PROMISSORY NOTE

EX-2.3 4 ex2-3.htm Exhibit 2.3

PROMISSORY NOTE

$2,000,000

Lee County, Florida

January 3, 2005

FOR VALUE RECEIVED, the undersigned, CBR Acquisition Corp., a Florida corporation (the "Maker"), hereby unconditionally promises to pay to the order of Anthony Leeber, Jr., an individual resident of the State of Florida (the "Lender") or his assigns, in lawful money of the United States of America and in immediately available funds, the principal amount of TWO MILLION AND 00/100s DOLLARS ($2,000,000.00), together with interest accrued thereon at a rate of seven percent (7.0%) per annum.

This Note shall be repaid as follows: payments of interest only shall commence on March 31, 2005, and continue on the last day of each calendar quarter thereafter, until March 31, 2010, at which time all principal and interest due under this Note shall be paid.

The makers, signers, sureties, guarantors, and endorsers of this Note severally waive valuation and appraisal, demand, presentment, notice of dishonor, notice of intent to demand or accelerate payment hereof, notice of demand, notice of acceleration, diligence in collecting, grace, notice, and protest. If this Note is not paid when due, the Maker agrees to pay all costs of collection, including, but not limited to, reasonable attorneys' fees and all expenses incurred by the holder hereof on account of any such collection, whether or not suit is filed hereon.

The Maker shall have no right of setoff, counterclaim, recoupment or other deduction with respect to the payment required hereunder, except for the right, at the Maker's option, to offset payments due to Lender under this Note by (i) any unpaid indemnification obligation of Lender set forth in Article V, or (ii) price adjustment set forth in Section 1.5, of that certain Reorganization Agreement and Plan of Merger dated effective as of the date hereof among Maker, Lender, and certain other parties.

Payment of this Note is guaranteed by Home Solutions of America, Inc., the parent of Maker ("HSOA"), pursuant to that certain Guaranty dated as of the date hereof.

            The Lender may, upon written notice and delivery of the original copy of this Note to HSOA, elect to convert all or any portion of the outstanding balance under this Note (a replacement note in the applicable amount shall be issued to the Lender if this Note is only partially converted), including any accrued but unpaid interest, into shares of common stock of HSOA, at a conversion price of $1.65 per share (as such conversion price shall be adjusted appropriately from time-to-time as a result of any stock split, reverse split, stock dividend, recapitalization, subdivision, combination, or similar transaction of HSOA).  This provision of this Note shall not be assignable by the Lender without the prior written consent of HSOA.

The Maker may prepay any portion or all of this Note without penalty at any time.  Any prepayment will be applied first against accrued but unpaid interest and then against the outstanding principal balance.



Interest on the indebtedness evidenced by this Note is hereby expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of this Note or otherwise, shall the interest contracted for, charged, or received by the Lender exceed the highest lawful rate permissible under applicable law. If any circumstances whatsoever shall involve transcending the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstances the Lender shall ever receive anything of value as interest or deemed interest by applicable law under this Note or any other document evidencing, securing, or pertaining to the indebtedness evidenced hereby, such amount that would be excessive interest shall be applied to the reduction of the principal amount owing under this Note or on account of any other indebtedness of the Maker to the Lender, and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal of this Note and such other indebtedness, such excess shall be refunded to the Maker. In determining whether or not the interest paid or payable with respect to any indebtedness of the Maker to the Lender, under any specific contingency, exceeds the highest lawful rate, the Maker and the Lender shall, to the maximum extent permitted by applicable law, (a) characterize any non-principal payment as an expense, fee, or premium rather than as interest; (b) exclude voluntary prepayments and the effects thereof; (c) amortize, prorate, allocate, and spread the total amount of interest throughout the full term of such indebtedness so that the actual rate of interest on account of such indebtedness does not exceed the highest lawful rate permitted by applicable law; and/or (d) allocate interest between portions of such indebtedness, to the end that no such portion shall bear interest at a rate greater than the highest lawful rate permitted by applicable law. The terms and provisions of this paragraph shall control and supersede every other conflicting provision of this Note.

        THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA.

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EXECUTED effective as of the date first set forth above.

MAKER:

  

CBR ACQUISITION CORP.

By:___________________________

      Rick J. O'Brien

     Chief Financial Officer

   

   

LENDER:

    

    

                                                          

Anthony Leeber, Jr.

 

 

 

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