Document:

Modification, Renewal and Extension Agreement

  
 Exhibit 10.63

 

 

 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT 

 

					
	THE STATE OF VIRGINIA	  	§	  	
		  	§	  	
	COUNTY OF CHARLES CITY	  	§	  	

 THIS MODIFICATION, RENEWAL AND EXTENSION AGREEMENT
(“Agreement”) is entered into effective as of the 2nd day of September, 2010, by and between THE FROST NATIONAL BANK, a national banking association (“Lender”), U.S. HOME SYSTEMS, INC., a Delaware corporation (“Borrower”),
and U.S. REMODELERS, INC., a Delaware corporation (“Guarantor”). 
 R E C I T A L S: 

A. Lender is the sole owner and holder of that one certain Term Note (the “Note”) dated effective February 10,
2006, executed by Borrower and payable to the order of Lender in the original principal amount of One Million Two Hundred Thousand No/100 Dollars ($1,200,000.00). 
 B. The Note is secured by an Indemnity Deed of Trust, Security Agreement – Assignment of Rents executed by Borrower to Michael K. Smeltzer, Trustee, dated effective February 10, 2006 (the
“Deed of Trust”), filed for record in Book 259, Page 1325 of the Circuit Court Clerk’s Office of Charles City County, Virginia, covering certain real property located in said county as more particularly described in Exhibit
A attached hereto (the “Property”). The Note, Deed of Trust and all modifications, renewals and extensions described below are hereafter collectively referred to as the “Loan Documents.” 

C. The Note was modified, renewed and extended pursuant to that certain Modification Agreement executed by Borrower and Lender, dated
January 1, 2007. 
 D. Guarantor has previously executed and delivered that certain Second Amended and Restated Guaranty
Agreement dated December 19, 2008 (the “Guaranty”) covering certain indebtedness of Borrower to Lender including without limitation the Note. 
 E. Borrower has requested that Lender modify certain provisions of the Note, all as hereinafter provided, and in consideration thereof Borrower has made certain agreements with Lender as hereinafter more
fully set forth. 
 F. Lender has agreed to such requests, subject to the terms and conditions set forth herein. 

NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and agreed, Borrower, Guarantor and Lender hereby agree as follows: 
 1. Acknowledgment
of Outstanding Balance. The parties hereto acknowledge that the outstanding principal balance of the Note as of the date hereof is NINE HUNDRED NINETY-NINE THOUSAND NINE HUNDRED NINETY-NINE AND 90/100 DOLLARS ($999,999.90). 

  

			
	MODIFICATION AGREEMENT	  	PAGE 1

  
 2. Renewal and
Extension of Maturity. The Note is hereby renewed and the maturity date of the Note is hereby extended to August 10, 2013 (the “Revised Maturity Date”). 
 3. Required Payments. From and after the effective date of this Agreement, principal and interest under the Note shall be due and payable as follows: 

Principal shall be due and payable in monthly payments of $27,777.76 each, payable on the 10th day of each calendar month, beginning September 10, 2010, and
continuing regularly thereafter until August 10, 2013, when the entire amount of the Note, principal and accrued interest then remaining unpaid, shall be then due and payable. Interest, computed upon the unpaid principal balance of the Note,
shall be due and payable monthly as it accrues, on the same dates as, but in addition to, said payments of principal; 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. 
 4. Interest Rate. The annual interest rate provided for in the Note shall be amended such that interest shall be charged from and after the effective date of this Agreement as follows:

 Interest on the outstanding and unpaid principal balance of the Note shall be computed at a per annum rate equal to the lesser
of (a) a rate equal to the Prime Rate, plus one and one quarter percent (1.25%) per annum, 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 with the Loan Documents which constitute interest exceed the maximum interest permitted by applicable law, said rate to be effective prior to maturity (however such maturity is brought about). The term “Prime
Rate,” as used herein, shall mean the maximum “Latest” “U.S.” prime rate of interest per annum published from time to time in the Money Rates section of The Wall Street Journal (Central Edition) or in any
successor publication to The Wall Street Journal. Borrower understands that the Prime Rate may not be the best, lowest, or most favored rate of Lender or The Wall Street Journal, and any representation or warranty in that
regard is expressly disclaimed by Lender. Borrower acknowledges that (i) if more than one U.S. prime rate is published at any time by The Wall Street Journal, the highest of such prime rates shall constitute the Prime Rate
hereunder, and (ii) if at any time The Wall Street Journal ceases to publish a U.S. prime rate, Lender shall have the right to select a substitute rate that Lender determines, in the exercise of its reasonable commercial
discretion, to be comparable to such prime rate, and the substituted rate as so selected, upon the sending of written notice thereof to Borrower, shall constitute the Prime Rate hereunder. Upon each increase or decrease hereafter in the Prime Rate,
the rate of interest upon the unpaid principal balance of the Note shall be increased or decreased by the same amount as the increase or decrease in the Prime Rate, such increase or decrease to become effective as of the day of each such change in
the Prime Rate and without notice to Borrower or any other person. 

  

			
	MODIFICATION AGREEMENT	  	PAGE 2

  
 5. 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 the Note. To the extent that Chapter 303 of the Texas Finance Code is applicable to the
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. 

6. Usury. No provisions of this Agreement or the Loan Documents shall require the payment or permit the collection,
application or receipt of interest in excess of the maximum permitted by applicable state or federal law. If any excess of interest in such respect is herein or in any such other instrument provided for, or shall be adjudicated to be so provided for
herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower nor any endorsers of the Note nor their respective successors, assigns or personal representatives shall be obligated to pay the amount of such
interest to the extent it is in excess of the amount permitted by applicable law. It is expressly stipulated and agreed to be the intent of Borrower and Lender to at all times comply with the usury and other laws relating to the Loan Documents and
any subsequent revisions, repeals or judicial interpretations thereof, to the extent applicable thereto. In the event Lender or other holder of the Note ever receives, collects or applies as interest any such excess, such amount which would be
excessive interest shall be applied to the reduction of the unpaid principal balance of the Note and, if upon such application the principal balance of the Note is paid in full, any remaining excess shall be forthwith paid to Borrower and the
provisions of the Loan Documents shall immediately be deemed reformed and the amounts thereafter collectible thereunder reduced, without the necessity of execution of any new document, so as to comply with the then applicable law, but so as to
permit the recovery of the fullest amount otherwise called for thereunder. In determining whether or not the interest paid or payable under any specific contingency exceeds the maximum interest allowed to be charged by applicable law, Borrower and
Lender or other holder hereof shall, to the maximum extent permitted under applicable law, amortize, prorate, allocate and spread the total amount of interest throughout the entire term of the Note so that the amount or rate of interest charged for
any and all periods of time during the term of the Note is to the greatest extent possible less than the maximum amount or rate of interest allowed to be charged by law during the relevant period of time. Notwithstanding any of the foregoing, if at
any time applicable laws shall be changed so as to permit a higher rate or amount of interest to be charged than that permitted prior to such change, then unless prohibited by law, references in the Note to “applicable law” for purposes of
determining the maximum interest or rate of interest that can be charged shall be deemed to refer to such applicable law as so amended to allow the greater amount or rate of interest. 

7. Release and Waiver of Claims. In consideration of (i) the modification of certain provisions of the Note, as herein
provided, and (ii) the other benefits received by Borrower hereunder, Borrower and Guarantor hereby RELEASE, RELINQUISH and forever DISCHARGE Lender, as well as its predecessors, successors, assigns, agents, officers, directors, employees and
representatives, of and from any and all claims, demands, actions and causes of action of any and every kind or character, past or present, which Borrower or Guarantor may have against Lender and its predecessors, successors, assigns, agents,
officers, directors, employees and representatives arising out of or with respect to (a) any right or power to bring any claim against Lender for usury or to pursue any cause of action against Lender based on any claim of usury, and
(b) any and all transactions relating to the Loan Documents occurring prior to the date hereof, including any loss, cost or damage, of any kind or character, arising out of or in any way connected with or in any way resulting from the acts,
actions or omissions of Lender, and its predecessors, successors, assigns, agents, officers, directors, employees and representatives, including any breach of fiduciary duty, breach of any duty of fair dealing, breach of confidence, breach of
funding commitment, undue influence, duress, economic coercion, conflict of interest, negligence, bad faith, malpractice, intentional or negligent infliction of mental distress, tortious interference with contractual relations, tortious interference
with corporate governance or prospective business advantage, breach of contract, deceptive trade practices, libel, slander or conspiracy, but in each case only to the extent permitted by applicable law. 

  

			
	MODIFICATION AGREEMENT	  	PAGE 3

  
 8. Reaffirmation
of Representations, Etc. Each of Borrower and Guarantor hereby reaffirms to Lender each of the representations, warranties, covenants and agreements of such entity set forth in the Loan Documents. 

9. Enforceable Obligations. Each of Borrower and Guarantor hereby ratifies, affirms, reaffirms, acknowledges, confirms and
agrees that the Loan Document represent valid and enforceable obligations of such entity, and each of Borrower and Guarantor further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with
respect to the Note. Each of Borrower and Guarantor further acknowledges and represent that no event has occurred and no condition exists which would constitute a default under the Loan Documents or this Agreement, either with or without notice or
lapse of time, or both. 
 10. No Release of Liens. This Agreement in no way acts as a release or relinquishment
of the liens, security interests and rights (the “Liens”) created or evidenced by the Deed of Trust. The Liens are hereby ratified and confirmed by Borrower and Guarantor in all respects and are extended to secure (i) the principal
amount of the Note, (ii) all interest, charges and other sums payable with respect thereto, and (iii) the performance of all other obligations under the Deed of Trust. 

11. Additional Renewals and Extensions. Notwithstanding anything to the contrary contained herein or inferred hereby or in
any other instrument executed by Borrower or Guarantor or in any other action or conduct undertaken by Borrower or Guarantor on or before the date hereof, the agreements, covenants and provisions contained herein shall constitute the only evidence
of Lender’s consent to extend the terms and provisions of the Loan Documents in the manner set forth herein. No express or implied consent to any further extensions and/or modifications involving any of the matters set forth in this Agreement
or otherwise, shall be inferred or implied from Lender’s execution of this Agreement. Further, Lender’s execution of this Agreement shall not constitute a waiver (either express or implied) of the requirement that any further extensions
and/or modifications of the Loan Documents shall require the express written approval of Lender, no such approval (either express or implied) having been given as of the date hereof. 

  

			
	MODIFICATION AGREEMENT	  	PAGE 4

  
 12.
Miscellaneous. 
 A. As modified hereby, the provisions of the Note and the Deed of Trust shall continue in full
force and effect, and Borrower and Guarantor acknowledge and reaffirm their respective liability to Lender thereunder. In the event of any inconsistency between this Agreement and the terms of the Loan Documents, this Agreement shall govern.

 B. Borrower and Guarantor hereby jointly and severally agree to pay all costs and expenses incurred by Lender in connection
with the execution and administration of this Agreement and the modification of the Loan Documents including, but not limited to, all appraisal costs, title insurance costs, legal fees incurred by Lender and filing fees. 

C. Any default by Borrower or Guarantor in the performance of their respective obligations herein contained shall constitute a default
under the Loan Documents and shall allow Lender to exercise all of its remedies set forth in the Loan Documents. 
 D. Lender
does not, by its execution of this Agreement, waive any rights it may have against any person not a party to this Agreement. 

E. In case any of the provisions of this Agreement shall for any reason be held to be invalid, illegal or unenforceable, such invalidity,
illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 

F. This Agreement and the Loan Documents shall be governed and construed according to the laws of the State of Texas (without regard to
any conflict of laws principles) and the applicable laws of the United States. 
 G. This Agreement shall be binding upon and
inure to the benefit of Lender, Borrower, Guarantor and their respective successors, assigns and legal representatives. 
 H.
Each of Borrower and Guarantor hereby acknowledges and agrees that it has entered into this Agreement of its own free will and accord and in accordance with its own judgment after advice of its own legal counsel, and states that it has not been
induced to enter into this Agreement by any statement, act or representation of any kind or character on the part of the parties hereto, except as expressly set forth in this Agreement. 

I. This Agreement may be executed in multiple counterparts, each of which shall constitute an original instrument, but all of which shall
constitute one and the same agreement. 
 J. Except as modified herein, all other terms, conditions and provisions of Loan
Documents shall remain in full force and effect as of the date thereof and Borrower and Guarantor acknowledge and reaffirm its liability to Lender thereunder. 

  

			
	MODIFICATION AGREEMENT	  	PAGE 5

  
 K. Guarantor hereby
expressly agrees (a) to the continuing validity of the Guaranty and all duties and obligations thereunder, (b) that its liability under the Guaranty shall not be reduced, altered, limited, lessened or in any way affected by the execution
and delivery of this Agreement by the parties hereto, and (c) that the Guaranty shall remain in full force and effect and enforceable in accordance with its terms 
 [Signature Page Follows.] 

  

			
	MODIFICATION AGREEMENT	  	PAGE 6

  

 

 

 EXECUTED as of the day and year first above written. 

 

			
	LENDER:
	
	 THE FROST NATIONAL BANK,
 a national banking association

		
	By:	 	 /s/ Martha Martin

	Name:	 	Martha Martin
	Title:	 	Senior Vice President

  

					
	THE STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF DALLAS	  	§	  	

 This instrument was acknowledged before me on the 10th day of September, 2010, by Martha Martin,
Senior Vice President of THE FROST NATIONAL BANK, a national banking association, on behalf of said banking association. 
  

	
	 /s/ Theresa Pierce

	Notary Public in and for the State of Texas

 When
Recorded, Return To: 
 THE FROST NATIONAL BANK 
 P.O. Box 1600 
 San Antonio, Texas 78296 
 Attention: Loan No. 3528403-9006 
 Loan Documentation Department, RB-2 

  

			
	MODIFICATION AGREEMENT	  	SIGNATURE PAGE 1

  
 
			
	BORROWER:
	
	 U.S. HOME SYSTEMS, INC.,
 a Delaware corporation

		
	By:	 	 /s/ Robert A. DeFronzo

	Name:	 	Robert A. DeFronzo
	Title:	 	Secretary, Treasurer and CFO
	
	GUARANTOR:
	
	 U.S. REMODELERS, INC.,
 a Delaware corporation

		
	By:	 	 /s/ Robert A. DeFronzo

	Name:	 	Robert A. DeFronzo
	Title:	 	Secretary, Treasurer and CFO

  

					
	THE STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF Denton	  	§	  	

 This instrument was acknowledged before me on the 9th day of September, 2010, by Robert A.
DeFronzo, CFO of U.S. Home Systems, Inc., a Delaware corporation, on behalf of said corporation. 
  

	
	 /s/ Donna K. Stevens

	Notary Public in and for the State of Texas

  

					
	THE STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF Denton	  	§	  	

 This instrument was acknowledged before me on the 9th day of September, 2010, by Robert A.
DeFronzo, Chief Financial Officer of U.S. Remodelers, Inc., a Delaware corporation, on behalf of said corporation. 
  

	
	 /s/ Donna K. Stevens

	Notary Public in and for the State of Texas

  

			
	MODIFICATION AGREEMENT	  	SIGNATURE PAGE 2

  

 

 

 EXHIBIT A 
 TO 
 MODIFICATION, RENEWAL AND EXTENSION AGREEMENT 

[To be inserted or attached] 

  

			
	MODIFICATION AGREEMENT	  	EXHIBIT A - PAGE 1Revolving Promissory Note

  
 Exhibit 10.64

 

 

 REVOLVING PROMISSORY NOTE 

 

			
	$2,000,000.00	  	September 2, 2010

 For
value received, U.S. HOME SYSTEMS, INC., a Delaware 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 TWO MILLION AND 00/100 DOLLARS ($2,000,000.00), 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 Second Amended and Restated Loan Agreement dated December 19, 2008, 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 2nd day of each and every calendar month, beginning October 2, 2010, and continuing regularly and monthly thereafter until December 2, 2011, 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 the Applicable Rate (as defined below), 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, the term “Applicable Rate” means a per
annum rate equal to the lesser of (i) a rate equal to the Prime Rate, plus one and one quarter percent (1.25%) per annum, with said rate to be adjusted on the first business day of each calendar month to reflect any change in said Prime
Rate at such time or (ii) the highest rate permitted by applicable law. 

  

			
	REVOLVING PROMISSORY NOTE	 	Page 1

  
 As used herein, for
any date, the “Prime Rate” shall mean the “Prime Rate” of interest then most recently published in The Wall Street Journal, or if such rate is not so published, such other comparable index selected by Lender. The Prime
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 $2,000,000.00. 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, as 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 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. 

  

			
	REVOLVING PROMISSORY NOTE	 	Page 2

  
 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 bolder 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
Second Amended and Restated Security Agreement dated as of December 19, 2008 (as amended or modified from time to time), by and between Borrower and Lender, covering certain collateral as more particularly described therein; and 

(b) a Second Amended and Restated Security Agreement dated as of December 19, 2008 (as amended or modified from time
to time) by and between U.S. Remodelers, Inc., a Delaware corporation, and Lender, covering certain collateral 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.” lie holder of this Note is entitled to the benefits and security provided in the Loan Documents, 

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. 

  

			
	REVOLVING PROMISSORY NOTE	 	Page 3

  
 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 is
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 payable, 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 and Extension. 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 December 30, 2009, executed and delivered by Borrower and payable to the order of Lender in the original principal amount of
$2,000,000. 
 [Signature Page Follows.] 

  

			
	REVOLVING PROMISSORY NOTE	 	Page 4

  
 
			
	BORROWER:
	
	 U.S. HOME SYSTEMS, INC.,
 A Delaware corporation

		
	By:	 	 /s/ Robert A. DeFronzo

		 	Name: Robert A. DeFronzo
		 	Title: Secretary, Treasurer and CFO

  

			
	REVOLVING PROMISSORY NOTE	 	Signature Page

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