Document:

Exhibit 10.1

 

 

THIS NOTE AND THE COMMON SHARES
ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  THIS NOTE
AND THE COMMON SHARES ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATES
SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO HOME
SOLUTIONS OF AMERICA, INC.  THAT SUCH REGISTRATION IS NOT REQUIRED.

SECURED CONVERTIBLE MINIMUM BORROWING NOTE SERIES B

FOR VALUE RECEIVED, HOME SOLUTIONS OF AMERICA, INC.  a Delaware
corporation (the "Borrower") promises to pay to LAURUS MASTER FUND,
LTD., c/o Ironshore Corporate Services Ltd., P.O. Box 1234 G.T., Queensgate
House, South Church Street, Grand Cayman, Cayman Islands, Fax: 345-949-9877
(the "Holder") or its registered assigns, on order, the sum of ONE
MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000), of, if different, the
aggregate principal amount of all "Loans" (as such term is defined in the
Security Agreement referred to below), together with any accrued and unpaid
interest hereon, on January 22, 2006 (the "Maturity Date").

Capitalized terms used herein without definition shall have the
meanings ascribed to such terms in the Security Agreement between Borrower and
the Holder dated as of January 22, 2004 (as amended, modified and supplemented
from time to time, the "Security Agreement").

The following terms shall apply to this
Minimum Borrowing Note Series B(the "Note"):

ARTICLE I

INTEREST

1.1       Interest Rate and Payments.  Subject to Sections 5.3
and 6.7 hereof, interest payable on this Note shall accrue at a rate per annum
equal to the "prime rate" published in The Wall Street Journal from time
to time, plus two and one half percent (2.5%) (the "Contract Rate"). 
The Contract  Rate shall be increased or decreased as the case may be for each
increase or decrease in the Prime Rate in an amount equal to such increase or
decrease in the Prime Rate; each change to be effective as of the day of the
change in such rate in accordance with the terms of the Security Agreement.
Subject to the immediately following sentence, the Contract Rate shall not be
less than six and one half percent (6.5 %).  The Contract Rate shall be
adjusted as follows: if (i) the Company shall have registered the shares of the
Company's common stock underlying the conversion of this Note on a registration
statement declared effective by the Securities Exchange Commission, and (ii)
the volume weighted average price of the Common Stock as reported by Bloomberg,
L.P. on the principal market for any of the ten (10) trading days immediately
preceding a Interest Payment Date (defined below) exceeds the then applicable Fixed
Conversion Price by twenty five percent (25%), the Contract Rate for the
succeeding calendar month shall automatically be reduced by twenty five basis
points (25 b.p.) for such period. The initial interest rate under this Note
shall be equal to the interest rate in effect under the Revolving Note (as
defined in Section 6.10 below) as of the date of execution of this Note.  Interest
shall be payable monthly in arrears commencing on September 1, 2005 and on the
first day of each consecutive calendar month thereafter, (each, an "Interest
Payment Date"). 

ARTICLE II

ADVANCES, BORROWER CONVERSION RIGHTS, PAYMENTS UNDER NOTE

2.1.     
Mechanics of Advances.  All Loans evidenced by this Note shall be
made in accordance with the terms and provisions of the Security Agreement.

2.2.      
Fixed Conversion Price.  For purposes hereof, subject to Section
3.5 hereof, the "Fixed Conversion Price" means $1.88 (105% of the
average of the closing price of the Common Stock for the ten (10) trading days
immediately prior to the date hereof).  

2.3.      
No Effective Registration.  Notwithstanding anything to the
contrary herein, the Borrower shall be prohibited from exercising its right to
repay any amount hereunder in shares of Common Stock if at any time from the
Call Date (defined below) for such payment through the date upon which such
payment is made by delivery of certificates for shares of Common Stock there
fails to exist an effective current Registration Statement (as defined in the
Registration Rights Agreement) covering the shares of Common Stock to be issued,
or if an Event of Default hereunder exists and is continuing, unless such
requirement is otherwise waived in writing by the Holder in whole or in part at
the Holder's option.

2.4.       
Optional Payments in Common Stock.  (a) Subject to Section 2.2
hereof, if the Company elects to pay interest or prepay principal and the
average closing price of the Common Stock on the Principal Market is greater
than 110% of the Fixed Conversion Price for a period of at least five (5)
consecutive trading days, then the Borrower may, at its sole option,
provide the Holder written notice (a "Call Notice") requiring the
conversion at the Fixed Conversion Price of all or a portion of the outstanding
interest or principal of this Note (subject to compliance with Section 2.3 and
3.2, together with accrued interest on the amount being prepaid, as of the date
set forth in such Call Notice (the "Call Date").  The Call Date shall be
at least ten (10) trading days following the date of the Call Notice.  On the
Call Date the Borrower shall deliver to the Holder certificates evidencing the
shares of Common Stock issued in satisfaction of the principal and/or interest
being retired.  Notwithstanding the foregoing, the Borrower's right to issue
shares of Common Stock in payment of obligations under this Note shall be
subject to the limitation that the number of shares of Common Stock issued in
connection with any Call Notice shall not exceed 35% of the aggregate dollar
trading volume of the Common Stock for the ten  (10) trading days immediately
preceding the Call Date (as such volume is reported by Bloomberg, L.P.  If the
price of the Common Stock falls below 110% of the Fixed Conversion Price during
the ten (10) trading day period immediately preceding the Call Date, then the
Holder will then be required to convert only such amount of the Note as shall
equal thirty  five percent (35%) of the aggregate dollar trading volume (as
such volume is reported by Bloomberg L.P.) for each day that the Common Stock
has exceeded 110% of the then applicable Fixed Conversion Price.  The Borrower
shall not be permitted to give the Holder more than one Call Notice under this
Note during any 10 day period.

2

(b) Subject to Sections 2.4(a) hereof,
if the average closing price of the Common Stock on the Principal Market is
less than one hundred ten percent (110%) of the Fixed Conversion Price for a
period of at least five (5) consecutive trading days, then the Borrower may, at
its sole option (subject to shareholder approval, if required), provide the
Holder with a Prepayment Call Notice (defined below) requiring the conversion
of the Monthly Amount at a Fixed Conversion Price equal to ninety percent (90%)
of the five lowest closing prices of the Common Stock during the twenty two
(22) trading days immediately prior to the date of conversion, but in no event
shall the Fixed Conversion Price for the purposes of this Section 2.4(b) be
less than $1.00. of all or a portion of the outstanding principal, interest and
fees outstanding under this Note (subject to compliance with Section 2.4(a) and
3.2), together with accrued interest on the amount being prepaid, as of the
Prepayment Call Date (defined below).  Notwithstanding anything to the contrary
contained herein, Borrower shall not have the right to pay principal or interest
with respect to this Note with Common Stock pursuant to this grammatical
paragraph, unless Borrower has first obtained approval of its shareholders
permitting this form of payment.

2.5       Optional Redemption in Cash.  The Borrower will have the
option of prepaying this Note in full (but not in part) in cash, ("Optional
Redemption") by paying to the Holder a sum of money equal to one hundred
twenty five percent (125%) of the principal amount of this Note together with
accrued but unpaid interest thereon and any and all other sums due, accrued or
payable to the Holder arising under this Note, the Security Agreement, or any
Ancillary Agreement  (as defined in the Security Agreement) (the "Redemption
Amount") outstanding on the day written notice of redemption (the "Notice
of Redemption") is given to the Holder. The Notice of Redemption shall
specify the date for such Optional Redemption (the "Redemption Payment Date")
which date shall  be seven (7) days after the date of the Notice of Redemption
(the "Redemption Period") . A Notice of Redemption shall not be
effective with respect to any portion of this Note for which the Holder has a
pending election to convert pursuant to Section 3.1, or for conversions elected
to be made by the Holder pursuant to Section 3.1 during the Redemption Period. 
The Redemption Amount shall be determined as if such Holder's conversion
elections had been completed immediately prior to the date of the Notice of
Redemption. On the Redemption Payment Date, the Redemption Amount must be paid
in good funds to the Holder.  In the event the Borrower fails to pay the
Redemption Amount on the Redemption Payment Date, then such Redemption Notice
will be null and void.

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ARTICLE III

HOLDER'S CONVERSION RIGHTS

3.1.      
Optional Conversion. Subject to the terms of this Article III,
the Holder shall have the right, but not the obligation, at any time until the
Maturity Date, or thereafter during an Event of Default (as defined in Article
V), and, subject to the limitations set forth in Section 3.2 hereof, to convert
all or any portion of the outstanding principal amount and/or accrued interest
and fees due and payable into fully paid and nonassessable shares of the Common
Stock at the Fixed Conversion Price. The shares of Common Stock to be issued
upon such conversion are herein referred to as the "Conversion Shares."
Notwithstanding the foregoing, the Holder's right to convert all or any portion
of the outstanding principal amount and/or accrued interest and fees due and
payable into fully paid and nonassessable shares of the Common Stock at the
Fixed Conversion Price shall be subject to the limitation that the number of
shares of Common Stock issued in connection with any such conversion shall not
exceed 25% of the aggregate dollar trading volume of the Common Stock for the ten
(10) trading days immediately preceding the date upon which such conversion is
made by Holder (as such volume is reported by Bloomberg, L.P.

3.2.       
Conversion Limitation. Notwithstanding anything contained herein
to the contrary, the Holder shall not be entitled to convert pursuant to the
terms of this Note an amount that would be convertible into that number of
Conversion Shares which would exceed the difference between the number of
shares of Common Stock beneficially owned by such Holder or issuable upon exercise
of warrants held by such Holder (and its affiliates) and 4.99% of the
outstanding shares of Common Stock of the Borrower.  For the purposes of the
immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Exchange Act and Regulation 13d-3
thereunder.  The Conversion Shares limitation described in this Section 3.2
shall automatically become null and void without any notice to Borrower upon
the occurrence and during the continuance beyond any applicable grace period of
an Event of Default.  

3.3.       
Mechanics of Holder's Conversion. In the event that the Holder
elects to convert this Note into Common Stock, the Holder shall give notice of
such election by delivering an executed and completed notice of conversion ("Notice
of Conversion") to the Borrower and such Notice of Conversion shall provide
a breakdown in reasonable detail of the  principal amount, accrued interest and
fees that are being converted.  On each Conversion Date (as hereinafter
defined) and in accordance with its Notice of Conversion, the Holder shall make
the appropriate reduction to the principal amount, accrued interest and fees as
entered in its records and shall provide written notice thereof to the Borrower
within two (2) business days after the Conversion Date.  Each date on which a
Notice of Conversion is delivered or telecopied to the Borrower in accordance
with the provisions hereof shall be deemed a Conversion Date (the "Conversion
Date").  A form of Notice of Conversion to be employed by the Holder is
annexed hereto as Exhibit A.  Pursuant to the terms of the Notice of
Conversion, the Borrower will issue instructions to the transfer agent
accompanied by an opinion of counsel within one (1) business day of the date of
the delivery to Borrower of the Notice of Conversion and shall cause the
transfer agent to transmit the certificates representing the Conversion Shares
to the Holder by crediting the account of the Holder's designated broker with
the Depository Trust Corporation ("DTC") through its Deposit Withdrawal
Agent Commission ("DWAC") system within three (3) business days after
receipt by the Borrower of the Notice of Conversion (the "Delivery Date").
In the case of the exercise of the conversion rights set forth herein the
conversion privilege shall be deemed to have been exercised and the Conversion
Shares issuable upon such conversion shall be deemed to have been issued upon
the date of receipt by the Borrower of the Notice of Conversion. The Holder
shall be treated for all purposes as the record holder of such Common Stock,
unless the Holder provides the Borrower written instructions to the contrary.

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3.4.       
Late Payments. The Borrower understands that a delay in the
delivery of the shares of Common Stock in the form required pursuant to this
Article beyond the Delivery Date could result in economic loss to the Holder. 
As compensation to the Holder for such loss, the Borrower agrees to pay late
payments to the Holder for late issuance of such shares in the form required
pursuant to this Article III upon conversion of the Note, in the amount equal
to $400  per business day after the Delivery Date.  The Borrower shall pay any
payments incurred under this Section in immediately available funds upon
demand.   

3.5.       
Adjustment Provisions. The Fixed Conversion Price and number and
kind of shares or other securities to be issued upon conversion determined
pursuant to Section 2.2 shall be subject to adjustment from time to time upon
the happening of certain events while this conversion right remains outstanding,
as follows:

A.            
Reclassification, etc.  If the Borrower at any time shall, by
reclassification or otherwise, change the Common Stock into the same or a
different number of securities of any class or classes, this Note, as to the
unpaid principal amount and accrued interest thereon, shall thereafter be
deemed to evidence the right to purchase an adjusted number of such securities
and kind of securities as would have been issuable as the result of such change
with respect to the Common Stock immediately prior to such reclassification or
other change.

B.             
Stock Splits, Combinations and Dividends.  If the shares of
Common Stock are subdivided or combined into a greater or smaller number of
shares of Common Stock, or if a dividend is paid on the Common Stock in shares
of Common Stock, the Fixed Conversion Price shall be proportionately reduced in
case of subdivision of shares or stock dividend or proportionately increased in
the case of combination of shares, in each such case by the ratio which the
total number of shares of Common Stock outstanding immediately after such event
bears to the total number of shares of Common Stock outstanding immediately
prior to such event.

C.             
Share Issuances.  Subject to the provisions of this
Section 3.5, if the Borrower shall at any time prior to the conversion or
repayment in full of the principal amount issue any shares of Common Stock to a
person other than the Holder (except (i) pursuant to Subsections A or B above;
(ii) pursuant to options, warrants, or other obligations to issue shares
outstanding on the date hereof as disclosed to Holder in writing; or (iii)
pursuant to options that may be issued under any employee incentive stock
option and/or any qualified stock option plan adopted by the Borrower) for a
consideration per share (the "Offer Price") less than the Fixed
Conversion Price in effect at the time of such issuance, then the Fixed
Conversion Price shall be immediately reset pursuant
to the formula below.  For purposes hereof, the issuance of any security of the
Borrower convertible into or exercisable or exchangeable for Common Stock shall
result in an adjustment to the Fixed Conversion Price at the time of issuance
of such securities.  If the Borrower issues any
additional shares pursuant to this Subsection then, and thereafter successively
upon each such issue, the Fixed Conversion Price shall be adjusted by
multiplying the then applicable Fixed Conversion Price by the following
fraction:

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  A + B

  
	
  (A + B) +
  [((C - D) x B) / C]

  

A = Actual shares outstanding prior
to such offering

B =  Actual shares sold in the
offering

C = Fixed Conversion Price

D = Offer Price

D.            
Computation of Consideration. For purposes of any computation
respecting consideration received pursuant to Subsection C above, the following
shall apply:

(a)               
in the case of the issuance of shares of Common Stock for cash, the
consideration shall be the amount of such cash, provided that in no case shall
any deduction be made for any commissions, discounts or other expenses incurred
by the Borrower for any underwriting of the issue or otherwise in connection
therewith;

(b)              
in the case of the issuance of shares of Common Stock for a
consideration in whole or in part other than cash, the consideration other than
cash shall be deemed to be the fair market value thereof as determined in good
faith by the Board of Directors of the Borrower (irrespective of the accounting
treatment thereof); and  

(c)               
Upon any such exercise, the aggregate consideration received for such
securities shall be deemed to be the consideration received by the Borrower for
the issuance of such securities plus the additional minimum consideration, if
any, to be received by the Borrower upon the conversion or exchange thereof
(the consideration in each case to be determined in the same manner as provided
in clauses (a) and (b) of this Subsection (D)).

3.6.       Reservation of Shares. During the period the conversion right
exists, the Borrower will reserve from its authorized and unissued Common Stock
a sufficient number of shares to provide for the issuance of Common Stock upon
the full conversion of this Note.  The Borrower represents that upon issuance,
such shares will be duly and validly issued, fully paid and non-assessable. 
The Borrower agrees that its issuance of this Note shall constitute full
authority to its officers, agents, and transfer agents who are charged with the
duty of executing and issuing stock certificates to execute and issue the
necessary certificates for shares of Common Stock upon the conversion of this
Note.

3.7.        Registration Rights.  The Holder has been granted registration
rights with respect to the shares of Common Stock issuable upon conversion of
this Note as more fully set forth in a Registration Rights Agreement dated the
date hereof.

ARTICLE IV

EVENTS OF DEFAULT

The occurrence of any of the following events is an Event of
Default ("Event of Default"):

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4.1.       
Failure to Pay Principal, Interest or other Fees.  The Borrower
fails to pay when due any installment of principal, interest or other fees
hereon or on any other promissory note issued pursuant to the Security
Agreement, when due in accordance with the terms of such note.  
 

4.2.       
Breach of Covenant.  The Borrower breaches any covenant or other
term or condition of this Note in any material respect and such breach, if
subject to cure, continues for a period of thirty (30) days after the
occurrence thereof.

4.3.       
Breach of Representations and Warranties.  Any material
representation or warranty of the Borrower made herein, or the Security
Agreement, or in any Ancillary Agreement shall be materially false or
misleading.

4.4.        
Stop Trade.  An SEC stop trade order or Principal Market trading
suspension of the Common Stock shall be in effect for 5 consecutive days or 5
days during a period of 10 consecutive days, excluding in all cases a
suspension of all trading on a Principal Market, provided that the Borrower
shall not have been able to cure such trading suspension within 30 days of the
notice thereof or list the Common Stock on another Principal Market within 60
days of such notice.  The "Principal Market" for the Common Stock shall include
the NASD OTC Bulletin Board, NASDAQ SmallCap Market, NASDAQ National Market
System, American Stock Exchange, or New York Stock Exchange (whichever of the
foregoing is at the time the principal trading exchange or market for the
Common Stock), or any securities exchange or other securities market on which
the Common Stock is then being listed or traded.

4.5.        
Default Under Related Agreement.  The occurrence of an Event of
Default under and as defined in the Security Agreement and/or the Ancillary
Agreements.

4.6          
Failure to Deliver Common Stock or Replacement Note. 
The Borrower's failure to timely deliver Common Stock to the Holder pursuant to
and in the form required by this Note, and Section 9 of the Security Agreement,
or if required, a replacement Note if such failure to timely deliver Common
Stock shall not be cured within two (2) business days or such failure to
deliver a replacement Note is not cured within seven (7) business days.

4.7          
Payment Grace Period.  The Borrower shall have
a three (3) business day grace period to pay any monetary amounts due under
this Note or the Security Agreement or any Ancillary Agreements, after which
grace period a default interest rate of five percent (5%) per annum above the
then applicable interest rate hereunder shall apply to the monetary amounts
due.

ARTICLE V

DEFAULT PAYMENTS

5.1.         
Default Payment.  If an Event of Default occurs, the Holder, at
its option, may elect, in addition to all rights and remedies of Holder under
the Security Agreement and all obligations of Borrower under the Security
Agreement, to require the Borrower to make a Default Payment ("Default
Payment").  The Default Payment shall be the outstanding principal amount
of the Note, plus accrued but unpaid interest, all other fees then remaining
unpaid, and all other amounts payable hereunder.  

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5.2.           Default Payment Date and Default Notice Period.  The Default
Payment shall be due and payable on the fifth business day after an Event of
Default as defined in Article IV ("Default Payment Date") has occurred
and is continuing beyond any applicable grace period.  The period between date
upon which of an Event of Default has occurred and is continuing beyond any
applicable grace period and the Default Payment Date shall be the "Default
Period."  If during the Default Period, the Borrower cures the Event of
Default, the Event of Default will no longer exist and any additional rights
the Holder had triggered by the occurrence and continuance of an Event of
Default will no longer exist.  If the Event of Default is not cured during the
Default Notice Period, all amounts payable hereunder shall be due and payable
on the Default Payment Date, all without further demand, presentment or notice,
or grace period, all of which hereby are expressly waived.  

5.3.         
Default Interest Rate.  Following the occurrence and during the
continuance of an Event of Default, interest on this Note shall automatically
be increased to one and one half percent (1.5%) per month, and all outstanding
Obligations, including unpaid interest, shall continue to accrue interest from
the date of such Event of Default at such interest rate applicable to such
Obligations until such Event of Default is cured or waived.

5.4.           
Cumulative Remedies.  The remedies under this Note shall be
cumulative.

ARTICLE VI

MISCELLANEOUS

6.1.           
Failure or Indulgence Not Waiver.  No failure or delay on the
part of the Holder hereof in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privilege.  All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights
or remedies otherwise available.

6.2.           
Notices.  Any notice herein required or permitted to be given
shall be in writing and provided in accordance with the terms of the Security
Agreement.

6.3.           
 Amendment Provision.  The term "Note" and all reference thereto,
as used throughout this instrument, shall mean this instrument as originally
executed, or if later amended or supplemented, then as so amended or
supplemented, and any successor instrument as it may be amended or
supplemented.

6.4.           
Assignability.  This Note shall be binding upon the Borrower and
its successors and assigns, and shall inure to the benefit of the Holder and
its successors and assigns, and may be assigned by the Holder in accordance
with the requirements of the Security Agreement.

6.5.           
Cost of Collection.  If default is made in the payment of this
Note, the Borrower shall pay the Holder hereof reasonable costs of collection,
including reasonable attorneys' fees.

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6.6.           
Governing Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws.  Any action brought by either party against the other
concerning the transactions contemplated by this Agreement shall be brought
only in the state courts of New York or in the federal courts located in the
state of New York.  Both parties and the individual signing this Note on behalf
of the Borrower agree to submit to the jurisdiction of such courts.  The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs.  In the event that any provision of this
Note is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law.  Any such provision which may prove invalid or unenforceable under
any law shall not affect the validity or unenforceability of any other
provision of this Note.  Nothing contained herein shall be deemed or operate to
preclude the Holder from bringing suit or taking other legal action against the
Borrower in any other jurisdiction to collect on the Borrower's obligations to
Holder, to realize on any collateral or any other security for such
obligations, or to enforce a judgment or other court order in favor of Holder.

6.7.           
Maximum Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum permitted by applicable law.  In the event that the rate
of interest required to be paid or other charges hereunder exceed the maximum
permitted by such law, any payments in excess of such maximum shall be credited
against amounts owed by the Borrower to the Holder and thus refunded to the
Borrower.

6.8.           
Security Interest.  The Holder of this Note has been granted a
security interest in certain assets of the Borrower more fully described in a
Security Agreement dated as of January 22, 2004.

6.9.           
Construction.  Each party acknowledges that its legal counsel
participated in the preparation of this Note and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting
party shall not be applied in the interpretation of this Note to favor any
party against the other.

6.10           Reduction of Secured Revolving Note. 
Simultaneously with the execution of this Note by the Borrower, the outstanding
balance of that certain Secured Revolving Note between the Borrower and the
Holder, dated January 22, 2004 (the "Revolving Note"), shall automatically be
reduced by $1,500,000, as set forth in Section 1.3 of the Revolving Note.

[Balance of page
intentionally left blank; signature page follows.]

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IN WITNESS WHEREOF, the Borrower has caused this Secured
Convertible Minimum Borrowing Note Series B to be signed in its name effective
as of this 18th day of August, 2005.

HOME SOLUTIONS OF AMERICA, INC. 

By:__________________________________

Name:

Title:

WITNESS:

                                                            

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NOTICE OF CONVERSION

(To be executed by the Holder
in order to convert the Note)

                The undersigned hereby elects to convert $_________ of the
principal and $_________ of the interest due on the Secured Convertible Minimum
Borrowing Note Series B issued by HOME SOLUTIONS OF AMERICA, INC.  on August 18, 2005 into Shares of Common Stock of HOME SOLUTIONS OF AMERICA, INC.  (the
"Borrower") according to the conditions set forth in such Note, as of the date
written below.

	
  Date of Conversion:

  	
                                                                                                               

  
	
  Conversion Price:

  	
                                                                                                               

  
	
  Shares To Be Delivered:

  	
                                                                                                               

  
	
  Signature:

  	
                                                                                                               

  
	
  Print Name:

  	
                                                                                                               

  
	
  Address:

  	
                                                                                                               

  
	

  	
                                                                                                               

  
	
  Holder  DWAC instructions

  	
  _______________________________________________________

  
	

  	

  
	 
	

   	
   	

   	 

		 	 	 	 	

11Exhibit 10

  Exhibit 10.15

  PFF Bancorp, Inc.

  2004 Equity
  Incentive Plan

  Amended and
  Restated Performance-Based Stock Award Notice

   

                                                                                                                                                                                                                 

  Name of Award Recipient                                                                              
  Social Security Number   

   

                                                                                                                                                                                                                 

                                                                   
  Street Address

   

                                 
                                                                                                                                  

  City                                                
  State                                                                             
  ZIP Code

  This Performance-Based Award Notice is intended to set forth the terms and
  conditions on which an Award has been granted under the PFF Bancorp, Inc. 2004
  Equity Incentive Plan.  Set forth below are the specific terms and
  conditions applicable to this Award.  Attached as Exhibit A are
  its general terms and conditions.

  
    	
          Performance-Based Stock Award

        
	
          Grant Date

        	
          May 24, 2005

        
	
          Class of Shares

        	
          Common

        
	
          Performance Measurement Period

        	
          April 1, 2003 through March 31, 2006

        
	
          Payout Target for Median Performance*

        	 
	
          Payout Target for 75th Percentile Performance*

        	 
	
          Payout Target for 100th Percentile Performance*

        	 
	
          Holding Requirement Amount+

        	
          N/A

        
	
          Performance Criteria

        	
          Return on Average Equity

        
	
          Change in Net Interest Margin

        
	
          Diluted EPS Growth Percentage

        
	
          Efficiency Ratio

        
	
          Increase in Number of Deposit Households

          (compound annual rate)

        
	
          Growth in Four-Cs (compound annul rate)

        

  

  * Reported in
  shares of PFF Bancorp, Inc. common stock.

  + Reported in
  shares of PFF Bancorp, Inc. common stock over which you have full
  discretionary investment authority. Unexercised options shall not be
  considered for purposes of satisfying the ownership and holding requirement
  described herein.

  By signing where indicated below,
  PFF Bancorp, Inc. (the "Company") grants this Award upon the
  specified terms and conditions, and the Award Recipient acknowledges receipt
  of this Performance-Based Stock Award Notice, including Exhibit A, and
  agrees to observe and be bound by the terms and conditions set forth herein
  and acknowledges receipt of a Prospectus dated October 29, 2004 for the PFF
  Bancorp, Inc. 2004 Equity Incentive Plan.

  PFF Bancorp, Inc.                                                  
             Award
  Recipient

  By                                                                   
                                                                                

        
  Name:
                                             
                                          

        
  Title: 

                                                                                                                                                             

  Instructions: 
  This page should be completed by or on behalf of the Employee Compensation and
  Benefits Committee.  Any blank space intentionally left blank should be
  crossed out.  An Award consists of shares granted with uniform terms and
  conditions.  Where shares granted under an Award are awarded on the same
  date with varying terms and conditions (for example, varying performance
  criteria), the awards should be recorded as a series of grants each with its
  own uniform terms and conditions.

  

  Exhibit A

   

  PFF Bancorp, Inc.

  2004 Equity
  Incentive Plan

  Amended And
  Restated Performance-Based Stock Award Notice

  General Terms and Conditions

          Section 1.  Size
  of Award.  The maximum shares of Common Stock of PFF Bancorp,
  Inc. ("Shares") covered by this Award ("Awarded Shares")
  are set forth beside the Payout Target for the 100th Percentile
  Performance.  Any payment of Awarded Shares will be performed as soon as
  practicable following the end of the applicable Performance Measurement
  Period.

          Section 2.  Performance
  Criteria.  All Performance Criteria listed in your
  Performance-Based Stock Award Notice ("Notice") shall be given equal
  weight in the determination of the final payout of Awarded Shares; provided
  however, that all rights hereunder shall be forfeited if Diluted EPS Growth
  Percentage is not at or above median level relative to peer group as
  determined by the Employee Compensation and Benefits Committee of PFF Bancorp,
  Inc. ("Committee").  In order for any payment to be made
  hereunder of Awarded Shares at least three of the six Performance Criteria
  listed in the Notice must be at or above median levels as determined by the
  Committee. 

          (a) Determination of
  Satisfaction of Performance Criteria.  The Committee has
  established by resolution a finite peer group of institutions against which
  median, 75th percentile and 100th percentile performance
  will be determined and has established target levels of performance for those
  Performance Criteria not subject to peer group measurement (i.e., increase in
  number of deposit households and growth in Four-Cs).  Specific levels of
  performance will be distributed to you following the end of the Performance
  Measurement Period in connection with your Awarded Shares.

          (b)  Entitlement to
  Awarded Shares.  If Diluted EPS Growth Percentage and at least
  two other of the six Performance Criteria are satisfied at the end of the
  Performance Measurement Period, you will be entitled to some portion of your
  Awarded Shares provided that you have not terminated Service prior to the end
  of the Performance Measurement Period.  If you have terminated Service
  prior to the end of the Performance Measurement Period for reasons other than
  death or Disability, you will forfeit all Awarded Shares.  If you
  terminate Service due to death or disability or if there is a Change in
  Control of the Company, a pro-rata distribution of the Performance-Based Award
  earned as of the date of the Change in Control, death or Disability shall vest
  and be payable to each award recipient who is in active Service on the date of
  the Change in Control or has terminated due to death or Disability with the
  performance criteria being measured as of the last completed calendar quarter
  prior to the triggering event.  You may designate a Beneficiary to
  receive any Awarded Shares that are paid upon your death using the Beneficiary
  Designation attached as Appendix A.

          (c)  Computation of
  Awarded Shares.   Your Awarded Shares are computed using all
  six Performance Criteria with a 16.666% weighting for each Performance
  Criteria.  Straight-line Interpolation will be used for targets that are
  between the threshold levels.

          (d)  Illustration of
  Awarded Share Computation.  Assume that your Payout Targets are
  2,000 Shares for Median, 3,000 Shares for 75th Percentile and
  10,000 Shares for 100th Percentile.  Assume that for the
  Performance Measurement Period, the Company ranks in the 60th
  percentile on Diluted EPS Growth Percentage, 75th percentile for
  Return on Average Equity, 90th percentile for Total Return and is
  below the median on the other three Performance Criteria.  You are in the
  service of the Company at the end of the Performance Measurement Period. 
  Using straight-line interpolation, the payout would be as follows:

  	Diluted EPS Growth Percentage at the 60th percentile is 40%
      of the way between Median and 75th percentile.  This would
      equate to 2,400 Shares calculated as (2,000 + [(3,000-2,000) x 40%]) =
      2,400 Shares.  Since this Performance Criteria is weighted at 16.666%
      this would result in 400 Shares.
	Return on Average Equity at the 75th percentile equates to
      3,000 Shares which when adjusted by the weighting of 16.666% is 500
      Shares.
	Change in Net Interest Margin at 90th percentile is 60% of
      the way between the 75th and 100th percentile. 
      This equates to 7,200 Shares calculated as (3,000 + [(10,000-3,000) x
      60%]) = 7,200 Shares.  This 7,200 Shares equates to 1,200 
      Shares when adjusted for the 16.666% weighting. 
	The other three Performance Criteria are below median so they result in
      zero Shares.
	This would result in a total award of 2,100 Shares (400 + 500 +
      1,200).  At the end of the Performance Measurement Period, this would
      result in 2,100 Shares of Awarded Share distributed to you.

          (e)  Definition of
  Service.  For purposes of determining your Awarded Shares, you
  will be deemed to be in the service of the Company for so long as you serve in
  any capacity as an employee, officer, non-employee director of the Company or
  PFF Bank & Trust or affiliate of either.

          Section 3.  Dividends
  and Voting Rights.  You will not be entitled to any dividend
  or voting rights with respect to your Awarded Shares until these share have
  been distributed to you at the end of the Performance Measurement Period.

          Section 4.  Deductibility
  Requirements.  Awarded Shares otherwise due to be distributed
  to you under the terms of the 2004 Equity Incentive Plan ("Plan")
  will be forfeited to the extent that such Shares are ineligible for deduction
  under Section 162(m) of the Internal Revenue Code of 1986, as amended.

          Section 5.  Amendment. 
  This Notice may be amended, in whole or in part and in any manner not
  inconsistent with the provisions of the Plan, at any time and from time to
  time, by written agreement between you and the Company.

          Section 6.  Plan
  Provisions Control.  This Notice, and the rights and
  obligations created hereunder, shall be subject to all of the terms and
  conditions of the Plan.  Capitalized terms shall have the meanings
  assigned in the Plan or this Notice. In the event of any conflict between the
  provisions of the Plan and the provisions of this Notice, the terms of the
  Plan, which are incorporated herein by reference, shall control.  By
  signing this Notice, you acknowledge receipt of a copy of the Plan and a copy
  of the Prospectus for the Plan dated October 29, 2004 and agree to be bound by
  all terms and conditions in these materials and in this Notice.

  Appendix A to
  Performance-Based Stock Award Notice

  PFF Bancorp, Inc.

  2004 Equity
  Incentive Plan

   

  Beneficiary
  Designation Form

  GENERAL

  INFORMATION    Use
  this form to designate the Beneficiary(ies) who will receive Shares available
  for distribution  at the time of your death.

   

  Name of

  Award Recipient
  _____________________________________  Social Security Number
  _______-_____-__________

   

  BENEFICIARY     
  Complete sections A and B. If no percentage
  shares are specified, each Beneficiary in the same class (primary or 

  DESIGNATION   
  cotingent) shall have an equal share. 
  If any designated Beneficiary predeceases you, the shares of each
  remaining  

                                 
  Beneficiary in the same class (primary or contingent) shall be increased
  proportionately.

  A.  PRIMARY BENEFICIARY(IES).  I hereby
  designate the following person as my primary Beneficiary under the Plan,
  reserving the right to change or revoke this designation at any time prior to
  my death:

  	
        Name

      	
        Address

      	
        Relationship

      	
        Birthdate

      	
        Share

	
                                                                            

      	
                                                                                

                                                                                

      	
                              

      	
                                 

      	
                     
        %

      
	
                                                                            

      	
                                                                                

                                                                                

      	
                              

      	
                                 

      	
                     
        %

      
	
                                                                            

      	
                                                                                

                                                                                

      	
                              

      	
                                 

      	
                     
        %

      
					
        Total=100%

      

  B.  CONTINGENT BENEFICIARY(IES).  I hereby
  designate the following person(s) as my contingent Beneficiary(ies) under the
  Plan to receive benefits only if all of my primary Beneficiaries should
  predecease me, reserving the right to change or revoke this designation at any
  time prior to my death with respect to all outstanding Awarded Shares:

  	
        Name

      	
        Address

      	
        Relationship

      	
        Birthdate

      	
        Share

      
	
                                                                             

      	
                                                                                 

                                                                                 

      	
                               

      	
                                  

      	
                     
        %

      
	
                                                                             

      	
                                                                                 

                                                                                 

      	
                               

      	
                                  

      	
                     
        %

      
	
                                                                             

      	
                                                                                 

                                                                                 

      	
                              

      	
                                 

      	
                     
        %

      
					
        Total=100%

      
	
          
        S     H

           
        I     E

           G    R

          
        N     E

      	
        I understand that this Beneficiary Designation shall
        be effective only if properly completed and received by the Employee
        Compensation and Benefits Committee of PFF Bancorp, Inc. prior to my
        death, and that it is subject to all of the terms and conditions of the
        Plan.  I also understand that an effective Beneficiary designation
        revokes my prior designation(s) with respect to all outstanding Awarded
        Shares.

         

                                                                                    
                                                     

                               
        Your
        Signature                                                   
        Date

      

   

  
                                                                         
  Internal Use Only                                                             

	
      This Beneficiary Designation was received by the
      Employee Compensation and Benefits Committee of PFF Bancorp, Inc. on the
      date indicated.

       

      By                                                                                            
       
                                    

                     
      Authorized
      Signature                                                  
      Date

    	
      Comments

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