Document:

Exhibit 4.01

 

ASSET
PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT (this "Agreement")
is made and entered into as of the 27th day of September, 2005, by
and among Home Solutions Restoration of Louisiana, Inc., a Louisiana
corporation ("Purchaser"), Home Solutions of America, Inc., a Delaware corporation ("Parent") and Florida Environmental Remediation Services,
Inc., a Florida corporation ("Seller"), and Fernando Nava and Mike D. Lane
as the shareholders of Seller (the "Shareholders").

RECITALS:

A.        Seller is currently engaged in the business
of restoring and reconstructing commercial and residential properties (the "Business").

B.         Seller desires to sell to Purchaser and
Purchaser desires to purchase from Seller, upon the terms and subject to the
conditions set forth in this Agreement, all of the assets, receivables,
personal property, equipment, inventory, fixtures, contracts, and other personal
property which are directly or indirectly related to, necessary for, or used in
connection with, the  operation of the Business.

C.        Seller will derive certain benefits from the
transactions contemplated by this Agreement, and in connection therewith, Seller
is willing to (i) deliver to Purchaser certain agreements not to compete with
Purchaser and the Business, and (ii) make certain representations, warranties,
covenants and agreements set forth herein.

AGREEMENT:

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties to
this Agreement hereby agree as follows:

ARTICLE I

PURCHASE AND SALE OF ASSETS

            1.01     Assets
to be Purchased. Subject to the terms and conditions of this Agreement, Seller
hereby agrees to sell, assign, transfer, convey and deliver to Purchaser, and
Purchaser hereby agrees to purchase, accept and acquire from Seller, on the
Closing Date (as defined in Section 3.01 of this Agreement), on a going
concern basis, all of the assets, properties, rights and interests of every
kind and description, tangible or intangible, used by Seller in connection with
the operation of the Business (all of which assets, rights and interests are
hereinafter collectively referred to as the "Acquired Assets"),
including, without limitation, the following: 

	
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            (a)        all tangible business and
personal property, including, without limitation,  equipment, vehicles,
furniture, furnishings, machinery, computers and other tangible personal
property of every description and kind and all replacement parts and
accessories thereto, including, without limitation, those assets listed on Schedule
1.01(a) (collectively, the "Equipment");

            (b)        All cash on hand and in bank
accounts, notes, accounts receivable and other short and long-term receivables
of the Business including, without limitation, the receivables described on Schedule
1.01(b) (the "Accounts Receivable");

            (c)        all  supplies, goods, and
inventory used, useable or useful in respect of the Business existing as of the
Closing Date, including without limitation the inventory described on Schedule
1.01(c) (the "Inventory");

            (d)        all deposits, prepaid taxes and
expenses, escrows and other advance payments relating to any expenses of the
Business, including, without limitation, those items listed on Schedule 1.01(d)
(the "Prepaid Expenses");

            (e)        all financial, personnel and
other records, whether in hard or electronic format, operating manuals, and
software (the "Documentary Information");

            (f)         all personal property leases
under which Seller is the lessee of personal property (collectively, the "Personal
Property Leases"), including, without limitation, those listed on Schedule
1.01(f) to this Agreement.  The Assets subject to the Personal Property
Leases are referred to in this Agreement as the "Leased Personal Property";

            (g)        all written agreements,
contracts, sales commitments, purchase orders, customer commitments, security
agreements or instruments and undertakings (other than the Personal Property
Leases) entered into in the ordinary course of the Business which (i) have been
entered into on or before the date of this Agreement, including, without
limitation, those listed on Schedule 1.01(g) to this Agreement, or (ii)
are entered into after the date hereof, are related exclusively to the Business
and satisfy the requirements of Section 6.02(c) of this Agreement (collectively
with the Personal Property Leases, the "Acquired Contracts"); 

            (h)        all third‐party
warranties, guaranties and service or replacement programs, including, without
limitation, those listed on Schedule 1.01(h) (collectively, the "Warranties");

            (i)         the licenses, permits,
approvals, variances, rights, waivers or consents (collectively, the "Licenses")
issued to Seller by any federal, state, county or local governmental entity or
subdivision thereof or any authority, arbitrator, department, commission,
board, bureau, body, agency, court or instrumentality thereof (collectively, "Governmental
Authorities") and used by Seller in connection with the operation of the
Business, including all business Licenses, certificates of occupancy, and
including, without limitation, the Licenses listed on Schedule 1.01(i);

                        

	
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            (j)         all names, trade names,
trademarks and service marks (or variations thereof) associated with the
Business, including the name "Florida Environmental Remediation Services" and
all intellectual property used in or associated with the Business;

            (k)        all rights of Seller to those
telephone, pager and facsimile numbers utilized by Seller in connection with
the operation of the Business;

            (l)         all goodwill associated with
the Business and the Acquired Assets; 

            (m)       all claims, actions, demands,
and causes of action that relate to the Business; and 

            (n)        all other property, other than
the Retained Assets, of every kind, character or description owned by
either Seller or its Affiliates and used or held for use in the Business,
wherever located and whether or not similar to the items specifically set forth
above.

As used herein, the term "Affiliate" shall mean
with respect to any party to this Agreement any entity or person that directly
or indirectly controls, is controlled by, or under common control with such
party. 

            1.02     Retained
Assets.  Notwithstanding anything contained in Section 1.01 of this
Agreement to the contrary, Seller shall, and hereby does, expressly retain all
of Seller's right, title and interest in and to only those assets, properties,
rights and interests that are listed on Schedule 1.02 (collectively, the
"Retained Assets").

            1.03     Assumed
Liabilities. On the Closing Date, Purchaser shall assume and agree to pay,
perform and discharge as and when due, only those obligations and liabilities
of Seller set forth on Schedule 1.03 (collectively, the "Assumed
Liabilities").

            1.04     Retained
Liabilities.  Except for the Assumed Liabilities, Purchaser shall not
assume and Purchaser shall not be obligated to pay or assume, and none of the
assets of Purchaser shall be or become liable for or subject to, any liability,
indebtedness, commitment, or obligation of Seller or any of its Affiliates,
whether known or unknown, fixed or contingent, recorded or unrecorded,
currently existing or hereafter arising or otherwise, including, without
limitation, the following (collectively, the "Retained Liabilities"):

            (a)        any debt, obligation, expense
or liability of Seller or any of its Affiliates (or any predecessor operator of
the Business or the Acquired Assets) that is not an Assumed Liability;

            (b)        any liabilities associated with
or arising out of any of the Retained Assets;

            (c)        any liabilities or obligations
in respect of periods or action or omissions of Seller or its Affiliates prior
to the Effective Time (as hereinafter defined);

	
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            (d)         liabilities or obligations
arising as a result of any breach by Seller at any time of any contract or
commitment that is not assumed by Purchaser;

            (e)         any debt, obligation, expense,
or liability arising out of or incurred solely as a result of any transaction
of Seller occurring after the Effective Time or arising out of any violation by
Seller of any law, regulation, or ordinance at any time (including, without
limitation, those pertaining to fraud, environmental, and ERISA matters); 

            (f)         liabilities or obligations
with respect to express or implied warranties of any kind or nature, including,
without limitation, warranties of workmanship or merchantability, warranties
express or implied by Seller in any written agreement and all warranties
imposed by law, regulation, statute or otherwise, occurring prior to the
Effective Time; and

            (f)         liabilities or obligations
with respect to the ownership or operation of any assets owned or
operated by Seller or any of its Affiliates other than the Acquired Assets.

            1.05     Assignability
and Consents. To the extent that the assignment of any Acquired Contract,
Warranties, Licenses, Documentary Information, Leased Personal Property or
other Acquired Asset to be assigned to Purchaser requires the consent or waiver
of any third party or Governmental Authority (each a "Required Consent"),
Seller shall obtain the consent or waiver of each such third party or
Governmental Authority to such assignment, in each case in form and substance
satisfactory to Purchaser, on or prior to the Closing Date.  

ARTICLE II

PURCHASE PRICE

            2.01     Payment.
As full payment for the Acquired Assets and the covenants contained in Section
6.04 (the "Noncompetition Covenant"), at the Closing, Purchaser
shall (a) assume the Assumed Liabilities, and (b) shall pay and/or deliver (or
cause to be paid and delivered) the following:

            (i)         Purchaser's nonrecourse promissory
note in the principal amount of U.S. Eleven Million and No/100 Dollars ($11,000,000.00),
subject to adjustment or cancellation as provided herein, substantially in the
form attached hereto as Exhibit "A" (the "Note"); 

	
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            (ii)        at Purchaser's option, either
(A) 1,053,632 shares of Parent's restricted common stock ("Common Stock"),
par value $0.001 per share (the "Shares"), which Shares shall be issued in
the name of, and held by, Hallett & Perrin, P.C. as escrow agent (in such
capacity, the "Escrow Agent"), until released as provided in the Escrow
Agreement among Purchaser, Seller, Parent and Escrow Agent, substantially in
the form attached hereto as Exhibit "B" (the "Escrow Agreement"),
or (B) a warrant (the "Warrant") attached hereto as Exhibit "C" exercisable
for the Shares, issued in the name of Seller with an exercise price of $0.001
per share, which Warrant shall be exercisable only in certain circumstances as
set forth therein and which shall be delivered to the Escrow Agent. If the
Shares are issued, Parent agrees to use its best efforts to register such
shares under the Securities Act of 1933, as amended (the "Securities Act"),
within 12 months of the Closing Date, subject to the reasonable discretion of
the Parent's Board of Directors as to the type of registration and timing of
the registration statement to be filed.  Notwithstanding the foregoing, the
Parent's Board of Directors may delay any registration for a period of ninety
(90) days from time to time upon prior written notice to Seller, if it is
determined that it is in the best interests of the Parent to do so in order to
coordinate the registration as a piggy-back registration or if it is otherwise
determined by the Parent's Board of Directors that such delay is in the best
interests of the Company.  The Shares shall be subject to forfeiture as
provided herein; and

            (iii)       Earnout Amount.  Seller
shall be entitled to receive an amount equal to ten percent (10%) of the excess
of Purchaser's EBITDA related to the Business, if any, that exceeds $15,000,000.00
in each of fiscal years 2006 and 2007, subject to the terms and provisions of
this Agreement (the "Earnout Amount").   In each of fiscal year 2006 and
2007, the Earnout Amount, if any, shall be determined by Purchaser in
accordance with generally accepted accounting principles ("GAAP") for
that fiscal year and confirmed by its independent public accountants within 90
days following the end of such fiscal year.  Thus, for example, if Purchaser's
EBITDA related to the Business in fiscal year 2006 is $20,000,000.00, then
Seller shall be entitled to receive an Earnout Amount equal to $500,000.00
([$20,000,000.00 - $15,000,000.000] x 10% = $500,000.00).  If Seller is
entitled to an Earnout  Amount, it shall be paid by Purchaser in cash or, at
Purchaser's option, by the issuance of restricted shares of the Parent's
Common  Stock valued at the five-day trailing average of the closing price of
the Common Stock as quoted on the American Stock Exchange in the five days
immediately prior to the last day of the fiscal year for which the shares are to
be issued.

The Note, the Shares and the Earnout Amount are
collectively referred to herein as the "Purchase Price."  

            2.02     Forfeiture
of Shares.  In the event that the Business does not either (a) meet or
exceed $20,000,000.00 in gross billings during the period from the Closing Date
to September 27, 2006 (the "Deadline"), or (b) meet or exceed
$8,000,000.00 in EBITDA during the period from the Closing Date to the Deadline,
in each case, as determined by Purchaser in accordance with GAAP and confirmed
by Purchaser's independent public accountants, the Shares shall be
automatically forfeited (such events described in clauses (a) and (b) above are
referred to as the "Economic Goals").  At least one of the Economic
Goals must be met by the Deadline in order for the Shares to be earned by
Seller.  If neither Economic Goal is met by the Deadline and the Shares were
issued to the Escrow Agent, then the Escrow Agent shall return the stock
certificate representing the Shares to the Parent and the Shares shall be
redeemed by the Parent and the stock certificate representing the Shares shall
be cancelled.  If neither Economic Goal is met by the Deadline and instead, at
Purchaser's election, a Warrant was issued for the Shares, then the Warrant
(which shall have automatically become void and of no force or effect upon such
event) shall be immediately returned to the Parent by the Escrow Agent, and the
Parent shall cancel the Warrant.  If the Business meets either of the Economic
Goals by the Deadline as determined by Purchaser and confirmed by Purchaser's
independent public accountants, Purchaser shall give written notice to the
Escrow Agent instructing the Escrow Agent to cause the Shares or the Warrant,
as applicable, to be released from escrow.

 

	
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            2.03     Allocation
of Purchase Price. The Purchase Price and the Assumed Liabilities shall be
allocated among the Acquired Assets and the Noncompetition Covenant in
accordance with the allocation set forth on Schedule 2.03. Purchaser and
Seller shall report the purchase and sale of the Acquired Assets and the
Noncompetition Agreement in their respective federal, state or local tax
returns in accordance with the allocation set forth on Schedule 2.03.

ARTICLE III

CLOSING

                                                                              

            3.01     Date,
Time and Place of Closing. The closing of the transactions contemplated by
this Agreement (the "Closing") shall take place at the offices of
Purchaser's counsel, Hallett & Perrin, P.C., located at 2001 Bryan  Street,
Dallas, Texas 75201, at 10:00 a.m., local time, on September 27, 2005, or
as promptly as practicable thereafter as soon as the conditions set forth in Article
VIII are satisfied, or at such other date, time or place fixed by mutual
written consent of Purchaser and Seller, but in no event later than September
30, 2005 (the "Termination Date").  All proceedings to take place at the
Closing shall take place simultaneously, and no delivery shall be considered to
have been made until all such proceedings have been completed (the date of such
Closing is referred to herein as the "Closing Date").

            3.02     Effective
Time.  The transactions contemplated by this Agreement shall be deemed
effective for tax and all other purposes as of 12:01 a.m., local Dallas, Texas
time, on the day immediately following the Closing Date (the "Effective Time"),
unless otherwise mutually agreed in writing by the parties.  Notwithstanding
the foregoing, for accounting purposes, the effective time of the transactions
contemplated by this Agreement shall be the effective time determined by
Purchaser as reflected in its books and records. 

            3.03     Conveyance
of Assets. At the Closing, Seller shall deliver or cause to be delivered to
Purchaser for the purpose of transferring the Acquired Assets to Purchaser such
documents, bills of sale, certificates of title, endorsements, assignments and
instruments necessary, advisable or desirable to vest in Purchaser good and
marketable title to all of the Acquired Assets being transferred by Seller to
Purchaser hereunder (such documents and instruments hereinafter collectively
referred to as the "Transfer Documents").  Such Acquired Assets shall be
transferred to Purchaser free and clear of any and all liens, prior
assignments, security interests, charges, pledges, claims or encumbrances of
any kind or character whatsoever (collectively, "Liens"), except Liens
relating to the Assumed Liabilities.

            3.04     Assumption
Instrument. At the Closing, Purchaser shall, at the request of Seller,
execute and deliver to Seller an assumption agreement with respect to the
Assumed Liabilities, in substantially the form attached hereto as Exhibit "D"
(the "Assumption Instrument").

            3.05     Taxes,
Charges and Fees.

	
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            (a)        Sales, Use and Transfer
Taxes.  Purchaser shall pay all transfer taxes, documentary stamp taxes,
recording charges and other taxes imposed by any Governmental Authority in
connection with the sale and transfer of the Acquired Assets. Seller shall have
the sole responsibility of representing its position in any future audit by any
Governmental Authority with respect to any tax periods during which the Seller
owned the Acquired Assets or operated the Business.

            (b)        Payment and Proration of
Personal Property Taxes.  Personal property taxes associated with the
Acquired Assets that are imposed on a periodic basis and are payable for a tax
period ending on or before the Closing Date shall be paid by Seller, and
Seller shall have the sole responsibility of such taxes (and any payments due
on account of such taxes).   Personal property taxes associated with the
Acquired Assets that are imposed on a periodic basis and are payable for a tax
period that includes (but does not end on) the Closing Date shall be prorated
as of the Closing Date and result in an adjustment to the Note (or at
Purchaser's option, Seller shall pay to Purchaser Seller's portion of prorated
taxes upon Purchaser's demand). 

            3.06     Employment
Agreement. At the Closing, Fernando Nava shall provide purchaser with
written evidence of his resignation from his employment with the Seller and
from his positions as an officer and board member of Seller, and shall enter
into an Employment Agreement with Purchaser in the form attached as Exhibit "E".

            3.07     Covenants
and Further Assurance.  Each party shall, at any time and from time to time
after the Closing Date, upon request of any other party and without further
cost or expense to such other party, execute and deliver such instruments of
conveyance and assignment and shall take such actions as such other party may
reasonably request to more effectively carry out the transactions contemplated
by this Agreement. 

ARTICLE IV

       REPRESENTATIONS
AND WARRANTIES OF SELLER AND SHAREHOLDERS 

In order to induce the Purchaser to enter into this
Agreement and to consummate the transactions contemplated hereby, Seller and
each Shareholder, severally and jointly with each other, hereby represents and
warrants as of the date hereof and as of the Closing Date as follows:           

            4.01     Organization
and Good Standing; Power and Authority.  Seller is a corporation duly
organized, validly existing and in good standing under the laws of the state of
  Florida.  Seller has full corporate power and authority to execute and
deliver this Agreement, perform Seller's obligations hereunder, consummate the
transactions contemplated hereby, operate the Business as it is now being conducted
and own or lease the Acquired Assets.  Seller is qualified to do business and
is in good standing in each jurisdiction in which the failure to so qualify
would have a Material Adverse Effect upon the Business, the Acquired Assets or
Seller.

	
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            4.02     Authorization. 
The execution, delivery and performance of this Agreement and all other
agreements and instruments executed and delivered by Seller in connection with this
Agreement and the consummation of the transactions contemplated hereby and
thereby have been duly and validly authorized by (i) all necessary action on
the part of Seller and (ii) the unanimous written consent of the Shareholders.
This Agreement has been, and the other agreements and instruments to be
executed and delivered by Seller and the Shareholders in connection herewith
will be, on or prior to the Closing Date, duly executed and delivered by Seller
and the Shareholders, and constitute, or, upon execution and delivery will
constitute, the valid, legal and binding obligations of Seller and the
Shareholders, enforceable against Seller and the Shareholders in accordance
with their respective terms. 

            4.03     Conflicts:
Defaults. The execution and delivery of this Agreement and the other
agreements and instruments executed or to be executed in connection herewith by
Seller and the Shareholders do not, and the performance by Seller and the
Shareholders of their respective obligations hereunder and thereunder and the
consummation by Seller and the Shareholders of the transactions contemplated
hereby or thereby, will not (i) violate, conflict with, or constitute a breach
or default under any of the terms of Seller's organizational documents, or any
License, patent, trademark, copyright or other intellectual property right of
Seller, any Warranty, Documentary Information, Acquired Contract, Personal
Property Lease or any other obligation under or with respect to the Acquired
Assets, (ii) result in the creation or imposition of any Liens in favor of any
third party upon any of the Acquired Assets or the Business, (iii) violate or
require any authorization, approval, consent or other action by, or
registration, declaration or filing with or notice to any Governmental
Authority pursuant to any law, statute, judgment, decree, injunction, order,
writ, rule or regulation of any Governmental Authority affecting the Business
or the Acquired Assets, or (iv) conflict with or result in a breach of, create
an event of default (or event that, with the giving of notice or lapse of time
or both, would constitute an event of default) under, or give any third party
the right to terminate, cancel or accelerate any obligation under, any
contract, agreement, note, deed of trust, indenture, order, judgment or decree
to which Seller or either Shareholder is a party or by which Seller or either
Shareholder or any of their respective assets or properties are bound or
affected.  There is no pending or, to the best knowledge of Seller and
Shareholders, threatened action, suit, claim, proceeding, inquiry or
investigation before or by any Governmental Authority, involving the
consummation of the transactions contemplated by this Agreement or that might
reasonably be expected to affect the right of Purchaser to acquire or own the
Acquired Assets or the right of Purchaser to operate the Business in
substantially the manner in which it currently is operated.

            4.04     Absence
of Undisclosed Information. Other than liabilities or obligations reflected
in the Unaudited Financial Statements (as defined in Section 4.05 below),
the Business and the Acquired Assets are not subject to (i) any liabilities or
obligations of any nature, fixed or contingent, or any facts that might give
rise to any such liabilities or obligations, which would materially adversely
affect the business, business prospects, assets, financial condition or results
of operations of the Business, or (ii) to the best knowledge of Seller and the
Shareholders, any liabilities or adverse claims against or relating to the
Acquired Assets or the Business.

	
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4.05     Financial  Statements.  Seller has
heretofore delivered to Purchaser true and correct copies of Seller's most
recent unaudited balance sheet, and related statements of operations, retained
earnings and cash flows, together with the notes relating thereto
(collectively, the "Unaudited Financial Statements").  The Unaudited
Financial Statements: (a) have been consistently prepared in accordance with
the books and records of Seller; (b) reflect and provide adequate reserves and
disclosures in respect of all liabilities of the Business, including without
limitation, all contingent liabilities at such date; and (c) present fairly the
financial condition of the Business at such date and the results of operations
and cash flows of the Business for the period then ended. Seller (a) keeps
books, records, and accounts that accurately, fairly, and in reasonable detail
reflect its assets and transactions, and (b) maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (a) transactions
are accurately and promptly recorded to permit the preparation of its financial
statements, (b) transactions are executed in accordance with management's
specific or general authorizations, and (c) access to its assets is permitted
only in accordance with management's general or specific authorization.

            4.06     Adequacy
of Acquired Assets. Seller has good and marketable title to all of the
Acquired Assets, and the Acquired Assets are, or will be, upon consummation of
the transactions contemplated by this Agreement, free and clear of all Liens
(other than Liens related to the Assumed Liabilities).  The Acquired Assets
include all assets and properties of Seller of every kind and description,
personal or mixed, tangible or intangible, the use of which is reasonably
necessary to enable Purchaser to conduct the Business as it has been conducted
by Seller prior to the date hereof and prior to the Closing Date.  There are no
assets which are used in the Business which are owned by the Shareholders.  All
of the Acquired Assets are in good operating condition and in a state of
reasonable maintenance and repair.  There are no unpaid liabilities, claims or
obligations arising from the ownership, use or operation of the Acquired Assets
or the Business which could give rise to any mechanic's, materialman's or other
statutory Lien against any of the Acquired Assets for which Purchaser could be
held responsible.

            4.07     Personal
Property Leases.  Schedule 1.01(f) sets forth a list and brief
description of each Personal Property Lease or other agreement or right,
whether written or oral (including in each case the rental rate, the expiration
date thereof and a brief description of the property covered thereby) under
which Seller is lessee of, or holds or operates any machinery, equipment, vehicle
or other tangible personal property owned by a third party and used in
connection with the Business.  All of such Personal Property Leases are valid
and enforceable in accordance with their respective terms, and there is not
under any of such Personal Property Leases, any material breach or default on
the part of Seller or, to the best knowledge of Seller and Shareholders, any
other party or any event that, with the giving of notice or lapse of time or
both, would constitute such a material breach or default on the part of Seller
or, to the best knowledge of Seller and Shareholders, on the part of any other
party.  

	
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            4.08     Contracts
and Commitments.  Except as set forth in Schedule 4.08 to this
Agreement, neither Seller nor any Shareholder is, with respect to the Business
or the Acquired Assets, a party to any written or oral (a) contract not made in
the ordinary course of business, other than this Agreement; (b) consulting
agreement or contract for the employment of any employee, consultant or other person
on a full‐time, part‐time or consulting basis; (c) except for the
Personal Property Leases set forth on Schedule 1.01(f) any contract or agreement
relating to the lease of any property, real or personal, whether as lessor or
lessee; (d) any contract for the purchase or sale of real or personal property,
goods or services, or capital or fixed assets, other than this Agreement; or (e)
any contracts or other agreements containing covenants under which the Business
may not compete in any line of business or with any person or entity in any
geographic area.  All Personal Property Leases and all Acquired Contracts are
valid and enforceable in accordance with their respective terms.  Except as set
forth in Schedule 4.08 hereto, neither Seller nor either Shareholder is
in breach of or in default under and, to Seller's or either Shareholder's
knowledge, no other party thereto is in breach of or default under, any of the
Acquired Contracts or Personal Property Leases, and no event has occurred that,
with the giving of notice or lapse of time or both, would constitute such a
breach or default.  True, correct and complete copies of all the Acquired
Contracts, the Personal Property Leases and all contracts listed on Schedule
4.08 have been delivered to Purchaser.

            4.09     Accounts
Receivable.  On the Closing Date, the level of Accounts Receivable for
Seller shall be as is normal and customary in the ordinary course of business,
consistent with past practices.  All collection efforts regarding the Accounts
Receivable shall likewise be consistent with past practices.  All Accounts
Receivable are payable in no less than 30 days after the date services were
rendered or goods were delivered.  No discounts, offsets, or other incentives
shall be utilized for collection purposes other than as have previously been
employed by Seller in the ordinary course of business. All Accounts Receivable
of Seller are valid receivables subject to no setoffs or counterclaims and are
current and collectible (within 30 days after the date on which it first became
due and payable), net of the applicable reserve for bad debts in the amount disclosed
to Purchaser.  

4.10    Powers of Attorney. There
are no outstanding powers of attorney executed on behalf of Seller or either
Shareholder.

4.11    No Warranties.  Neither Seller
nor any Shareholder has ever received a claim, and, to Seller's and each
Shareholder's knowledge, no claim is pending or has been threatened, under any
guaranty, warranty, or other indemnity for any product sold or service
provided by Seller.

4.12     Government Contracts.  Neither Seller nor
either Shareholder has never been, nor as a result of the consummation of the
transactions contemplated by this Agreement is it reasonable to expect that Seller
or either Shareholder will be suspended or debarred from bidding on contracts
or subcontracts for any agency of the United States government, nor has such
suspension or debarment been threatened or action for such suspension or
debarment been commenced.  Neither Seller nor either Shareholder has ever been
nor is Seller or either Shareholder now being audited or investigated by the
United States Government Accounting Office, the United States Department of
Justice, the United States Department of Defense or any of its agencies, the
Defense Contract Audit Agency or the inspector general of any agency of the
United States government, nor has such audit or investigation been threatened. 
There is no valid basis for Seller's or either Shareholder's suspension or
debarment from bidding on contracts or subcontracts for any agency of the
United States government and there is no valid basis for a claim pursuant to an
audit or investigation by the United States Government Accounting Office, the
United States Department of Justice, the United States Department of Defense or
any of its agencies, the Defense Contract Audit Agency or the inspector general
of any agency of the United States government, or any prime contractor.

	
  10

  

 

            4.13     Inventory. 
Seller has good title to all Inventory included in the Acquired Assets, free
and clear of all Liens.  The Inventory is adequate for the conduct of the
Business by Purchaser after the Closing and contains no items of obsolete Inventory,
and Inventory levels are not in excess of the normal operating requirements of
the Business in the ordinary course and consistent with past practices.

            4.14     Customers
and Suppliers. Except as set forth on Schedule 4.14, Seller is not
involved in any material controversy with any of the customers or suppliers of
the Business. Schedule 4.14 lists all customers of the Business which, from
the Business's inception, accounted for five percent (5%) or more of the
purchases or sales of the materials, products, supplies, equipment or parts
used in connection with the Business or five percent (5%) or more of the
revenues of the Business.

            4.15     Licenses. 
Other than as would not result in a Material Adverse Effect (as such term is
defined below), Seller has all licenses, permits, and approvals which are
needed or required by law to operate the Business or any ancillary services
related thereto. Schedule 4.15 lists all such Licenses owned or held by
Seller relating to the ownership or operation of the Business or the Acquired
Assets, all of which are now and as of Closing shall be valid, in full force and
effect.  All applications required to have been filed for the renewal of the
Licenses have been duly filed on a timely basis, or with appropriate
extensions, each with the appropriate Governmental Authority, and all other
filings required to have been made with respect to such Licenses have been duly
made on a timely basis, each with the appropriate Governmental Authority.  

For
the purposes of this Agreement, "Material Adverse Effect" means an
event, change or effect (whether collectively or individually) that is material
and adverse to the Business, the Acquired Assets, or the condition (financial
or otherwise), results of operations, management, manner of conducting
business, contractual rights, properties, liabilities or prospects of the
Purchaser or that would materially and adversely impact, affect or impair the
consummation of the transactions contemplated by this Agreement.

            4.16     Regulatory
Compliance.  Other than as would not result in a Material Adverse Effect,
Seller and the Business are in compliance with all applicable statutes, rules,
regulations, and requirements of all Governmental Authorities having
jurisdiction over the Business and the Acquired Assets and the operations of
the Business.  Other than as would not result in a Material Adverse Effect,
Seller has timely filed all reports, data, and other information required to be
filed with such Governmental Authorities. 

            4.17     Compliance
with Law. Seller is in material compliance with all federal, state, local
or foreign laws, statutes, ordinances, regulations, orders and other
requirements of Governmental Authorities having jurisdiction over the Acquired
Assets or the conduct of the Business.

	
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            4.18     Litigation.
There is no pending or, to the best knowledge of Seller and each Shareholder, threatened
litigation, action, suit, proceeding, claim, investigation, or administrative
proceeding against or affecting Seller or either Shareholder, by or before any
Governmental Authority, involving or relating to the Business or the Acquired
Assets.

4.19     Taxes.

(a)               
Seller has, or by the Closing Date
will have, (i) timely filed all returns, schedules and declarations (including
any withholding and information returns) required to be filed by any
jurisdiction to which Seller is or has been subject with respect to any Taxes
(as defined below), all of which returns, schedules and declarations are, or
will, when filed, be true, complete, accurate and correct in all material
respects, (ii) paid in full all Taxes due and payable (or claimed to be due and
payable by any federal, state, local or foreign Taxing authority), (iii) paid
or finally settled all Tax deficiencies asserted or assessed against Seller,
and (iv) made timely payments to the proper Governmental Authorities of the
Taxes required to be deducted and withheld from the wages paid to its
employees.

(b)              
Seller (i) is not delinquent in
the payment of any Tax, (ii) has not been granted an extension of time to file
any Tax return prior to or on the Closing Date which has expired, or will
expire, on or before the Closing Date without such return having been filed,
and (iii) has not granted to any other person or entity a power of attorney or
similar authorization with respect to the settlement of its liability for
Taxes.

(c)               
No deficiencies for any Tax has
been claimed, proposed or assessed (whether or not finally or tentatively,
orally or in writing), no requests for waivers of the time to assess any
deficiency for any Taxes are pending, and there are no pending or threatened
Tax audits, investigations or claims for or relating to (i) the assessment or
collection of Taxes, or (ii) a claim for refund made with respect to Taxes
previously paid. There are no matters under discussion or dispute with any
Governmental Authorities with respect to Taxes that may have been raised, nor
are there any issues Seller believes will be raised in the future, by any
Taxing authority with respect to Taxes accruing on or prior to the Closing
Date.

(d)              
There are, and as of the Closing
Date there will be, no Liens for Taxes upon the Acquired Assets except for
statutory Liens for Taxes not yet due or delinquent. Purchaser will take title
to the Assets free and clear of any such Liens.

(e)               
As used in this Agreement, "Taxes"
(and all derivations thereof) means all federal, state, local and foreign sales,
use, property, payroll and other taxes imposed by any Governmental Authority
with respect to the ownership, operation, transfer or use of the Business or
the Acquired Assets, or in any other way relating to the Business or the
Acquired Assets.

	
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            4.20     Employees. 
Schedule 4.20 contains a true and complete list of the names of each
employee of the Business, disclosing each such employee's current aggregate
annual cash compensation and the other material benefits of each employee of
the Business.  Schedule 4.20 contains a list of all employment
contracts, confidentiality agreements or non‐compete agreements to which
Seller is a party with respect to any of its employees, and all such agreements
have been provided to Seller prior to the date of this Agreement.  Except as
set forth on Schedule 4.20 to this Agreement, no labor organization,
collective bargaining representative or group represents or claims to represent
any of the present employees of the Business.  Each employee of the Seller is
properly authorized by the United States government to work in the United States and Seller has duly verified the status of each such employee to work in the United States, including, where appropriate, verification of that such employee's Form I-9
is issued, valid and current. 

4.21     Employee Benefit Plans.  

            (a)        Schedule 4.21
contains a true and complete list of all the following agreements, plans or
other arrangements, covering any employee of the Business, which were
previously or are presently in effect: (i) employee benefit plans within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") and (ii) any other employee benefit plan,
program, policy, or arrangement providing for insurance coverage (including
without limitation any self-insured arrangements), workers' compensation,
disability benefits, supplemental unemployment benefits, paid time-off benefits
(including without limitation vacation leave, sick leave, personal leave, bonus
leave, and leave for civil obligations), retirement benefits, life, health,
disability or accident benefits (including without limitation any "voluntary
employees' beneficiary association" as defined in Section 501(c)(9) of the
Internal Revenue Code of 1986, as amended (the "Code") providing for the
same or other benefits) or for deferred compensation, profit sharing bonuses,
stock options, restricted stock, phantom stock, stock appreciation rights,
stock purchases or other forms of incentive compensation or post-retirement
insurance, compensation or benefits, whether written or unwritten, formal or
informal, which Seller or any of its affiliates currently sponsors, or to which
it has any outstanding present or future obligation to contribute or other
liability, whether voluntary, contingent or otherwise (collectively, the "Benefit
Plans").

            (b)        Seller has, with respect to each Benefit
Plan listed on Schedule 4.21, delivered to Purchaser, or shall provide
to Purchaser within five (5) days after the date of this Agreement, a true and
complete set of copies of (i) all Benefit Plans and related trust agreements,
annuity contracts or other funding instruments as shall be in effect
immediately prior to the Closing Date, together with all amendments thereto
which shall become effective at a later date; (ii) all summary plan
descriptions for each Benefit Plan required to prepare, file and distribute
summary plan descriptions; and (iii) all summaries furnished or made available
to employees, officers and directors of any of Seller or the ERISA Controlled
Group (as defined below) of all Benefit Plans for which a summary plan
description is not required.

            (c)        The Acquired Assets
are not, and Seller does not expect them to become, subject to a lien imposed
under the Code or under Title I or Title IV of ERISA including liens arising by
virtue of Seller being considered to be aggregated with another entity pursuant
to Section 414 of the Code or ERISA Section 4001(a)(14) ("ERISA Controlled
Group").

	
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            (d)        Neither Seller nor
any member of Seller's ERISA Controlled Group has sponsored, contributed to,
participated or agreed to participate in, or had an "obligation to contribute"
(as defined in ERISA Section 4212(a)) to a "multiemployer plan" (as defined in
Code Section 414(f) or ERISA Sections 4001(a)(3) or (3)(37)(A)) on behalf of
any employee of the Business.

            (e)        Neither Seller nor
any member of Seller's ERISA Controlled Group has at any time sponsored or
contributed to, participated or agreed to participate in, a "single employer
plan" (as defined in ERISA Section 4001(a)(15)) to which at least two or more
of the "contributing sponsors" (as defined in ERISA Section 4001(a)(13)) are
not part of the same ERISA Controlled Group.

            (f)         There are no
actions, liens, suits, audits or claims pending or, to the best knowledge of
Seller, threatened against Seller, with respect to Seller's maintenance of the
Benefit Plans, any Benefit Plan, or the assets of any Benefit Plan, other than
routine claims for benefits and other claims that are not material.

            (g)        Seller and each
member of Seller's ERISA Controlled Group have, at all times, complied with all
requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), ERISA Sections 601 through 608 and Section 4980B of the
Code, and all regulatory guidance thereto.

            (h)        Each Benefit Plan
that constitutes an "eligible retirement plan" as defined in Section
402(c)(8)(B) of the Code, and each related trust agreement, annuity contract or
other funding instrument, from which assets may be involved in a "direct
rollover" (as defined in Section 401(a)(31) of the Code) or other transfer to
Purchaser's retirement plans has complied with the applicable requirements of
the Code and, with respect to Benefit Plans that are qualified under Section
401(a) of the Code, each such Benefit Plan has been so determined by the
Internal Revenue Service pursuant to a current favorable determination letter,
or application for such determination has been made and is currently pending.

	
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            4.22     Employee
Relations.  All employees of the Business are employees of Seller.  The
employee relations of Seller are good. There is no threatened employee strike,
work stoppage, or labor dispute pertaining to the Business.  No union
representation question exists respecting any employees of Seller.  No
collective bargaining agreement, labor contract, letter of understanding,
contract or any other arrangement, formal or informal, with any labor union or
organization exists or is currently being negotiated by Seller, no demand has
been made for recognition by a labor organization by or with respect to any
employees of Seller, no union organizing activities by or with respect to any
employees of Seller are, to the best knowledge of Seller, taking place, and
none of the employees of Seller are represented by any labor union or
organization.  There is no unfair practice claim against Seller before the
National Labor Relations Board, nor any strike, dispute, slowdown, or stoppage
pending or threatened against or involving the Business, and none has occurred.
Seller, to its knowledge, is in compliance with all federal and state laws
respecting employment and employment practices, terms and conditions of
employment, and wages and hours.  Seller is not, to its knowledge,
engaged in any unfair labor practices. Other than as would not result in a Material
Adverse Effect, Seller has complied with all requirements of the Immigration
Reform and Control Act of 1986. There are no pending or, to the best knowledge
of Seller, threatened EEOC or DFEH claims, OSHA complaints, DOL complaints,
union grievances, wage and hour claims, unemployment compensation claims,
workers, compensation claims or the like.

            4.23     Environmental
Laws.

            (a)        Neither Seller nor the Business
is or has been (i) subject to any environmental hazards, risks, or liabilities,
or (ii) in violation of any federal, state or local statutes, regulations, laws
or orders pertaining to environmental matters, including, without limitation,
the Comprehensive Environmental Response, Compensation and Liability Act of
1980 ("CERCLA"), as supplemented and amended, 42 U.S.C. Section 9601 et
seq.; the Resource Conservation and Recovery Act, as  amended ("RCRA"),
42 U.S.C. Section 6901, et seq.; the Federal Clean Air Act, 42 U.S.C. Section
7401, et seq.; the Federal Water Pollution Control Act, Federal Clean Water Act
of 1977, 33 U.S.C. Section 1251, et seq.; Federal Hazardous Materials
Transportation Act, 48 U.S.C. Section 1801, et seq.; Federal Toxic Substances
Control Act, 15 U.S.C. Section 2601, et seq.; and the Federal Safe Drinking
Water Act, 42 U.S.C. Section 300f, et seq.  No Hazardous Substances (which for
purposes of this Section 4.23 shall mean and include any hazardous or
toxic substances, pollutants, contaminants, materials or wastes, including but
not limited to those substances, pollutants, contaminants, materials and wastes
listed in the United States Department of Transportation Table (49 CFR 172.101)
or by the Environmental Protection Agency as hazardous substances pursuant to
40 CFR Part 302, or such substances, materials and wastes which are regulated
under any federal environmental law or any applicable local or state
environmental law, including without limitation CERCLA, ECRA, RCRA; toxic
substances as defined under the Toxic Substance Control Act, 15 U.S.C. 2601, et
seq.; or any of the following: hydrocarbons, petroleum and petroleum products,
asbestos, polychlorinated biphenyls, formaldehyde, radioactive substances,
flammables and explosives) have been and through the Closing Date will be,
disposed of or released or discharged from or onto (including groundwater
contamination) any Acquired Asset  or any place where the Business has been
operated or services have been provided by Seller in violation of any
applicable environmental statute, regulation, or ordinance.  Neither Seller, nor
any Affiliate of Seller has allowed any Hazardous Substances to be discharged,
possessed, managed, processed, or otherwise handled by or in connection with
the Business in a manner which is in violation of applicable law, and Seller
has complied and is compliant with all environmental laws applicable to any
part of the Business.  Seller shall immediately notify Purchaser, in writing,
should Seller, prior to the Closing Date, become aware of any lien, notice,
litigation, or threat of litigation relating to any alleged unauthorized
release of any Hazardous Substance or the existence of any Hazardous Substance
with respect to the Business or any Acquired Asset; and shall promptly furnish
the Purchaser with copies of any correspondence, notices, or legal pleadings in
connection therewith;  

	
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            (b)        Neither Seller nor its
Affiliates or agents have received any communication (written or oral) that
alleges that Seller or the Business is not in compliance with all applicable
environmental laws;

            (c)        Other than as would not result
in a Material Adverse Effect, Seller has obtained all environmental permits
necessary for the operation of the Business and related activities, all such
permits are in good standing and Seller is in compliance with all terms and
conditions of its environmental permits; and

            (d)        To the knowledge of Seller, no location
where the Business is or has been operated has ever been used as a landfill,
garbage or refuse dump site, waste disposal facility, transfer station or other
type of facility for the processing, treatment or disposal of waste materials

            4.24     Insurance. 
Seller maintains adequate liability, property and casualty, and other forms of
insurance customary for businesses like Seller's Business, all on terms and
conditions that are ordinary and customary for businesses such as the Business. 
Schedule 4.24 lists all insurance policies covering the operations of
the Business and the property insurance policies covering the Acquired Assets,
including the policies' numbers, terms, identity of insurers, amounts and
coverage.  All such insurance policies are in full force and effect and shall
remain in full force and effect through the Closing Date.  

            4.25     Location
of Property.  All of the items comprising the Acquired Assets are located
at Seller's facilities or Seller's agents' facilities set forth on Schedule 4.25. 
Neither Seller nor either Shareholder shall remove any of such property from
such locations without the prior written consent of the Purchaser, except as
may be required in the ordinary course of the Business.

            4.26     Conflicts
Of Interest.  No Affiliate of Seller, nor, to Seller's or either
Shareholder's knowledge, any Business employee: (i) is a supplier of goods or
services to Seller, (ii) directly or indirectly controls or is a director,
trustee, member, officer, controlling shareholder, employee or agent of any
corporation, firm, association, partnership or other business entity which is a
supplier of goods or services to Seller, or (iii) is a party to any contract or
other agreement with Seller, other than Mike D. Lane.

            4.27     Brokers,
Finders and Agents. Neither Seller nor either Shareholder is directly or
indirectly obligated to anyone as a broker, finder, agent or in any other
similar capacity in connection with this Agreement or the transactions
contemplated hereby.

 

	
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            4.28     Securities
and Investment Representations.  Seller is acquiring the Shares for
investment purposes and not with a present view to, or for sale in connection
with, a distribution thereof within the meaning of the Securities Act.  Seller understands
that it may not be able to sell or otherwise dispose of the Securities, and
accordingly it might need to bear the economic risk of this investment
indefinitely.  Seller understands that the Securities have not been registered
under the Securities Act or any state securities laws and are being offered and
sold in reliance upon specific exemptions from the registration requirements of
federal and state securities laws, and that the Purchaser and the Parent are relying
upon the truth and accuracy of the representations and warranties of Seller set
forth herein in order to determine the availability of such exemptions and the
eligibility of Seller to acquire the Shares.  Seller has been furnished all
documents relating to the business, finances and operations of the Parent that Seller
has requested from the Purchaser or the Parent and has evaluated the risks and
merits associated with an investment in the Shares to its satisfaction.  Seller
has been afforded the opportunity to ask questions of the Parent's
representatives concerning the Parent in making the decision to purchase and
acquire the Shares, and such questions have been answered to its satisfaction. 
Seller is an "accredited investor" as defined in Rule 501 under Regulation D of
the Securities Act.  Seller is capable of evaluating the merits and risks of an
investment in the Shares.   

            4.29     Restrictions
on Transfer.  Seller covenants and agrees that it shall not transfer any of
the Shares (i) unless such Securities are registered under the Securities Act
or unless an exemption from registration and qualification requirements is
available under the Securities Act and applicable state securities laws and the
Parent has received an opinion of counsel satisfactory to it stating that such
registration and qualification is not required, and (ii) in any event, for at
least one year following the date that the Shares are transferred into its name
from the Escrow Agent.  Seller understands that certificates representing the
Shares shall bear the following, or a substantially similar, legend until such
time as they have been registered under the Securities Act or otherwise may be
sold without volume or other limitations under Rule 144 promulgated under the
Securities Act:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
OR UNDER ANY STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT PURSUANT TO REGISTRATION UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS, OR UPON RECEIPT BY THE COMPANY OF AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

            4.30     Representation
by Counsel, etc..  Seller and Shareholders represent that Purchaser and
Parent have previously advised, and again hereby advise, prior to the execution
of this Agreement and all documents executed in conjunction with this Agreement,
that Seller and Shareholders each seek the advice of an attorney and an
accountant in connection with this Agreement and the transactions contemplated
hereby. Seller and each Shareholder hereby confirms that Seller or such Shareholder,
as applicable, has had the opportunity to seek the advice of an attorney and an
accountant of his or its choice in connection with this Agreement and the
transactions contemplated hereby.  

            4.31     Working
Capital. Seller currently has, and will have on the Closing Date, no less
than U.S. Two Million and NO/100 Dollars ($2,000,000.00) in Working Capital.
For purposes of this Agreement "Working Capital" means the sum of (x)
all cash in Seller's bank accounts, plus (y) the aggregate amount
of all Seller's valid and collectible accounts receivable for services rendered
or goods delivered that are no less than 30 days past the date the services
were rendered or the goods were delivered, less (z) Assumed
Liabilities.

	
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            4.32     EBITDA. 
As of August 31, 2005, Seller has no less than U.S. One Million Five Hundred and
NO/100 Dollars ($1,500,000.00) in EBITDA, excluding from such calculation the
salary and other compensation paid to Mr. Nava, to the extent such salary and
compensation exceeds U.S. Two Hundred Eight Thousand and NO/100 Dollars ($208,000.00)
 and all non-essential expenses.

            4.33     Recent
  Billings.  As of the three-week period ended September 22, 2005, Seller
has billed no less than U.S. Three Million and NO/100 Dollars ($3,000,000.00)
to customers solely related to services provided for restoration of properties
and buildings devastated or damaged by hurricane Katrina.

            4.34     Full
Disclosure. The information provided and to be provided by Seller to
Purchaser in this Agreement, in the Schedules attached hereto or in any other
writing pursuant hereto (including, without limitation, the representations and
warranties contained in this Article IV) does not and will not contain
any untrue statement of a material fact and does not and will not omit to state
a material fact required to be stated herein or therein or necessary to make
the statements contained herein or therein, in light of the circumstances in
which they are made, not false or misleading.  Copies of all statements,
reports, documents and other materials heretofore or hereafter delivered or
made available to Purchaser pursuant hereto and thereto were or will be at the
time of their delivery to Purchaser true, complete and accurate copies of such
statements, reports, documents and other materials.

ARTICLE V

REPRESENTATIONS
AND WARRANTIES OF PURCHASER

In order to induce Seller to enter into this Agreement
and to consummate the transactions contemplated hereby, Purchaser hereby
represents and warrants as of the date hereof and as of the Closing Date as
follows:

            5.01     Organization
and Good Standing; Power and Authority.  Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the State of
  Louisiana.  Purchaser has full corporate power and authority to execute and
deliver this Agreement, perform Purchaser's obligations hereunder, consummate
the transactions contemplated hereby, operate the Business as it is now being
conducted and own or lease the Acquired Assets.  Purchaser is qualified to do
business and is in good standing in each jurisdiction in which the failure to
so qualify would have a Material Adverse Effect upon the Business, the Acquired
Assets or Seller.

	
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            5.02     Authorization. 
The execution, delivery and performance of this Agreement and all other
agreements and instruments executed and delivered by Purchaser in connection
with this Agreement and the consummation of the transactions contemplated
hereby and thereby have been duly and validly authorized by all necessary
action on the part of Purchaser. This Agreement has been, and the other
agreements and instruments to be executed and delivered by Purchaser in
connection herewith will be, on or prior to the Closing Date, duly executed and
delivered by Purchaser, and constitute, or, upon execution and delivery will
constitute, the valid, legal and binding obligations of Purchaser, enforceable
against Purchaser in accordance with their respective terms. 

            5.03     Brokers,
Finders and Agents.  Purchaser is not directly or indirectly obligated to
anyone as a broker, finder, agent or in any other similar capacity in
connection with this Agreement or the transactions contemplated hereby.

ARTICLE VI

PRE-CLOSING COVENANTS

            6.01     Access
and Information.  Seller shall afford to Purchaser and Purchaser's
accountants, counsel and other representatives full and reasonable access from
time to time during normal business hours throughout the period from the date
hereof until the Closing Date to Seller's properties, books, contracts,
commitments, personnel and records relating to the Business and the Acquired
Assets, and, during such period, Seller will (or will cause its representatives
to) furnish to Purchaser and Purchaser's accountants, counsel and other
representatives copies of such documents and all such other information
concerning the Acquired Assets, the Retained Assets, the Assumed Liabilities,
the Retained Liabilities and the operations, properties and personnel of the
Business as Purchaser may reasonably request.

            6.02     Conduct
of the Business Pending Closing.  From the date hereof through the Closing
Date:

            (a)        Ordinary Course of Business. 
Seller shall use all reasonable efforts to preserve the business organization
of the Business intact, to keep available to the Business the services of all
current employees and to preserve for Purchaser the goodwill of the suppliers,
customers, employees and others having business relations with the Business;

            (b)        Operation of Business. 
Seller shall continue the operation of the Business in the ordinary course and
consistent with past practices, and maintain the assets, properties and rights
of the Business (including, without limitation, the Acquired Assets) in good
order and condition, subject to ordinary wear and tear;

            (c)        Material Contracts. 
Seller shall not enter into any contract, purchase order or other commitment
directly or indirectly affecting the Acquired Assets or the Business, except
contracts and commitments entered into the ordinary course of business
consistent with past practices, which is freely transferable to Purchaser
without the consent of any party, and with respect to which Seller has provided
full disclosure to Purchaser;

	
  19

  

 

            (d)        Material Adverse Change. 
Seller shall give prompt written notice (but not later than five (5) days after
the occurrence thereof) to Purchaser of any (i) material adverse change in the
prospects, assets, financial condition or results of operation of the Business;
and (ii) change that would render any representation or warranty made by Seller
hereunder untrue or incomplete in any material respect as of the date of such change;

            (e)        Compliance with
Representations and Warranties. Without limiting the foregoing, except as
otherwise expressly provided in this Agreement, Seller shall not take any
action or permit to occur any event, directly or indirectly within the control
of Seller, that would cause any representation or warranty contained herein to
be inaccurate or untrue on or before the Closing Date; and

            (f)         Continued
Maintenance.  From the date of execution of this Agreement through the
Closing Date, Seller shall continue to maintain the Acquired Assets in the
ordinary course of business.

            6.03     Exclusivity.
From and after the date hereof through the Closing Date, neither Seller nor
Shareholders nor any of their respective Affiliates, partners, shareholders,
officers, directors, employees, or agents, shall, directly or indirectly,
solicit, initiate or engage in or continue (including without limitation,
furnishing any information concerning the Acquired Assets or the Business)
discussions, inquiries or proposals, or enter into any negotiations for the
purpose or with the intention of leading to any proposal, concerning the
acquisition or purchase by any other party of the Business or any part thereof
or any Acquired Asset.

            6.04     Noncompetition
and Nonsolicitation.  Provided Purchaser is not in material, uncured breach
of its obligations under this Agreement (for the purposes of this Section
6.04, Seller and Shareholders shall not be deemed to be in breach of this
Agreement during any period of time that Purchaser is in breach hereof), for a
period of three years after the Closing Date, none of the Sellers or
Shareholders will,  (a) anywhere within California,
Florida, Texas,  Georgia, South Carolina, North Carolina, Alabama, Mississippi,
Louisiana, or any other state where the Business is or has been operated
or the Business is or has provided any services, directly or indirectly, engage
in any activity in competition with the Business in any respect (other than
merely holding interests of less than 1% in companies with securities traded on
a nationally recognized stock exchange or interdealer quotation system); or (b)
solicit, divert, or hire away, or attempt to solicit, divert, or hire away,
from the employment by Purchaser or any of its Affiliates, any person then
employed, or employed within the previous year, by any of such entities.  

            6.05     Confidentiality. 
After the Closing, each Seller will hold in confidence and will not use,
duplicate, reproduce, distribute, disclose or otherwise disseminate any
information related to the Business, the Acquired Assets or the Purchaser, or
any affiliated entity. Notwithstanding the foregoing, if Seller determines that
it is required by law to disclose any proprietary information, such person will
not make such disclosure unless (and then only to the extent that) such party
has been advised by independent legal counsel that such disclosure is required
by law and then only after prior written notice is given to Purchaser that such
disclosure has been requested and is required by law.

	
  20

  

 

ARTICLE VII

                    POST-CLOSING
AGREEMENTS OF SELLER AND PURCHASER

7.01     Employee Matters.

            (a)        Employment.  Seller
agrees to cooperate with Purchaser and give Purchaser access to employee
information in connection with Purchaser's potential employment of the current
employees of the Business. However, Purchaser shall be under no obligation to
(i) hire any employees of the Business; (ii) maintain any of Seller's employees
which it does hire at the same position, title, or level or responsibility that
they had with Seller; (iii) grant seniority or service credit or recognize
accrued vacation or sick leave time to any such employee; or (iv) pay any
specified level of compensation or benefits to any such employee.

            (b)        Employment Liabilities. 
Purchaser does not assume, and Seller hereby retains, any and all employment
related costs, obligations, and liabilities of the Business incurred on or
prior to Closing or which relate to events, occurrences, conditions, actions,
or inactions which took place or were in effect on or prior to Closing (whether
or not reported, filed, billed, or paid for on or prior to Closing), including,
without limitation, costs, obligations and liabilities relating to severance
rights of employees of the Business (including those rights to health care
continuation coverage under the Consolidated Omnibus Budget Reconciliation Act
of 1985, as amended ("COBRA")), employment discrimination, unfair labor
practices, wage and hour laws, health and safety, workers compensation,
wrongful discharge, compensation, fringe benefits, insurance, employee benefit
plans, pensions, retiree medical, severance pay, vacations, torts, accidents,
disabilities, injuries, sickness, exposure to harmful conditions, breach of
oral or written employment contracts or collective bargaining agreements, or
breach of law, statute, judgment, decree, injunction, order, writ, rule or
regulation of any Governmental Authority. The entire liability for continuing
acts or conditions (such as exposure to harmful conditions or continuing
discrimination) shall be retained and assumed by Seller if any material portion
of the act or condition occurred on or prior to Closing.

            (c)        Prior to Closing, Purchaser
shall notify Seller of the names of Seller's employees whom Purchaser
determines in its sole discretion it would like to hire beginning on or after
the Closing Date (the "Designated Employees") and the terms of their
employment, which shall not be less favorable to such employees than the
existing terms of their employment by Seller, as disclosed to Purchaser, except
with the prior written approval of Seller.  On or before the Closing Date,
Purchaser will extend offers of employment to such Designated Employees to
begin as of the Closing Date on such terms of employment.  Seller shall cooperate
with Purchaser's efforts to hire the Designated Employees.  On the date
immediately preceding the Closing Date, Seller agrees that Seller's employment
of the Designated Employees who have agreed to be employed by Purchaser shall
end. 

 

	
  21

  

 

            7.02     Payment
of Acquired Contract Pre-Billed Amounts.  Not later than thirty (30) days
after the Closing Date, Seller shall pay to Purchaser Purchaser's pro rata
share of the invoiced amounts with respect to those Acquired Contracts which
have been pre-billed by Seller.  Purchaser's pro rata share of such invoiced
amounts are set forth on Schedule 7.02.

            7.03     Reasonable
Efforts.  Seller and Purchaser agree that prior to the Closing they will
each use all reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable to
consummate and make effective the transactions contemplated by this Agreement.

            7.04     Casualty. 
If, prior to the Closing, the Business or any Acquired Asset sustains damage or
destruction by fire or other casualty that Seller does not completely repair
prior to Closing, Purchaser may elect to either (1) terminate this Agreement as
provided in Section 9.01(b) by providing written notice thereof to
Seller, or (2) consummate the transactions contemplated by this Agreement
subject to a mutually agreeable adjustment in the Purchase Price to reflect
such unrepaired casualty loss insurance.

ARTICLE VIII

CONDITIONS TO CLOSING

            8.01     Obligation
of Purchaser. The obligation of Purchaser to consummate the transactions
contemplated by this Agreement shall be subject to the fulfillment, at or prior
to the Closing, of the following conditions (any of which may be waived in
writing, in whole or in part, by Purchaser):

            (a)        Representations and Warranties;
Performance. The representations and warranties of Seller and Shareholders
set forth in this Agreement shall be true, correct and complete as of the
Closing Date (as though such representations and warranties were made anew at
and as of such date) except with respect to the effect of transactions
specifically permitted by the provisions of this Agreement, and Seller shall
have duly performed in all material respects all agreements and covenants
herein required to be performed by Seller on or before the Closing Date.

            (b)        Officer's Certificate. Seller
shall have furnished a certificate, executed on behalf of Seller, confirming
the matters expressed in Section 8.01(a) hereof with respect to Seller. 

	
  22

  

 

            (c)        Authority.  Seller shall
have furnished to Purchaser (i) certificates of the Secretary of State of Florida,
dated as of a date nor more than five (5) business days prior to the Closing
Date, attesting to the organization, existence and good standing of Seller,
(ii) a copy certified by the Secretary of State of Florida, dated as of a date
not more than five (5) business days prior to the Closing Date, of Seller's
Articles or Certificate of Incorporation together with all amendments, (iii) a
copy certified by the Secretary of Seller, of the Bylaws of Seller, as amended
and in effect as of the Closing Date, (iv) a copy, certified by the Secretary
of Seller, of resolutions duly adopted by the Board of Directors of Seller duly
authorizing the transactions contemplated by this Agreement, and (v) a copy, certified
by the Secretary of Seller, of resolutions duly adopted by the unanimous
written consent of the Shareholders duly authorizing the transactions
contemplated by this Agreement.

            (d)        Consents and Approvals.
All consents and approvals of third parties and Governmental Authorities shall
have been obtained by Seller and delivered to Purchaser.

            (e)        Transfer Documents. 
Purchaser shall have received the Transfer Documents as contemplated in Section
3.03 hereof.

            (f)         Employment Matters. (i)
Purchaser shall have received the executed Employment Agreement from Fernando
Nava, and (ii) Purchaser shall be satisfied (in its sole discretion) that at
least 400 Designated Employees will agree to be employed by Purchaser on terms
and conditions specified in Section 7.01(c). 

            (g)        Certificate of Non-Foreign
Status.  Seller shall have duly executed and delivered Purchaser a
Certificate of Non-Foreign Status sufficient in form and substance to relieve
Purchaser of all withholding obligations under Section 1445 of the Code.

            (h)        Financing.  Purchaser
shall have secured financing necessary in order for it to consummate the
transactions contemplated hereunder, on terms satisfactory to the Purchaser in
its sole discretion.

            (i)         Due Diligence. 
Purchaser shall have completed its due diligence review of the Business and the
Acquired Assets and the results of such due diligence review shall be
acceptable to Purchaser in its sole discretion. Purchaser shall be satisfied in
its sole discretion that Seller's representations in Sections 4.30, 4.31
and 4.32 are true and accurate in all respects. 

            (j)         Approval of Board
of Directors.  The Board of Directors of Purchaser shall have approved this
Agreement and the transactions contemplated hereby.

            (k)        No Material Adverse Change
or Litigation.  There shall not have occurred any material adverse change
in the business, business prospects, assets, financial condition or results of
operation of the Business.  There shall be no pending or threatened litigation
affecting the Seller, the Shareholders or the Acquired Assets.

            8.02     Obligation
of Seller. The obligation of Seller to consummate the transactions
contemplated by this Agreement shall be subject to the fulfillment, at or prior
to the Closing, of the following conditions (any of which may be waived in
writing, in whole or in part, by Seller):

	
  23

  

 

            (a)        Representations and
Warranties; Performance. The representations and warranties of Purchaser
set forth in this Agreement shall be true, correct and complete as of the
Closing Date (as though such representations and warranties were made anew at
and as of such date) except with respect to the effect of transactions
specifically permitted by the provisions of this Agreement, and Purchaser shall
have duly performed in all material respects all agreements and covenants
herein required to be performed by Purchaser on or before the Closing Date.

            (b)        Consents and Approvals.
All material consents and approvals of third parties and Governmental
Authorities that shall be (i) required to consummate the transactions
contemplated hereby or (ii) reasonably necessary to permit Purchaser to operate
the Business, shall have been obtained.

            (c)         Assumptions of Liabilities. 
Purchaser shall have provided Seller with the Assumption Instrument executed by
the Purchaser.

            (d)        Payment.  Purchaser
shall have provided Seller with the Note executed by the Purchaser and shall
have delivered the Warrant to the Escrow Agent.

ARTICLE IX

TERMINATION
OF AGREEMENT

9.01     Termination of Agreement.        This
Agreement and the transactions contemplated hereby may be terminated and
abandoned at any time on or prior to the Closing as follows:

            (a)        by the written consent of
Purchaser and Seller;

            (b)       by Purchaser, (i) if there is
or occurs an inaccuracy in any material respect in the representations and
warranties of either Seller set forth in this Agreement, which inaccuracy is
not capable of being cured by the Termination Date, (ii) if there has been a
breach in any material respect of a covenant of Seller, or a failure in any
material respect on the part of Seller to comply with their respective
obligations hereunder, and such breach or failure is not capable of being cured
by the Termination Date; (iii) if there occurs any casualty with respect to the
Business or any Acquired Asset as described in  Section 7.05, or (iv) if
any proposed supplement, change or amendment to any Schedule submitted by
Seller to Purchaser is unacceptable to Purchaser and the terms and conditions
of Section 7.03 hereof are satisfied;

            (c)        by Purchaser  if any of the
conditions set forth in Section 8.01 hereof are not satisfied on or
before the Termination Date;

            (d)       by Seller, (i) if there is or
occurs an inaccuracy in any material respect in the representations and
warranties of Purchaser set forth in this Agreement, which inaccuracy is not
capable of being cured by the Termination Date, or (ii) if there has been a
breach in any material respect on the part of Purchaser to comply with its
obligations hereunder, and such breach or failure is not capable of being cured
by the Termination Date;

	
  24

  

 

            (e)        by Seller if any of the
conditions set forth in Section 8.02 hereof are not satisfied on or
before the Termination Date; or

            (f)        by Purchaser or Seller if the
Closing Date shall not have occurred before Termination Date for any reason
other than the failure of the party seeking to terminate this Agreement to
perform in any material respect its obligations hereunder or the breach or
inaccuracy in any material respect of a representation or warranty made by such
party; provided, that, any such failure, breach or inaccuracy by
Shareholders shall be deemed a failure, breach or inaccuracy by Seller for
purposes of this subsection (f).

            9.02     Obligations Upon Termination. 
Except for the obligations provided in Sections 6.03, 6.05 and 11.02
hereof, in the event that this Agreement is terminated pursuant to the
provisions of Section 9.01(a), (c), (e), or (f)
hereof, neither party shall have any further obligation to the other. If either
party shall terminate this Agreement (a) pursuant to Section 9.01(b) or (d)
hereof or (b) pursuant to Section 9.01(c) or (e) hereof
because a condition to the terminating party's obligations under this Agreement
is not satisfied as a result of the other party's failure to comply with its
obligations under this Agreement, the terminating party's right to pursue any
and all rights it may have at law or equity or hereunder shall survive
unimpaired.

            9.03     Disposition of Purchase Price.
If Purchaser shall terminate this Agreement pursuant to Section 9.01(b)
or because the conditions specified in Section 8.01(n) has not been
satisfied, then the Purchase Price shall be returned to Purchaser, without
offset or deduction. 

            9.04     Seller's Remedy to Unwind
Transaction.  At Seller's option, if Purchaser fails to pay the Note when
due upon the terms and conditions stated therein, or fails to issue the Warrant
or cause the Warrant to be released by the Escrow Agent if it is due to Seller
pursuant to the terms of this Agreement, or fails to issue the Shares upon
exercise of the Warrant as provided therein, then Seller's sole remedy shall be
to unwind the transaction contemplated by this Agreement by giving Purchaser
written notice thereof and by returning the Note and the Warrant or Shares, if
received, to Seller, together with all payments (principal and interest) made
by Purchaser to Seller under the Note, if any.  Upon receipt of such notice and
return of the Note from Seller, return of the Shares or the Warrant, as the
case may be, from the Escrow Agent, Purchaser, and return of all payments
(principal and interest), if any, made by Purchaser to Seller under the Note,
Purchaser shall promptly take all actions necessary so as to transfer title to
the Acquired Assets back to Seller. 

ARTICLE X

INDEMNIFICATION

            10.01   Indemnification
by Purchaser.  From and after the Closing Date, Purchaser shall indemnify,
defend and hold Seller and Shareholders harmless from and against and reimburse
Seller for any and all claims, losses, liabilities, damages, costs and expenses
(including, without limitation, reasonable attorneys' fees) (collectively, "Liabilities")
that may be incurred by, imposed upon or asserted against Seller arising from
or relating to: (i) any failure of Purchaser to assume, pay, perform and
discharge the Assumed Liabilities; (ii) any action, claim, judicial or other
proceeding asserted by any third party against Seller with respect to any of
the Assumed Liabilities; and (iii) any inaccuracy in or breach of any
representation, warranty, covenant, obligation or agreement of Purchaser
contained herein or in any document or instrument delivered pursuant hereto.            

	
  25

  

 

 

            10.02   Indemnification by Seller and
Shareholders.  From and after the Closing Date, Seller and Shareholders
shall indemnify, defend and hold Purchaser harmless from and against and
reimburse Purchaser for any and all Liabilities that may be incurred by,
imposed upon or asserted against Purchaser arising from or relating to: (i) any
failure of Seller to assume, pay, perform and discharge the Retained
Liabilities; (ii) any action, claim, judicial or other proceeding asserted by
any third party against Purchaser with respect to any of the Retained
Liabilities; (iii) any inaccuracy in or breach of any representation, warranty,
covenant, obligation or agreement of Seller or either Shareholder contained
herein, or in any document or instrument delivered pursuant hereto;  and (iv)
the operation of the Business or the ownership, use or sale of the Acquired
Assets by Seller prior to the Effective Time (including, without limitation,
any contractual, tax, product, warranty, tort or other Liability whatsoever). 
However, the Seller's and the Shareholders' aggregate liability hereunder shall
not exceed the Purchase Price.  Purchaser may withhold from Seller any payment
otherwise due to Seller pursuant to the Note and may withhold the Shares or the
Warrant, as the case may be, and offset the full amount of such claim for
indemnification against the amount due to Seller pursuant to the Note, or the
Shares or Warrant, as the case may be, in accordance with Section 10.05
hereof.

            10.03   Notification
of Claim.  Each indemnified party under this Article X will promptly, and
within ten (10) days after notice to such indemnified party of any claim as to
which it asserts a claim for indemnification, notify the indemnifying party of
such claim and the amount thereof; provided, however, that the
failure to give such notification shall not relieve the indemnifying party from
any liability which it may have pursuant to the provisions of this Article X as
long as the failure to give such notice within such time is not prejudicial to
the indemnifying party.  Notice to an indemnified party for the purpose of the
preceding sentence shall mean the filing of any legal action, receipt of any
claim in writing or similar form of actual notice.

            10.04   Defense
of Claim.  If any claim for indemnification by any indemnified party arises
out of a claim by a person other than such indemnified party, the indemnifying
party may, by written notice to the indemnified party, undertake to conduct any
proceedings or negotiations in connection therewith or necessary to defend the
indemnified party and take all other steps or proceedings to settle or contest
such claim, including without limitation the employment of counsel; provided,
however, that the indemnifying party shall reasonably consider the
advice of the indemnified party as to the defense and settlement of such claim
and the indemnified party shall have the right to participate, at its own
expense, in such defense, but control of such litigation and settlement shall
remain with the indemnifying party.  The indemnified party shall provide all
reasonable cooperation in connection with any such defense by the indemnifying
party.  Counsel and auditor fees, filing fees and court fees of all
proceedings, contests or lawsuits with respect to any such claim shall be borne
by the indemnifying party.  If any such claim is made hereunder and the
indemnifying party elects not to undertake the defense thereof by written
notice to the indemnified party, the indemnified party shall be entitled to
indemnification with respect thereto pursuant to the terms of this Article X. 
To the extent that the indemnifying party undertakes the defense of such claim
by written notice to the indemnified party and diligently pursues such defense
at its expense, the indemnified party shall be entitled to indemnification
hereunder only to the extent that such defense is unsuccessful as determined by
a final judgment of a court of competent jurisdiction, or by written
acknowledgment of the parties.  If any claim for indemnification by Purchaser
arises out of a claim by Purchaser, then Purchaser shall be entitled to
immediate indemnification hereunder pursuant to Section 10.05 hereof.

	
  26

  

 

 

10.05      Offset.  If Purchaser shall exercise
its right to offset provided in Section 10.02 any such offset shall be
collected by reducing the amount owed by Purchaser to Seller in the following
manner (i) first, to the extent of the principal amount outstanding on the
Note, then (ii) to the extent of any accrued interest on the Note.  In such
case, Purchaser shall deliver to Seller a written notice of such claim setting
forth the facts and circumstances supporting the claim and Purchaser's calculation
of the dollar amount thereof.  If Purchaser does not receive written notice of
Seller's objection to such claim within fifteen (15) business days of Seller's
receipt of Purchaser's claim notice, then Purchaser may proceed to deduct the
dollar amount of the claim from the Note.  If Seller objects to such claim,
Seller shall send Purchaser a written notice of such objection setting forth
the facts and circumstances supporting Seller's objection and a dollar amount,
if any, that Seller would be willing to accept for a deduction from the Note. 
Purchaser must receive the notice of objection within fifteen (15) business
days of Seller's receipt of Purchaser's claim notice.  If Seller so objects,
then Purchaser and Seller shall negotiate in good faith to resolve such claim
and objection.  If Purchaser and Seller fail to resolve the claim and objection
within thirty (30) days of the date Purchaser received the notice of objection,
then the parties agree to submit the matter to mediation for resolution.  If Purchaser
and Seller fail to resolve the claim and objection through mediation within
thirty (30) days, then either party may submit the matter to a court of
appropriate jurisdiction for resolution.  Any portion of the Note subject to a
pending claim shall continue until the claim is resolved.  No failure or delay
of Purchaser in the performance of the foregoing claim procedure regarding the
Note shall relieve, reduce or otherwise affect the Seller's obligations and
liability to indemnify, defend or hold harmless Purchaser pursuant to this
Agreement.  

            10.06   Other
Remedies.  The remedies of Purchaser provided in this Agreement are
cumulative and not exclusive of any remedies provided by law. In addition, the
parties acknowledge that the acquisition of the Business is a unique
opportunity and that any breach of this Agreement by the Sellers or
Shareholders may not be adequately compensated by damages. Accordingly, in such
event, Purchaser shall be entitled, in addition to any other remedies that it
may have, to enforce this Agreement by a decree of specific performance.

ARTICLE XI

MISCELLANEOUS

            11.01   Survival. All
representations and warranties contained in this Agreement, any Exhibit or
Schedule hereto or any document delivered in connection with the transactions
contemplated hereby shall survive the consummation of the transactions
contemplated by this Agreement and any investigation on the part of the parties
hereto and shall continue in full force and effect after the Closing for a
period of three (3) years from the Closing Date at which time they shall expire
and no party shall any longer be liable with respect thereto, except as to
claims made in respect thereof in writing by any other party or any other
indemnitee on or before the expiration of such three year period; provided,
however, that the representations and warranties contained in Sections
4.06, 4.15 and 4.17 shall survive indefinitely. The covenants and
agreements of the parties hereto set forth in this Agreement shall survive
indefinitely.

 

	
  27

  

 

11.02   Expenses. Each of the parties hereto
shall pay the fees and expenses of its own counsel, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
consummation, and performance of this Agreement and the transactions
contemplated hereby.

            11.03   Publicity. 
Except as otherwise required by law and except as Parent deems necessary or
advisable in connection with its reporting obligations and periodic filing
requirements under federal securities laws, no party hereto shall issue any
press release or make any other public statement, in either case related to, in
connection with or arising out of this Agreement or any of the documents or
instruments delivered pursuant to this Agreement, or the matters contained herein
or therein, without obtaining the prior written approval of the other party to
the contents and the manner of presentation and publication thereof, which
approval shall not be unreasonably withheld.

            11.04   Arbitration.       The
parties shall use their respective best efforts to settle amicably any
disputes, differences or controversies arising between the parties out of or in
connection with or in respect of this Agreement.  However, if not so settled
then the same shall be submitted to arbitration and, to the fullest extent
permitted by law, be solely and finally settled by arbitration, except as
specifically provided otherwise in any written agreement among the parties. 
All arbitration proceedings shall be held in Dallas, Texas, and shall be
conducted before a single arbitrator in accordance with the commercial
arbitration rules of the American Arbitration Association.  Judgment upon the
award rendered by the arbitrator may be entered in any court having
jurisdiction, or application may be made to such court for a judicial
acceptance of the award and any order of enforcement as the case may be.

            11.05   Attorneys'
Fees. In the event that any action or proceeding, including arbitration, is
commenced by any party hereto for the purpose of enforcing any provision of
this Agreement, the prevailing party in such action, proceeding or arbitration
may receive as part of any award, judgment, decision or other resolution of
such action, proceeding or arbitration its costs and attorneys' fees as
determined by the person or body making such award, judgment, decision or
resolution.  Should any claim hereunder be settled short of the commencement of
any such action or proceeding, including arbitration, the parties in such
settlement shall be entitled to include as part of the damages alleged to have
been incurred reasonable costs of attorneys or other professionals in
investigation or  counseling on such claim. 

            11.06   Notices.
All notices, requests and other communications under this Agreement shall be in
writing (including a writing delivered by facsimile transmission) and shall be
deemed to have been duly given if delivered personally, or sent by either
certified or registered mail, return receipt requested, postage prepaid, by
overnight courier guaranteeing next day delivery, or by facsimile, addressed as
follows:

	
  28

  

            (a)        If to Seller:

Florida Environmental Remediation Services, Inc.

1400 SW 12th Avenue

Pompano Beach, FL 33069

Attn: 
Mr. Fernando Nava

Facsimile:
(___) ___-____

            (b)        If
to Shareholders:

Fernando Nava

1400 SW 12th Avenue

Pompano Beach, FL 33069

Attn: 
Mr. Fernando Nava

Facsimile:
(___) ___-____

Mike D. Lane

1400 SW 12th Avenue

Pompano Beach, FL 33069

Attn: 
Mr. Fernando Nava

Facsimile:
(___) ___-____

            (c)        If to
Purchaser:

Home Solutions Restoration of Louisiana, Inc.

5565 Red Bird Center Drive

Dallas, Texas 75237

Attention: Mr. Rick O'Brien

Facsimile (214) 333-9435

 

 

 

	
  29

  

 

            (d)        If to
Parent:

Home Solutions of America, Inc.

5565 Red Bird Center Drive

Dallas, Texas 75237

Attention: Mr. Rick O'Brien

Facsimile (214) 333-9435

Any
party may change the address to which notices may be sent by delivering notice
of such change in the manner set forth above.  All such notices, requests and
other communications shall be deemed to have been received on the date of
delivery thereof, if delivered by hand, on the fifth day after the mailing
thereof, if mailed, on the next day after the sending thereof, if by overnight
courier, and when receipt is acknowledged, if faxed.

            11.07   Waivers
and Amendments. No amendment or waiver of any provision of this Agreement,
nor consent to any departure there from, shall be effective unless the same be
in writing and signed by each party hereto, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given. No failure on the part of any party hereto to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right.

            11.08   Binding
Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns. No party
hereto shall assign any of its rights hereunder or any interest herein without
the prior written consent of the other parties hereto, except that Purchaser
may assign its rights hereunder to Parent or an Affiliate.

            11.09   Exhibits
and Schedules. The Exhibits and Schedules attached hereto or referred to
herein are incorporated herein and made a part hereof for all purposes. As used
herein, the expression "this Agreement" means this document and such
Exhibits and Schedules.  

            11.10   Governing Law.  THIS AGREEMENT,
AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO, SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF
TEXAS, WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICT OF LAWS.

 

	
  30

  

 

            11.11   Jurisdiction
and Venue.  Any judicial proceeding brought by or against any of the
parties to this Agreement on any dispute arising out of this Agreement or any
matter related hereto shall be brought in any federal or state court sitting in
Dallas County, State of Texas, and, by execution and delivery of this
Agreement, each of the parties to this Agreement accepts for itself the
exclusive jurisdiction and venue of the aforesaid courts as trial courts,
expressly waives any objection which such party may have now or hereafter to
the laying of the venue or to the jurisdiction of any such suit, action or
proceeding, and irrevocably agrees to be bound by any final non-appealable
judgment rendered in connection with this Agreement.

            11.12   Number
and Gender. Whenever herein the singular number is used, the same shall
include the plural where appropriate, and words of any gender shall include
each other gender where appropriate.

            11.13   Captions. 
The captions, headings and arrangements used in this Agreement are for
convenience only and do not in any way affect, limit or amplify the provisions
hereof.

            11.14   Invalid
Provisions.  If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future laws effective during the term
hereof, such provision shall be fully severable; this Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof; and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by
the illegal, invalid or unenforceable provision of its severance from this
Agreement.

            11.15   Entirety.
This Agreement contains the agreement and understanding among the parties with
respect to the matters addressed herein and supersedes all prior
representations, inducements, promises or agreements, oral or otherwise, which
are not embodied herein.

            11.16   Third-Party
Beneficiaries. Nothing contained herein, express or implied, is intended to
confer upon any person or entity other than the parties hereto and their
successors in interest and permitted assigns any rights or remedies under or by
reason of this Agreement.

11.17   Counterparts. 
This Agreement may be executed in multiple counterparts, each of which shall be
deemed an original for all purposes and all of which shall be deemed
collectively to be one agreement.

 

	
  [Signature
  Page Follows] 31

  

 

             IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

PURCHASER:           HOME
SOLUTIONS RESTORATION OF LOUISIANA, INC.

By:  /s/ Frank Fradella                                     

      Name:
Frank Fradella

      Title:
Secretary and Treasurer

PARENT:                   HOME
SOLUTIONS OF AMERICA, INC.

By: /s/ Rick O'Brien                                        

      Name:
Rick O'Brien

      Title:
Chief Financial Officer

SELLER:                    FLORIDA ENVIRONMENTAL REMEDIATION SERVICES, INC.

 

By:   /s/ Fernando Nava                                    

      Name:
Fernando Nava

      Title:
CEO and President

SHAREHOLDERS:

                                                                                   
/s/ Fernando Nava                                    

                                                                                    Fernando
Nava

 

                                                                                   
/s/ Mike D. Lane                                     

                                                                                    Mike D. Lane

 

 

	
  -32-Exhibit 4.02

 

 

NONRECOURSE PROMISSORY
NOTE

Dallas, Texas                                                                                       
  September 27, 2005

Home Solutions
Restoration of Louisiana, Inc., a Louisiana corporation (the "Maker"),
for value received, hereby promises to pay to Florida Environmental Remediation
Services, Inc., a Florida corporation (the "Payee"), at the time and in
the manner hereinafter provided, the aggregate principal sum of up to ELEVEN MILLION
AND NO/100 DOLLARS ($11,000,000.00), together with interest computed thereon at
the rate hereinafter provided.  This Note shall be payable at the office of
Payee at 1400 SW 12th Avenue, Pompano Beach, Florida 33069, or at
such other address as the holder of this Note may from time to time designate.

This Note is being
executed and delivered in connection with that certain Asset Purchase
Agreement, dated of even date herewith, between Maker and Payee (the "Purchase
Agreement"). Unless otherwise defined herein, all defined terms in this
Note shall have the meanings given them in the Purchase Agreement.

The
principal amount of this Note shall bear interest from the date hereof until
the due dates as set forth herein at the rate of five percent (5%) per annum. 
The principal amount of this Note and accrued and unpaid interest thereon shall
be due and payable in two installments of principal and accrued interest
thereon, (i) the first such installment in the principal amount of
$6,000,000.00 to be made on November 26, 2005 and (ii) the second such
installment in the principal amount of $5,000,000.00 to be made on
January 26, 2006 (the last such payment date being referred to as the
"Maturity Date"), or on such later date as may be agreed to in writing by
Payee. 

Notwithstanding
anything contained in this Note to the contrary, Maker shall have the right to
set off and apply against all sums owing to Payee, at any time and without
notice to Payee, (i) any amounts that Payee owes or may in the future owe Maker
pursuant to the terms of the Purchase Agreement (including, without limitation,
any indemnity claims that Maker may have from time to time against Payee under
the Purchase Agreement), and (ii) any amounts that represent a reduction in the
Purchase Price in accordance with the terms of the Purchase Agreement.  Maker
shall have the right to apply such amounts to principal, interest or other
amounts owing under this Note in its sole discretion, and any amount(s) set off
and applied pursuant to this paragraph shall be considered a payment on the
Note in such amount(s).  

If an Event of
Default (as defined herein) occurs and this Note is placed in the hands of an
attorney for collection (whether or not suit is filed), or if this Note is
collected by suit or legal proceedings or through bankruptcy proceedings,
Maker agrees to pay in addition to all sums then due hereon, including
principal and interest, all expenses of collection, including, without
limitation, reasonable attorneys' fees.

 

1

This Note may
be prepaid in whole or in part from time to time, without premium or penalty. 
Each prepayment of principal shall be accompanied by an amount equal to the
accrued interest on the principal amount prepaid to the date of such
prepayment.

Upon the
occurrence and during the continuance of an Event of Default, Payee's sole
remedy shall be to unwind the transaction contemplated by the Purchase
Agreement in accordance with Section 9.04 of the Purchase Agreement.  It shall
be an event of default by Maker if Maker shall fail to pay when due any amounts
due in accordance with the terms of this Note, and such failure continues for a
period of ten (10) days after receiving written notice from Payee of such
default (collectively, an "Event of Default"); provided, that
it shall not be an Event of Default if (i) Maker fails to make payment(s) and
instead exercises its right of offset pursuant to the terms of this Note, or (ii)
Maker fails to make payment(s) as a result of Payee's default under the terms
of the Purchase Agreement.

Notwithstanding
anything contained in this Note to the contrary, in the event the transactions
contemplated by the Purchase Agreement are terminated or otherwise unwound for
any reason, then concurrently therewith, this Note shall immediately be deemed
null and void and of no legal force or effect, all amounts then due and owing
under the Note shall be forever forgiven and cancelled, and Payee shall
immediately deliver the Note to Maker marked or stamped "cancelled".  

Maker and any
and all sureties, guarantors and endorsers of this Note and all other parties
now or hereafter liable hereon, severally waive grace, demand, presentment for
payment, notice of dishonor, protest and notice of protest, notice of intention
to accelerate, notice of acceleration, any other notice and diligence in
collecting and bringing suit against any party hereto and agree (i) to all
extensions and partial payments, with or without notice, before or after the
Maturity Date, (ii) to any substitution, exchange or release of any security
now or hereafter given for this Note, (iii) to the release of any party
primarily or secondarily liable hereon, and (iv) that it will not be necessary
for the holder hereof, in order to enforce payment of this Note, to first
institute or exhaust such holder's remedies against Maker or any other party
liable therefor or against any security for this Note.  No delay on the part of
Payee in exercising any power or right under this Note shall operate as a
waiver of such power or right, nor shall any single or partial exercise of any
power of right preclude further exercise of that power or right.

 

2

All agreements
between Maker and the holder hereof, whether now existing or hereafter arising
and whether written or oral, are hereby expressly limited so that in no
contingency or event whatsoever, whether by reason of acceleration of the Maturity
Date hereof, or otherwise, shall the amount paid, or agreed to be paid, to the
holder hereof for the use, forbearance or detention of the funds advanced
pursuant to this Note, or otherwise, or for the payment of performance of any
covenant or obligation contained herein or in any other document or instrument
evidencing, securing or pertaining to this Note exceed the maximum amount
permissible under applicable law.  If from any circumstances whatsoever
fulfillment of any provision hereof or any other document or instrument exceeds
the maximum amount of interest prescribed by law, then ipso facto,
the obligation to be fulfilled shall be reduced to the limit of such validity,
and if from any such circumstances the holder hereof shall ever receive
anything of value deemed interest by applicable law, which would exceed
interest at the highest lawful rate, such amount which would be excessive
interest shall be applied to the reduction of the unpaid principal balance of
this Note or on account of any other principal indebtedness of Maker to the holder
hereof, and not to the payment of interest, or if such excessive interest
exceeds the unpaid principal balance of this Note and such other indebtedness,
such excess shall be refunded to Maker.  All sums paid, or agreed to be paid,
by Maker for the use, forbearance or detention of the indebtedness of Maker to
the holder of this Note shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full so that the actual rate of interest on
account of such indebtedness is uniform throughout the term hereof.  The terms
and provisions of this paragraph shall control and supersede every other
provision of all agreements between Maker and the holder hereof.

This Note is a
nonrecourse obligation of the Maker, and the Maker is not personally liable for
the repayment of this Note.

Payee may not
assign, endorse, hypothecate, pledge or otherwise transfer this Note without
the express written consent of the Maker, and any such endorsement,
hypothecation, pledge or transfer without Maker's prior written consent shall
be null and void and of no legal force or effect.

This Note
shall be governed by and construed in accordance with the laws of the State of Texas.

All references
to Maker herein shall, and shall be deemed to, include its successors and
assigns, and all covenants, stipulations, promises and agreements contained
herein by or on behalf of Maker shall be binding upon its successors and
assigns, whether so expressed or not.

                                                            MAKER:

HOME SOLUTIONS RESTORATION OF
LOUISIANA, INC.

 

 /s/ Frank Fradella                

By:  Frank Fradella

Its:   Secretary and Treasurer

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