Document:

Exhibit 10.6

 

FIRST AMENDMENT

TO

STOCK PURCHASE WARRANT

            This
First Amendment to Stock Purchase Warrant (this "First Amendment") is dated April 15, 2005, by and among by and between Home Solutions of American, Inc., a Delaware corporation (the "Company"), and Petra Mezzanine Fund, L.P., a Delaware limited
partnership ("Petra").

            WHEREAS,
on March 31, 2005, the Company issued that certain Stock Purchase Warrant (so
called herein) to Petra;

            WHEREAS,
the Company and Petra desire to amend the Stock Purchase Warrant, as set forth herein.

            NOW
THEREFORE, in consideration of the following good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and in consideration of the mutual promises and agreements herein contained,
including the recitals set forth hereinabove, the parties agree as follows:

1.         "Frank J. Fadella" shall be deleted in
Section 5(b), and replaced with "Frank J. Fradella".

2.          Section 5(e) shall be
deleted in its entirety and replaced with the following:

"(e)      Adjustment
in Number of Shares.  Upon each adjustment to the Exercise Price pursuant
to subsection (a), (b) or (d) of this Section 5, this Warrant shall thereafter
evidence the right to receive upon payment of the adjusted Exercise Price that
number of Shares obtained by multiplying the number of Shares previously
issuable upon exercise of this Warrant by a fraction the numerator of which is
the Exercise Price prior to adjustment and the denominator of which is the
adjusted Exercise Price; provided, however, that in no event, after taking into
account any adjustments required pursuant to this subsection (e), shall the
aggregate number of Shares issuable under this Warrant or the Additional
Warrants, if any, exceed an amount equal to 19.99% of 16,967,785 (the number of
outstanding shares of the Company's Common Stock on March 31, 2005, prior to
the Petra Loan), as such number of shares may be adjusted for stock splits,
stock dividends and other recapitalizations, without the prior approval of the
Company's stockholders as required by Section 713 of the American Stock
Exchange Company Guide."

3.          The following language:  "the ten
(10) trading day period ending two (2) trading days prior", as it appears in
Section 10(c)(i) and 10(c)(ii), shall be replaced, in each instance, with: "the
five (5) trading day period ending one (1) trading day prior".

4.          This First Amendment shall be
governed by, and construed in accordance with, the laws of the State of Delaware.

5.          This First Amendment may be
executed in any number of counterparts, including counterparts transmitted by telecopier or telefax, and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and both of which taken together shall constitute one and the same agreement.  

6.          Except as expressly amended
hereby, the Stock Purchase Warrant remains in full force and effect. 
Capitalized terms that are not defined herein shall have the same meaning
assigned to them in the Stock Purchase Warrant.

 

 

	
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            IN WITNESS
WHEREOF, the parties hereto have caused this First Amendment to be executed and
delivered as of the date first above written.

HOME SOLUTIONS OF AMERICA, INC.

                                                            By: 
____________________________________

                                                            Name:
Rick J. O'Brien

                                                            Title: 
Chief Financial Officer

                                                            PETRA MEZZANINE FUND, L.P.

                                                

                                                            By: 
  Petra Partners, LLC, its General Partner

                                                            By: 
____________________________________

                                                            Name:
Michael W. Blackburn

                                                            Title: 
Managing Member

 

 

 

 

 

 

 

	
  2Exhibit 10.7

 

FIRST AMENDMENT

TO

INVESTORS' RIGHTS AGREEMENT

            This
First Amendment to Investors' Rights Agreement (this "First Amendment") is
dated April 15, 2005, by and among by and among Home Solutions of American,
Inc., a Delaware corporation (the "Company"), Petra Mezzanine Fund, L.P. ("Petra"), Frank J. Fradella and Rick J. O'Brien (collectively, the "Management
Stockholders").

            WHEREAS,
the Company, Petra, and the Management Stockholders executed that certain Investors'
Rights Agreement (so called herein) on March 31, 2005;

            WHEREAS,
the Company, Petra, and the Management Stockholders desire to amend the Investors'
Rights Agreement, as set forth herein.

            NOW
THEREFORE, in consideration of the following good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and in consideration of the mutual promises and agreements herein contained,
including the recitals set forth hereinabove, the parties agree as follows:

1.         "Frank J. Fadella" shall be deleted
wherever it appears in the Investors' Rights
Agreement and replaced with "Frank J. Fradella".

2.          The following language
shall be added to the end of Section 2.1:

"Each
Investor acknowledges and agrees, however, that any New Securities purchased
hereunder at a discount to the current market price of the Common Stock, within
a six-month period of a prior purchase of the Company's securities at a
discount to the market price, including the issuance of the Warrants, could be
aggregated under guidelines of the American Stock Exchange ("Amex"), and, if as
a result of such aggregation the aggregate number of securities of the Company
purchased by the Investors at a discount to the current market price would
exceed 19.99% of 16,967,785 (the number of outstanding shares of the Company's
Common Stock on March 31, 2005, prior to the Petra Loan), as such number of
shares may be adjusted for stock splits, stock dividends and other
recapitalizations, Amex approval (and, if required for Amex approval by Section
713 of the American Stock Exchange Company Guide, the approval of the Company's
stockholders), could be a condition precedent to Investor's exercising its
preemptive rights hereunder."

3.          Exhibit A attached hereto shall replace Exhibit
A attached to the Investors' Rights Agreement.

4.          This First Amendment shall be
governed by, and construed in accordance with, the laws of the State of Delaware.

5.          This First Amendment may be
executed in any number of counterparts, including counterparts transmitted by telecopier or telefax, and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and both of which taken together shall constitute one and the same agreement.  

6.           Except as expressly amended
hereby, the Investors' Rights Agreement remains in full force and effect. 
Capitalized terms that are not defined herein shall have the same meaning
assigned to them in the Investors' Rights Agreement.

 

 

	
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            IN WITNESS
WHEREOF, the parties hereto have caused this First Amendment to be executed and
delivered as of the date first above written.

HOME SOLUTIONS OF AMERICA, INC.

                                                            By: 
____________________________________

                                                            Name:
Rick J. O'Brien

                                                            Title: 
Chief Financial Officer

                                                            PETRA MEZZANINE FUND, L.P.

                                                            By: 
  Petra Partners, LLC, its General Partner

                                                            By: 
____________________________________

                                                            Name:
Michael W. Blackburn

                                                            Title: 
Managing Member

 

 

MANAGEMENT STOCKHOLDERS

                                                            

                                                            __________________________________________

                                                            Frank
J. Fradella

__________________________________________

            Rick
J. O' Brien

 

 

 

 

	
  2

  

EXHIBIT A

JOINDER AGREEMENT

JOINDER
AGREEMENT dated as of _________ ___, 2005, between ____________________ (the
"Additional Investor"), Petra Mezzanine Fund, L.P. ("Petra"),  Home Solutions
of America, Inc. (the "Company") and Frank J. Fradella and Rick J. O'Brien
(collectively, the "Management Stockholders").  The Company, Petra and the
Management Stockholders are parties to an Investors' Rights Agreement dated as
of March 31, 2005, as amended by a First Amendment to Investors' Rights
Agreement dated as of April 15, 2005 (together, the "Investors' Rights
Agreement") and wish to provide for the Additional Investor to become party
thereto.  Accordingly, the parties hereto hereby agree as follows:

1.         Except
as otherwise defined herein, terms defined in the Investors' Rights Agreement
are used herein as defined therein.

            2.         The
Additional Investor is hereby (a) deemed to be a party to the Investors' Rights
Agreement and (b) granted the rights of and bound in all respects by the terms
of the Investors' Rights Agreement, as an Investor thereunder.

3.         This
Joinder Agreement shall be governed by, and construed in accordance with, the
laws of the State of Delaware.

4.         This
Joinder Agreement may be executed in any number of counterparts, including
counterparts transmitted by telecopier or telefax, and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and both of which taken together shall constitute one and the
same agreement.  

*          *          *

 

 

 

 

	
  A-1

  

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

THE
COMPANY:

HOME
SOLUTIONS OF AMERICA, INC.

By_________________________________

Name: ______________________________

Title: 
______________________________

PETRA:

                                                                        PETRA MEZZANINE FUND, L.P.

                                                                        By: 
  Petra Partners, LLC, its General Partner

                                                                        

By:  ________________________________

            Name:
______________________________

            Title: 
______________________________

                                                                        MANAGEMENT
STOCKHOLDERS:

____________________________

Frank
J. Fradella

____________________________

Rick
J. O'Brien

ADDITIONAL
INVESTOR:

[___________________________]

By_________________________________

Name: ______________________________

Title: 
______________________________

 

 

 

 

	
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