________________	  	 
			
	 Address: 
	  	__________________________________	  	 
	 	  	__________________________________	  	 

  
 We request that you
deliver a Bailee Letter to the Purchaser no later than ____________, 200__, because the sale is scheduled to close on or about ______________, 200__. 
  
 We hereby agree that the Installment Contracts will be delivered to the Purchaser under a copy of this request and the executed Bailee Letter. We agree to
the terms of the Bailee Letter and instruct the Purchaser to comply with all instructions set forth therein and acknowledge that such terms cannot be varied by any instructions given by us. 
  

			
	First Consumer Credit, Inc.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	U.S. Home Systems, Inc.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Exhibit 1	 	 	 	 

 Exhibit 2 
  
 Form of Bailee Letter 
  
 [On Lender’s Letterhead] 
  
 [Purchaser’s Name and Address] 
  
 Ladies and Gentlemen: 

 
 Enclosed please find ____________ installment contracts (the
“Installment Contracts”) evidencing the home improvement loans described in more detail on the attached Schedule A, along with other supporting documents that you have agreed to purchase. Please be advised that a security interest in the
Installment Contracts has been granted to The Frost National Bank (the “Secured Party”) in connection with a First Amended and Restated Loan Agreement dated as of February 9, 2006, to be effective for all purposes as of
February 10, 2006, between U.S. Home Systems, Inc. (“Borrower”) and the Secured Party (as from time to time amended modified or restated, the “Loan Agreement”). Unless otherwise defined herein, all capitalized terms used
herein shall have the meanings given in the Loan Agreement. 
  
 The Installment Contracts and all other documents relating thereto are to be held by you as agent, bailee and custodian for the benefit of Secured Party, and subject to Secured Party’s direction and control. Notwithstanding the
foregoing: 
  

	 	(i)	if the Installment Contracts are accepted for purchase, the proceeds of such purchase are to be wire transferred to the Secured Party at [wiring instructions]; and

  

	 	(ii)	Installment Contracts which are not accepted for purchase should be returned within thirty (30) days after the date of delivery of this letter to: 

  
 First Consumer Credit, Inc. 
 12740 Hillcrest Plaza Drive, Suite 240 
 Dallas, Texas 75230 
 Attn: 
  
 You are responsible for making certain that Secured Party receives all of the proceeds from the sale of the Installment Contracts. In no event shall such
proceeds, without the express written consent of Secured Party, be less than $                    , which is the aggregate Collateral Value
assigned by the Secured Party to such Installment Contracts (the “Minimum Amount”). Upon Secured Party’s receipt of such proceeds (which in no event shall be less that the Minimum Amount), the security interest of Secured Party in the
Installment Contracts shall automatically terminate without further action. The Installment Contracts have not been assigned by Secured Party to any other party. 
  
 You are not to honor any requests or instructions from Borrower or First Consumer Credit, Inc. relating to any Installment
Contract unless you have received the written or 

  

					
	Exhibit 2	 	1	 	 

 
telephonic consent of Secured Party, or until Secured Party has received the applicable proceeds of such Installment Contract. If you have any questions,
please call Shannon Jackson, whose phone number is (214) 515-4917. 
  
 Please indicate your acknowledgment that (a) you are acting as Secured Party’s agent, bailee and custodian with respect to the Installment Contracts and (b) you agree to comply with all instructions contained herein, by
signing the acknowledgment below and returning a copy to Secured Party at the following address: 
  
 The Frost National Bank 
 2727 North Harwood,
10th Floor 
 Dallas, Texas 75201 
 Attn: __________________ 
 Fax: (214) 515-4990 
  

			
	Very truly yours,
	
	The Frost National Bank
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	Received and agreed to:
	
	 
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	 

  

					
	Exhibit 2	 	2	 	 

 EXHIBIT A 
  
 INSTALLMENT CONTRACT CERTIFICATE 
  
 [Date] 
  
 Reference is made to that certain First Amended and Restated Loan Agreement dated as of February 9, 2006, to be effective for all purposes as of
February 10, 2006 (as from time to time amended, the “Agreement”) by and between U.S. Home Systems, Inc. (“Borrower”) and The Frost National Bank (“Lender”). Terms which are defined in the
Agreement are used herein with the meanings given them in the Agreement. 
  
 This Certificate is being furnished pursuant to Section 11(d) of the Agreement. Borrower and FCC hereby certify to Lender as follows: 
  

	 	(a)	the officer of Borrower signing this instrument is the duly elected, qualified and acting ________ of Borrower and the officer of FCC signing this instrument is the duly elected,
qualified and acting _________ of FCC and as such is authorized to submit this Certificate on behalf of such Person; 

  

	 	(b)	as of the close of business on __________ (the “Reporting Date”): 

  

							
	(i)	  	Balance of Installment Contracts as of the Reporting Date	  	$_________	  	 
				
	(ii)	  	Ineligible Installment Contracts:	  	 	  	 
				
	 	  	 (A)     Installment Contracts more than 30 days past due
	  	$_________	  	 
				
	 	  	 (B)     Installment Contracts purchased or originated more than 90 days prior to Reporting Date
	  	$_________	  	 
				
	 	  	 (C)     Other ineligible Installment Contracts
	  	$_________	  	 
				
	 	  	 (D)     Total ineligible Installment Contracts (add lines A through C)
	  	$_________	  	 
				
	(iii)	  	 Total Eligible Installment Contracts
 (Line (i) minus
line (ii)(D))
	  	 	  	$_________
				
	(iv)	  	90% of Total Eligible Installment Contracts	  	 	  	$_________
				
	(v)	  	Revolving Line of Credit balance per last Installment Contract Certificate	  	 	  	$_________

  

					
	Exhibit A	 	1	 	 

							
				
	(vi)	  	Less net payments	  	 	  	$_________
				
	(vii)	  	Plus advances	  	 	  	$_________
				
	(viii)	  	 Total Balance
 (Line (v) minus line (vi) plus line
(vii))
	  	 	  	$_________
				
	(ix)	  	Amount available for borrowing (lesser of $3,000,000 and line (iv) minus Total Balance (line viii) subject to the terms of the Agreement, if positive, or to be repaid, if negative.	  	 	  	$_________

  
 (c) Attached hereto is
an Installment Contract aging report as of the Reporting Date and a list of all Installment Contracts owned by FCC as of the Reporting Date. 
  
 The officers of Borrower and FCC signing this instrument certify that, to the best of their knowledge after due inquiry, the above certifications of
Borrower and FCC are true, correct and complete. 
  
 IN WITNESS
WHEREOF, the instrument is executed as of _____________________. 
  

			
	U.S. HOME SYSTEMS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	FIRST CONSUMER CREDIT, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	President

  

					
	Exhibit A	 	2	 	 

 EXHIBIT B 
  
 BORROWING BASE CERTIFICATE 
  
 [Date] 
  
 Reference is made to that certain First Amended and Restated Loan Agreement dated as of February 9, 2006, to be effective for all purposes as of
February 10, 2006 (as from time to time amended, the “Agreement”) by and between U.S. Home Systems, Inc. (“Borrower”) and The Frost National Bank (“Lender”). Terms which are defined in the
Agreement are used herein with the meanings given them in the Agreement. 
  
 This Certificate is being furnished pursuant to Section 11(f) of the Agreement. Borrower and U.S. Remodelers hereby certify to Lender as follows: 
  

	 	(a)	the officer of Borrower signing this instrument is the duly elected, qualified and acting ________ of Borrower and as such is authorized to submit this Certificate on behalf of
Borrower; the officer of U.S. Remodelers signing this instrument is the duly elected qualified and acting ____________ of U.S. Remodelers and as such is authorized to submit this Certificate on behalf of U.S. Remodelers; 

  

	 	(b)	as of the close of business on __________ (the “Reporting Date”): 

  

									
	 	  	 	  	U.S.
Remodelers

	  	 
	 (i)
	  	Eligible Accounts	  	$	________	  	 	 
				
	 (ii)
	  	80% of aggregate Eligible Account	  	 	 	  	$	________
				
	 (iii)
	  	Eligible Inventory	  	$	________	  	 	 
				
	 (iv)
	  	50% of aggregate Eligible Inventory	  	 	 	  	$	________
				
	 (v)
	  	Borrower’s determination of Borrowing Base (sum of lines (ii) and (iv), not to exceed $4,000,000)	  	 	 	  	$	________
				
	 (vi)
	  	Borrowing Base Line of Credit Balance per last Borrowing Base Certificate	  	 	 	  	$	________
				
	 (vii)
	  	Less Net Payments	  	 	 	  	$	________
				
	 (viii)
	  	Plus advances	  	 	 	  	$	________
				
	 (ix)
	  	Total Balance (line (vi) minus line (vii) plus line (viii))	  	 	 	  	$	________
				
	 (x)
	  	Amount available for borrowing (line (v) minus line (ix)), subject to the terms of the Agreement, if positive, or to be repaid, if negative	  	 	 	  	$	________

  

					
	Exhibit B	 	1	 	 

 The officers of Borrower and U.S. Remodelers signing this instrument certify that, to the best of their
knowledge after due inquiry, the above certifications of Borrower and U.S. Remodelers are true, correct and complete. 
  
 IN WITNESS WHEREOF, the instrument is executed as of _______________. 
  

			
	U.S. HOME SYSTEMS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	U.S. REMODELERS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Exhibit B	 	2Revolving Promissory Note, $4 million

			
	

	  	Exhibit 10.56

  
 REVOLVING
PROMISSORY NOTE 
  

			
	$4,000,000.00	  	Dated as of February 9, 2006,
	 	  	to be effective as of February 10, 2006,

  
 For value received,
U.S. HOME SYSTEMS, INC., a corporation (“Borrower”, whether one or more) does hereby promise to pay to the order of THE FROST NATIONAL BANK (“Lender”), at P.O. Box 1600, San Antonio, Texas 78296, or at
such other address as Lender shall from time to time specify in writing, in lawful money of the United States of America, the sum of FOUR MILLION AND 00/100 DOLLARS ($4,000,000.00), or so much thereof as from time to time may be disbursed by Lender
to Borrower under the “Borrowing Base Line of Credit” pursuant to the terms of that certain First Amended and Restated Loan Agreement dated as of February 9, 2006, to be effective for all purposes as of February 10, 2006,
between Borrower and Lender (as from time to time amended, modified or restated, the “Loan Agreement”), and be outstanding, together with interest from date hereof on the principal balance outstanding from time to time as
hereinafter provided. Interest shall be computed on a per annum basis of a year of 360 days and for the actual number of days elapsed, unless such calculation would result in a rate greater than the highest rate permitted by applicable law, in which
case interest shall be computed on a per annum basis of a year of 365 days or 366 days in a leap year, as the case may be. 
  
 1. Payment Terms. Interest only on amounts outstanding hereunder shall be due and payable monthly as it accrues, on the 10th day of each and
every calendar month, beginning March 10, 2006, and continuing regularly and monthly thereafter until May 10, 2007, when the entire amount hereof, principal and interest then remaining unpaid, shall be then due and payable; interest being
calculated on the unpaid principal each day principal is outstanding and all payments made credited to any collection costs and late charges, to the discharge of the interest accrued and to the reduction of the principal, in such order as Lender
shall determine. 
  
 2. Late Charge. If a payment is
made 10 days or more late, Borrower will be charged, in addition to interest, a delinquency charge of (i) 5% of the unpaid portion of the regularly scheduled payment, or (ii) $250.00, whichever is less. Additionally, upon maturity of this
Note, if the outstanding principal balance (plus all accrued but unpaid interest) is not paid within 10 days of the maturity date, Borrower will be charged a delinquency charge of (i) 5% of the sum of the outstanding principal balance (plus all
accrued but unpaid interest), or (ii) $250.00, whichever is less. Borrower agrees with Lender that the charges set forth herein are reasonable compensation to Lender for the handling of such late payments. 
  
 3. Interest Rate. Interest on the outstanding and unpaid
principal balance hereof shall be computed at a per annum rate equal to the lesser of (a) a rate equal to the Wall Street Journal London Interbank Offered Rate (as defined below) plus two and six-tenths percent (2.6%) per annum, with said
rate to be adjusted to reflect any change in The Wall Street Journal London Interbank Offered Rate at the time of any such change or (b) the highest rate permitted by applicable law, but in no event shall interest contracted for, charged or
received hereunder plus any other charges in connection herewith which constitute interest exceed the maximum interest permitted by applicable law. As used herein, for any date, the “Wall Street Journal 

  

					
	REVOLVING PROMISSORY NOTE	 	 	 	 
	 Rev. Feb. ‘99
	 	 	 	 

 
London Interbank Offered Rate” shall mean the London Interbank Offered Rate (LIBOR) for three (3) months quoted in the most recently published
issue of The Wall Street Journal (Central Edition) in the “Money Rates” column. If the Wall Street Journal London Interbank Offered Rate ceases to be made available by the publisher, or any successor to the publisher of
The Wall Street Journal, (Central Edition) the interest rate will be determined by using a comparable index. If more than one Wall Street Journal London Interbank Offered Rate for three (3) months is quoted, the higher rate shall
apply. The Wall Street Journal London Interbank Offered Rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. 
  
 4. Default Rate. Matured unpaid principal and interest shall bear interest from date of maturity until paid at
the highest rate permitted by applicable law, or if no such maximum rate is established by applicable law, at the rate stated above plus five percent (5%) per annum. 
  
 5. Revolving Line of Credit. Under the Loan Agreement, Borrower may request advances and make payments
hereunder from time to time; provided that it is understood and agreed that the aggregate principal amount outstanding from time to time hereunder shall not at any time exceed $4,000,000. The unpaid balance of this Note shall increase and decrease
with each new advance or payment hereunder, as the case may be. This Note shall not be deemed terminated or canceled prior to the date of its maturity, although the entire principal balance hereof may from time to time be paid in full. Borrower may
borrow, repay and re-borrow hereunder. 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. 
  
 6. Prepayment. Borrower reserves the right to prepay, prior to
maturity, all or any part of the principal of this Note without penalty. Any prepayments shall be applied first to accrued interest and then to principal. Borrower will provide written notice to the holder of this Note of any such prepayment of all
or any part of the principal at the time thereof. All payments and prepayments of principal 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. All partial prepayments of principal shall be applied to the last installments payable in their inverse order of maturity. 
  
 7. Default. It is expressly provided that upon default in the
punctual payment of this Note or any part hereof, principal or interest, within five (5) days of the date the same shall become due and payable, or upon the occurrence of an event of default specified in any of the other Loan Documents (as
defined below), the holder of this Note may, at its option, without 

  

					
	REVOLVING PROMISSORY NOTE	 	2	 	 
	 Rev. Feb. ‘99
	 	 	 	 

 
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; and in the event default is made in the prompt payment of this Note when due or declared due, and the same
is placed in the hands of an attorney for collection, or suit is brought on same, or the same is collected through probate, bankruptcy or other judicial proceedings, then the Borrower agrees and promises to pay all costs of collection, including
reasonable attorney’s fees. 
  
 8. No Usury Intended;
Usury Savings Clause. In no event shall interest contracted for, charged or received hereunder, plus any other charges in connection herewith which constitute interest, exceed the maximum interest permitted by applicable law. The amounts of
such interest or other charges previously paid to the holder of the Note in excess of the amounts permitted by applicable law shall be applied by the holder of the Note to reduce the principal of the indebtedness evidenced by the Note, or, at the
option of the holder of the Note, be refunded. To the extent permitted by applicable law, determination of the legal maximum amount of interest shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the
period of the full stated term of the loan and indebtedness, all interest at any time contracted for, charged or received from the Borrower hereof in connection with the loan and indebtedness evidenced hereby, so that the actual rate of interest on
account of such indebtedness is uniform throughout the term hereof. 
  
 9. Security. This Note has been executed and delivered pursuant the Loan Agreement, and is secured by, inter alia, the following: 
  

(a) a First Amended and Restated Security Agreement dated as of February 9, 2006, to be effective as of February 10, 2006, by
and between Borrower and Lender, covering certain collateral as more particularly described therein; 
  
 (b) First Amended and Restated Security Agreements dated as of February 9, 2006, to be effective as of February 10, 2006,
by and between each Guarantor (as defined in the Loan Agreement) and Lender, covering certain collateral as more particularly described therein; 
  
 (c) a Deed of Trust, Security Agreement – Assignment of Rents dated as of February 9, 2006, to be effective as of
February 10, 2006, by U.S. Remodelers, Inc. in favor of Lender, covering certain real property situated in Charles City County, Virginia, as more particularly described therein. 
  
 This Note, the Loan Agreement 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.

  

					
	REVOLVING PROMISSORY NOTE	 	3	 	 
	 Rev. Feb. ‘99
	 	 	 	 

 10. Joint and Several Liability; Waiver. Each maker, signer, surety and endorser hereof, as
well as all heirs, successors and legal representatives of said parties, shall be directly and primarily, jointly and severally, liable for the payment of all indebtedness hereunder. Lender may release or modify the obligations of any of the
foregoing persons or entities, or guarantors hereof, in connection with this loan without affecting the obligations of the others. All such persons or entities expressly waive presentment and demand for payment, notice of default, notice of intent
to accelerate maturity, notice of acceleration of maturity, protest, notice of protest, notice of dishonor, and all other notices and demands for which waiver is not prohibited by law, and diligence in the collection hereof; and agree to all
renewals, extensions, indulgences, partial payments, releases or exchanges of collateral, or taking of additional collateral, with or without notice, before or after maturity. No delay or omission of Lender in exercising any right hereunder shall be
a waiver of such right or any other right under this Note. 
  
 11.
Texas Finance Code. In no event shall Chapter 346 of the Texas Finance Code (which regulates certain revolving loan accounts and revolving tri-party accounts) apply to this Note. To the extent that Chapter 303 of the Texas Finance Code
are applicable to this Note, the “weekly ceiling” specified in such article is the applicable ceiling; provided that, if any applicable law permits greater interest, the law permitting the greatest interest shall apply. 
  
 12. Governing Law, Venue. This Note is being executed and
delivered, and is intended to be performed in the State of Texas. Except to the extent that the laws of the United States may apply to the terms hereof, the substantive laws of the State of Texas shall govern the validity, construction, enforcement
and interpretation of this Note. In the event of a dispute involving this Note or any other instruments executed in connection herewith, the undersigned irrevocably agrees that venue for such dispute shall lie in any court of competent jurisdiction
in Bexar County, Texas. 
  
 13. Purpose of Loan.
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. 
  
 14. Captions. The captions in this Note are inserted for
convenience only and are not to be used to limit the terms herein. 
  
 15. Financial Information. Borrower agrees to promptly furnish such financial information and statements, including financial statements in a format acceptable to Lender, lists of assets and liabilities, agings of receivables
and payables, inventory schedules, budgets, forecasts, tax returns, and other reports with respect to Borrower’s financial condition and business operations as Lender may request from time to time. This provision shall not alter the obligation
of Borrower to deliver to Lender any other financial statements or reports pursuant to the terms of any other loan documents executed in connection with this Note. 
  
 16. Renewal, Extension and Increase. This Note is given in renewal and extension but not extinguishment, of
all amounts left owing and unpaid on that certain Revolving Promissory Note dated May 24, 2004, executed and delivered by Borrower and payable to the order of Lender in the original principal amount of $3,000,000, which note was given in
renewal, extension and increase, but not extinguishment, of all amounts left owing and unpaid on that certain Revolving Promissory Note dated May 30, 2003, executed and delivered by Borrower and payable to the order of Lender in the original
principal amount of $2,000,000. 
  

					
	REVOLVING PROMISSORY NOTE	 	4	 	 
	 Rev. Feb. ‘99
	 	 	 	 

			
	 BORROWER:

	
	 U.S. HOME SYSTEMS, INC.

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

					
	REVOLVING PROMISSORY NOTE	 	5	 	 
	 Rev. Feb. ‘99

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