Document:

Exhibit 10.16

 

HOME SOLUTIONS OF AMERICA, INC.

1998 STOCK OPTION PLAN

STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in
the Plan (defined below) shall have the same defined meanings in this Stock
Option Agreement (this "Stock Option Agreement"), which is
executed this 2nd day of December 2003.

I.          NOTICE
OF STOCK OPTION GRANT

            The
undersigned Optionee has been granted an Option to purchase Common Stock of
Home Solutions of America, Inc., a Delaware
corporation (the "Company"), subject to the terms and conditions of the Company's 1998 Stock Option
Plan (the "Plan") and this Stock Option Agreement, as follows:

Optionee                                              RICK
J. O'BRIEN                 

Date of Grant                                       December 2, 2003

Vesting Commencement Date   December 2, 2003

Exercise Price per Share                       $2.00

Total Number of Shares Granted          250,000

Total Exercise Price                              $500,000

Type of Option:                                    
X        Incentive Stock Option

            Non-Qualified Stock Option

Term/Expiration Date:                          Tenth
Anniversary of Date of Grant

            Vesting
Schedule:         The Option shall
become exercisable as to 1/36th of the Shares subject to the Option
on the last day of each month following the Date of the Grant, subject to
Optionee's continued status as a Service Provider on each such date.  The
Shares shall vest immediately (i) if a Change of Control of the Company shall
occur, or (ii) if the Optionee's employment under his Executive Employment
Agreement dated July 10, 2003, is terminated without "Cause" or with "Good Reason",
as such terms are defined under the Executive Employment Agreement.

Termination Period:  The vested portion of this Option shall be exercisable for 90 days
after Optionee ceases to be a Service Provider.  Upon Optionee's death or
disability, the vested portion of this Option shall be exercisable for the duration of the time period provided for in
the Plan.  In no event may Optionee exercise this Option after the
Term/Expiration Date as provided above.

 

 

 

II.               

AGREEMENT

            1.         Grant
of Option.

                        (a)        The
Administrator hereby grants to the Optionee an option (the "Option")
to purchase the number of Shares set forth herein, at the per Share exercise
price set forth herein (the "Exercise Price"), and subject to the
terms and conditions of the Plan, which is incorporated herein by reference. 
In the event of a conflict between the terms and conditions of the Plan and
this Stock Option Agreement, the terms and conditions of the Plan shall
prevail. 

                        (b)        If
designated as an Incentive Stock Option ("ISO"), the Option is
intended to qualify as an Incentive Stock Option as defined in Section 422
of the Code.  Nevertheless, to the extent that it exceeds the $100,000 rule of
Code Section 422(d), the Option shall be treated as a Non-Qualified Stock
Option ("NSO").

            2.         Exercise
of Option.

                        (a)        Right
to Exercise.  The Option shall be exercisable for the duration of its term and
in accordance with the Vesting Schedule set forth herein, subject to any applicable
provisions of the Plan and any other applicable provisions of this Stock Option
Agreement.

                        (b)        Method
of Exercise.  The Option shall be exercisable by delivery of an exercise
notice in the form attached as Exhibit A (the "Exercise Notice"),
which shall state the Optionee's election to exercise the Option, the number of
Shares with respect to which the Option is being exercised (the "Exercised
Shares"), and such other representations and agreements as may be
required by the Company. The Exercise Notice shall be accompanied by payment of
the aggregate Exercise Price as to all Exercised Shares.  The Option shall be
deemed exercised upon receipt by the Company of such fully executed Exercise
Notice accompanied by the aggregate Exercise Price.

            3.         Optionee's
Representations.  In the event the Shares have not been registered under
the Securities Act of 1933, as amended (the "Securities Act"), at
the time this Option is exercised, the Optionee shall, if required by the
Company, concurrently with the exercise of all or any portion of this Option,
deliver to the Company his or her Investment Representation Statement in the
form attached hereto as Exhibit B.

            4.         Lock-Up Period.  Optionee hereby
agrees that, if so requested by the Company or any representative of the
underwriters (the "Managing Underwriter") in connection with any
registration of the offering of any securities of the Company under the
Securities Act, Optionee shall not sell or otherwise transfer any Shares
or other securities of the Company during the 180-day period (or such other
shorter or longer period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the "Market
Standoff Period") following the effective date of a registration
statement of the Company filed under the Securities Act (excluding a
registration of securities on Form S-8 or a successor form).  The Company may
impose stop-transfer instructions with respect to securities subject to the
foregoing restrictions until the end of such Market Standoff Period.

2

 

            5.         Method
of Payment.  Payment of the aggregate Exercise Price shall be by any of the
following, or a combination thereof, at the election of the Optionee

                        (a)        cash
or check;

                        (b)        Shares
surrendered to the Company in a Cashless Exercise; or

                                (c)           surrender
of other Shares that, (i) in the case of Shares acquired upon exercise of an
option, have been owned by the Optionee for more than six months on the date of
surrender, and (ii) have an
aggregate Fair Market Value as of
the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

            6.         Restrictions
on Exercise.  The Option may not be exercised unless the issuance of such
Shares upon such exercise or the method of payment of consideration for such
shares would constitute a violation of any Applicable Law.

            7.         Non-Transferability
of Option.  The Option may not be transferred in any manner other than by
will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by Optionee.  The terms of the Plan and this Stock
Option Agreement shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

            8.         Term
of Option.  The Option may be exercised only within the term set forth
herein, and may be exercised during such term only in accordance with the Plan
and the terms of this Stock Option Agreement.

            9.         Entire
Agreement; Governing Law.  The Plan is incorporated herein by reference.
The Plan and this Stock Option Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof, and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by a writing signed by the Company and Optionee. 
This Stock Option Agreement is governed by the internal substantive laws but
not the choice of law rules of the State of Delaware.  Venue for all disputes arising hereunder shall be
proper exclusively in Harris County, Texas.

            10.       No
Guarantee of Continued Service.  OPTIONEE ACKNOWLEDGES AND AGREES THAT
THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY
CONTINUING AS A SERVICE PROVIDER IN ACCORDANCE WITH THE OPTIONEE'S EMPLOYMENT
AGREEMENT, IF ANY, OR OTHERWISE (NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).  OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR
THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY
WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME IN ACCORDANCE WITH THE
OPTIONEE'S EMPLOYMENT AGREEMENT, IF ANY, OR OTHERWISE, AT ANY TIME, WITH OR
WITHOUT CAUSE.

3

 

 

            11.       Optionee
acknowledges receipt of a copy of the Plan and represents that he or she is
familiar with the terms and provisions thereof, and hereby accepts the Option and
agrees to all of the terms and provisions hereof related thereto.  Optionee has
reviewed the Plan and this Stock Option Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Stock Option
Agreement and fully understands all provisions of this Stock Option Agreement. 
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Administrator upon any questions arising under the
Plan or this Stock Option Agreement.  Optionee further agrees to notify the
Company upon any change in the residence address indicated below.

            12.       The
Company hereby agrees that, on or before March 31, 2004, the Company will either (i) register
all shares available for issuance under the Plan, or (ii) enter into a
registration rights agreement with Optionee under the same terms as that
Registration Rights Agreement between the Company and Merritt Computer
Products, L.P. dated July
 31, 2003.  

"COMPANY"                                                            "OPTIONEE"

HOME
SOLUTIONS OF AMERICA, INC.

By:                                                                                                                                                      

Name:
                                                                         Rick
J. O'Brien

Title:
                                                                

 Address:

5565 Red Bird Center Drive

Suite 150

Dallas,
 TX
 75237

 

4

EXHIBIT A

1998
STOCK OPTION PLAN

EXERCISE NOTICE

 

Home
Solutions of America, Inc.

11850
  Jones Road

Houston, Texas 77070

ATTN:  Secretary

1.   Exercise of Option.  Effective as of
today, _______________, 20___, the undersigned ("Optionee")
hereby elects to exercise Optionee's option to purchase ________________ shares
(the "Shares") of the Common Stock of Home Solutions of America, Inc. (the "Company")
under and pursuant to the 1998 Stock
Option Plan (the "Plan") and the Stock Option Agreement dated December 2, 2003 (the
"Stock Option Agreement")
with the execution of this Exercise Notice (this "Exercise Notice").

2.   Delivery of Payment.  Optionee herewith
delivers to the Company the full purchase price of the Shares, as set forth in
the Stock Option Agreement.

3.   Representations of Optionee.  Optionee
acknowledges that Optionee has received, read and understood the Plan and the
Stock Option Agreement and agrees to abide by and be bound by their terms and
conditions.

4.   Rights as Stockholder.  Until the issuance
of the Shares (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a stockholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option.  The Shares shall be
issued to the Optionee as soon as practicable after the Option is exercised. 
No adjustment shall be made for a dividend or other right for which the record
date is prior to the date of issuance except as provided in Section 13 of the
Plan.

5.   Tax Consultation.  Optionee understands
that Optionee may suffer adverse tax consequences as a result of Optionee's
purchase or disposition of the Shares.  Optionee represents that Optionee has
consulted with any tax consultants Optionee deems advisable in connection with
the purchase or disposition of the Shares and that Optionee is not relying on
the Company for any tax advice.

6.   Restrictive Legends and Stop-Transfer Orders.

(a)  Legends.  Optionee understands and agrees
that the Company shall cause the legends set forth below or legends
substantially equivalent thereto, to be placed upon any certificate(s)
evidencing ownership of the Shares together with any other legends that may be
required by the Company or by state or federal securities laws:

 

A-1

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL SATISFACTORY TO
THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
HYPOTHECATION IS IN COMPLIANCE THEREWITH.

(b)  Stop-Transfer Notices.  Optionee agrees
that, in order to ensure compliance with the restrictions referred to herein,
the Company may issue appropriate "stop transfer" instructions to its transfer
agent, if any, and that, if the Company transfers
its own securities, it may make appropriate notations to the same effect
in its own records.

7.   Successors and Assigns.  This Exercise
Notice shall be binding upon Optionee and his or her heirs, executors, administrators,
successors and assigns.

8.   Interpretation.  Any dispute regarding the
interpretation of this Agreement shall be submitted by Optionee or by the
Company forthwith to the Administrator, which shall review such dispute at its
next regular meeting.  The resolution of such a dispute by the Administrator
shall be final and binding on all parties.

      

Submitted
by:                                                               Accepted
by:

OPTIONEE:                                                               HOME
SOLUTIONS OF AMERICA, INC. 

_____________________________                          By:                                                      

Rick
J. O'Brien                                                            Name:                                                 

                                                                                    Title:                                                     

A-2

 

EXHIBIT B

INVESTMENT REPRESENTATION
STATEMENT

 

OPTIONEE:      Rick J. O'Brien 

COMPANY:     Home
Solutions of America, Inc.

SECURITY:      Common
Stock

AMOUNT:        $_________________________ 

DATE:               __________________________

            In
connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

1.   Optionee is aware of the Company's business
affairs and financial condition and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision to acquire the
Securities.  Optionee is acquiring these Securities for investment for
Optionee's own account only and not with a view to, or for resale in connection
with, any "distribution" thereof within the meaning of the Securities Act of
1933, as amended (the "Securities Act").

2.   Optionee acknowledges and understands that the
Securities constitute "restricted securities" under the Securities Act and have
not been registered under the Securities Act in reliance upon a specific
exemption therefrom, which exemption depends upon, among other things, the bona
fide nature of Optionee's investment intent as expressed herein.  In this
connection, Optionee understands that, in the view of the Securities and
Exchange Commission, the statutory basis for such exemption may be unavailable
if Optionee's representation was predicated solely upon a present intention to
hold these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future.  Optionee further understands that the Securities must be
held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available.  Optionee further
acknowledges and understands that the Company is under no obligation to
register the Securities.  Optionee understands that the certificate evidencing
the Securities will be imprinted with a legend that prohibits the transfer of
the Securities unless they are registered or such registration is not required
in the opinion of counsel satisfactory to the Company and any other legend
required under applicable state securities laws.

3.   Optionee is familiar with the provisions of
Rule 144, promulgated under the Securities Act, which, in substance,
permits limited public resale of "restricted securities" acquired, directly or
indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions.  The Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which
requires the resale to occur not less than one year after the later of the
date the Securities were sold by the Company or the date the Securities were
sold by an affiliate of the Company, within the meaning of Rule 144, and
the resale must take place in a manner described in (1) below; and, in the case
of acquisition of the Securities by an affiliate, or by a non-affiliate who
subsequently holds the Securities less than two years, the satisfaction of the
following conditions: (1) the resale is made through a broker in an unsolicited
"broker's transaction" or in transactions directly with a market maker (as
said term is defined under the Securities Exchange Act of 1934), (2) the
availability of certain public information about the Company, (3) the amount of
Securities being sold during any three-month period not exceeding the limitations
specified in Rule 144(e), and (4) the timely filing of a Form 144.

B-1

 

 

4.   Optionee further understands that in the event
all of the applicable requirements of Rule 144 are not satisfied,
registration under the Securities Act or some other registration exemption will
be required; and that the Staff of the Securities and Exchange Commission has
expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that
such persons and their respective brokers who participate in such transactions
do so at their own risk.  Optionee understands that no assurances can be given
that any such other registration exemption will be available in such event.

"Optionee"

___________________________________

Rick J. O'Brien

Date:______________________________

 

 

 

B-2Exhibit 10.17

  

SERVICES AGREEMENTAND MUTUAL RELEASE

This Services Agreement and Mutual Release ("Agreement")
is entered into as of December 8, 2003 (the "Effective Date") by and among
Home Solutions of America, Inc., a Delaware corporation ("Home Solutions" or
"Company") located at 11850 Jones Rd Houston, TX 77070, Gus Investments, LLC, a Texas limited liability corporation
("Consultant") located at 2927 Robinhood St Houston, TX 77005, and Andrew
White, an individual resident of Texas ("White").

            In consideration of the mutual promises
contained herein, Consultant and Home Solutions agree as follows:

	Agreement and Term.  Commencing on
     the Effective Date and continuing until the six (6) month anniversary of
     the Effective Date, Consultant will provide to Home Solutions, or its
     designated affiliate, and Home Solutions will receive from Consultant,
     certain services as further described herein, all upon and subject to the
     terms and conditions specified in this Agreement. 

	Scope of Services.  During the term
     of this Agreement, and in accordance with guidance provided by Home
     Solutions, Consultant will provide acquisition consulting, which shall
     include assistance with locating, negotiating, financing and closing
     potential acquisitions. Consultant will also provide assistance with the
     2003 financial audit of Home Solutions. 

	Payment for Services.  For services
     provided in Section 2 and hereunder, Consultant will receive:

	
  For two (2) years beginning March 1, 2004
      through March
       1, 2006:

                                                              
i.     
Health
insurance benefits for Andrew White and his family as it existed when he was
previously employed by Home Solutions in 2001 thru 2003 and at similar
deductible, cost and coverage amounts

                                                            
ii.     
Vehicle
allowance up to $950 per month or usage of the Company owned BMW vehicle and
reimbursement of any vehicle-related expenses

	
  Full vesting of White's outstanding stock
      options to purchase shares of Home Solutions, totaling 420,000 shares. 
      These options shall be amended to be exercisable anytime up to ten (10)
      years from their respective grant dates.  Company agrees to register the
      shares of common stock underlying these options in a form S-8 registration
      statement (or other appropriate filing) within one hundred eighty (180)
      days of the Effective Date.

	For acquisition assistance for a
      successful closing of the acquisition of Southern Exposure, Consultant
      shall receive:

                                                            
i.     
$225,000
in cash, paid at closing or no later than March 19, 2004

                                                           
ii.     
$97,500
in cash, paid monthly in advance starting March 1, 2004 at the monthly rate of
$16,250 per month for six months

                                                          
iii.     
$4,500
in cash, paid monthly in advance starting March 1, 2004 at the monthly rate of
$750 per month for six months

                                                          
iv.     
In
the event White dies during this payment period, these payments will continue
to be paid to Consultant

	For assistance with the acquisition of RAM
      Home Warranty, COIT, and Residential Capital (the "Identified
      Acquisitions"), Consultant shall receive: 

  

  
  

 

                                                         
i.     
$125,000
in cash per closing of each of the Identified Acquisitions ("Success Fee"),
provided that such closing occurs on or before March 31, 2007, less any amounts
previously paid to Consultant under Section 2(c)(ii) above

                                                        
ii.     
In
the event Home Solutions pays Consultant monthly fees for acquisition
consulting during the calendar year that the closing of any of the Identified Acquisition
occurs, the amount of the total monthly fees paid through the date of the
acquisition will be deducted from the Success Fee

                                                         
iii.     
For
future acquisitions identified solely by Consultant prior to the termination of
this Agreement, Consultant will receive a minimum fee of $100,000 per closing. 
These future success fees will also be net of any previous monthly fees paid to
Consultant during the calendar year to date.

	In the event that Home Solutions requests
      Consultant's assistance in negotiating or closing an Identified Acquisition,
      or other services to be defined and requested by Home Solutions,
      Consultant will receive $8,500 per month payable monthly in advance. 
      These monthly fees would qualify as deductible from any Success Fee in
      any one calendar year.

	Confidentiality.  Any and all
     confidential information or materials received by Consultant from Home
     Solutions (hereinafter referred to as "Confidential Information")
     is the exclusive property of Home Solutions.  Confidential Information
     includes all information or materials that are either confidential,
     proprietary or otherwise not generally available to the public, whether
     provided to Consultant before or after the date of this Agreement. 
     Consultant acknowledges and agrees that Confidential Information
     constitutes trade secrets and the proprietary and confidential information
     of Home Solutions and that Confidential Information is and will remain the
     property of Home Solutions during the term and following the termination
     of this Agreement. Consultant will exercise all reasonable precautions to
     prevent unauthorized access by third parties to the Confidential
     Information.  Upon termination or expiration of this Agreement, Consultant
     will promptly return or destroy, at Home Solutions' option, all of the
     Confidential Information, including any files, notes, evaluations,
     projections or any other work product derived therefrom, and will provide
     Home Solutions with written certification of such return or destruction.
     The provisions of this Section 4 will survive the term or termination of
     this Agreement for any reason.  Consultant and White each
     acknowledges and agrees that it would be illegal to trade securities of
     Home Solutions while Consultant or White possesses material inside
     information about the Company.

	Tax Obligations.  Consultant shall
     be classified as an independent contractor of the Company, and White shall
     serve the Company only through Consultant, and, as such, Home Solutions
     will not make deductions from any fees to be paid to Consultant hereunder
     for federal, state or local income taxes or for social security taxes,
     unless otherwise required to do so by governmental regulation.  Consultant
     will be responsible for and will withhold and/or pay any federal, state or
     local tax with respect to compensation, wages or other remuneration for
     any services to be performed pursuant to this Agreement and will
     indemnify, defend and hold harmless Home Solutions from and against all
     such taxes and will comply with all governmental regulations with respect
     thereto, including the filing of all necessary reports and returns

 

 

	Termination Upon Notice.  After six months
     from the Effective Date, Home Solutions or Consultant may terminate this
     Agreement for any reason without penalty upon thirty (30) days prior
     written notice; provided, however, that if Home Solutions terminates this
     Agreement and any fees described in Section 3 above remain unpaid, Home
     Solutions shall remain obligated to pay Consultant such fees.  The
     Confidentiality section of this Agreement and mutual releases will survive
     the termination of this Agreement.

	Binding Nature and Assignment.  This Agreement
     will be binding on Consultant and Home Solutions and their successors and
     assigns, but Consultant may not assign this Agreement without the prior
     written consent of Home Solutions, which consent shall not be unreasonably
     withheld.

	Severability.  If any provision
     of this Agreement is declared or found to be illegal, unenforceable or
     void, then both parties will be relieved of all obligations arising under
     such provision, but only to the extent that such provision is illegal,
     unenforceable or void, it being the intent and agreement of the parties
     that this Agreement will be deemed amended by modifying such provision to
     the extent necessary to make it legal and enforceable while preserving its
     intent or, if that is not possible, by substituting therefor another
     provision that is legal and enforceable and achieves the same objective. 
     If this Agreement is not affected by such declaration or finding and is
     capable of substantial performance, then each provision not so affected
     will be enforced to the extent permitted by law

	Waiver.  No delay or omission by either
     party to exercise any right or power accruing upon any noncompliance or
     default by the other party with respect to any of the terms of this
     Agreement will impair any such right or power or be construed to be a
     waiver thereof.  A waiver by either of the parties of any of the
     covenants, conditions, or agreements to be performed by the other will not
     be construed to be a waiver of any succeeding breach thereof, or of any
     other covenant, condition or agreement herein contained.  All remedies
     provided for in this Agreement will be cumulative and in addition to and
     not in lieu of any other remedies available to either party at law, in
     equity or otherwise

	Entire Agreement.  This Agreement
     constitutes the entire agreement between the parties hereto with respect
     to the subject matter hereof.  There are no understandings or agreements
     relative hereto which are not fully expressed herein.  No change, waiver,
     or discharge hereof will be valid unless in writing and executed by the
     party against whom such change, waiver, or discharge is sought to be
     enforced

	Governing Law.  This Agreement
     will be governed by and construed in accordance with the laws, other than
     choice of law rules, of the State of Texas.  Venue for any action arising hereunder
     shall be proper exclusively in Harris County, Texas.

 

	Termination of
     Executive Employment Agreement.  Upon the execution
     of this Agreement, that certain Executive Employment Agreement (so called
     herein), dated March 15, 2003, between White and
     Home Solutions, shall be terminated, and shall hereafter be null and void
     and have no legal effect.

	Stock Restrictions. 
     The Company agrees to assist White with removing the restrictive legends
     on any stock certificates representing shares of the Company's common
     stock, to the extent such removal is allowed by the federal securities
     laws, as interpreted by the Company's counsel.

	Release by the Company.  In consideration
     for the execution of, and the covenants contained within, this Agreement,
     the Company, together with any person or entity claiming through the
     Company, hereby releases, acquits, and forever discharges the Consultant
     and White, and its and his officers, managers, members, heirs, assigns,
     devisees, legatees, executors, attorneys, and representatives (such
     persons and entities being hereinafter referred to as a "Consultant
     Released Party"), from any and all debts, claims, obligations
     (excluding the obligations of the Consultant under this Agreement),
     liabilities, demands, damages, actions, or causes of every nature and kind
     whatsoever, monetary or otherwise, whether known or unknown, in law or
     inequity, now existing or arising in the future, for, in connection with,
     attributable to, or arising out of any action, omission, occurrence,
     event, or dealings, directly or indirectly, with, between, or among the
     parties hereto and/or any the Consultant Released Party prior to the date
     of this Agreement.

	Release by the Consultant and White.  In consideration
     for the execution of, and the consideration paid in accordance with, this
     Agreement, the Consultant and White, together with any person or entity
     claiming through the Consultant or White, each hereby releases, acquits,
     and forever discharges the Company and its subsidiaries, and any
     predecessors or successors in interest thereof, its officers, directors,
     stockholders, employees, agents, attorneys, and representatives (such
     persons and entities being hereinafter referred to as a "Company
     Released Party"), from any and all debts, claims, obligations (including
     but not limited to those obligations under the Executive Employment
     Agreement, and excluding the obligations of the Company under this
     Agreement), liabilities, demands, damages, actions, or causes of every
     nature and kind whatsoever, monetary or otherwise, whether known or
     unknown, in law or inequity, now existing or arising in the future, for,
     in connection with, attributable to, or arising out of any action,
     omission, occurrence, event, or dealings, directly or indirectly, with,
     between, or among the parties hereto and/or any Company Released Party
     prior to the date of this Agreement.

	Covenant Not to Sue.  Each party, by
     executing this Agreement, hereby covenants that he or it will not bring
     any action or proceeding, or cause any entity owned, affiliated, or
     controlled by her or it to bring any action or proceeding, or assist in
     the prosecution of any action or proceeding by any person purporting to
     claim through her or it in any court or tribunal seeking any kind of
     relief, either monetary or equitable, with respect to any claim released
     herein.

 

 

IN WITNESS WHEREOF, Home
Solutions, Consultant, and White have signed and delivered this Agreement as of
the date first set forth above.

 

Home Solutions of America, Inc                               Gus
Investments, LLC                                  

By:                                                                               By:                                                                  

Name:  Rick J. O'Brien                                                 Name:  Andrew
White

Title:     CFO                                                                Title: 
Manager  

                                                            

_______________________________

Andrew
White, Individually

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