SECOND AMENDED AND RESTATED SECURITY AGREEMENT
THIS SECOND AMENDED AND RESTATED SECURITY AGREEMENT (“ Agreement ”) is made as of December 19, 2008,
by U.S. HOME SYSTEMS, INC., a Delaware corporation (hereinafter called “ Debtor ”, whether one or more), whose principal
place of business and chief executive office, as applicable (as those terms are used in the Code) is located at 405 State Highway,
121 Bypass, Suite 250, Lewisville, Denton County, 75067, whose tax identification number is #75922239, and organization
number is 3340657 in favor of THE FROST NATIONAL BANK, a national banking association (“Secured Party”), whose
address is P.O. Box 1600, San Antonio, Texas 78296. Debtor hereby agrees with Secured Party as follows:
1. Definitions . As used in this Agreement, the following terms shall have the meanings indicated below:
(a) The term “ Obligor ” shall mean Debtor.
(b) The term “ Code ” shall mean the Texas Business and Commerce Code as in effect in the State of Texas on the date
of this Agreement or as it may hereafter be amended from time to time.
(c) The term “ Collateral ” shall mean all of the personal property of Debtor as set forth below (as indicated), wherever
located, and now owned or hereafter acquired:
The term Collateral, as used herein, shall also include all PRODUCTS and PROCEEDS of all of the foregoing (including
(i) All “accounts”, as defined in the Code (including health-care-insurance receivables), together with any and all books
of account, customer lists and other records relating in any way to the foregoing (including, without limitation,
computer software, whether on tape, disk, card, strip, cartridge or any other form), and in any case where an account
arises from the sale of goods, the interest of Debtor in such goods.
(ii) All “inventory” as defined in the Code, and all records relating in any way to the foregoing (including, without
limitation, any computer software, whether on ta