Document:

Exhibit 10.48

 

NEITHER THIS STOCK
PURCHASE WARRANT NOR THE SECURITIES ISSUABLE UPON ITS EXERCISE OR CONVERSION
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), OR ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE
TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT UNDER THE ACT OR SUCH APPLICABLE
STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (II)
IN THE OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER SUCH
SECURITIES ACTS OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN
CONNECTION WITH SUCH PROPOSED TRANSFER.

STOCK PURCHASE WARRANT

            This STOCK
PURCHASE WARRANT (the "Warrant") is issued as of this 18th day of July,
2005 by HOME SOLUTIONS OF AMERICA, INC., a Delaware corporation (the
"Company"), to PATRIOT CAPITAL, L.P., a Delaware limited partnership
(Patriot Capital, L.P. and any subsequent assignee or transferee hereof are
hereinafter referred to collectively as "Holder" or
"Holders").

AGREEMENT:

            1.         Issuance
of Warrant; Term.

                        (a)        For
and in consideration of Patriot Capital, L.P. making a loan to the Company, in
an amount of Seven Hundred Thousand Dollars ($700,000) pursuant to the terms of
a secured promissory note of even date herewith (together with any and all
extensions, replacements and renewals thereof, the "Note") and
related loan and security agreement of even date herewith (as amended,
supplemented or otherwise modified from time to time, the "Loan
Agreement"), and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company hereby grants to
Holder the right to purchase 93,333 shares of the Company's common stock,
$0.001 par value per share (the "Common Stock").

                        (b)        The
shares of Common Stock issuable upon exercise of this Warrant are hereinafter
referred to as the "Shares."  This Warrant shall be exercisable at
any time and from time to time from the date hereof until seven (7) years from
the date hereof (the "Expiration Date").  If this Warrant is not
exercised prior to the Expiration Date, it will expire and all rights hereunder
shall be rendered void.

            2.         Exercise
Price.  The exercise price per share for which all or any of the Shares may
be purchased pursuant to the terms of this Warrant shall be one cent ($.01) (as
adjusted from time to time pursuant to Section 5, the "Exercise
Price").

 

 

3.         Exercise.

                        (a)        This
Warrant may be exercised by the Holder hereof (but only on the conditions
hereafter set forth) as to all or any increment or increments of one thousand
(1,000) Shares (or the balance of the Shares if less than such number) upon
delivery of written notice of intent to exercise to the Company during normal
business hours on any business day at the address set forth in Section 16
hereof or such other address as the Company shall designate in a written notice
to the Holder hereof, together with this Warrant and payment to the Company of
the aggregate Exercise Price of the Shares so purchased.  The Exercise Price
shall be payable, at the option of the Holder, (i) by certified or bank check
or (ii) by wire transfer of immediately available funds to an account
designated by the Company to the Holder. Upon exercise of this Warrant as
aforesaid, the Company shall as promptly as practicable, and in any event
within five (5) business days thereafter, execute and deliver to the Holder of
this Warrant a certificate or certificates for the total number of whole Shares
for which this Warrant is being exercised in such names and denominations as
are requested by such Holder.  If this Warrant shall be exercised with respect
to less than all of the Shares, the Holder shall be entitled to receive a new
Warrant covering the number of Shares in respect of which this Warrant shall
not have been exercised, which new Warrant shall in all other respects be
identical to this Warrant.  The Company covenants and agrees that it will pay
when due any and all state and federal issue taxes which may be payable in
respect of the issuance of this Warrant or the issuance of any Shares upon
exercise of this Warrant.

                        (b)        In
lieu of exercising this Warrant pursuant to Section 3(a) above, the Holder
shall have the right to require the Company to convert this Warrant, in whole
or in part and at any time or times into Shares (the "Conversion
Right"), upon delivery of written notice of intent to convert to the
Company at its address in Section 3(a) or such other address as the Company
shall designate in a written notice to the Holder hereof, together with this
Warrant.  Upon exercise of the Conversion Right, the Company shall deliver to
the Holder (without payment by the Holder of any Exercise Price) that
number of Shares which is equal to the quotient obtained by dividing (x) the
value of the number of Shares with respect to which the Conversion Right is being
exercised (determined by subtracting the aggregate Exercise Price for the
Shares with respect to which the Conversion Right is being exercised from a
number equal to the product of (i) the Fair Market Value per Share (as such
term is defined in Section 10(c)) as at such time, multiplied by (ii)
the number of Shares with respect to which the Conversion Right is being
exercised), by (y) such Fair Market Value per Share. Any references in this
Warrant to the "exercise" of this Warrant, and the use of the term exercise
herein, shall be deemed to include (without limitation) any exercise of the
Conversion Right. 

(c)               
No fractional Shares shall be
issuable upon the exercise of this Warrant, and the Company shall in lieu of
issuing fractional Shares pay the holder hereof an amount of cash equal to the
fractional Share that otherwise would be issuable multiplied by the Fair Market
Value per Share (as defined in Section 10(c)) at the time of exercise.  

	
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            4.         Covenants
and Conditions.  The above provisions are subject to the following:

                        (a)        Neither
this Warrant nor the Shares have been registered under the Securities Act of
1933, as amended ("Securities Act") or any state securities laws
("Blue Sky Laws").  The Holder represents that it is an "accredited
investor", as defined under Regulation D of the Securities Act, experienced in
evaluating companies such as the Company, has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investments, and has the ability to bear the economic risks of its
investments.  This Warrant has been acquired for investment purposes and not
with a view to distribution or resale and may not be sold or otherwise
transferred (i) without an effective registration statement for such Warrant
under the Securities Act and such applicable Blue Sky Laws, (ii) unless Holder
shall have delivered to the Company an opinion of counsel acceptable to the
Company (which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions) to the effect that the Warrant
or such portion of the Warrant to be sold or transferred may be sold or
transferred under an exemption from such registration, or (iii) unless sold
under Rule 144 promulgated under the Securities Act (or successor rule) and any
applicable Blue Sky Laws.    Transfer of Shares issued upon the exercise of
this Warrant shall be restricted in the same manner and to the same extent as
the Warrant and the certificates representing such Shares shall, until such
time as the Shares have been registered under the Securities Act as
contemplated pursuant to Section 12 hereof or otherwise may be sold by Holder
under Rule 144, bear substantially the following legend:

THE SHARES OF COMMON STOCK REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"), OR ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE
TRANSFERRED (I) UNTIL A REGISTRATION STATEMENT UNDER THE ACT OR SUCH APPLICABLE
STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (II)
UNLESS REGISTRATION UNDER SUCH SECURITIES ACTS OR SUCH APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER.

The Holder hereof and the
Company agree to execute such other documents and instruments as counsel for
the Company reasonably deems necessary to effect the compliance of the issuance
of this Warrant and any shares of Common Stock issued upon exercise hereof with
applicable federal and state securities laws.

	
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                        (b)        The
Company covenants and agrees that this Warrant and all Shares which may be
issued upon exercise of this Warrant will, upon issuance and payment therefor,
be legally and validly issued and outstanding, fully paid and nonassessable,
free from all taxes, liens, charges and preemptive rights, if any, with respect
thereto or to the issuance thereof.  The Company represents and warrants that
the issuance of this Warrant will not result in an adjustment in the number of
shares of Common Stock issuable upon the exercise or conversion of any
Convertible Securities or Option Securities (each as defined in Section 5(b)
below), as the case may be, pursuant to any anti-dilution or similar provisions
contained in such securities.  The Company shall at all times reserve and keep
available for issuance upon the exercise of this Warrant such number of
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of this Warrant. If any Shares which may be issued upon exercise
of this Warrant require registration or qualification with any governmental
authority under any federal or state law before such shares may be so issued,
the Company will in good faith use its reasonable best efforts as expeditiously
as possible at its expense to cause such Shares to be duly registered or
qualified.  If the Company shall list any shares of Common Stock on any
securities exchange or market it will, at its expense, list thereon, maintain
and increase when necessary such listing, of, all Shares to be issued upon
exercise of this Warrant.

            5.         Adjustment
of Exercise Price and Number of Shares Issuable.

                        (a)        Common
Stock Reorganization.  If the Company shall (i) subdivide or consolidate
its outstanding shares of Common Stock (or any class thereof) into a greater or
smaller number of shares, (ii) pay a dividend or make a distribution on its
Common Stock (or any class thereof) in shares of its capital stock, or (iii)
issue by reclassification of its Common Stock (or any class thereof) any shares
of its Common Stock (any such event described in clauses (i), (ii) or (iii)
being called a "Common Stock Reorganization"), then the Exercise
Price and the number and type of securities for which this Warrant is
exercisable shall be adjusted immediately such that the Holder thereafter shall
be entitled to receive upon exercise of this Warrant the aggregate number and
type of securities that it would have received if this Warrant had been
exercised immediately prior to such Common Stock Reorganization.  

	
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(b)              
Common Stock Distribution.  If the Company shall issue, sell,
distribute or otherwise grant any shares of Common Stock, other than (i)
pursuant to a Common Stock Reorganization, (ii) shares issued pursuant to the
exercise of options or warrants for the purchase of Common Stock outstanding on
the date hereof or as reserved and ungranted as of the date hereof pursuant to
the Company's 1998 Stock Option Plan, as amended, or the Company's 2001 Stock
Plan (collectively, the "Stock Plan"), (iii) up to 920,000 shares of Common
Stock issued upon the conversion of the convertible notes held by Laurus Master
Fund, up to 1,360,000 shares of Common Stock issued upon the conversion of the
Company's Series A Convertible Preferred Stock and up to 666,667 shares of Common
Stock issued upon the conversion of the Company's Series B Convertible
Preferred Stock, or (iv) shares of Common Stock issued upon the conversion or
exercise of this Warrant, the warrant issued to Petra Mezzanine Fund, L.P
("Petra") under that certain Stock Purchase Warrant by and between the Company
and Petra dated as of March 31, 2005 (the "Petra Warrant"), the warrant (the
"Laddcap Warrant") issued to Laddcap Value Partners L.P. ("Laddcap") or that
certain Stock Purchase Warrant (the "Initial Patriot Warrant") by and between
Patriot Capital, L.P. and the Company dated as of May 27, 2005 (any such
issuance, sale, distribution or grant being herein called a "Common Stock
Distribution"), for a consideration per share less than $1.25 per share (the
"Investment Price") then the Exercise Price shall be adjusted as follows: the
Exercise Price immediately prior to such Common Stock Distribution shall be
multiplied by a fraction, the numerator of which shall be the sum of (1) the
number of fully-diluted shares of Common Stock outstanding (assuming the
conversion or exercise of all outstanding securities convertible into or
exercisable for shares of Common Stock) prior to such Common Stock
Distribution, plus (2) the number of shares of Common Stock that the aggregate
consideration received by the Company for such Common Stock Distribution would
purchase at the Investment Price, and the denominator of which shall be the sum
of (1) the number of fully-diluted shares of Common Stock outstanding (assuming
the conversion or exercise of all outstanding securities convertible into or
exercisable for shares of Common Stock) prior to Common Stock Distribution,
plus (2) the number of shares of Common Stock issued in such Common Stock
Distribution.

(c)               
Consideration Received.  In the case of the issuance, sale,
distribution or grant of Common Stock for cash, the consideration shall be
deemed to be the amount of cash paid therefor before deducting any discounts,
commissions or other expenses allowed, paid or incurred by the Company for any
underwriting or otherwise in connection with the issuance and sale thereof.  In
the case of the issuance, sale, distribution or grant of the 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 value thereof at the time of such issuance
or sale as determined in good faith by the Board of Directors irrespective of
any accounting treatment.

(d)              
Convertible Securities and Option Securities.  If, after the date
hereof,  the Company shall issue, sell, distribute or otherwise grant
(including by assumption):

                                    (i)         any
stock or other securities convertible into or exchangeable for Common Stock,
whether or not the rights to exchange or convert thereunder are immediately
exercisable (such convertible or exchangeable stock or securities being herein
called "Convertible Securities"), or

                                    (ii)        any
rights to subscribe for or to purchase, or any warrants or options (other than
options to purchase shares of Common Stock outstanding on the date hereof as
reserved as of the date hereof (subject to stockholder approval) and ungranted
pursuant to the Stock Option Plans) for the purchase of, Common Stock or
Convertible Securities, whether or not immediately exercisable, (such rights,
warrants or options being herein called "Option Securities"),

	
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and the lowest aggregate
consideration per share for which Common Stock is issuable upon the conversion
or exercise of such Convertible Securities or Option Securities (and, if
applicable, upon conversion or exchange of Convertible Securities issuable upon
exercise of Option Securities) shall be less than the Investment Price, then
the Exercise Price shall be reduced to the price determined in accordance with
the formula provided above in Section 5(b).  In the case of the issuance, sale,
distribution or grant of Convertible Securities or Option Securities (i) the
aggregate maximum number of shares of Common Stock deliverable upon exercise of
Option Securities (assuming the satisfaction of any conditions to
exercisability, including without limitation, the passage of time, but without
taking into account potential antidilution adjustments) shall be deemed to have
been issued at the time such Option Securities were issued or granted and for a
consideration equal to the consideration (determined in the manner provided in
Section 5(c)), if any, received by the Company upon the issuance of such Option
Securities plus the minimum exercise price provided in such Option Securities
(without taking into account potential antidilution adjustments) for the Common
Stock covered thereby, and (ii) the aggregate maximum number of shares of
Common Stock deliverable upon conversion of, or in exchange (assuming the
satisfaction of any conditions or convertibility or exchangeability, including,
without limitation, the passage of time, but without taking into account
potential antidilution adjustments) for, any such Convertible Securities or
upon the exercise of options to purchase or rights to subscribe for such
Convertible Securities and subsequent conversion or exchange thereof shall be
deemed to have been issued at the time such securities were issued or such
options or rights were issued and for a consideration equal to the
consideration, if any, received by the Company for any such securities and
related options or rights (excluding any cash received on account of accrued
interest or accrued dividends), plus the minimum additional consideration, if
any, to be received by the Company (without taking into account potential
antidilution adjustments) upon the conversion or exchange of such securities or
the exercise of any related options or rights (the consideration in each case
to be determined in the manner provided in Section 5(c)).  If any of such
Convertible Securities or Option Securities shall have terminated, lapsed or
expired prior to exercise, exchange or conversion, the Exercise Price then in
effect shall forthwith be readjusted (effective only with respect to any
exercise of this Warrant after such readjustment) to the Exercise Price which
would then be in effect had the adjustment not been made upon the issuance,
sale, distribution or grant of such Convertible Securities or Option
Securities.  Nothing provided in this paragraph 5(d), however, shall cause any
adjustment in the Exercise Price solely due to the vesting of any Option
Securities that are outstanding on the date hereof.

                        (e)        Adjustment
in Number of Shares.  Upon each adjustment to the Exercise Price pursuant
to subsection (a), (b) or (d) of this Section 5, this Warrant shall thereafter
evidence the right to receive upon payment of the adjusted Exercise Price that
number of Shares obtained by multiplying the number of Shares previously
issuable upon exercise of this Warrant by a fraction the numerator of which is
the Exercise Price prior to adjustment and the denominator of which is the
adjusted Exercise Price; provided, however, that in no event, after taking into
account any adjustments required pursuant to this subsection (e), shall the
aggregate number of Shares issuable under this Warrant, the Petra Warrant, the
Laddcap Warrant, or the Initial Patriot Warrant, exceed  an amount equal to
19.99% of 17,022,486 (the number of outstanding shares of the Company's Common
Stock on March 31, 2005, prior to the loan by Petra), as such number of shares
may be adjusted for stock splits, stock dividends and other recapitalizations,
without the prior approval of the Company's stockholders as required by Section
713 of the American Stock Exchange Company Guide.

	
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                        (f)         Capital
Reorganizations.  If there shall be any consolidation, merger or
amalgamation of the Company with another person or entity or any acquisition of
capital stock of the Company by means of a share exchange, other than a
consolidation, merger or share exchange in which the Company is the continuing
corporation or any sale or conveyance of the property of the Company as an
entirety or substantially as an entirety, or any reorganization or
recapitalization of the Company (any such event being called a "Capital
Reorganization"), then simultaneously with the consummation of such
Capital Reorganization the Holder of this Warrant shall be entitled to receive
warrants to purchase, on the same terms and conditions as are set forth in this
Warrant, the kind and amount of shares of stock and other securities and
property (including cash) which a holder of the number of Shares for which this
Warrant is exercisable immediately prior to such Capital Reorganization would
be entitled to receive pursuant to such Capital Reorganization; provided,
however, that if so required by the acquirer in connection with any Capital
Reorganization described above, this Warrant shall be deemed exercised pursuant
to Section 3(b), or if the Exercise Price is greater than the fair market value
of each Share as determined by reference to the consideration paid per share of
Common Stock in such Capital Reorganization, shall be deemed cancelled, in each
case immediately prior to the consummation of such Capital Reorganization. 
Subject to the immediately preceding proviso, as a condition to effecting any
Capital Reorganization, the Company or the successor or surviving corporation,
as the case may be, shall assume by a supplemental agreement, satisfactory in
form, scope and substance to the Holder (which shall be mailed or delivered to
the Holder of this Warrant at the last address of such Holder appearing on the
books of the Company), the obligation to deliver to such Holder such shares of
stock, securities, cash or property as, in accordance with the foregoing
provisions, such Holder may be entitled to purchase, and all other obligations
of the Company set forth in this Warrant.

                        (g)        Adjustment
Rules.  Any adjustments pursuant to this Section 5 shall be made
successively whenever an event referred to herein shall occur.  No adjustment
shall be made pursuant to this Section 5 in respect of the issuance from time
to time of shares of Common Stock upon the exercise of this Warrant.

                        (h)        Proceedings
Prior to Any Action Requiring Adjustment.  As a condition precedent to the
taking of any action which would require an adjustment pursuant to this Section
5, the Company shall take any action which may be necessary, including
obtaining regulatory approvals or exemptions, in order that the Company may
thereafter validly and legally issue as fully paid and nonassessable all shares
of Common Stock which the Holder of this Warrant is entitled to receive upon
exercise thereof.

                        (i)         Notice
of Adjustment.  Not less than five (5) business days prior to the record
date or effective date, as the case may be, of any action which requires or
might require an adjustment or readjustment pursuant to this Section 5, the
Company shall give notice to the Holder of such event, describing such event in
reasonable detail and specifying the record date or effective date, as the case
may be, and, if determinable, the required adjustment and the computation
thereof.  If the required adjustment is not determinable at the time of such
notice, the Company shall give notice to the Holder of such adjustment and
computation promptly after such adjustment becomes determinable.

	
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            6.         Transfer
of Warrant.  Subject to the provisions of Section 4 hereof, this Warrant
may be transferred, in whole or in part, to any person or business entity, by
presentation of the Warrant to the Company with written instructions for such
transfer; provided, however that the transfer shall be made in compliance with
all applicable state and federal securities laws and that Holder shall give the
Company not less than five (5) business days prior written notice of such
transfer.  Upon such presentation for transfer, the Company shall promptly
execute and deliver a new Warrant or Warrants in the form hereof in the name of
the assignee or assignees and in the denominations specified in such
instructions.  The Company shall pay all expenses incurred by it in connection
with the preparation, issuance and delivery of Warrants under this Section. 

            7.         Warrant
Holder Not Stockholder; Rights Offering; Preemptive Rights.  Except as
otherwise provided herein, this Warrant does not confer upon the Holder, as
such, any right whatsoever as a stockholder of the Company.  Notwithstanding
the foregoing, the Holder shall be entitled to the rights set forth in the
Investors' Rights Agreement dated as of March 31, 2005, as amended on April 15,
2005 and as amended and modified by that certain Joinder Agreement dated April
18, 2005 and that certain Joinder Agreement dated as of May 27, 2005 (the
"Investors' Rights Agreement") by and among the Company, Petra, Patriot
Capital, L.P., Laddcap and Frank J. Fradella and Rick J. O'Brien (Frank J.
Fradella and Rick J. O'Brien, collectively, the "Management Stockholders"). 
The Company shall not grant any preemptive rights with respect to any of its
capital stock if such preemptive rights are exercisable upon exercise of this
Warrant. 

            8.         Interim
Dividends.  If the Company pays a dividend or makes a distribution to the
holders of its capital stock of any securities (other than its capital stock)
or property (including cash and securities of other companies) of the Company,
or any rights, options or warrants to purchase securities (other than its
capital stock) or property (including securities of other companies) of the
Company, then, simultaneously with the payment of such dividend or the making
of such distribution, and as a condition precedent to its right to do so, it
will pay or distribute to the Holder of this Warrant an amount of property
(including without limitation cash) and securities (including without
limitation securities of other companies) of the Company as would have been
received by such Holder had it exercised this Warrant and received all of the
Shares of Common Stock issuable upon the exercise of this Warrant immediately prior
to the record date (or other applicable date) used for determining stockholders
of the Company entitled to receive such dividend or distribution.

            9.         Certain
Notices.  In case at any time the Company shall propose to:

                        (a)        declare
any cash dividend upon its Common Stock;

                        (b)        declare
any dividend upon its Common Stock payable in stock or make any special
dividend or other distribution to the holders of its Common Stock;

                        (c)        offer
generally for subscription to the holders of any of its Common Stock any
additional shares of stock of any class or other rights;

                        (d)        reorganize,
or reclassify the capital stock of the Company, or consolidate, merge or
otherwise combine with, or sell all or substantially all of its assets to,
another corporation; 

                        (e)        voluntarily
or involuntarily dissolve, liquidate or wind up of the affairs of the Company;
or

	
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                        (f)         redeem
or purchase any shares of its capital stock or securities convertible into its
capital stock;

then, in any one or more of
said cases, the Company shall give to the Holder, by certified or registered
mail, (i) at least ten (10) business days' prior written notice of  the date on
which the books of the Company shall close or a record shall be taken for such
dividend, distribution or subscription rights or for determining rights to vote
in respect of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding up, and (ii) in the case of such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up, at least ten (10) business days' prior written
notice of the date when the same shall take place.  Any notice required by
clause (i) shall also specify, in the case of any such dividend, distribution
or subscription rights, the date on which the holders of Common Stock shall be
entitled thereto, and any notice required by clause (ii) shall specify the date
on which the holders of Common Stock shall be entitled to exchange their Common
Stock for securities or other property deliverable upon such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, as the case may be.

            10.       Put
Right  

            (a)        Exercise
of Put Right.  If at any time on or after March 31, 2010 the Company's
Common Stock is not listed on at least one of The American Stock Exchange,
Inc., the NASDAQ National Market, the NASDAQ SmallCap Market, The New York
Stock Exchange, Inc. or the OTC Bulletin Board, each Holder shall have the
right (a "Put Right") beginning on March 31, 2010 and continuing for a period
of two (2) years thereafter, to require that the Company purchase all or any
portion of the Warrant or Shares then owned by such Holder in accordance with
this Section 10, by delivery of a written notice to the Company to the effect
that such Holder is exercising a Put Right under this Section 10 (a "Put
Exercise Notice").  Upon receipt by the Company of a Put Exercise Notice,
the Company will promptly (and in any event within five (5) business days) give
written notice (a "Company Notice") to each of the other Holders, if
any, and to the holders of the Petra Warrant, the Laddcap Warrant, and the Initial
Patriot Warrant, if any, that a Put Exercise Notice has been received by the
Company.  Each such other Holder will have the right to exercise a Put Right
and require the Company to purchase (on the same Put Closing Date (as defined
below) relating to the Put Exercise Notice) all or any portion of the Warrant
or Shares held by such Holder by delivering written notice to the Company
within ten (10) days following receipt of the Company Notice.  All such notices
delivered by such other Holders will be deemed to have been delivered as of the
date of the Put Exercise Notice and will be deemed to be an exercise of a Put
Right by each such other Holder as of such date.  Upon the exercise of a Put
Right by a Holder, the purchase price payable by the Company to such Holder (a
"Put Purchase Price") shall be as follows:

	
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                        (i)         in
the case of such Holder's Warrant, an amount determined by subtracting (A) the
aggregate Exercise Price then in effect for the portion of such Holder's
Warrant with respect to which the Put Right is being exercised from (B) the
product of (1) the Fair Market Value per Share as of the date of exercise of
the Put Right (i.e., the date of receipt of the Put Exercise Notice) multiplied
by (2) the number of Shares that would be received upon exercise of the
portion of the Holder's Warrant with respect to which the Put Right is being
exercised; and

                        (ii)        in
the case of Shares, an amount equal to the product of (A) the Fair Market Value
per Share as of the date of exercise of the Put Right, multiplied by (B)
the number of Shares with respect to which the Put Right is being exercised.

Promptly and in any event
within five (5) business days following the Company's receipt of a Put Exercise
Notice, the Company shall initiate the process for determination of the Fair
Market Value per Share, shall use its commercially reasonable best efforts to
cause such process to proceed expeditiously, and in any event, shall cause such
process to be completed within sixty (60) days of the receipt of the Put
Exercise Notice, and shall give prompt written notice of the determination
thereof to each Holder.  

                        (b)        Closing. 
Each closing of the purchase and sale of any Warrant or Shares pursuant to this
Section 10 shall take place on a date (a "Put Closing Date") which is
the later of (i) thirty (30) days after the giving of the Put Exercise Notice,
and (ii) ten (10) days after determination of the Fair Market Value per Share,
provided that if such day is not a Business Day such closing shall be on the
next succeeding Business Day.  Payment of the Put Purchase Price shall be due
and payable in full on the Put Closing Date to the extent the Company may then
legally pay such price pursuant to provisions of applicable law. To the extent
that all of the Put Purchase Price payable under this Warrant, the Petra
Warrant, the Laddcap Warrant, and the Initial Patriot Warrant may not legally
be paid under the provisions of applicable law, the Put Purchase Price payable
under this Warrant, the Petra Warrant, the Laddcap Warrant and the Initial
Patriot Warrant, if any,  shall be paid ratably among the Holder, the holder of
the Petra Warrant, the holder of the Laddcap Warrant, and the holder of the Initial
Patriot Warrant based on the total number of Shares held or issuable upon
exercise of this Warrant, the Petra Warrant, the Laddcap Warrant or the Initial
Patriot Warrant, as the case may be.  The portion of the Put Purchase Price not
paid in full on the Put Closing Date shall be evidenced by a promissory note
delivered to the Holder, the principal of which or such portion thereof as may
be paid shall be payable as and when the Company may legally pay it under
applicable law. Unpaid principal on such promissory note shall bear interest at
the maximum rate allowable under applicable law or, if none, twenty-four
percent (24%) per annum.  The closing shall take place at 10:00 a.m. on the Put Closing Date at such location as the Holder(s) may determine and notify the
Company or at such other location as may be agreed to by the Company and the
Holder(s).  The Put Purchase Price as may be paid under applicable law shall be
paid in full at each such closing, by wire transfer of immediately available
federal funds.  

	
  10

  

                        (c)        Fair
Market Value per Share.  "Fair Market Value per Share" as of any
date shall mean an amount per Share issued or issuable pursuant to this Warrant
determined as follows: (i) if the Common Stock is traded on the American Stock
Exchange or another registered national stock exchange or through the NASDAQ
National Market, the Fair Market Value per Share shall be deemed to be the
average of the closing prices of the Common Stock on such exchange over the
five (5) trading day period ending one (1) trading day prior to the delivery of
the Put Exercise Notice; (ii) if the Common Stock is actively traded on the
over-the-counter market, as reported by the OTC Bulletin Board or the National
Quotation Bureau Incorporated (or similar organization or agency succeeding to
its functions of reporting prices), the Fair Market Value per Share shall be
deemed to be the average of the closing bid prices over the five (5) trading
day period ending one (1) trading day prior to the delivery of the Put Exercise
Notice and (iii) if there is no active public market for the Common Stock, the
Fair Market Value per Share shall be determined by an independent competent
appraiser mutually agreed to by the Company and the Holders of at least seventy
percent (70%)of the shares of Common Stock issued or issuable pursuant to this
Warrant, the Petra Warrant, the Laddcap Warrant, and the Initial Patriot
Warrant requesting redemption (the "Requisite Majority").  In the event the
Company and the Requisite Majority cannot mutually agree upon an independent
appraiser within fifteen (15) days of receipt by the Company of a Put Exercise
Notice, the Company and the Requisite Majority will each select an independent
competent appraiser of national reputation to determine the Fair Market Value
per Share.  The respective appraisals will be provided to the Company and the
Holders requesting redemption promptly upon completion.  If the Fair Market
Value per Share appraisals are within 10% of one another, the Fair Market Value
per Share shall be the average of the two appraisals.  In the event the
appraisal valuations differ by more than ten percent (10%), the two appraisers
chosen by the Company and the Requisite Majority, respectively, shall choose a
third independent competent appraiser of national reputation and the third
appraiser shall conduct an appraisal to determine the Fair Market Value per
Share (the "Third Appraisal").  Upon completion, the Third Appraisal
shall be promptly delivered to the Company and the Holders requesting
redemption.  The Third Appraisal valuation shall be averaged with the prior
appraisal that is closer in value to the Third Appraisal.  The average of these
two appraisals shall be the Fair Market Value per Share and shall be binding on
the Company and the Holders requesting redemption.  All appraisals required
herein shall be paid for by the Company.  In determining the Fair Market Value
per Share, each of the appraisers shall evaluate the Company as a whole, on a
going concern basis, without application of any discount whatsoever, including
any discount for a minority ownership interest and/or lack of marketability of
such interest.  In determining the Fair Market Value per Share pursuant to this
Section 10(c), none of the appraisers shall take into account or otherwise make
any discount in respect of (i) any restriction on the transfer of the Shares,
any other shares of Common Stock of the Company or this Warrant, (ii) the fact
that this Warrant and the Shares represent a minority interest in the Company,
(iii) any lack of liquidity of the Shares, any other shares of Common Stock of
the Company or this Warrant due to the fact that there may not be a public or
private market therefor, (iv) any rights of the Company set forth in this
Warrant or (v) the voting rights or status of the Shares, any other shares of
Common Stock of the Company or this Warrant, whether under the certificate of
incorporation or bylaws of the Company, by agreement or otherwise.

                        (d)        The
Company agrees and acknowledges that the rights set forth in Section 10 shall
expressly survive the exercise of all or any portion of this Warrant and shall
inure to the Holder of any Shares issued upon exercise of the Warrant. 

11.       Registration
Rights.  As set forth in the Investors' Rights Agreement, each of the
Holders shall have certain rights to require the Company to register the Shares
under the Securities Act pursuant to an effective registration statement.

	
  11

  

12.       Co-Sale
Rights.  As set forth in the Investors' Rights Agreement, each of the
Holders shall have certain rights of co-sale with respect to any transfer of
Common Stock by any of the Management Stockholders.

            13.       Successors. 
All the covenants and provisions of this Warrant by or for the benefit of the
Company or the Holder shall bind and inure to the benefit of their respective
successors and assigns, including those by operation of law, merger,
consolidation or as otherwise provided in Section 5(e).

            14.       Survival. 
The rights of the Holder under the Warrant, and the covenants and agreements of
the Company set forth in this Warrant for the benefit of the Holder, other than
Sections 5 and 8 shall survive exercise of all or any portion of this Warrant
and shall inure to the Holder of any Shares issued upon exercise of this
Warrant.  Notwithstanding the foregoing, following exercise of all shares
exerciseable under the Warrant, Sections 5 and 8 shall become null and void
with no further force or effect.

            15.       Article
and Section Headings.  Numbered and titled article and section headings are
for convenience only and shall not be construed as amplifying or limiting any
of the provisions of this Warrant.

            16.       Notice. 
Any and all notices, elections or demands permitted or required to be made
under this Warrant shall be in writing signed by the party giving such notice,
election or demand and shall be delivered personally, by telecopy or sent by
certified mail or overnight via nationally recognized courier service (such as
FedEx), to the other party at the address set forth below, or at such other
address as may be supplied in writing and of which receipt has been
acknowledged in writing.  The date of personal delivery or telecopy or two (2)
business days after the date of mailing (or the next business day after
delivery to such courier service), as the case may be, shall be the date of
such notice, election or demand.  For the purposes of this Warrant:

The
Address of Holder is:         Patriot Capital, L.P.

                                                            16
  W. Madison Street

                                                            Baltimore, Maryland 21201

                                                            Attention:
Charles P. McCusker

                                                            Facsimile:   (443) 573-3020

with
a copy to:                          Miles & Stockbridge P.C.

                                                            10
  Light Street

                                                            Baltimore, Maryland 21202

                                                            Attention: Frederick W. Runge, Jr., Esquire

                                                            Facsimile:   
(410) 385-3700

The Address of Company is:                
Home Solutions of America, Inc.                                     

                                    5565 Red Bird Center Dr., Suite 900

                                    Dallas, Texas 75237

	
  12

  

                                                            Attention: Rick
J. O'Brien 

                                                            Telecopy No.: (214) 333-9435

with
a copy to:                                      Patton Boggs LLP

                                                            2001
Ross, Suite 3000

                                                            Dallas, TX    75201

                                                            Attn:
David P. McLean

                                                            Telecopy
No.: (214) 758 - 1550

            17.       Severability. 
If any provision(s) of this Warrant or the application thereof to any person or
circumstances shall be invalid or unenforceable to any extent, the remainder of
this Warrant and the application of such provisions to other persons or
circumstances shall not be affected thereby and shall be enforced to the
greatest extent permitted by law.

            18.       Governing
Law and Amendments.  This Warrant shall be construed and enforced under the
laws of the State of Delaware applicable to contracts to be wholly performed in
such State.  No amendment or modification hereof shall be effective except in a
writing executed by each of the parties hereto.

            19.       Counterparts. 
This Warrant may be executed in any number of counterparts and by different
parties to this Warrant in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together
shall constitute one and the same Warrant.

            20.       Waiver
of Trial by Jury.  HOLDER AND THE COMPANY HEREBY KNOWINGLY AND VOLUNTARILY
WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS, PROCEEDINGS,
CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR
IN EQUITY, ARISING OUT OF OR IN ANY WAY RELATING TO THIS WARRANT.  THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS WARRANT.

[Remainder of page intentionally left blank. 
Signatures on following page(s).]

 

 

 

	
  13

  

COMPANY'S SIGNATURE PAGE TO STOCK PURCHASE WARRANT

            IN WITNESS
WHEREOF, an authorized officer of the Company has set his hand as of the date
first above written.

                                                            COMPANY:

                                                            HOME
SOLUTIONS OF AMERICA, INC.

By:       __________________________

            Frank J. Fradella,

           
Chief Executive Officer

 

 

 

 

 

 

 

 

	
  14

  

PATRIOT'S SIGNATURE PAGE TO STOCK PURCHASE WARRANT

            IN WITNESS
WHEREOF, an authorized officer of the general partner of Patriot has set his
hand as of the date first above written.

                                                            PATRIOT:

PATRIOT
CAPITAL, L.P.

                                                            By:       Patriot
Capital, LLC, 

                                                                        its
general partner

                                                            By:       _______________________(SEAL)

                                                                                    Charles P. McCusker,

                                                                                    Managing
Member

[Petra's Acknowledgment and Agreement Follows on Next
Page]

 

 

 

 

 

	
  15

  

PETRA'S ACKNOWLEDGMENT AND ACCEPTANCE OF STOCK
PURCHASE WARRANT

Petra acknowledges and
consents to the terms and provisions of this Warrant as of the date first
written above and specifically agrees that this Warrant is acceptable to it in
accordance with, among other provisions, Section 5(b) of the Petra Warrant and
in accordance with the fourth (4th) recital paragraph of the
Investors' Rights Agreement.

PETRA:

PETRA MEZZANINE FUND, L.P.

                                                            By:       Petra Partners, LLC,

                                                                        its
general partner

                                                            By:       _______________________

                                                                                    Michael W. Blackburn,

                                                                                    Managing
Member

 

 

 

 

	
  16

  

LADDCAP'S ACKNOWLEDGMENT AND ACCEPTANCE OF STOCK
PURCHASE WARRANT

Laddcap acknowledges and
consents to the terms and provisions of this Warrant as of the date first
written above and specifically agrees that this Warrant is acceptable to it in
accordance with, among other provisions, Section 5(b) of the Laddcap Warrant
and in accordance with the fourth (4th) recital paragraph of the
Investors' Rights Agreement.

LADDCAP:

Laddcap Value Partners
L.P.

                                                            By:       ________________________

                                                                        Robert
B. Ladd, 

                                                                        Managing
Partner

 

 

 

 

 

	
  17Exhibit 10.2

Amended supplementary agreement between CBH and Suzhou Erye
--------------------------------------------------------------------------------
This  amendment  (the  "Amendment")  to the  Agreement  signed among the parties
hereto on June 11, 2005 is signed in Suzhou City,  Jiangsu Province of China, on
August 3, 2005 by the following parties:

      Party A:  38 persons including and represented by SHI Ming Sheng & other
      Mailing address: No.859, Panxu Road, Canglang District, Suzhou City, China
      Tel: 86-512-68207173
      Fax : 86-512-68202801
      Legal representative: Shi Ming Sheng
      Nationality: China
      Party B: China Biopharmaceuticals Holdings Inc.
      Address: Suite 2005, 156 West 56th St., New York 10019, USA
      Tel (pound)(0)917-650-9201
      Fax (pound)(0)212-3101682
      Legal representative: Peng Mao
      Nationality: Canada
      Position: CEO

      Whereas:

      (1)  Party A  (consisting  of 38  persons)  is all the  shareholders  (For
details of  shareholders,  please see attached List of  Shareholders)  of Suzhou
Erye Pharmaceutical Limited Company (Referred to as "Erye" hereafter), a legally
registered  limited liability company  established  according to the laws of the
People's Republic of China ("China") laws, who authorizes its representative Shi
Mingsheng to represent all the shareholders to sign this agreement (For details,
please see the Trust Deed);  Party B is a legally  registered  limited liability
company according to Delaware Law of the United States of America ("U.S.A.").

      (2) In Accordance with The Company Law of China, The Contract Law of China
as well as  other  prevailing  laws  and  regulations,  Part B  decides  to make
investment in Erye, and Erye will become a foreign-invested company according to
Chinese laws (Referred to as the "Joint Venture"  hereafter).  Both parties have
signed the Merger Agreement.

<PAGE>

      (3) This  cooperation  between two parties refers to the issues  regarding
the operation and development of the joint venture; therefore, for the remaining
issues that are not fully  provided for in detail in the Merger  Agreement,  the
both parties make this agreement with amended supplementary provisions.

      Now therefore:

      1.    The Agreement is hereby  amended to reflect the  following  changes.
            This Amendment shall govern in case of conflicting interpretation on
            the Agreement.
      2.    Article 4.1 of the Agreement shall be amended as follows:  the board
            of directors of the Joint Venture shall consist of seven  directors,
            three  of whom to be  appointed  by  Party A and  four of whom to be
            appointed  by Party B.  Among the  directors  appointed  by Party B,
            Party B shall select one person from the current  management team of
            Erye. Party B agrees that Mr. SHI Mingsheng shall be the chairman of
            the first and second term of the board. All the directors  appointed
            by  Party  B  shall  be  responsible  to  Party  B and  act  at  the
            instruction  of  Party  B on  the  board  of  directors.
            Among  the  directors  appointed  by Party  A, one of whom  shall be
            recommended to act as director of Party B subject to the approval of
            Party  B's  shareholders.  If  this  director  fails  to be  elected
            director of board of party B, then this  director  shall have rights
            to audit the meeting of board of the  directors,  enjoying the right
            to full  knowledge  of the  operation  of the party B subject to the
            duty  of  confidentiality.  The  Chairman  of  the  board  shall  be
            appointed  by party  A, and the  chief  financial  officer  shall be
            appointed  by  party B  subject  to the  approval  of the  board  of
            directors.
            When the Joint Venture is initially  set up, Shi  Mingsheng  will be
            the Chairman of the board of the Joint Venture.  Meanwhile,  Party B
            shall  recommend to its  shareholders  that Shi  Mingsheng  hold the
            position of director of board of Party B.

<PAGE>

      3.    In terms of Article 4.2 of the Agreement,  on item shall be added to
            the important  events "Party B's transfer all or parts of its shares
            in the Joint Venture."
      4.    Article 8, the  Agreement  shall be  amended  to state:  "If Party B
            shall not be listed on the  NASD-Over  the  Counter  Bulletin  Board
            Market  in a  reasonable  time;  all the  assets,  stocks  and  cash
            exchanged shall be reverted back to the original parties."
      5.    Others

      5.1   For issues  that fail to be  mentioned  in this  Amendment,  the two
            parties may sign supplementary agreement or attachment,  which forms
            effective components of this Amendment with the same legal effect.

      5.2   This  Amendment  is in  quadruplicate,  with two copies held by each
            party.

      Party A: 38 persons including and represented by Shi Mingsheng

      Authorized representative: /s/ Shi Mingsheng
                                 Shi Mingsheng

      Party   B(pound)(0)China   Biopharmaceuticals   Holdings  Inc.

      Authorized representative: /s/ Peng Mao
                                 Peng Mao, Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00089-of-00352.parquet"}]]