Document:

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                                                                    EXHIBIT 10.3

                            COMFORT SYSTEMS USA, INC.

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement is dated as of October 11,
2002, by and among Comfort Systems USA, Inc., a Delaware corporation ("Company")
and General Electric Capital Corporation (the "Purchaser").

                  WHEREAS, Company and Purchaser have entered into that certain
Stock Purchase Warrant and Repurchase Agreement, dated as of even date herewith
(the "Warrant Agreement"); and

                  WHEREAS, in order to induce Purchaser to enter into the
Warrant Agreement and as provided in Section 4 of the Warrant Agreement, Company
has agreed to provide registration rights with respect thereto.

                  NOW, THEREFORE, in consideration of the premises and the
covenants hereinafter contained, it is agreed as follows:

                  1. Definitions. Unless otherwise defined herein, terms defined
in the Warrant Agreement are used herein as therein defined, and the following
shall have (unless otherwise expressly provided elsewhere in this Registration
Rights Agreement) the following respective meanings (such meanings being equally
applicable to both the singular and plural form of the terms defined):

                  "Agreement" shall mean this Registration Rights Agreement,
including all amendments, modifications and supplements and any exhibits or
schedules to any of the foregoing, and shall refer to the Agreement as the same
may be in effect at the time such reference becomes operative.

                  "Business Day" shall mean any day that is not a Saturday, a
Sunday or a day on which banks are required or permitted to be closed in the
State of New York.

                  "Commission" shall mean the Securities and Exchange Commission
or any other federal agency then administering the Securities Act and other
federal securities laws.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

                   "Holder" shall mean a record holder of Warrant Stock or
Registrable Securities.

                  "NASD" shall mean the National Association of Securities
Dealers, Inc., or any successor corporation thereto.

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                  "Registrable Securities" shall mean the shares of Warrant
Stock from time to time issued pursuant to the Warrant Agreement or the shares
of Warrant Stock from time to time issuable upon exercise of the Warrant
Agreement or the shares of Warrant Stock otherwise acquired or held by
Purchaser.

                  "Securities Act" shall mean the Securities Act of 1933, as
amended, or any similar federal statute, and the rules and regulations of the
Commission thereunder, all as the same shall be in effect from time to time.

         2. Required Registration. After receipt of a written request from a
Holder or Holders of at least 51% of the Registrable Securities requesting that
Company effect a registration under the Securities Act of at least 51% of the
Registrable Securities, and specifying the intended method or methods of
disposition thereof, Company shall promptly within 10 days of receipt of such
request notify all Holders in writing of the receipt of such request and each
such Holder, in lieu of exercising its rights under Section 3, may elect (by
written notice sent to Company within 10 Business Days from the date of such
Holder's receipt of the aforementioned Company's notice) to have Registrable
Securities included in such registration thereof pursuant to this Section 2.
Thereupon, Company shall, as expeditiously as is possible, use all reasonable
best efforts to effect the registration under the Securities Act of all shares
of Registrable Securities which Company has been so requested to register by
such Holders for sale, all to the extent required to permit the disposition (in
accordance with the intended method or methods thereof, as aforesaid) of the
Registrable Securities so registered; provided, however, that if the managing
underwriter of a proposed public offering in connection with any registration
requested pursuant to this Section 2 shall advise Company in writing that, in
its opinion, a limitation should be imposed on the number of securities to be
included in such offering, then, first, the number of any securities (other than
Registrable Securities) requested to be included in such offering shall be
decreased on a pro rata basis, and, second, after all securities other than
Registrable Securities have been excluded from such offering, the number of
Registrable Securities shall be decreased on a pro rata basis; provided,
further, however, that Company shall not be required to effect more than two (2)
registrations of any Registrable Securities pursuant to this Section 2.

         3. Piggyback Registration.

                  (a) If Company at any time proposes to file on its behalf
and/or on behalf of any of its security holders (the "demanding security
holders") a Registration Statement under the Securities Act on any form (other
than a Registration Statement on Form S-4 or S-8 or any successor form for
securities to be offered in a transaction of the type referred to in Rule 145
under the Securities Act or to employees of Company pursuant to any employee
benefit plan, respectively) for the registration of securities, it will give
written notice to all Holders at least 45 days before the initial filing with
the Commission of such Registration Statement, which notice shall set forth the
intended method of disposition of the securities proposed to be registered by
Company. The notice shall offer to include in such filing the entire aggregate
number of shares of Registrable Securities as such Holders may request.

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                  (b) Each Holder desiring to have Registrable Securities
registered under this Section 3 shall advise the Company in writing within 15
Business Days after the date of receipt of such offer from Company, setting
forth the amount of Registrable Securities for which registration is requested.
Company shall thereupon include in such filing the number of shares of
Registrable Securities for which registration is so requested, subject to the
next sentence, and shall use all reasonable best efforts to effect registration
under the Securities Act of all such shares. If the managing underwriter of a
proposed public offering shall advise Company in writing that, in its opinion,
the distribution of the Registrable Securities requested to be included in the
registration concurrently with the securities being registered by Company or
such demanding security holders would materially and adversely affect the
distribution of such securities by Company or such demanding security holders,
then first, all selling security holders (other than the Company and the Holder)
shall reduce the amount of securities each intended to distribute through such
offering on a pro rata basis based on the respective amounts of securities held
by such holders at the time of filing the registration statement; and second,
after all securities other than securities to be sold by the Company and
Registrable Securities held by the Holders have been excluded from such
offering, the Holders shall reduce the amount of securities each intended to
distribute through such offering on a pro rata basis based on the respective
amounts of Registrable Securities held by such Holders at the time of filing the
registration statement.

         4. Registration Procedures.

                  (a) If Company is required by the provisions of Section 2 or 3
to use its best efforts to effect the registration of any of its securities
under the Securities Act, Company will, as expeditiously as possible:

                      (i) prepare and file with the Commission a Registration
           Statement with respect to such securities and use its best efforts to
           cause such Registration Statement to become and remain effective for
           a period of time required for the disposition of such securities by
           the holders thereof, but not to exceed three months or, in the case
           of a "shelf" registration statement on Form S-3, nine months;

                      (ii) prepare and file with the Commission such amendments
           and supplements to such Registration Statement and the prospectus
           used in connection therewith as may be necessary to keep such
           Registration Statement effective and to comply with the provisions of
           the Securities Act with respect to the sale or other disposition of
           all securities covered by such Registration Statement until the
           earlier of (A) such time as all of such securities have been disposed
           of in a public offering or (B) the expiration of three months or, in
           the case of a "shelf" registration statement on Form S-3, nine
           months;

                      (iii) furnish to such selling security holders such number
           of copies of a summary prospectus or other prospectus, including a
           preliminary

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           prospectus, in conformity with the requirements of the Securities
           Act, and such other documents, as such selling security holders may
           reasonably request;

                      (iv) use its best efforts to register or qualify the
           securities covered by such Registration Statement under such other
           securities or blue sky laws of such jurisdictions within the United
           States and Puerto Rico as each holder of such securities shall
           request (provided, however, that Company shall not be obligated to
           qualify as a foreign corporation to do business under the laws of any
           jurisdiction in which it is not then qualified or to file any general
           consent to service or process), and do such other reasonable acts and
           things as may be required of it to enable such holder to consummate
           the disposition in such jurisdiction of the securities covered by
           such Registration Statement;

                      (v) furnish at the request of any Holder requesting
           registration of Registrable Securities, on the date that such shares
           of Registrable Securities are delivered to the underwriters for sale
           pursuant to such registration or, if such Registrable Securities are
           not being sold through underwriters, on the date that the
           Registration Statement with respect to such shares of Registrable
           Securities becomes effective, (i) an opinion, dated such date, of the
           independent counsel representing Company for the purposes of such
           registration, addressed to the underwriters, if any, and to the
           Holders making such request, in customary form and covering matters
           of the type customarily covered in such legal opinions; and (ii) a
           comfort letter dated such date, from the independent certified public
           accountants of Company, addressed to the underwriters, if any, and to
           the Holders making such request and, if such accountants refuse to
           deliver such letter to such Holders, then to Company (with a copy
           thereof being provided to Holders by the Company), in a customary
           form and covering matters of the type customarily covered by such
           comfort letters and as the underwriters or such Holders shall
           reasonably request. Such opinion of counsel shall additionally cover
           such other legal matters with respect to the registration in respect
           of which such opinion is being given as such Holders may reasonably
           request. Such letter from the independent certified public
           accountants shall additionally cover such other financial matters
           (including information as to the period ending not more than five
           Business Days prior to the date of such letter) with respect to the
           registration in respect of which such letter is being given as the
           Holders of the Registrable Securities being so registered may
           reasonably request;

                      (vi) enter into customary agreements (including an
           underwriting agreement in customary form) and take such other actions
           as are reasonably required in order to expedite or facilitate the
           disposition of such Registrable Securities; and

                      (vii) otherwise use its best efforts to comply with all
           applicable rules and regulations of the Commission, and make
           available to its security holders, as soon as reasonably practicable,
           but not later than 18 months after the

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           effective date of the Registration Statement, an earnings statement
           covering the period of at least 12 months beginning with the first
           full month after the effective date of such Registration Statement,
           which earnings statement shall satisfy the provisions of Section
           11(a) of the Securities Act.

                  (b) It shall be a condition precedent to the obligation of
Company to take any action pursuant to this Agreement in respect of the
securities which are to be registered at the request of any Holder that such
Holder shall furnish to Company such information regarding the securities held
by such Holder and the intended method of disposition thereof as Company shall
reasonably request and as shall be required in connection with the action taken
by Company.

         5. Expenses. All reasonable expenses incurred in complying with this
Agreement, including, without limitation, all registration and filing fees
(including all expenses incident to filing with the NASD), printing expenses,
fees and disbursements of counsel for Company, the fees and expenses of one
counsel for the Holders of Warrant Shares being registered (selected by those
Holders holding a majority of the Warrant Shares being registered), expenses of
any special audits incident to or required by any such registration and expenses
of complying with the securities or blue sky laws of any jurisdiction pursuant
to Section 4, shall be paid by Company, except that Company shall not be liable
for any fees, discounts or commissions to any underwriter in respect of the
securities sold by such Holder which fees, discounts and commissions shall be
paid by the Holders, pro rata, on the basis of the number of shares so
registered.

         6. Indemnification and Contribution.

                  (a) In the event of any registration of any Registrable
Securities under the Securities Act pursuant to this Agreement, Company shall
indemnify and hold harmless each Holder of such Registrable Securities, such
Holder's directors and officers, and each other person (including each
underwriter) who participated in the offering of such Registrable Securities and
each other person, if any, who controls such Holder or such participating person
within the meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which such Holder or any such director or
officer or participating person or controlling person may become subject under
the Securities Act or any other statute or at common law, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon (i) any untrue or alleged untrue statement of any material
fact contained, on the effective date thereof, in any Registration Statement
under which such securities were registered under the Securities Act or in any
filing with any state securities commission, any preliminary prospectus or final
prospectus contained therein or any amendment or supplement thereto or (ii) any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
shall reimburse such Holder or such director, officer or participating person or
controlling person for any legal or any other expenses incurred by such Holder
or such director, officer or participating person or controlling person in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that Company shall not be liable in any
such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon any actual or alleged

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untrue statement or actual or alleged omission made in such Registration
Statement, filing, preliminary prospectus, prospectus or amendment or supplement
in reliance upon and in conformity with written information furnished to Company
by such Holder specifically for use therein. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such
Holder or such director, officer or participating person or controlling person,
and shall survive the transfer of such securities by such Holder.

                  (b) Each Holder, by acceptance hereof, agrees to indemnify and
hold harmless Company, its directors and officers and each other person, if any,
who controls Company within the meaning of the Securities Act against any
losses, claims, damages or liabilities, joint or several, to which Company or
any such director or officer or any such person may become subject under the
Securities Act or any other statute or at common law, insofar and only insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon information in writing provided to Company by
such Holder specifically for use in the following documents and contained, on
the effective date thereof, in any Registration Statement under which securities
were registered under the Securities Act at the request of such Holder, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereto. Notwithstanding the provisions of this paragraph (b) or
paragraph (c) below, no Holder shall be required to indemnify any person
pursuant to this Section 6 or to contribute pursuant to paragraph (c) below in
an amount in excess of the amount of the aggregate net proceeds received by such
Holder in connection with such registration under the Securities Act.

                  (c) If any claim, action, suit or proceeding (a "Proceeding")
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the Indemnifying Party. An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party unless: (1) the Indemnifying
Party has agreed in writing to pay such fees and expenses; or (2) the
Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified
Party in any Proceeding; or (3) the named parties to any such Proceeding
(including any impleaded parties) include both such Indemnified Party and the
Indemnifying Party, and such Indemnified Party shall have been advised by
counsel that a conflict of interest is likely to exist if the same counsel were
to represent such Indemnified Party and the Indemnifying Party (in which case,
if such Indemnified Party notifies the Indemnifying Party in writing that it
elects to employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the

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defense thereof and such counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any
such Proceeding effected without its written consent, which consent shall not be
unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on all claims that are the subject matter of such Proceeding. All fees
and expenses of the Indemnified Party (including fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding
in a manner not inconsistent herewith) shall be paid to the Indemnified Party,
as incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined by a court of competent jurisdiction that such Indemnified Party is
not entitled to indemnification hereunder).

                  (d) If the indemnification provided for in this Section 6 from
the Indemnifying Party is unavailable to an Indemnified Party hereunder in
respect of any losses, claims, damages, liabilities or expenses referred to
therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations. The relative fault of such Indemnifying Party
and Indemnified Party shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or omission or alleged omission to state a material fact, has
been made by, or relates to information supplied by, such Indemnifying Party or
Indemnified Party, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. The amount paid
or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include any legal or other
fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 6(d) were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to herein. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. Notwithstanding anything to the
contrary contained herein, a Holder shall be liable or required to contribute
under this Section 6(d) for only that amount as does not exceed the net proceeds
to such Holder as a result of the sale of Registrable Securities pursuant to
such Registration Statement.

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         7. Selection of Managing Underwriters. The managing underwriter or
underwriters for any offering of Registrable Securities to be registered
pursuant to Section 2 shall be selected by the holders of a majority of the
Registrable Securities being so registered.

         8. Rule 144. As long as any Holder owns shares of Warrant Stock or
Registrable Securities, Company, at all times while it shall be reporting under
the Exchange Act, covenants and agrees to timely file (or obtain extensions in
respect thereof and file within the applicable grace period) all reports
required to be filed by Company pursuant to Section 13(a) or 15(d) of the
Exchange Act and to promptly furnish the Holders with true and complete copies
of all such filings upon written request. Company further covenants that it will
take such further action as any Holder may reasonably request, all to the extent
required from time to time to enable such Holder to sell Warrant Stock or any
other shares of Common Stock held by such Holder without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act, including providing any legal opinions.
Upon the request of any Holder, Company shall deliver to such Holder a written
certification of a duly authorized officer as to whether it has complied with
such requirements.

         9. Miscellaneous.

                  (a) No Inconsistent Agreements. Company will not hereafter
enter into any agreement with respect to its securities which is inconsistent
with the rights granted to the Holders in this Agreement. Company has not
previously entered into any agreement that is still outstanding with respect to
any of its securities granting any registration rights to any person.

                  (b) Remedies. Each Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement. Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Agreement and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate. In any action or proceeding brought to enforce
any provision of this Agreement or where any provision hereof is validly
asserted as a defense, the successful party shall be entitled to recover
reasonable attorneys' fees in addition to any other available remedy.

                  (c) Amendments and Waivers. Except as otherwise provided
herein, the provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departure from the provisions hereof
may not be given unless approved by the written agreement of the Company and the
Holders of a majority of the Warrant Stock and Registrable Securities.

                  (d) Notices. Any notice, demand, request, consent, approval,
declaration, delivery or other communication hereunder to be made pursuant to
the provisions of this Agreement shall be sufficiently given or made if in
writing and either delivered in person with receipt acknowledged or sent by
registered or certified mail, return receipt requested, postage prepaid, or by
telecopy and confirmed by telecopy answerback, and addressed to the address or

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addresses set forth in Section 12 of the Warrant Agreement or at such other
address as may be substituted by notice given as herein provided. The giving of
any notice required hereunder may be waived in writing by the party entitled to
receive such notice. Every notice, demand, request, consent, approval,
declaration, delivery or other communication hereunder shall be deemed to have
been duly given or served on the date on which personally delivered, with
receipt acknowledged, telecopied and confirmed by telecopy answerback or four
(4) Business Days after the same shall have been deposited in the United States
mail.

                  (e) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the parties
hereto, including any person to whom the Warrant Agreement, Warrant Stock or
Registrable Securities are transferred.

                  (f) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (g) GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL. THIS
AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PROVISIONS THEREOF. EACH OF THE PARTIES HEREBY SUBMITS TO PERSONAL JURISDICTION
AND WAIVES ANY OBJECTION AS TO VENUE IN THE COUNTY OF NEW YORK, STATE OF NEW
YORK. SERVICE OF PROCESS ON THE PARTIES IN ANY ACTION ARISING OUT OF OR RELATING
TO THIS AGREEMENT SHALL BE EFFECTIVE IF MAILED TO THE PARTIES IN ACCORDANCE WITH
SECTION 9(D) HEREOF. THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS HEREUNDER.

                  (h) Severability. Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

                  (i) Entire Agreement. This Agreement, together with the
Warrant Agreement, represents the complete agreement and understanding of the
parties hereto in respect of the subject matter contained herein and therein.
This Agreement supersedes all prior agreements and understandings between the
parties with respect to the subject matter hereof.

                  (j) Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall be deemed to be one and the same instrument. Delivery of an
executed counterpart signature page to this Agreement by telecopier shall be as
effective as delivery of a manually executed counterpart signature page.

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                  (k) Termination. This Agreement shall automatically terminate
on the sale of all Registrable Securities by the Holders thereof.

                            [SIGNATURE PAGES FOLLOW]

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

                                 COMFORT SYSTEMS USA, INC.

                                 By: /s/ J. Gordon Beittenmiller
                                    --------------------------------------------
                                 Name: J. Gordon Beittenmiller
                                      ------------------------------------------
                                 Title: Executive Vice President
                                       -----------------------------------------

                                 GENERAL ELECTRIC CAPITAL CORPORATION

                                 By: /s/ Justin Staadecker
                                     -------------------------------------------
                                 Name: Justin Staadecker
                                       -----------------------------------------
                                 Title: Its Duly Authorized Signatory
                                        ----------------------------------------<PAGE>
                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "AGREEMENT") by and among COMFORT
SYSTEMS USA (TEXAS), L.P., a Texas limited partnership (the "COMPANY"), and
NORMAN C. CHAMBERS ("EMPLOYEE") is hereby entered into and effective as of the
4th day of November, 2002.

                                    RECITALS

A. The Company is engaged primarily in the heating, ventilation, air
conditioning, plumbing, mechanical contracting, specialty fabrication,
electrical, fire protection and process piping industry.

B. Company desires to employ Employee hereunder in a confidential relationship
wherein Employee, in the course of his employment, will become familiar with and
aware of information as to the Company's customers, specific manner of doing
business, processes, techniques and trade secrets and future plans with respect
thereto, all of which have been and will be established and maintained at great
expense to the Company, which information is a trade secret and constitutes the
valuable good will of the Company; and

         NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, it is hereby agreed as follows:

                                   AGREEMENTS

1. EMPLOYMENT AND DUTIES.

         (a) Company hereby employs Employee to serve as President of the
Company. As such, Employee shall have responsibilities, duties and authority
customarily accorded to and expected of an officer holding such position
directly with the Company. Employee hereby accepts this employment upon the
terms and conditions herein contained and agrees to devote his full time,
attention and efforts to promote and further the business of Company.

         (b) Employee shall faithfully adhere to, execute and fulfill all
policies established by Company from time to time.

2. COMPENSATION. For all services rendered by Employee, Company shall compensate
Employee as follows:

         (a) BASE SALARY. Effective as of the Effective Date, the base salary
payable to Employee shall be $300,000 per year, payable on a regular basis in
accordance with Company's standard payroll procedures but not less frequently
than monthly. On at least an annual basis, Company will review Employee's
performance and

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may, in its sole discretion, (i) make increases to such base salary; (ii) pay a
performance bonus; or (iii) recommend Employee for the grant of Company stock
options.

         (b) EMPLOYEE PERQUISITES, BENEFITS AND OTHER COMPENSATION. Employee
shall be entitled to receive additional benefits and compensation from Company
in such form and to such extent as specified below:

         (i) Coverage, subject to contributions required of executives of the
         Company generally, for Employee and his dependent family members under
         health, hospitalization, disability, dental, life and other insurance
         plans that Company may have in effect from time to time. Benefits
         provided to Employee under this clause (i) shall be equal to such
         benefits provided to other Company employees of the same level.

         (ii) Reimbursement for all business travel and other out-of-pocket
         expenses reasonably incurred by Employee in the performance of services
         pursuant to this Agreement. All reimbursable expenses shall be
         appropriately documented in reasonable detail by Employee upon
         submission of any request for reimbursement, and in a format and manner
         consistent with Company's expense reporting policy.

         (iii) Company shall provide Employee with other employee perquisites as
         may be available to or deemed appropriate for Employee by Company and
         participation in all other Company-wide employee benefits as are
         available from time to time.

3. NONCOMPETITION AGREEMENT.

         (a) Employee shall not, during the term of his employment hereunder, be
engaged in any other business activity pursued for gain, profit or other
pecuniary advantage if such activity interferes with Employee's duties and
responsibilities hereunder. The foregoing limitations shall not be construed as
prohibiting Employee from making personal investments in such form or manner as
will neither require his services in the operation or affairs of the companies
or enterprises in which such investments are made nor violate the terms of this
paragraph 3. Employee will not, during the period of his employment by or with
Company, and for a period of two (2) years immediately following the termination
of his employment under this Agreement, except as provided below, directly or
indirectly, for himself or on behalf of or in conjunction with any other person,
persons, company, partnership, corporation or business of whatever nature:

         (i) engage, as an officer, director, shareholder, owner, partner, joint
         venturer, or in a managerial capacity, whether as an employee,
         independent contractor, consultant or advisor, or as a sales
         representative, in any business in direct competition with Company or
         any of its subsidiaries and affiliates within 100 miles of where the
         Company or any of its subsidiaries and affiliates conduct

                                       2
<PAGE>

         business, including any territory serviced by the Company or any of
         such subsidiaries (the "TERRITORY");

         (ii) call upon any person who is, at that time, an employee of Company
         or any of its subsidiaries or affiliates sales or managerial capacity
         for the purpose or with the intent of enticing such employee away from
         or out of the employ of Company or any of its subsidiaries or
         affiliates or any its subsidiaries or affiliates;

         (iii) call upon any person or entity which is, at that time, or which
         has been, within one (1) year prior to that time, a customer of the
         Company or any of its subsidiaries or affiliates for the purpose of
         soliciting or selling products or services in direct competition with
         the Company or any of its subsidiaries or affiliates; or

         (iv) call upon any prospective acquisition candidate, on Employee's own
         behalf or on behalf of any competitor, which candidate was, to
         Employee's actual knowledge after due inquiry, either called upon by
         Company or any of its subsidiaries or affiliates or for which Employee
         participated in an acquisition analysis for the purpose of acquiring
         such entity or all or substantially all of such entity's assets.

         Notwithstanding the above, the foregoing covenant shall not be deemed
to prohibit Employee from acquiring as a passive investment not more than two
percent (2%) of the capital stock of a competing business the stock of which is
traded on a national securities exchange or on an over-the -counter or similar
market.

         (b) Because of the difficulty of measuring economic losses to Company
or any of its subsidiaries or affiliates as a result of a breach of the
foregoing covenant, and because of the immediate and irreparable damage that
could be caused to Company or any of its subsidiaries or affiliates for which
they would have no other adequate remedy, Employee agrees that the foregoing
covenant may be enforced by Company or any of its subsidiaries or affiliates in
the event of breach or threatened breach by Employee, by injunctions,
restraining orders and other appropriate equitable relief.

         (c) It is agreed by the parties that the foregoing covenants in this
paragraph 3 impose a reasonable restraint on Employee in light of the activities
and business of the Company on the date of the execution of this Agreement and
the current plans of the Company or any of its subsidiaries or affiliates; but
it is also the intent of the Company and Employee that such covenants be
construed and enforced in accordance with the changing activities, business and
locations of the Company or any of its subsidiaries or affiliates throughout the
term of this covenant, whether before or after the date of termination of the
employment of Employee. For example, if, during the term of this Agreement, the
Company or any of its subsidiaries or affiliates engages in new and different
activities, enters a new business or establishes new locations for its current
activities or business in addition to or other than the activities or business
enumerated under the Recitals above or the locations currently established
therefor, then Employee

                                       3
<PAGE>

will be precluded from soliciting the customers or Employees of such new
activities or business or from such new location and from directly competing
with such new business within 100 miles of its then-established operating
location(s) through the term of this covenant.

         It is further agreed by the parties hereto that, in the event that
Employee shall cease to be employed hereunder, and shall enter into a business
or pursue other activities not in competition with the Company or any of its
subsidiaries or affiliates, or similar activities or business in locations the
operation of which, under such circumstances, does not violate clause (i) of
paragraph 3(a), Employee shall not be chargeable with a violation of this
paragraph 3 if the Company or any of its subsidiaries or affiliates shall
thereafter enter the same, similar or a competitive (i) business, (ii) course of
activities or (iii) location, as applicable.

         (d) The covenants in this paragraph 3 are severable and separate, and
the unenforceability of any specific covenant shall not affect the provisions of
any other covenant. Moreover, in the event any court of competent jurisdiction
shall determine that the scope, time or territorial restrictions set forth
herein are unreasonable, then it is the intention of the parties that such
restrictions be enforced to the fullest extent which the court deems reasonable,
and this Agreement shall thereby be reformed.

         (e) All of the covenants in this paragraph 3 shall be construed as an
agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against Company or any of
its subsidiaries or affiliates, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by Company or any
of its subsidiaries or affiliates of such covenants. It is specifically agreed
that the period of two (2) years following termination of employment stated at
the beginning of this paragraph 3, during which the agreements and covenants of
Employee made in this paragraph 3 shall be effective, shall be computed by
excluding from such computation any time during which Employee is in violation
of any provision of this paragraph 3.

4. PLACE OF PERFORMANCE; RELOCATION RIGHTS.

         (a) Employee understands that he may be requested by Company or any of
its subsidiaries or affiliates to relocate from his present residence to another
geographic location in order to more efficiently carry out his duties and
responsibilities under this Agreement or as part of a promotion or other
increase in duties and responsibilities. In such event, if Employee agrees to
relocate, Company or any of its subsidiaries or affiliates will pay all
relocation costs to move Employee, his immediate family and their personal
property and effects. Such costs may include, by way of example, but are not
limited to, pre-move visits to search for a new residence, investigate schools
or for other purposes; temporary lodging and living costs prior to moving into a
new permanent residence; duplicate home carrying costs; all closing costs on the
sale of Employee's present residence and on the purchase of a comparable
residence in the new location; and added income taxes that Employee may incur if
any relocation costs are not deductible

                                       4
<PAGE>

for tax purposes. The general intent of the foregoing is that Employee shall not
personally bear any out-of-pocket cost as a result of the relocation, with an
understanding that Employee will use his best efforts to incur only those costs
which are reasonable and necessary to effect a smooth, efficient and orderly
relocation with minimal disruption to the business affairs of Company or any of
its subsidiaries or affiliates and the personal life of Employee and his family.

         (b) Notwithstanding the above, if Employee is requested by Company to
relocate his primary residence and Employee refuses, such refusal shall not
constitute "CAUSE" for termination of this Agreement under the terms of
paragraph 5(a)(iii).

5. TERM; TERMINATION; RIGHTS ON TERMINATION.

         (a) TERM. The term of this Agreement shall begin on the date hereof and
continue for three (3) years (the "INITIAL TERM") unless terminated sooner as
herein provided, and shall automatically renew after the Initial Term on a
year-to-year basis on the same terms and conditions contained herein in effect
as of the time of renewal unless the Company notifies Employee at least 60 days
prior to such expiration (the "TERM"). This Agreement and Employee's employment
may be terminated in any one of the following ways:

         (i)      TERMINATION AS A RESULT OF THE EMPLOYEE'S DEATH. The death of
                  Employee shall immediately terminate this Agreement and upon
                  such termination Employee's Estate shall receive from the
                  Company, in a lump-sum payment, the base salary at the rate
                  then in effect for one (1) year, provided, however, that such
                  lump-sum payment shall be reduced by the amount, if any, of
                  benefit payable under any life insurance policies to the
                  extent such policies are procured and paid for by the Company.

         (ii)     TERMINATION ON ACCOUNT OF DISABILITY. If, as a result of
                  incapacity due to physical or mental illness or injury,
                  Employee shall have been absent from his full-time duties
                  hereunder for four (4) consecutive months, then thirty (30)
                  days after receiving written notice (which notice may occur
                  before or after the end of such four (4) month period, but
                  which shall not be effective earlier than the last day of such
                  four (4) month period), Company may terminate Employee's
                  employment hereunder provided Employee is unable to resume his
                  full-time duties with or without reasonable accommodation at
                  the conclusion of such notice period. Also, Employee may
                  terminate his employment hereunder if his health should become
                  impaired to an extent that makes the continued performance of
                  his duties hereunder hazardous to his physical or mental
                  health or his life, provided that Employee shall have
                  furnished Company with a written statement from a qualified
                  doctor to such effect and provided, further, that, at
                  Company's request made within thirty (30) days of the date of
                  such written statement, Employee shall submit to an
                  examination by a doctor selected by Company who is reasonably

                                       5
<PAGE>

                  acceptable to Employee or Employee's doctor and such doctor
                  shall have concurred in the conclusion of Employee's doctor.
                  In the event this Agreement is terminated as a result of
                  Employee's disability, Employee shall receive from Company, in
                  a lump-sum payment due within ten (10) days of the effective
                  date of termination, the base salary at the rate then in
                  effect for whatever time period is remaining under the Initial
                  Term of this Agreement or for one (1) year, whichever amount
                  is greater; provided, however, that any such payments shall be
                  reduced by the amount of any disability insurance payments
                  payable to the Employee as a result of such disability.

         (iii)    TERMINATION BY THE COMPANY FOR CAUSE. Company may terminate
                  this Agreement immediately for "CAUSE," which shall be: (1)
                  Employee's willful and material breach of this Agreement
                  (which breach cannot be cured or, if capable of being cured,
                  is not cured within ten (10) days after receipt of written
                  notice to cure); (2) Employee's gross negligence in the
                  performance or intentional nonperformance of any of Employee's
                  material duties and responsibilities hereunder; (3) Employee's
                  willful dishonesty, fraud or misconduct with respect to the
                  business or affairs of Company or any of its subsidiaries or
                  affiliates which materially and adversely affects the
                  operations or reputation of Company or any of its subsidiaries
                  or affiliates; (4) Employee's conviction of a felony crime;
                  (5) Employee's confirmed positive illegal drug test result;
                  (6) confirmed sexual harassment by Employee; or (7) Employee's
                  material and willful violation of the Company's Compliance and
                  Business Ethics Policies. In the event of a termination for
                  Cause, as enumerated above, Employee shall have no right to
                  any severance compensation.

         (iv)     TERMINATION WITHOUT CAUSE. At any time after the commencement
                  of employment, either Employee or Company may, voluntarily or
                  without cause, respectively, terminate this Agreement and
                  Employee's employment, effective thirty (30) days after
                  written notice is provided to the other. Should Employee be
                  terminated by Company without Cause Employee shall receive
                  from Company, in a lump-sum payment due on the effective date
                  of termination, the base salary at the rate then in effect for
                  one (1) year. Further, any termination without Cause by
                  Company shall operate to shorten the period set forth in
                  paragraph 3(a) and during which the terms of paragraph 3 apply
                  to one (1) year from the date of termination of employment.
                  Except as provided in paragraph 12 below, if Employee resigns
                  or otherwise terminates this Agreement, the provisions of
                  paragraph 3 hereof shall apply, except that Employee shall
                  receive no severance compensation. If Employee is terminated
                  by the Company without Cause, or if the Employee terminates
                  his employment for Good Reason pursuant to paragraph 12(c)
                  below, then the Company shall make the insurance premium
                  payments

                                       6
<PAGE>

                  contemplated by COBRA for a period of twelve (12) months
                  immediately following such termination.

                  (b) CHANGE IN CONTROL OF THE COMPANY. In the event of a Change
                  in Control of the Company (as defined below) during the Term,
                  paragraph 12 below shall apply.

                  (c) EFFECT OF TERMINATION. Upon termination of this Agreement
                  for any reason provided above, Employee shall be entitled to
                  receive all compensation earned and all benefits and
                  reimbursements due through the effective date of termination.
                  Additional compensation subsequent to termination, if any,
                  will be due and payable to Employee only to the extent and in
                  the manner expressly provided herein. All other rights and
                  obligations of Company and Employee under this Agreement shall
                  cease as of the effective date of termination, except that
                  Company's obligations under paragraph 9 herein and Employee's
                  obligations under paragraphs 3, 6, 7, 8 and 10 herein shall
                  survive such termination in accordance with their terms.

                  (d) BREACH BY COMPANY. If termination of Employee's employment
                  arises out of Company's material failure to pay Employee on a
                  timely basis the amounts to which he is entitled under this
                  Agreement or as a result of any other breach of this Agreement
                  by Company, as determined by a court of competent jurisdiction
                  or pursuant to the provisions of paragraph 16 below, Company
                  shall pay all amounts and damages to which Employee may be
                  entitled as a result of such breach, including interest
                  thereon and all reasonable legal fees and expenses and other
                  costs incurred by Employee to enforce his rights hereunder.
                  Further, none of the provisions of paragraph 3 shall apply in
                  the event this Agreement is terminated as a result of a breach
                  by Company.

6. RETURN OF COMPANY PROPERTY. All records, designs, patents, business plans,
financial statements, manuals, memoranda, lists and other property delivered to
or compiled by Employee by or on behalf of the Company or its representatives,
vendors or customers which pertain to the business of the Company shall be and
remain the property of the Company and be subject at all times to its discretion
and control. Likewise, all correspondence, reports, records, charts, advertising
materials and other similar data pertaining to the business, activities or
future plans of the Company which is collected by Employee shall be delivered
promptly to the Company without request by it upon termination of Employee's
employment.

7. INVENTIONS. Employee shall disclose promptly to the Company any and all
significant conceptions and ideas for inventions, improvements and valuable
discoveries, whether patentable or not, which are conceived or made by Employee,
solely or jointly with another, during the period of employment or within one
(1) year thereafter, and which are directly related to the business or
activities of the Company and which

                                       7
<PAGE>

Employee conceives as a result of his employment hereunder. Employee hereby
assigns and agrees to assign all his interests therein to the Company or its
nominee. Whenever requested to do so by the Company, Employee shall execute any
and all applications, assignments or other instruments that the Company shall
deem necessary to apply for and obtain Letters Patent of the United States or
any foreign country or to otherwise protect the Company's interest therein.

8. TRADE SECRETS. Employee agrees that he will not, during or after the Term of
this Agreement, disclose the specific terms of the Company's relationships or
agreements with their respective significant vendors or customers or any other
significant and material trade secret of the Company, whether in existence or
proposed, to any person, firm, partnership, corporation or business for any
reason or purpose whatsoever, except and only to the extent required by law or
legal process following notice to the Company.

9. INDEMNIFICATION. In the event Employee is made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by Company against
Employee), by reason of the fact that he is or was performing services under
this Agreement, then Company shall indemnify Employee against all expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement, as
actually and reasonably incurred by Employee in connection therewith, to the
maximum extent permitted by applicable law. The advancement of expenses shall be
mandatory to the extent permitted by applicable law. In the event that both
Employee and Company are made a party to the same third-party action, complaint,
suit or proceeding, Company agrees to engage counsel, and Employee agrees to use
the same counsel, provided that if counsel selected by Company shall have a
conflict of interest that prevents such counsel from representing Employee,
Employee may engage separate counsel and Company shall pay all reasonable
attorneys' fees of such separate counsel. Company shall not be required to pay
the fees of more than one law firm except as described in the preceding
sentence, and shall not be required to pay the fees of more than two law firms
under any circumstances. Further, while Employee is expected at all times to use
his best efforts to faithfully discharge his duties under this Agreement,
Employee cannot be held liable to Company for errors or omissions made in good
faith where Employee has not exhibited gross, willful and wanton negligence or
misconduct or performed criminal or fraudulent acts.

10. NO PRIOR AGREEMENTS. Employee hereby represents and warrants to Company and
the Company that the execution of this Agreement by Employee and his employment
by Company and the performance of his duties hereunder will not violate or be a
breach of any agreement with a former Company, client or any other person or
entity. Further, Employee agrees to indemnify Company and the Company for any
claim, including, but not limited to, attorneys' fees and expenses of
investigation, by any such third party that such third party may now have or may
hereafter come to have against Company or any of its subsidiaries or affiliates
based upon or arising out of any noncompetition agreement, invention or secrecy
agreement between Employee and such third party which was in existence as of the
date of this Agreement.

                                       8
<PAGE>

11. ASSIGNMENT; BINDING EFFECT. Employee understands that he has been selected
for employment by Company and/or the Company on the basis of his personal
qualifications, experience and skills. Employee agrees, therefore, he cannot
assign all or any portion of his performance under this Agreement. Subject to
the preceding two (2) sentences and the express provisions of paragraph 12
below, this Agreement shall be binding upon, inure to the benefit of and be
enforceable by the parties hereto and their respective heirs, legal
representatives, successors and assigns.

12 CHANGE IN CONTROL.

         (a)      Upon notice by Employee at any time during the 90 days
                  following a Change in Control, the Employee may elect to
                  terminate his employment and shall be entitled to receive in a
                  lump-sum payment due upon the date of such termination the
                  amount equal to two (2) times his annual base salary then in
                  effect, and the noncompetition provisions of paragraph 3 shall
                  apply for a period of one (1) year immediately following the
                  effective date of termination.

         (b)      Upon a Change in Control, any options or restricted stock
                  outstanding to Employee that have not previously vested shall
                  be immediately vested.

         (c)      In any Change in Control situation, if Employee is terminated
                  by Company without Cause at any time during the twelve (12)
                  months immediately following the closing of the transaction
                  giving rise to the Change in Control, or Employee terminates
                  this Agreement for Good Reason (as defined below) at any time
                  during the twelve (12) months immediately following the
                  closing of the transaction giving rise to the Change in
                  Control, Employee shall be entitled to receive in a lump-sum
                  payment, due on the effective date of termination, the amount
                  equal to two (2) times the greater of (i) his annual base
                  salary then in effect or (ii) his annual base salary in effect
                  immediately prior to the closing of the transaction giving
                  rise to the Change in Control, and the noncompetition
                  provisions of paragraph 3 shall apply for a period of one (1)
                  year immediately following the effective date of termination.
                  For purposes of this Agreement, Employee shall have "GOOD
                  REASON" to terminate this Agreement and his employment
                  hereunder if, without Employee's consent, (x) Employee is
                  demoted by means of a reduction in authority,
                  responsibilities, duties or title to a position of materially
                  less stature or importance within the Company than as
                  described in paragraph 1 hereof or (y) the Company breaches
                  this Agreement in any material respect and fails to cure such
                  breach within ten (10) days after Employee delivers written
                  notice and a written description of such breach to the
                  Company, which notice shall specifically refer to this section
                  of this Agreement.

         (d)      For purposes of applying paragraph 5 under the circumstances
                  described in (b) above, the effective date of termination will
                  be the closing date of the transaction giving rise to the
                  Change in Control and all compensation, reimbursements and
                  lump-sum payments due Employee must be paid in full

                                       9
<PAGE>

                  by Company at or prior to such closing. Further, Company shall
                  ensure that Employee will be given sufficient time and
                  opportunity to elect whether to exercise all or any of his
                  vested options to purchase the Company's Common Stock,
                  including any options with accelerated vesting under the
                  provisions of the Company's Long-Term Incentive Plans (or
                  other applicable plan then in effect), such that he may
                  convert the options to shares of the Company's Common Stock at
                  or prior to the closing of the transaction giving rise to the
                  Change in Control, if he so desires.

         (e)      A "CHANGE IN CONTROL" shall be deemed to have occurred if:

                  (i) any person, other than Comfort Systems USA, Inc., a
                  Delaware corporation and the beneficial owner of the Company
                  ("CSUSA"), or an employee benefit plan of CSUSA, or any entity
                  controlled by either, acquires directly or indirectly the
                  Beneficial Ownership (as defined in Section 13(d) of the
                  Securities Exchange Act of 1934, as amended) of any voting
                  security of the CSUSA and immediately after such acquisition
                  such Person is, directly or indirectly, the Beneficial Owner
                  of voting securities representing fifty percent (50%) or more
                  of the total voting power of all of the then-outstanding
                  voting securities of CSUSA;

                  (ii) the following individuals no longer constitute a majority
                  of the members of the Board of Directors of CSUSA: (A) the
                  individuals who, as of the date hereof, constitute the Board
                  of Directors of CSUSA (the "ORIGINAL DIRECTORS"); (B) the
                  individuals who thereafter are elected to the Board of
                  Directors of the CSUSA and whose election, or nomination for
                  election, to the Board of Directors of CSUSA was approved by a
                  vote of at least two-thirds (2/3) of the Original Directors
                  then still in office (such directors becoming "ADDITIONAL
                  ORIGINAL DIRECTORS" immediately following their election); and
                  (C) the individuals who are elected to the Board of Directors
                  of CSUSA and whose election, or nomination for election, to
                  the Board of Directors of CSUSA was approved by a vote of at
                  least two-thirds (2/3) of the Original Directors and
                  Additional Original Directors then still in office (such
                  directors also becoming "ADDITIONAL ORIGINAL DIRECTORS"
                  immediately following their election);

                  (iii) the stockholders of CSUSA shall approve a merger,
                  consolidation, recapitalization, or reorganization of CSUSA, a
                  reverse stock split of outstanding voting securities, or
                  consummation of any such transaction if stockholder approval
                  is not obtained, other than any such transaction which would
                  result in at least seventy-five percent (75%) of the total
                  voting power represented by the voting securities of the
                  surviving entity outstanding immediately after such
                  transaction being Beneficially Owned by at least seventy-five
                  percent (75%) of the holders of outstanding voting securities
                  of CSUSA immediately prior to the transaction, with the voting
                  power of each

                                       10
<PAGE>

                  such continuing holder relative to other such continuing
                  holders not substantially altered in the transaction; or

                  (iv) the stockholders of CSUSA shall approve a plan of
                  complete liquidation of CSUSA or an agreement for the sale or
                  disposition of all or a substantial portion of the CSUSA's
                  assets (i.e., fifty percent (50%) or more of the total assets
                  of CSUSA).

                  (f) Employee must be notified in writing by Company or any of
                  its subsidiaries or affiliates at anytime that either Company
                  or any of its subsidiaries or affiliates anticipates that a
                  Change in Control may take place.

         (f)      If it shall be determined that any payment or distribution by
                  Company, the Company or any other person to or for the benefit
                  of the Employee (a "PAYMENT") would be subject to the excise
                  tax imposed by Section 4999 of the Internal Revenue Code of
                  1986, as amended (the "EXCISE TAX"), as a result of the
                  termination of employment of the Employee in the event of a
                  Change in Control, then Company, the Company or the successor
                  to the Company shall pay an additional payment (a "GROSS-UP
                  PAYMENT") in an amount such that after payment by the Employee
                  of all taxes, including, without limitation, any income taxes
                  and Excise Tax imposed on the Gross-Up Payment, the Employee
                  retains an amount of the Gross-Up Payment equal to the Excise
                  Tax imposed on the Payments. Such amount will be due and
                  payable by Company, the Company or the successor to the
                  Company within ten (10) days after the Employee delivers
                  written request for reimbursement accompanied by a copy of the
                  Employee's tax return(s) or other tax filings showing the
                  excise tax actually incurred by the Employee.

13. COMPLETE AGREEMENT. This Agreement sets forth the entire agreement of the
parties hereto relating to the subject matter hereof and supersedes any other
employment agreements or understandings, written or oral, between or among
Company, the Company and Employee. This Agreement is not a promise of future
employment. Employee has no oral representations, understandings or agreements
with Company or any of its subsidiaries or affiliates or any of its officers,
directors or representatives covering the same subject matter as this Agreement.
This Agreement is the final, complete and exclusive statement and expression of
the agreement between Company and Employee and of all the terms of this
Agreement, and it cannot be varied, contradicted or supplemented by evidence of
any prior or contemporaneous oral or written agreements. This written Agreement
may not be later modified except by a further writing signed by a duly
authorized officer of Company and Employee, and no term of this Agreement may be
waived except in writing signed by the party waiving the benefit of such term.

14. NOTICE. Whenever any notice is required hereunder, it shall be given in
writing addressed as follows:

                                       11
<PAGE>

         To Company:                Comfort Systems USA (Texas), L.P.
                                    777 Post Oak Blvd, Suite 500
                                    Houston, Texas  77056
                                    Attention: Law Department

         To Employee:               Norman C. Chambers
                                    6 Maple Loft Place
                                    The Woodlands, TX  77381

         Notice shall be deemed given and effective on the earlier of three (3)
days after the deposit in the U.S. mail of a writing addressed as above and sent
first class mail, certified, return receipt requested, or when actually received
by means of hand delivery, delivery by Federal Express or other courier service,
or by facsimile transmission. Either party may change the address for notice by
notifying the other party of such change in accordance with this paragraph 14.1

15. SEVERABILITY; HEADINGS. If any portion of this Agreement is held invalid or
inoperative, the other portions of this Agreement shall be deemed valid and
operative and, so far as is reasonable and possible, effect shall be given to
the intent manifested by the portion held invalid or inoperative. The paragraph
headings herein are for reference purposes only and are not intended in any way
to describe, interpret, define or limit the extent or intent of this Agreement
or of any part hereof.

16. ARBITRATION. With the exception of paragraphs 3 and 7, any unresolved
dispute or controversy arising under or in connection with this Agreement shall
be settled exclusively by arbitration, conducted before a panel of three (3)
arbitrators in Houston, Texas, in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association
("AAA") then in effect, provided that Employee shall comply with Company's
grievance procedures in an effort to resolve such dispute or controversy before
resorting to arbitration, and provided further that the parties may agree to use
arbitrators other than those provided by the AAA. The arbitrators shall not have
the authority to add to, detract from, or modify any provision hereof nor to
award punitive damages to any injured party. The arbitrators shall have the
authority to order back-pay, severance compensation, vesting of options or
restricted stock (or cash compensation in lieu of vesting of options or
restricted stock), reimbursement of costs, including those incurred to enforce
this Agreement, and interest thereon in the event the arbitrators determine that
Employee was terminated without disability or Cause, as defined in paragraphs
5(a)(ii) and 5(a)(iii), respectively, or that Company has breached this
Agreement in any material respect. A decision by a majority of the arbitration
panel shall be final and binding. Judgment may be entered on the arbitrators'
award in any court having jurisdiction. The direct expense of any arbitration
proceeding shall be borne by Company.

17. GOVERNING LAW. This Agreement shall in all respects be construed according
to the laws of the State of Texas.

                                       12
<PAGE>

18. COUNTERPARTS. This Agreement may be executed simultaneously in two (2) or
more counterparts, each of which shall be deemed an original and all of which
together shall constitute but one and the same instrument.

19. THIRD-PARTY BENEFICIARY. The Company is intended to be a third-party
beneficiary under this Agreement, and shall be entitled to enforce the
provisions hereof benefiting the Company.

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

                                  COMFORT SYSTEMS USA (TEXAS), L.P.

                                  By:  Comfort Systems USA G.P., Inc.

                                  By: /s/ William F. Murdy
                                      ------------------------------------------
                                           William F. Murdy
                                           Chief Executive Officer

                                  COMFORT SYSTEMS USA, INC.

                                  By: /s/ William F. Murdy
                                      -----------------------------------------
                                           William F Murdy
                                           Chief Executive Officer

                                  EMPLOYEE:

                                  /s/ Norman C. Chambers
                                  ----------------------------------------------
                                  Norman C. Chambers

                                       13

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