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			Exhibit 10.5

			

			

			

			

		

		
			NON-U.S. PRIVATE PLACEMENT 

					SUBSCRIPTION AGREEMENT

						

						

						

						

						

					Between:

						

					JAKE’S TRUCKING INTERNATIONAL, Inc.

						

						

					And:

						

					THE UNDERSIGNED SUBSCRIBER

					

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

		

		
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			JAKE'S TRUCKING INTERNATIONAL, INC.

				

		

		
			

				

				THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S PROMULGATED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

		

		

		

		
			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			

			NONE OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.

					

					

				

		

		
			SUBSCRIPTION AGREEMENT

					

				

		

		
				TO:		Jake’s Trucking International, Inc. (hereinafter referred to as the “Company”) with an address for notice and delivery located at 3155 E. Patrick Lane, Suite 1, Las Vegas, NV 89120-3481

		

		
			RE:  PURCHASE OF SHARES OF COMMON STOCK

				

		

		

		

		
				
						
							1.

							Subscription
	  		
	  	(a)	The Subscriber hereby irrevocably subscribes for and agrees to purchase (such subscription and agreement to purchase being the “Subscription”) from Jake’s Trucking International, Inc., subject to the terms and conditions set forth herein _______________ units(the “Units“) at the price per Unit of US$0.01 for the total purchase price of $_______________ (the “Subscription Proceeds”).  Each Unit consists of one common share and one warrant. Subject to the terms hereof, this subscription will be effective upon its acceptance by the Company.
	  		
	2.		Interpretation
	  		
			In this Agreement, unless the context or subject matter otherwise requires:
	  		
		(a)	“Agreement” means the agreement between the Company and the undersigned hereby constituted;
	  		
		(b)	“British Columbia Act” means the Securities Act (British Columbia);
	  		
		(c)	“Subscriber” means the undersigned subscriber for Units whose name and address are set forth on page 15 hereof;
	  		
		(d)	“U.S. Person” shall have the meaning ascribed thereto in Regulation S under the 1933 Act, and for the purpose of the Agreement includes any person in the United States.
	  		
		(e)	In this Agreement, words importing the singular number only shall include the plural and vice versa, words importing gender shall include all genders and words importing persons shall include individuals, corporations, partnerships, associations, trusts, unincorporated organizations, governmental bodies and other legal or business entities of any kind whatsoever.
	  		
		(f)	Any reference to currency is to the currency of the United States of America unless otherwise indicated.
	  		
		(g)	In the event that any day on or before which any action is required to be taken hereunder is not a business day, then such action shall be required to be taken at or before the requisite time on the next succeeding day that is a business day.  For the purposes of this Agreement, “business day” means a day which is not Saturday or Sunday or a statutory holiday in British Columbia, Canada.

			

			

			

			
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				3.		Method of Subscription and Use of Subscription Proceeds
	  		
		(a)	Subscription for Shares shall be made by delivering to the Company, or to the Company's lawyers, two originally executed copies of this Agreement (Note – please fill in the above section 1(a), the below section 6(p), and fully complete the execution page at the end of this Agreement along with Schedule "1" & Schedule “2”), and
	  		
		(b)	payment for the Subscription Proceeds in the following manner:
	  			
			(i)	by delivery of a bank draft or cashier’s cheque with the completed Agreement for the exact Subscription Proceeds for the Units; or
	  			
	  			
		Should the Subscriber’s subscription and/or payment be submitted to the solicitors for the Company, in trust or otherwise, then the Subscriber agrees that the solicitors shall have no accountability to the Subscriber whatsoever, and acknowledges that the solicitors are merely recipients for the Company and have no solicitor’s obligations of any nature to the Subscriber.  The Subscriber agrees that submission of the payment to the solicitors in trust is to be deposited into the trust account of the Company and shall be the property of the Company at that point. The only duty the solicitors shall have to the Subscriber is to deliver the subscription agreement (as delivered) and the subscription monies to the Company, all solely at the Company’s instruction, and the solicitors shall require no further instruction from the Subscriber in order to deliver the same to the Company.  Under no circumstances shall the Company’s solicitors be considered to be giving legal or other advice or services to the Subscriber and no communication between the Subscriber and such solicitors shall be considered advice (at the most only administrative subscription assistance on behalf of the Company) but the Subscriber shall rely solely and exclusively on his own judgement and the advice of his own counsel.
	  			
	  			
		(c)	The Subscriber acknowledges that the Company will be accepting subscriptions for Units on a first come, first serve, basis.  The Company, upon acceptance by its Board of all or part of this Subscription, hereby agrees to issue the accepted number of Units, as fully paid and non-assessable, and as consideration for the Subscription, and to refund any excess subscription monies of the Subscription Proceeds or any non-accepted portion of this Subscription.
	  			
		(d)	The Subscriber agrees that the Subscription Proceeds to be raised from the Units are to be employed for the business of the Company in accordance with management’s discretion as to the best use of the same for the Company’s business plans.  The Company reserves the right at any time to alter its business plans in accordance with management’s appreciation of the market for the goods and services of the Company.  The Subscriber acknowledges that payment of the Subscription Proceeds will not be held in trust pending Closing and may be used by the Company in its sole discretion and, until the Securities are issued and delivered, will constitute an interest free loan to the Company.
	  			
		(e)	Subject to applicable Legislation, this Subscription is and shall be irrevocable except that the Subscriber shall have no obligations hereunder in the event this Subscription is not accepted for any reason.
	  			
		(f)	The Subscriber acknowledges that no party independent of the Company has made or will make any opinion or representations on the merits or risks of an investment in any of the Securities unless sought out by the Subscriber; which the Subscriber is encouraged to do.  The Subscriber is aware that the investment is a speculative and risky investment and the Subscriber warrants that he could tolerate the full loss of the investment without significant or material impact on his financial condition and the Subscriber waives all claim or liability of the Company for any loss in value of the investment.
				
	4.		Direction and Required Documentation
	  			
		(a)	The Subscriber must complete, sign and return two (2) executed copies of this Agreement to the Company together with a direction to the Company with respect to registration and delivery instructions in the form attached as Schedule “1”. 

				

				

			

			
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				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

					(b)	The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, stock exchanges and applicable law.
	  		
	5.		Closing
			
		(a)	The closing (the “Closing”) of the offering of the Units is intended to take place on (the “Closing Date”), or such other date as may be determined by the Company.
	  		
	6.		Covenants, Representations and Warranties of Subscriber
	  		
			The Subscriber hereby covenants, represents and warrants to and with the Company (which covenants, representations and warranties are true and correct as at the date hereof and shall survive the acceptance, if any, by the Company, of this Subscription in whole or in part) that:
	  		
		(a)	the Subscriber is not a U.S. Person;
	  		
		(b)	the Subscriber is not acquiring the Units for the account or benefit of, directly or indirectly, any U.S. Person;
	  		
		(c)	the Subscriber is resident in the jurisdiction set out under the heading “Name and Address of Subscriber” on the signature page of this Agreement and the sale of the Units to the Subscriber as contemplated in this Agreement complies with or is exempt from the applicable securities legislation of the jurisdiction of residence of the Subscriber;
	  		
		(d)	the Subscriber, if an individual, has attained the age of majority;
	  		
	  	(e)	the Subscriber, if a corporation, partnership, unincorporated association or other entity, is legally competent to execute this Agreement, to take all actions required pursuant hereto, and the execution and delivery of this subscription by the Subscriber has been duly and validly authorized;
	  		
		(f)	the entering into of this Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
	  		
		(g)	the Subscriber has duly executed and delivered this Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
	  		
		(h)	the Subscriber is purchasing the Units as a principal (and not as an agent) for investment purposes only with no intention or view to reselling or distributing any portion or beneficial interest in the Units and the Subscriber will be the beneficial owner of any Units to be issued to the Subscriber if, as and when this Subscription is accepted by the Company in whole or in part;
	  		
		(i)	the Subscriber is not an underwriter of, or dealer in, the common Units of the Company, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Units;
	  		
		(j)	the Subscriber is familiar with the aims and objectives of the Company and the proposed use of the proceeds received by the Company from the sale of the Units and is aware of the risk and other characteristics of his investment in the Units including the risk that no market for the Units may ever exist;
	  		
		(k)	the Subscriber is outside the United States when receiving and executing this Agreement;
	  		
		(l)	the Subscriber has made an independent examination and investigation of an investment in the Units and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in anyway whatsoever for the Subscriber’s decision to invest in the Units and the Company;

			

				

			

			
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					       	(m)	it has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Units and the Company;
	  		
		(n)	the Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Units for an indefinite period of time;
	  		
		(o)	it understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations and agreements contained in this Agreement and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, it shall promptly notify the Company;
	  		
		(p)	the Subscriber is acquiring the Units pursuant to an exemption from the registration and prospectus requirements of the securities legislation in all jurisdictions relevant to this Subscription.  As a consequence, the Subscriber acknowledges that the Subscriber will not be entitled to use most of the civil remedies available under the applicable securities regulations and the Subscriber will not receive information that would otherwise be required to be provided to him or her pursuant to the applicable securities regulations.  The Subscriber understands that the exemption from the registration and prospectus requirements of the British Columbia Act, is premised on the fact that the Subscriber has a close personal relationship with one or more of the directors and/or senior officers of the Company and, on this basis, the Subscriber does not require the protection of the applicable securities regulations.  In this regard, the Subscriber represents to the Company that the Subscriber is, or is a private company wholly-owned and controlled by one or more persons all of whom are (check one or more of the following boxes) a:

							

							                -               a close personal friend                       [  ]
                -               a close relative                                   [  ]
                -               a close business associate                  [  ]

							

								of the following directors or senior officers of the Company:

							

							                                                                                                                                     

								

							                                                                                                                                     

								

							                                                                                                                                     

								

							(Fill in the name of each director and senior officer which you have the above-mentioned relationship with);
	  		
		(q)	should there be any change in any of the information which the Subscriber has provided to the Company prior to the acceptance by the Company of this subscription, the Subscriber will immediately provide such information to the Company by telephone prior to such acceptance and will confirm such information in writing; and
	  		
		(r)	The Subscriber agrees that, in consideration, in part, of the Company’s within Acceptance of this Subscription, the Subscriber does hereby release, remise and forever discharge each of the Company and its respective subsidiaries, directors, officers, employees, attorneys, agents, executors, administrators, successors and assigns, of and from all manner of action and causes of action, suits, debts, dues, accounts, bonds, covenants, trusts, contracts, claims, damages and demands, whether known or unknown, suspected or unsuspected and whether at law or in equity, which against either of the Company and/or any of its respective subsidiaries, directors, officers, employees, attorneys, agents, executors, administrators, successors and assigns, the Subscriber ever had, now has, or which any of the Subscriber’s respective successors or assigns, or any of them hereafter can, shall or may have by reason of any matter arising from the within Subscription (collectively, the “Release”) except only for gross negligence or fraud (and the latter shall constitute only objective wilfull intent or act of objective material wrongdoing.  The Subscriber shall hold harmless and indemnify the Company from and against, and shall compensate and reimburse the same for, any loss, damage, claim, liability, fee (including reasonable attorneys’ fees), 

				

				

			

			

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							demand, cost or expense (regardless of whether or not such loss, damage, claim, liability, fee, demand, cost or expense relates to a third-party claim) that is directly or indirectly suffered or incurred by the Company, or to which the Company becomes subject, and that arises directly or indirectly from, or relates directly or indirectly to, any inaccuracy in or breach of any representation, warranty, covenant or obligation of the Subscriber contained in this Agreement.  This Release is irrevocable and will not terminate in any circumstances.
	  			
	7.		Acknowledgements of the Subscriber
	  			
			The Subscriber acknowledges that:
	  			
		(a)	none of the Units have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and in each case only in accordance with applicable state securities laws;
	  			
		(b)	the Subscriber acknowledges that the Company has not undertaken, and will have no obligation, to register any of the Units under the 1933 Act;
	  			
		(c)	the Subscriber has received and carefully read this Agreement;
	  			
		(d)	there is no market for any Units that may be issued to the Subscriber pursuant to acceptance of this Subscription (in whole or in part) and that no market for such Units may ever exist;
	  			
		(e)	the Company is a “closely held issuer” as that term is defined in the British Columbia Act and as such:
	  			
			(i)	the securities of the Company cannot be transferred without the previous consent of the Company’s Board of Directors expressed by resolution of the Company’s Board of Directors, which consent is at the sole discretion of the Directors; and
	  			
			(ii)	there are restrictions on the number of shareholders of the Company;
	  			
		(f)	in addition to any restrictions imposed pursuant to paragraph 7(e) above, any transfer, resale or other subsequent disposition of the Units may be subject to restrictions contained in securities legislation applicable to the holder of the Units or to the proposed transferee, including, but not limited to, resale restrictions under the 1933 Act and the British Columbia Act.  The Company is not a reporting issuer in any province or territory of Canada and, accordingly, any hold periods applicable to holders resident in Canada may never expire.  As such, the Units may be subject to restrictions on resale for an indefinite period of time;
	  			
		(g)	the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by Subscribers during reasonable business hours at its principal place of business and that all documents, records and books in connection with the sale of the Units hereunder have been made available for inspection by the Subscriber, the Subscriber’s attorney and/or advisor(s);
	  			
		(h)	by execution hereof the Subscriber has waived the need for the Company to communicate its acceptance of the purchase of the Units pursuant to this  Agreement;
	  			
		(i)	the Company is entitled to rely on the representations and warranties of the Subscriber contained in this Agreement and the Subscriber will hold harmless the Company from any loss or damage it or they may suffer as a result of the Subscriber’s failure to correctly complete this Agreement;
	  			
		(j)	the Subscriber will indemnify and hold harmless the Company and, where applicable, its respective directors, officers, employees, agents, advisors and shareholders from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, 

				

			

			

			

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							lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained herein or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;
	  			
		(k)	the Subscriber has been advised to consult its own legal, tax and other advisors with respect to the merits and risks of an investment in the Units and with respect to applicable resale restrictions and it is solely responsible (and the Company is not in any way responsible) for compliance with applicable resale restrictions;
	  			
		(l)	the Subscriber is outside the United States when receiving and executing this Agreement and is acquiring the Units as principal for its own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalisation thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Units;
	  			
		(m)	no person has made to the Subscriber any written or oral representations:
	  			
			(i)	that any person will resell or repurchase the Units;
	  			
			(ii)	that any person will refund the Subscription Proceeds for the Units other than as provided in this Agreement;
	  			
			(iii)	as to the future price or value of the Units; or
	  			
			(iv)	that the Units will be listed and posted for trading on a stock exchange, that application has been made to list and post the Units for trading on a stock exchange, or that application has been made to list and post the Units for trading on a stock exchange;
	  			
		(n)	the Subscriber has been advised that the business of the Company is in a start-up phase and acknowledges that there is no assurance that the Company will raise sufficient funds to adequately capitalise the business or that the business will be profitable in the future;
	  			
		(o)	none of the Units may be offered or sold to a U.S. Person or for the account or benefit of a U.S. Person;
	  			
		(p)	neither the United States Securities and Exchange Commission nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Units;
	  			
		(q)	no documents in connection with the sale of the Units hereunder have been reviewed by the Securities and Exchange Commission or any state securities administrators;
	  			
		(r)	there is no government or other insurance covering any of the Units;
	  			
		(s)	the Subscriber understands and agrees that offers and sales of any of the Units prior to the expiration of a period of one year after the date of original issuance of the Units (the “Restricted Period”) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the 1933 Act or an exemption therefrom, and that all offers and sales after the Restricted Period shall be made only in compliance with the registration provisions of the 1933 Act or an exemption therefrom;
	  			
		(t)	the Subscriber understands and agrees not to engage in any hedging transactions involving any of the Units unless such transactions are in compliance with the provisions of the 1933 Act;
	  			
		(u)	the Subscriber understands and agrees that the Company will refuse to register any transfer of the Units not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act;

				

				

			

			

			

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						(v)	the Subscriber acknowledges that he or she has not acquired the Units as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Units which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Units; provided, however, that the Subscriber may sell or otherwise dispose of any of the Units pursuant to registration of any of the Units pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;
	  		
		(w)	the statutory and regulatory basis for the exemption claimed for the offer and sale of the Units, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the 1933 Act; and
	  		
		(x)	the issuance and sale of the Units to the Subscriber will not be completed if acceptance would be unlawful or if, in the discretion of the Company acting reasonably, it is not in the best interests of the Company.
	  		
	8.		Appointment of Attorney
	  		
		(a)	The Subscriber hereby irrevocably appoints Michael Quesnel, a Director of the Company, as attorney in fact (the “Attorney”) for the Subscriber and authorizes the Attorney as such to make and sign on behalf of the Subscriber and to deliver any and all resolutions or special resolutions of shareholders of the Company which may be deemed necessary by the directors of the Company to provide for change in the Company’s constating documents to enable the Company to offer its Units to the public.
	  		
	9.		Legending of Subject Securities
	  		
		(a)	The Subscriber hereby acknowledges that a legend may be placed on the certificates representing any of the Units to the effect that the Units represented by such certificates are subject to a hold period and may not be traded until the expiry of such hold period except as permitted by applicable securities legislation.
	  		
		(b)	The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Agreement.
	  		
	10.		Resale Restrictions
	  		
		(a)	The Subscriber acknowledges that any resale of the Units will be subject to resale restrictions contained in the securities legislation applicable to each Subscriber or proposed transferee.  The Subscriber acknowledges that the Units have not been registered under the 1933 Act of the securities laws of any state of the United States and that the Company does not intend to register same under the 1933 Act, or the securities laws of any such state and has no obligation to do so.  The Units may not be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.
	  		
	11.		Representations May Be Relied Upon
	  		
		(a)	The Subscriber acknowledges that the representations and warranties contained herein are made by the Subscriber with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber's eligibility to purchase the Units under relevant securities legislation.  The Subscriber further agrees that by accepting delivery of the Units, the Subscriber will be representing and warranting that the foregoing representations and warranties are true and correct as at the delivery of such Units with the same force and effect as if they had been made by the Subscriber at the delivery, and that they shall survive the completion of the transactions contemplated under this Agreement and remain in full force and effect thereafter for the benefit of the Company for a period of one year.

				

			

			

			

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					12.		Representations, Warranties and Covenants of the Company
	  		
			The Company acknowledges, represents and warrants to and with the Subscriber that:
	  		
		(a)	The Company is a valid and subsisting corporation duly incorporated and in good standing under the laws of the jurisdiction in which it is incorporated, continued or amalgamated;
	  		
		(b)	The Company is duly registered and licensed to carry on business in the jurisdictions in which it carries on business or owns property where so required by the laws of that jurisdiction;
	  		
		(c)	The Company will reserve or set aside sufficient Units in its treasury to issue to the Subscriber the Units if the Company accepts all or any part of the within subscription;
	  		
		(d)	The Company has complied and will comply fully with the requirements of all applicable corporate and securities laws and administrative policies and directions in relation to the issue and trading of its securities and in all matters relating to the within subscription;
	  		
		(e)	The issue and sale of the Units by the Company does not and will not conflict with, and does not and will not result in a breach of, any of the terms of the Company’s incorporating documents or any agreement or instrument to which the Company is a party;
	  		
		(f)	This Agreement has been or will be, when accepted, duly authorized by all necessary corporate action on the part of the Company, and the Company has full corporate power and authority to undertake the within subscription for Units; and
	  		
		(g)	no order ceasing, halting or suspending trading in securities of the Company or prohibiting the sale of such securities has been issued to and is outstanding against the Company or any of its directors, officers or promoters or against any other companies that have common directors, officers or promoters, and no investigations or proceedings for such purposes are pending or threatened.
	  		
	13.		Governing Law
	  		
		(a)	This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia, Canada, and the federal laws of Canada applicable therein.  Any dispute regarding matters as between the Subscriber and the Company, whether as a subscriber or shareholder and whether arising under this Agreement or pursuant to shareholder rights pursuant to the constating documents of the Company or applicable law, shall be adjudicated in the Courts of the Province of British Columbia, Canada, unless the Company shall permit otherwise.
	  		
	14.		Subscription Not Assignable
	  		
		(a)	This Subscription is neither transferable nor assignable.
	  		
	15.		Execution
	  		
		(a)	The Company shall be entitled to rely on delivery by facsimile machine of an executed copy of this Subscription and acceptance by the Company of such facsimile copy shall be equally effective to create a valid and binding agreement in accordance with the terms hereof.
	  		
	16.		Severability
	  		
		(a)	The invalidity or non-enforceability of any particular provision of this Subscription shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription.

				

				

			

			

			

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					17.		Entire Agreement and Amendments
	  		
		(a)	Except as expressly provided in this Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Agreement contains the entire agreement between the parties with respect to the sale of the Units and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute, by common law, by the Company, by the Subscriber or by anyone else.  This Agreement may be amended or modified in any respect by written instrument only.
	  		
	18.		Costs
	  		
		(a)	The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Units shall be borne by the Subscriber.
	  		
	19.		Survival
	  		
		(a)	This Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Units by the Subscriber pursuant hereto.
	  		
	20.		Notice
	  		
		(a)	All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the address on page 15 and notices to the Company shall be directed to it at:
	  		
	21.		Counterparts
	  		
		(a)	This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument and notwithstanding the date of execution will be deemed to bear the execution date as set forth in this Agreement.

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			

			

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				IN WITNESS WHEREOF the Subscriber has duly executed this Subscription as of the _______ day of

					_____________________, 2005.

				

				

				                                                                                       __________________________________________

				                                                                                       (Name of Subscriber - type or print)

				

				

				

				                                                                                                                                                                           

				                                                                                       (Signature and, if applicable, Office)

				

				                                                                                        Address of Subscriber

				                                                                                       __________________________________________

				                                                                                       __________________________________________

				                                                                                       __________________________________________

				                                                                                       __________________________________________

				                                                                                       __________________________________________

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			
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				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

		

		
			

		

		
			A C C E P T A N C E

					

				

		

		
			The above-mentioned Subscription is hereby accepted by Michael Quesnel.

				

				DATED at _________________________, __________________, the _____ day of ______________ 2005

				

				

				

				__________________________.

					

					

				Per:

				            _________________________________

				            Authorized Signatory - Michael Quesnel

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			
				Page 12

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

		

		

		

		

		

		

		

		
			

			

			

			

		

		
			SCHEDULE 1 TO SUBSCRIPTION AGREEMENT

					

					

					

				

		

		
			_______________________

				

				

				

				Dear Sirs:

				

				

			

		

		
			Re: Jake’s Trucking International, Inc. - Private Placement of Units

				

				

			

		

		
			1.             Delivery - please deliver the Units to:

				                _____________________________________________________

				                _____________________________________________________

				                _____________________________________________________

				                _____________________________________________________

		

		

		

		

		

		

		2.             Registration - registration of the Units should be made as follows:

			

			                _____________________________________________________

			                (name)

			

			

			                _____________________________________________________

			                (address)

			

			3.             The undersigned hereby acknowledges that it will deliver to Jake’s Trucking International, Inc. all such

			                additional completed forms in respect of the Subscriber's purchase of Units as may be required for filing

			                with the appropriate securities commissions and regulatory authorities.

			

			DATED:  ______________________________ , 2005.

			

			

			

			                                                                                                     

			Subscriber's signature

			

			                                                                                                     

			(please print name)

			

			

			

			

			

			

			

			

			

		

		
			Page 13

		

		

		

		

		
			JAKE'S TRUCKING INTERNATIONAL, INC.

				

		

		
			

				

			

		

		

		
			SCHEDULE 2 TO SUBSCRIPTION AGREEMENT

					

					

					FORM 45-501F3

					

					FORM OF INFORMATION STATEMENT

					

				

		

		
			Introduction

					

				British Columbia securities laws have been relaxed to make it easier for small businesses to raise start-up capital from the public. Some potential investors may view this change in securities laws as an opportunity to “get in on the ground floor” of emerging businesses and to “hit it big” as these small businesses grow into large ones.

				

				Statistically, most small businesses fail within a few years. Small business investments are among the most risky that investors can make. This information statement suggests matters for you to consider in deciding whether to make a small business investment.

				

				Risks and Investment Strategy

					

				A basic principle of investing in a small business is: NEVER MAKE A SMALL BUSINESS INVESTMENT THAT YOU CANNOT AFFORD TO LOSE IN ITS ENTIRETY. Never use funds that might be needed for other purposes, such as a post-secondary education, retirement, loan repayment or medical expenses, and never borrow money to make such an investment. Instead, use funds that you already have set aside and that otherwise would be used for a consumer purchase, such as a vacation.

		

		

		Never believe that the investment is not risky. Among other risk factors, small business investments generally are highly illiquid. In particular, until the company goes public there are significant restrictions on the resale of its securities. Even after a small business goes public there may be very little liquidity in its Units. This lack of liquidity means that, if the company takes a turn for the worse or if you suddenly need the funds you have invested in the company, you may not be able to sell your securities.

		Also, it is important to realize that, just because the proposed offering of securities is permitted under British Columbia securities law does not mean that the particular investment will be successful. Neither the British Columbia Securities Commission nor any other government agency evaluates or endorses the merits of investments.

			

			Analyzing the Investment

				

			Although there is no magic formula for making successful investment decisions, certain factors are often considered particularly important by professional venture investors. Some questions to consider are as follows:

			How long has the company been in business?
		

			Is management putting itself in a position where it will be accountable to investors? For example, is management taking salaries or other benefits that are too large in light of the company’s stage of development? Will outside investors have any voting power to elect representatives to the board of directors?
		

			How much experience does management have in the industry and in operating a small business? How successful were the managers in previous business?
		

			Do you know enough about the industry to be able to evaluate the company and make a wise investment?
		

			Does the company have a realistic business plan? Does it have the resources to successfully market its product or service?
		

			How reliable is the financial information, if any, that has been provided to you? Is the information audited?
		

		

		

		

		
			Page 14

		

		

		

		

		
			JAKE'S TRUCKING INTERNATIONAL, INC.

				

		

		
			

				

			

		

			Is the company subject to any lawsuits?
		

			What are the restrictions on the resale of the securities?
		

		There are many other questions to be answered, but you should be able to answer these before you consider investing. If you have not been provided with the information you need to answer these and any other questions you may have about the proposed investment, make sure that you obtain the information you need from people authorized to speak on the company’s behalf (e.g., management or the directors) before you advance any funds or sign any commitment to advance funds to the company. It is generally a good idea to meet with management of the company face to face.

			

			Making Money on Your Investment

				

			There are two classic methods for making money on an investment in a small business: (1) through resale of the securities in the public securities markets following a public offering; and (2) by receiving cash or marketable securities in a merger or other acquisition of the company.

			

			If the company is the type that is not likely to go public or be acquired within a reasonable time (i.e., a family-owned or closely-held corporation), it may not be a good investment for you irrespective of its prospects for success because of the lack of opportunity to cash in on the investment. Management of a successful private company may receive a return indefinitely through salaries and bonuses but it is unlikely that there will be profits sufficient to pay dividends commensurate with the risk of the investment.

			

			Conclusion

				

			When successful, small businesses enhance the economy and provide jobs for its citizens. They also provide investment opportunities. However, an opportunity to invest must be considered in light of the inherently risky nature of small business investments.

			

			In considering a small business investment, you should proceed with caution and make an informed investment decision based on your circumstances and expectations. Above all, never invest more than you can afford to lose.

			

			THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT OF THIS PRESCRIBED INFORMATION STATEMENT FROM THE ISSUER AT LEAST FOUR DAYS PRIOR TO THE PURCHASE OF ANY UNITS, AND FULLY UNDERSTANDS THE RISKS INVOLVED IN A SMALL BUSINESS INVESTMENT AS DESCRIBED ABOVE.

			

			

			DATED:  ______________________________ , 2005.

			

			

			                                                                                                               

			Subscriber's signature

			

			                                                                                                                

			(please print name)

			

			

			

			

			

			

			

			

		

		
			Page 15

		

		

		

		

		
			JAKE'S TRUCKING INTERNATIONAL, INC.

				

		

		
			

				

				22.                    SCHEDULE “C” – WARRANT AGREEMENT

						

					

		

		

		
			Warrant Terms and Conditions

					

				

		

		
			               1. Exercise of Warrants.

					

				                         (a) Subject to subsection (b) of this Section 1 and Section 11 below, upon presentation and surrender of the Warrant Certificate, with the attached Purchase Form duly executed, at the principal office of the Company at Suite 308 – 1917 West 4th Avenue, Vancouver, British Columbia, Canada V6J 1M7 or at such other place as the Company may designate by notice to the Holder hereof, together with a check payable to the order of the Company in the amount of the Exercise Price times the number of shares being purchased, the Company shall deliver to the Holder hereof, as promptly as practicable, certificates representing the shares being purchased. The Warrant may be exercised in whole or in part; and, in case of exercise hereof in part only, the Company, upon surrender hereof, will deliver to the Holder a new Warrant Certificate or Warrant Certificates of like tenor entitling the Holder to purchase the number of Shares as to which the Warrant has not been exercised.

				

				                         (b) The Warrant may be exercised in whole or in part at any time prior to 5:00 o'clock P.M., Mountain Standard Time, August 31, 2007.

				

				               2. Exchange and Transfer of Warrant. The Warrant:

				

				                         (a) at any time prior to the exercise hereof, upon presentation and surrender to the Company, may be exchanged, alone or with other Warrants of like tenor registered in the name of the Holder, for another Warrant or other Warrants of like tenor in the name of such Holder exercisable for the same aggregate number of Shares as the Warrant or Warrants surrendered,

				

				                         (b) may not be sold, transferred, hypothecated, or assigned, in whole or in part, without the prior written consent of the Company, which shall not be unreasonably withheld.

				

				               3. Rights and Obligations of Warrant Holder.

					

				                         (a) The Holder of the Warrant Certificate shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or in equity; provided, however, in the event that any certificate representing the Shares is issued to the Holder hereof upon exercise of the Warrant, such Holder shall, for all purposes, be deemed to have become the holder of record of such Shares on the date on which the Warrant Certificate, together with a duly executed Purchase Form, was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such Share certificate. The rights of the Holder of the Warrant are limited to those expressed herein and the Holder of the Warrant, by its acceptance hereof, consents to and agrees to be bound by and to comply with all the provisions of the Warrant Certificate, including, without limitation, all the obligations imposed upon the Holder hereof by Sections 2 and 5 hereof. In addition, the Holder of the Warrant Certificate, by accepting the same, agrees that the Company may deem and treat the person in whose name the Warrant Certificate is registered on the books of the Company maintained for such purpose as the absolute, true and lawful owner for all purposes whatsoever, notwithstanding any notation of ownership or other writing thereon, and the Company shall not be affected by any notice to the contrary.

				

				                         (b) No Holder of the Warrant Certificate, as such, shall be entitled to vote or receive distributions or to be deemed the holder of Shares for any purpose, nor shall anything contained in the Warrant Certificate be construed to confer upon any Holder of the Warrant Certificate, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any action by the Company, whether upon any recapitalization, issue of stock, reclassification of stock, merger, conveyance or otherwise, receive notice of meetings or other action affecting stockholders (except for notices provided for herein), receive distributions, subscription rights, or otherwise, until the Warrant shall have been exercised and the Shares purchasable upon the exercise thereof shall have become deliverable as provided herein; provided, however, that any such exercise on any date when the stock transfer books of the Company shall be closed shall constitute the person or persons in whose name or names the certificate or certificates for those Shares are to be issued as the record holder or holders thereof for all purposes at the opening of business on the next 

				

				

			

			

			

			
				Page 16

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

						succeeding day on which such stock transfer books are open, and the Warrant surrendered shall not be deemed to have been exercised, in whole or in part as the case may be, until the next succeeding day on which stock transfer books are open for the purpose of determining entitlement to distributions on the Company's common stock.

					

					               4. Shares Underlying Warrants. The Company covenants and agrees that all Shares delivered upon exercise of the Warrant shall, upon delivery and payment therefore, be duly and validly authorized and issued, fully‐paid and non‐assessable, and free from all stamp taxes, liens, and charges with respect to the purchase thereof In addition, the Company agrees at all times to reserve and keep available an authorized number of Shares sufficient to permit the exercise in full of the Warrant.

					

					               5. Disposition of Warrants or Shares.

						

					                         (a) The holder of the Warrant Certificate and any transferee hereof or of the Shares issuable upon the exercise of the Warrant Certificate, by their acceptance hereof, hereby understand and agree that the Warrant, and the Shares issuable upon the exercise hereof,  may have not been registered under either the Securities Act of 1933 (the "Act") or applicable state securities laws (the "State Acts") and unless registered shall not be sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration) except upon the issuance to the Company of a favorable opinion of counsel or submission to the Company of such evidence as may be satisfactory to counsel to the Company, in each such case, to the effect that any such transfer shall not be in violation of the Act and the State Acts. It shall be a condition to the transfer of the Warrant that any transferee thereof deliver to the Company its written agreement to accept and be bound by all of the terms and conditions of the Warrant Certificate.

					

					                         (b) Unless and until there is an effective registration statement filed with the U.S. Securities and Exchange Commission for the Common Stock underlying the Warrant, the stock certificates of the Company that will evidence the shares of Common Stock with respect to which the Warrant may be exercisable will be imprinted with conspicuous legend in substantially the following form:

				

			

			
				               "The securities represented by this certificate have not been registered under either the Securities Act of 1933 (the "Act") or applicable state securities laws (the "State Acts") and shall not be sold, pledged, hypothecated, donated or otherwise transferred (whether or not for consideration) by the holder except upon the issuance to the Company of a favorable opinion of its counsel or submission to the company of such other evidence as may be satisfactory to counsel of the Company, in each such case, to the effect that any such transfer shall not be in violation of the Act and the State Acts."

				

			

			The Company has agreed to register the Common Stock with respect to which the Warrant may be exercisable for distribution in accordance with the provisions of the Act pursuant to a registration statement to be filed with the U.S. Securities and Exchange Commission on or before October 31, 2006. 

				

				               6. Adjustments. The number of Shares purchasable upon the exercise of each Warrant is subject to adjustment from time to time upon the occurrence of any of the events enumerated below.

				

				                         (a) In case the Company shall: (i) pay a dividend in Shares, (ii) subdivide its outstanding Shares into a greater number of Shares, (iii) combine its outstanding Shares into a smaller number of Shares, or (iv) issue, by reclassification of its Shares, any shares of its capital stock, the amount of Shares purchasable upon the exercise of each Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive upon exercise of the Warrant that number of Shares which such Holder would have owned or would have been entitled to receive after the happening of such event had such Holder exercised the Warrant immediately prior to the record date, in the case of such dividend, or the effective date, in the case of any such subdivision, combination or reclassification. An adjustment made pursuant to this subsection (a) shall be made whenever any of such events shall occur, but shall become effective retroactively after such record date or such effective date, as the case may be, as to Warrants exercised between such record date or effective date and the date of happening of any such event.

				

				                         (b) In case the Company shall issue rights or warrants to all holders of its Shares entitling them to subscribe for or to purchase Shares at a price per Share which, when added to the amount of consideration received or receivable by the Company for such rights or warrants, is less than the Current Market Price (as hereinafter defined) per Share at the record date, the number of Shares purchasable upon the exercise of the Warrant shall be adjusted so that

				

				

				

				

			

			
				Page 17

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

				thereafter, until further adjusted, each Warrant shall entitle the Holder to purchase that number of Shares determined by multiplying the number of Shares purchasable hereunder by a fraction, the numerator of which shall be the number of additional Shares issuable upon the exercise of such rights or warrants, and the denominator of which shall be the number of Shares which an amount equal to the sum of (i) the aggregate exercise price of the total number of Shares issuable upon the exercise of such rights or warrants, and (ii) the aggregate amount of consideration, if any, received, or receivable by the Company for such rights or warrants, would purchase at such Current Market Price. Such adjustment shall be made whenever such rights or warrants are issued, but shall also be effective retroactively as to Warrants exercised between the record date for the determination of stockholders entitled to receive such rights or warrants and the date such rights or warrants are issued.

				

				                         (c) For the purpose of any computation under subsection (b) above, the Current Market Price per Share at any date shall be: (i) if the Shares are listed on any national securities exchange, the average of the daily closing prices for the 15 consecutive business days commencing 20 business days before the day in question (the "Trading Period"); (ii) if the Shares are not listed on any national securities exchange but are quoted on the NASDAQ SmallCap Market, the average of the high and low bids as reported by NASDAQ for the Trading Period; and (iii) if the Shares are neither listed on any national securities exchange nor quoted on NASDAQ, the higher of (x) the exercise price then in effect, or (y) the tangible book value per Share as of the end of the Company's immediately preceding fiscal year.

				

				                         (d) No adjustment shall be required unless such adjustment would require an increase or decrease of at least 1% in the number of Shares purchasable hereunder; provided, however, that any adjustments which by reason of this subsection (d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 6 shall be made to the nearest one‐hundredth of a Share.

				

				                         (e) No adjustment shall be made in any of the following cases:

				

				                                        (i) Upon the grant or exercise of stock options now or hereafter granted, or under any employee stock option or stock purchase plan now or hereafter authorized, to the extent that the aggregate of the number of Shares which may be purchased under such options and the number of Shares issued under such employee stock purchase plan is less than or equal to 10% of the number of Shares outstanding on January 1 of the year of the grant or exercise;

				

				                                        (ii) Shares issued upon the conversion of any of the Company's convertible or exchangeable securities;

				

				                                        (iii) Shares issued in connection with the acquisition by the Company or by any subsidiary of the Company of 80% or more of the assets of another corporation or entity, and Shares issued in connection with the acquisition by the Company or by any subsidiary of the Company of 80% or more of the voting shares of another corporation (including Shares issued in connection with such acquisition of voting shares of such other corporation subsequent to the acquisition of an aggregate of 80% of such voting shares), Shares issued in a merger of the Company or a subsidiary of the Company with another corporation in which the Company or the Company's subsidiary is the surviving corporation, and Shares issued upon the conversion of other securities issued in connection with any such acquisition or in any such merger; and

				

				                                        (iv) Shares issued pursuant to the Warrant and pursuant to all stock options and warrants outstanding on the date hereof.

				

				                         (f) Notice to Warrant Holders of Adjustment. Whenever the number of Shares purchasable hereunder is adjusted as herein provided, the Company shall cause to be mailed to the Holder in accordance with the provisions of this Section 6 a notice (i) stating that the number of Shares purchasable upon exercise of the Warrant have been adjusted, (ii) setting forth the adjusted number of Shares purchasable upon the exercise of a Warrant, and (iii) showing in reasonable detail the computations and the facts, including the amount of consideration received or deemed to have been received by the Company, upon which such adjustments are based.

				

				               7. Fractional Shares. The Company shall not be required to issue any fraction of a Share upon the exercise of Warrants. If more than one Warrant shall be surrendered for exercise at one time by the same Holder, the number of full Shares which shall be issuable upon exercise thereof shall be computed on the basis of the aggregate number of Shares

				

				

			

			

			

			
				Page 18

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

				with respect to which the Warrant is exercised. If any fractional interest in a Share shall be deliverable upon the exercise of the Warrant, the Company shall make an adjustment therefore in cash equal to such fraction multiplied by the Current Market Price of the Shares on the business day next proceeding the day of exercise.

				

				               8. Loss or Destruction. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction, or mutilation of the Warrant Certificate and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement or bond satisfactory in form, substance and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of the Warrant Certificate, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant Certificate of like tenor.

				

				               9. Survival. The various rights and obligations of the Holder hereof as set forth herein shall survive the exercise of the Warrants represented hereby and the surrender of the Warrant Certificate.

				

				               10. Notices. Whenever any notice, payment of any purchase price, or other communication is required to be given or delivered under the terms of the Warrant, it shall be in writing and delivered by hand delivery or United States registered or certified mail, return receipt requested, postage prepaid, and will be deemed to have been given or delivered on the date such notice, purchase price or other communication is so delivered or posted, as the case may be; and, if to the Company, it will be addressed to the address specified in Section 1 hereof, and if to the Holder, it will be addressed to the registered Holder at its, his or her address as it appears on the books of the Company.

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			

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			23.                              SCHEDULE “D” - WARRANT

					

				THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933 (THE “ACT”) OR APPLICABLE STATE SECURITIES LAWS (THE “STATE ACTS”) AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF COUNSEL OR SUBMISSION TO THE COMPANY OF SUCH EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL TO THE COMPANY, IN EACH SUCH CASE, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE ACT AND THE STATE ACTS.

				

					WARRANT TO PURCHASE _________ (______) SHARES OF COMMON STOCK

				

			

		

		
			Jake’s Trucking International, Inc.

				(a Nevada Corporation)

				Not Transferable or Exercisable Except

				upon Conditions Herein Specified

				Void after 5:00 P.M.,

				Pacific Standard Time, on the August  31, 2007

					

				

		

		
			               Jake’s Trucking International, Inc., a Nevada corporation (the “Company”) hereby certifies that, ________________________, as the registered holder hereof (the “Holder”), for value received, is entitled to purchase from the Company the number of fully paid and non-assessable shares of Common Stock of the Company (the “Shares”), stated above at the purchase price of $.05 per Share (the “Exercise Price”) (the number of Shares and Exercise Price being subject to adjustment as hereinafter provided) upon the terms and conditions herein provided.

				

				               1. Exercise of Warrants.

					

				                         (a) Subject to subsection (b) of this Section 1 and Section 11 below, upon presentation and surrender of this Warrant Certificate, with the attached Purchase Form duly executed, at the principal office of the Company at Suite #308 – 1917 West 4th Avenue, Vancouver, British Columbia Canada V6J 1M7 or at such other place as the Company may designate by notice to the Holder hereof, together with a certified or bank cashier’s check payable to the order of the Company in the amount of the Exercise Price times the number of Shares being purchased, the Company shall deliver to the Holder hereof, as promptly as practicable, certificates representing the Shares being purchased. This Warrant may be exercised in whole or in part; and, in case of exercise hereof in part only, the Company, upon surrender hereof, will deliver to the Holder a new Warrant Certificate or Warrant Certificates of like tenor entitling the Holder to purchase the number of Shares as to which this Warrant has not been exercised.

				

				                         (b) This Warrant may be exercised in whole or in part at any time prior to 5:00 o’clock P.M., Pacific Standard Time, on August 31, 2007.

				

				               2. Exchange and Transfer of Warrant. This Warrant (a) at any time prior to the exercise hereof, upon presentation and surrender to the Company, may be exchanged, alone or with other Warrants of like tenor registered in the name of the Holder, for another Warrant or other Warrants of like tenor in the name of such Holder exercisable for the same aggregate number of Shares as the Warrant or Warrants surrendered, (b) may not be sold, transferred, hypothecated, or assigned, in whole or in part, without the prior written consent of the Company, which shall not be unreasonably withheld.

				

				               3. Rights and Obligations of Warrant Holder.

					

				                         (a) The Holder of this Warrant Certificate shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or in equity; provided, however, in the event that any certificate representing the Shares is issued to the Holder hereof upon exercise of this Warrant, such Holder shall, for all purposes, be deemed to have become the holder of record of such Shares on the date on which this Warrant Certificate, together with a duly executed Purchase Form, was surrendered and payment of the Exercise Price was made, irrespective of the date of 

				

				

				

				

			

			
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						delivery of such Share certificate. The rights of the Holder of this Warrant are limited to those expressed herein and the Holder of this Warrant, by its acceptance hereof, consents to and agrees to be bound by and to comply with all the provisions of this Warrant Certificate, including, without limitation, all the obligations imposed upon the Holder hereof by Sections 2 and 5 hereof. In addition, the Holder of this Warrant Certificate, by accepting the same, agrees that the Company may deem and treat the person in whose name this Warrant Certificate is registered on the books of the Company maintained for such purpose as the absolute, true and lawful owner for all purposes whatsoever, notwithstanding any notation of ownership or other writing thereon, and the Company shall not be affected by any notice to the contrary.

					

					                         (b) No Holder of this Warrant Certificate, as such, shall be entitled to vote or receive distributions or to be deemed the holder of Shares for any purpose, nor shall anything contained in this Warrant Certificate be construed to confer upon any Holder of this Warrant Certificate, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any action by the Company, whether upon any recapitalization, issue of stock, reclassification of stock, merger, conveyance or otherwise, receive notice of meetings or other action affecting stockholders (except for notices provided for herein), receive distributions, subscription rights, or otherwise, until this Warrant shall have been exercised and the Shares purchasable upon the exercise thereof shall have become deliverable as provided herein; provided, however, that any such exercise on any date when the stock transfer books of the Company shall be closed shall constitute the person or persons in whose name or names the certificate or certificates for those Shares are to be issued as the record holder or holders thereof for all purposes at the opening of business on the next succeeding day on which such stock transfer books are open, and the Warrant surrendered shall not be deemed to have been exercised, in whole or in part as the case may be, until the next succeeding day on which stock transfer books are open for the purpose of determining entitlement to distributions on the Company’s common stock.

					

					               4. Shares Underlying Warrants. The Company covenants and agrees that all Shares delivered upon exercise of this Warrant shall, upon delivery and payment therefore, be duly and validly authorized and issued, fully-paid and non-assessable, and free from all stamp taxes, liens, and charges with respect to the purchase thereof In addition, the Company agrees at all times to reserve and keep available an authorized number of Shares sufficient to permit the exercise in full of this Warrant.

					

					               5. Disposition of Warrants or Shares.

						

					                         (a) The holder of this Warrant Certificate and any transferee hereof or of the Shares issuable upon the exercise of the Warrant Certificate, by their acceptance hereof, hereby understand and agree that the Warrant, and the Shares issuable upon the exercise hereof, have not been registered under either the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State Acts”) and shall not be sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration) except upon the issuance to the Company of a favorable opinion of counsel or submission to the Company of such evidence as may be satisfactory to counsel to the Company, in each such case, to the effect that any such transfer shall not be in violation of the Act and the State Acts. It shall be a condition to the transfer of this Warrant that any transferee thereof delivers to the Company its written agreement to accept and be bound by all of the terms and conditions of this Warrant Certificate.

					

					                         (b) Unless and until there is an effective registration statement filed with the U.S. Securities and Exchange Commission for the Common Stock underlying the Warrant, the stock certificates of the Company that will evidence the shares of Common Stock with respect to which this Warrant may be exercisable will be imprinted with conspicuous legend in substantially the following form:

				

			

		

		
			
				               “The securities represented by this certificate have not been registered under either the Securities Act of 1933 (the “Act”) or applicable state securities laws (the “State Acts”) and shall not be sold, pledged, hypothecated, donated or otherwise transferred (whether or not for consideration) by the holder except upon the issuance to the Company of a favorable opinion of its counsel or submission to the company of such other evidence as may be satisfactory to counsel of the Company, in each such case, to the effect that any such transfer shall not be in violation of the Act and the State Acts.”

			

		

		

		               6. Adjustments. The number of Shares purchasable upon the exercise of each Warrant is subject to adjustment from time to time upon the occurrence of any of the events enumerated below.

			

			

			

		

		
			Page 21

		

		

		

		

		
			JAKE'S TRUCKING INTERNATIONAL, INC.

				

		

		
			

				

				                         (a) In case the Company shall: (i) pay a dividend in Shares, (ii) subdivide its outstanding Shares into a greater number of Shares, (iii) combine its outstanding Shares into a smaller number of Shares, or (iv) issue, by reclassification of its Shares, any shares of its capital stock, the amount of Shares purchasable upon the exercise of each Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive upon exercise of the Warrant that number of Shares which such Holder would have owned or would have been entitled to receive after the happening of such event had such Holder exercised the Warrant immediately prior to the record date, in the case of such dividend, or the effective date, in the case of any such subdivision, combination or reclassification. An adjustment made pursuant to this subsection (a) shall be made whenever any of such events shall occur, but shall become effective retroactively after such record date or such effective date, as the case may be, as to Warrants exercised between such record date or effective date and the date of happening of any such event.

				

				                         (b) In case the Company shall issue rights or warrants to all holders of its Shares entitling them to subscribe for or to purchase Shares at a price per Share which, when added to the amount of consideration received or receivable by the Company for such rights or warrants, is less than the Current Market Price (as hereinafter defined) per Share at the record date, the number of Shares purchasable upon the exercise of this Warrant shall be adjusted so that thereafter, until further adjusted, each Warrant shall entitle the Holder to purchase that number of Shares determined by multiplying the number of Shares purchasable hereunder by a fraction, the numerator of which shall be the number of additional Shares issuable upon the exercise of such rights or warrants, and the denominator of which shall be the number of Shares which an amount equal to the sum of (i) the aggregate exercise price of the total number of Shares issuable upon the exercise of such rights or warrants, and (ii) the aggregate amount of consideration, if any, received, or receivable by the Company for such rights or warrants, would purchase at such Current Market Price. Such adjustment shall be made whenever such rights or warrants are issued, but shall also be effective retroactively as to Warrants exercised between the record date for the determination of stockholders entitled to receive such rights or warrants and the date such rights or warrants are issued.

				

				                         (c) For the purpose of any computation under subsection (b) above, the Current Market Price per Share at any date shall be: (i) if the Shares are listed on any national securities exchange, the average of the daily closing prices for the 15 consecutive business days commencing 20 business days before the day in question (the “Trading Period”); (ii) if the Shares are not listed on any national securities exchange but are quoted on the NASDAQ SmallCap Market, the average of the high and low bids as reported by NASDAQ for the Trading Period; and (iii) if the Shares are neither listed on any national securities exchange nor quoted on NASDAQ, the higher of (x) the exercise price then in effect, or (y) the tangible book value per Share as of the end of the Company’s immediately preceding fiscal year.

				

				                         (d) No adjustment shall be required unless such adjustment would require an increase or decrease of at least 1% in the number of Shares purchasable hereunder; provided, however, that any adjustments which by reason of this subsection (d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 6 shall be made to the nearest one‐hundredth of a Share.

				

				                         (e) No adjustment shall be made in any of the following cases:

				

				                                        (i) Upon the grant or exercise of stock options now or hereafter granted, or under any employee stock option or stock purchase plan now or hereafter authorized, to the extent that the aggregate of the number of Shares which may be purchased under such options and the number of Shares issued under such employee stock purchase plan is less than or equal to 10% of the number of Shares outstanding on January 1 of the year of the grant or exercise;

				

				                                        (ii) Shares issued upon the conversion of any of the Company’s convertible or exchangeable securities;

				

				                                        (iii) Shares issued in connection with the acquisition by the Company or by any subsidiary of the Company of 80% or more of the assets of another corporation or entity, and Shares issued in connection with the acquisition by the Company or by any subsidiary of the Company of 80% or more of the voting shares of another corporation (including Shares issued in connection with such acquisition of voting shares of such other corporation subsequent to the acquisition of an aggregate of 80% of such voting shares), Shares issued in a merger of the Company or a subsidiary of the Company with another corporation in which the Company or the Company’s subsidiary is the

				

				

				

			

			
				Page 22

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

						surviving corporation, and Shares issued upon the conversion of other securities issued in connection with any such acquisition or in any such merger; and

					

					                                        (iv) Shares issued pursuant to this Warrant and pursuant to all stock options and warrants outstanding on the date hereof.

					

					                         (f) Notice to Warrant Holders of Adjustment. Whenever the number of Shares purchasable hereunder is adjusted as herein provided, the Company shall cause to be mailed to the Holder in accordance with the provisions of this Section 6 a notice (i) stating that the number of Shares purchasable upon exercise of this Warrant have been adjusted, (ii) setting forth the adjusted number of Shares purchasable upon the exercise of a Warrant, and (iii) showing in reasonable detail the computations and the facts, including the amount of consideration received or deemed to have been received by the Company, upon which such adjustments are based.

					

					               7. Fractional Shares. The Company shall not be required to issue any fraction of a Share upon the exercise of Warrants. If more than one Warrant shall be surrendered for exercise at one time by the same Holder, the number of full Shares which shall be issuable upon exercise thereof shall be computed on the basis of the aggregate number of Shares with respect to which this Warrant is exercised. If any fractional interest in a Share shall be deliverable upon the exercise of this Warrant, the Company shall make an adjustment therefore in cash equal to such fraction multiplied by the Current Market Price of the Shares on the business day next proceeding the day of exercise.

					

					               8. Loss or Destruction. Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant Certificate and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement or bond satisfactory in form, substance and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of this Warrant Certificate, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant Certificate of like tenor.

					

					               9. Survival. The various rights and obligations of the Holder hereof as set forth herein shall survive the exercise of the Warrants represented hereby and the surrender of this Warrant Certificate.

					

					               10. Notices. Whenever any notice, payment of any purchase price, or other communication is required to be given or delivered under the terms of this Warrant, it shall be in writing and delivered by hand delivery or United States registered or certified mail, return receipt requested, postage prepaid, and will be deemed to have been given or delivered on the date such notice, purchase price or other communication is so delivered or posted, as the case may be; and, if to the Company, it will be addressed to the address specified in Section 1 hereof, and if to the Holder, it will be addressed to the registered Holder at its, his or her address as it appears on the books of the Company.

					

					

						_____________________________________________________

					By:         Michael Quesnel, President

					

					Date:       _____________________________________________

					

					

					

					

					

					

					

				

				
					Page 23

				

				

				

				

				
					JAKE'S TRUCKING INTERNATIONAL, INC.

						

				

				
					

						

						24.                              SCHEDULE “E” - PURCHASE FORM

								

							DATE:                                                             

							

							

						TO:         JAKE’S TRUCKING INTERNATIONAL, INC.

						

						               The undersigned hereby irrevocably elects to exercise the attached Warrant Certificate to the extent of ____ shares of the Common Stock, of Jake's Trucking International, Inc. and hereby makes payment of $_______ ($0.05 x # OF WARRANTS EXERCISED) in accordance with the provisions of Section 1 of the Warrant Certificate in payment of the purchase price thereof.

						

						

					

				

			

		

		
			INSTRUCTIONS FOR REGISTRATION OF STOCK

				

				

			

		

		
			Name:                                                                                                                                                     

				                               Please typewrite or print in block letters)

				

				

				Address:                                                                                                  

				                                                                                                                

				                                                                                                                

				                                                                                                                

					

					

					

					

				By:                                                                                                          

				                                Signature of Record Holder

				

				

				

				

				

				

				

				

				

				

				

				

				

			

			

			

			
				Page 24

			

			

			

			

			
				JAKE'S TRUCKING INTERNATIONAL, INC.

					

			

			
				

					

				

			

			25.                              SCHEDULE “F” – WARRANT CERTIFICATE

						

					

		

		
			WARRANT CERTIFICATE

						

					

		

		
			Registered Holder:                                                                                               

					

				Certificate No.                                                                                                    

					

				No. Warrants held:                                                                                              

					

				The Registered Holder is entitled to purchase from JAKE’S TRUCKING INTERNATIONAL, INC., (the Company) one fully paid and non-assessable share of the Company’s common stock for each Warrant held as stated above at the purchase price of $0.05 per Share.  This Warrant may be exercised in whole or in part at any time prior to 5:00 o'clock P.M., Mountain Standard Time, on August 31, 2007.

				

				This Warrant Certificate is subject to the terms and conditions set forth in the subscription agreement pursuant to which the Warrant was purchased.  A copy of such terms and conditions may be obtained from the Company upon request.

				

				

				                                                                

				Michael Quesnel, President

				

				Dated:                                                    

					

				

		

		
			PURCHASE FORM

					

				

		

		
			               The undersigned hereby irrevocably elects to exercise this Warrant Certificate to the extent of ____ shares of the common stock, and hereby makes payment of

				

				$__________________

				

				($0.05 x # OF WARRANTS EXERCISED) in payment of the purchase price thereof.

				

				INSTRUCTIONS FOR REGISTRATION OF STOCK

				

				Name & Address:                                                                                                    

				                                                                                                                                

				                                                                                                                                

				                                                                                                                                

					

					

				By:                                                                                                                          

				                                                Signature of Record Holder

				

				                                                Dated:                                                                    

					

					

					

					

					

					

				

			

			
				Page 25STOCK AND LIMITED PARTNERSHIP INTEREST

                               PURCHASE AGREEMENT

                          Dated as of September 1, 2006

                                  by and among

                          CHARYS HOLDING COMPANY, INC.,

                            COTTON HOLDINGS 1, INC.,

                           COTTON COMMERCIAL USA, LP,

                    COTTON RESTORATION OF CENTRAL TEXAS, LP,

                                       and

                          THE SELLERS SET FORTH HEREIN

<PAGE>
<TABLE>
<CAPTION>
                                        TABLE OF CONTENTS

<S>                                                                                   <C>
                                                                                        PAGE

ARTICLE I.      PURCHASE AND SALE OF COTTON EQUITY INTERESTS . . . . . . . . . . . . . .   2
ARTICLE II.     PURCHASE PRICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   2
    2.01      Determination of  Purchase Price . . . . . . . . . . . . . . . . . . . . .   2
    2.02      Payment of Cash Consideration. . . . . . . . . . . . . . . . . . . . . . .   2
    2.03      Payment of Stock Consideration . . . . . . . . . . . . . . . . . . . . . .   3
    2.04      Aggregate Cash Consideration Adjustment Mechanism. . . . . . . . . . . . .   3
    2.05      Make-Whole Adjustment. . . . . . . . . . . . . . . . . . . . . . . . . . .   5
    2.06      Incentive Compensation.. . . . . . . . . . . . . . . . . . . . . . . . . .   6
    2.07      Purchaser Stock Issued to the Seller . . . . . . . . . . . . . . . . . . .   6
    2.08      Aged Accounts Receivable Adjustment. . . . . . . . . . . . . . . . . . . .   7
ARTICLE III     REPRESENTATIONS AND WARRANTIES OF SELLERS. . . . . . . . . . . . . . . .   7
    3.01      Power, Authority and Organization of the Seller. . . . . . . . . . . . . .   7
    3.02      No Conflict. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   7
    3.03      Ownership of the Cotton Equity Interests . . . . . . . . . . . . . . . . .   7
    3.04      Absence of Other Claims. . . . . . . . . . . . . . . . . . . . . . . . . .   8
    3.05      Investment Representations . . . . . . . . . . . . . . . . . . . . . . . .   8
ARTICLE IV.     REPRESENTATIONS AND WARRANTIES REGARDING THE COTTON GROUP COMPANIES. . .  10
    4.01      Organization and Authorization . . . . . . . . . . . . . . . . . . . . . .  10
    4.02      Authorized and Outstanding Stock . . . . . . . . . . . . . . . . . . . . .  11
    4.03      Absence of Other Claims. . . . . . . . . . . . . . . . . . . . . . . . . .  11
    4.04      No Conflict. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
    4.05      Required Consents and Approvals. . . . . . . . . . . . . . . . . . . . . .  11
    4.06      No Violation of Law. . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
    4.07      Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . .  12
    4.08      No Undisclosed Liabilities . . . . . . . . . . . . . . . . . . . . . . . .  12
    4.09      Real Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
    4.10      Personal Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13
    4.11      Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  14
    4.12      Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . . .  14

                                      -i-
<PAGE>
                                        TABLE OF CONTENTS
                                           (continued)

                                                                                        PAGE

    4.13      Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
    4.14      Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
    4.15      Employee Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
    4.16      Collective Bargaining. . . . . . . . . . . . . . . . . . . . . . . . . . .  19
    4.17      Labor Disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19
    4.18      Bank Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19
    4.19      Environmental Matters. . . . . . . . . . . . . . . . . . . . . . . . . . .  19
    4.20      Required Licenses and Permits. . . . . . . . . . . . . . . . . . . . . . .  21
    4.21      Insurance Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
    4.22      Major Suppliers and Customers. . . . . . . . . . . . . . . . . . . . . . .  22
    4.23      Contracts and Commitments. . . . . . . . . . . . . . . . . . . . . . . . .  22
    4.24      Agreements in Full Force and Effect. . . . . . . . . . . . . . . . . . . .  23
    4.25      Absence of Certain Changes and Events. . . . . . . . . . . . . . . . . . .  23
    4.26      Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
    4.27      Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  25
    4.28      Brokerage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
    4.29      Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
ARTICLE V.      REPRESENTATIONS AND WARRANTIES OF PURCHASER. . . . . . . . . . . . . . .  27
    5.01      Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
    5.02      Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
    5.03      No Conflict. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
    5.04      SEC Documents; Agreements; Financial Statements; Other Information . . . .  28
    5.05      Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
    5.06      Reporting Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
    5.07      Financial Condition; Taxes; Litigation . . . . . . . . . . . . . . . . . .  29
    5.08      Listing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
    5.09      Financing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
    5.10      Brokerage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
    5.11      Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
    5.12      Purchaser Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30

                                      -ii-
<PAGE>
                                        TABLE OF CONTENTS
                                           (continued)

                                                                                        PAGE

ARTICLE VI.     COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
    6.01      Operations of the Cotton Group Companies . . . . . . . . . . . . . . . . .  30
    6.02      Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  33
    6.03      Transfer Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  34
    6.04      Preparation of Supporting Documents. . . . . . . . . . . . . . . . . . . .  34
    6.05      Notices of Certain Events. . . . . . . . . . . . . . . . . . . . . . . . .  34
    6.06      Supplements to Schedules . . . . . . . . . . . . . . . . . . . . . . . . .  35
    6.07      No Solicitation of Transactions. . . . . . . . . . . . . . . . . . . . . .  35
    6.08      Filings; Other Actions; Notification . . . . . . . . . . . . . . . . . . .  36
    6.09      Confidentiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  36
    6.10      Publicity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
    6.11      Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
    6.12      Non-Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . . .  37
    6.13      Spin-Off Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
    6.14      Tax Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
    6.15      Employee Bonus Pool. . . . . . . . . . . . . . . . . . . . . . . . . . . .  40
ARTICLE VII.    CONDITIONS TO EACH PARTY'S OBLIGATION TO CLOSE . . . . . . . . . . . . .  40
    7.01      Regulatory Consents. . . . . . . . . . . . . . . . . . . . . . . . . . . .  40
    7.02      Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  40
ARTICLE VIII.   CONDITIONS TO OBLIGATIONS OF THE SELLERS . . . . . . . . . . . . . . . .  40
    8.01      Representations and Warranties True and Correct at Closing Date. . . . . .  40
    8.02      Performance of Obligations . . . . . . . . . . . . . . . . . . . . . . . .  41
    8.03      Documents Satisfactory in Form and Substance . . . . . . . . . . . . . . .  41
    8.04      Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41
    8.05      No Material Change . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41
    8.06      Termination of Stansell Contingent Interest. . . . . . . . . . . . . . . .  41
    8.07      Opinion of Counsel to the Purchaser. . . . . . . . . . . . . . . . . . . .  41
ARTICLE IX.     CONDITIONS TO OBLIGATIONS OF PURCHASER . . . . . . . . . . . . . . . . .  41
    9.01      Representations and Warranties True and Correct at Closing Date. . . . . .  41
    9.02      Performance Obligations. . . . . . . . . . . . . . . . . . . . . . . . . .  42

                                     -iii-
<PAGE>
                                        TABLE OF CONTENTS
                                           (continued)

                                                                                        PAGE

    9.03      No Material Change . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42
    9.04      Other Necessary Consents . . . . . . . . . . . . . . . . . . . . . . . . .  42
    9.05      Opinion of Counsel to the Seller . . . . . . . . . . . . . . . . . . . . .  42
    9.06      Non-Compete Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . .  42
    9.07      Documents Satisfactory in Form and Substance . . . . . . . . . . . . . . .  42
    9.08      Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42
    9.09      Employment Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . .  43
    9.10      Release of Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43
ARTICLE X.      INDEMNIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  43
    10.01     Indemnification Obligations of the Sellers . . . . . . . . . . . . . . . .  43
    10.02     Indemnification Obligations of Purchaser . . . . . . . . . . . . . . . . .  44
    10.03     Indemnification Procedure. . . . . . . . . . . . . . . . . . . . . . . . .  44
    10.04     Survival Period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
    10.05     Liability Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
    10.06     Determination of Purchaser Losses. . . . . . . . . . . . . . . . . . . . .  47
    10.07     Investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
    10.08     Set-Off. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
    10.09     Reduction of Purchase Price. . . . . . . . . . . . . . . . . . . . . . . .  47
    10.10     Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
    10.11     Exclusive Remedy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  47
ARTICLE XI.     TERMINATION PRIOR TO CLOSING DATE. . . . . . . . . . . . . . . . . . . .  47
    11.01     Termination of Agreement . . . . . . . . . . . . . . . . . . . . . . . . .  47
    11.02     Termination of Obligations . . . . . . . . . . . . . . . . . . . . . . . .  48
ARTICLE XII.    MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
    12.01     Entire Agreement; Survival . . . . . . . . . . . . . . . . . . . . . . . .  48
    12.02     Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  48
    12.03     Parties Bound by Agreement; Successors and Assigns . . . . . . . . . . . .  49
    12.04     Counterparts; Facsimile. . . . . . . . . . . . . . . . . . . . . . . . . .  49
    12.05     Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
    12.06     Modification and Waiver. . . . . . . . . . . . . . . . . . . . . . . . . .  49

                                      -iv-
<PAGE>
                                        TABLE OF CONTENTS
                                           (continued)

                                                                                        PAGE

    12.07     Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
    12.08     Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  49
    12.09     Governing Law; Jurisdiction. . . . . . . . . . . . . . . . . . . . . . . .  50
    12.10     Public Announcements . . . . . . . . . . . . . . . . . . . . . . . . . . .  50
    12.11     Knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.12     No Third-Party Beneficiaries . . . . . . . . . . . . . . . . . . . . . . .  51
    12.13     "Including". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.14     Gender and Number. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.15     References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.16     Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.17     Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.18     Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  51
    12.19     Ordinary Course of Business. . . . . . . . . . . . . . . . . . . . . . . .  52
    12.20     Commercially Reasonable Efforts. . . . . . . . . . . . . . . . . . . . . .  52
    12.21     Material Adverse Change (or Effect). . . . . . . . . . . . . . . . . . . .  52
    12.22     Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  52
    12.23     Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  53
</TABLE>

                                      -v-
<PAGE>
<TABLE>
<CAPTION>
                         LIST OF SCHEDULES AND EXHIBITS
                         ------------------------------

SCHEDULES
---------
<S>                  <C>
Schedule 2.04        Statement of Net Worth Mechanics
Schedule 2.06(a)(1)  Incentive Compensation Mechanics
Schedule 2.06(a)(2)  Incentive Employees
Schedule 2.06(b)     Integration Incentive Compensation Mechanics
Schedule 3.03        Ownership of Cotton Equity Interests
Schedule 4.01(a)     Qualifications to Conduct Business
Schedule 4.01(c)     Officers and Directors of the Corporation
Schedule 4.03        Other Claims
Schedule 4.04        Conflicts
Schedule 4.05        Required Consents
Schedule 4.07        Financial Statements
Schedule 4.09(a)     Real Property
Schedule 4.09(c)     Permitted Liens
Schedule 4.10(a)     Personal Property
Schedule 4.10(b)     Property Held at Other Locations
Schedule 4.10(d)     Personal Property Leases
Schedule 4.11        Indebtedness
Schedule 4.12(b)     Intellectual Property
Schedule 4.12(c)     Obligations Related to Intellectual Property
Schedule 4.13        Litigation
Schedule 4.14(a)     Employees
Schedule 4.15(a)(i)  Employee Benefit Plans
Schedule 4.18        Bank Accounts
Schedule 4.19(b)     Exceptions to Compliance with Environmental Laws
Schedule 4.20        Cotton Authorizations
Schedule 4.21        Insurance Policies
Schedule 4.22        Major Suppliers and Customers
Schedule 4.23        Contracts and Commitments
Schedule 4.25        Absence of Changes
Schedule 4.26(a)     Owner Notes Receivable
Schedule 4.26(b)     Accounts Receivable
Schedule 4.27(b)     Tax Returns
Schedule 4.27(c)     Tax Deficiencies
Schedule 4.27(d)     Tax Sharing Agreements
Schedule 4.27(e)     Tax Election Adjustments
Schedule 5.05        Capitalization of Purchaser
Schedule 5.07        Financial Condition of Purchaser
Schedule 6.13        Spin-Off Agreement
Schedule 12.11(a)    Seller's Knowledge

<PAGE>
                         LIST OF SCHEDULES AND EXHIBITS
                         ------------------------------
                                  (CONTINUED)

EXHIBITS
--------

Exhibit A            Cotton Group Companies
Exhibit B            Purchase Price Allocation Among Sellers
Exhibit C            Form of Seller Note
Exhibit D            Form of Tax Reimbursement Note
Exhibit E            Form of Escrow Agreement
Exhibit F            Form of Registration Rights Agreement
Exhibit G            Form of Non-Competition Agreement
Exhibit H            Form of Employment Agreement
</TABLE>

<PAGE>
                     STOCK AND LIMITED PARTNERSHIP INTEREST
                               PURCHASE AGREEMENT

     This  STOCK  AND  LIMITED  PARTNERSHIP  INTEREST  PURCHASE  AGREEMENT (this
"Agreement"),  is  made  and  entered into as of September 1, 2006, by and among
 ---------
CHARYS  HOLDING  COMPANY,  INC.,  a  Delaware  corporation ("Purchaser"), COTTON
                                                             ---------
HOLDINGS  1,  INC.,  a  Delaware  corporation  (the  "Cotton Holdings"),  COTTON
                                                      ---------------
COMMERCIAL  USA,  LP,  a Texas limited partnership ("Cotton Commercial"), COTTON
                                                     -----------------
RESTORATION  OF  CENTRAL  TEXAS,  LP,  a  Texas  limited  partnership  ("Cotton
                                                                         ------
Restoration"),  Bryan  Michalsky,  James Scaife, Randall Thompson, Daryn Ebrecht
-----------
and  Pete  Bell  (collectively, the "Cotton Holdings Sellers"), Chad Weigman and
                                     -----------------------
Blake  Stansell  (collectively,  the  "Cotton  Commercial  Sellers")  and Johnny
                                       ---------------------------
Slaughter and Russell White (collectively, the "Cotton Restoration Sellers" and,
                                                --------------------------
together  with  the  Cotton  Holdings Sellers and Cotton Commercial Sellers, the
"Sellers").
 -------

                              W I T N E S S E T H:
                              --------------------

     WHEREAS,  the Cotton Holdings Sellers own all of the issued and outstanding
shares  of  capital  stock  of  Cotton  Holdings;  and

     WHEREAS, the Cotton Commercial Sellers and Cotton Holdings collectively own
all  of  the  limited partnership interests in Cotton Commercial, and Cotton USA
GP,  LLC,  a wholly-owned subsidiary of Cotton Holdings, owns all of the general
partnership  interests  in  Cotton  Commercial;  and

     WHEREAS,  the  Cotton  Restoration  Sellers and CCI-LP, LLC, a wholly-owned
subsidiary  of  Cotton Holdings, collectively own all of the limited partnership
interests  in  Cotton Restoration, and CCI-GP, LLC, a wholly-owned subsidiary of
Cotton  Holdings,  owns  all  of  the  general  partnership  interests in Cotton
Restoration;  and

     WHEREAS,  Cotton  Holdings,  Cotton Commercial, Cotton Restoration, and the
other direct and indirect subsidiaries of Cotton Holdings set forth on EXHIBIT A
                                                                       ---------
attached  hereto  (collectively,  the  "Cotton  Group  Companies"  and  each,
                                        ------------------------
individually,  a  "Cotton  Group  Company")  are  in  the  business of providing
                   ----------------------
catastrophe  management,  reconstruction,  restoration,  and  environmental
remediation  services throughout the United States of America (the "Cotton Group
                                                                    ------------
Business");  and
--------

     WHEREAS,  in  reliance  on  and  subject  to  the  terms,  conditions,
representations,  warranties,  covenants  and  agreements  contained  herein,
Purchaser desires to purchase all of the issued and outstanding shares of Cotton
Holdings (the "Cotton Holdings Shares") from the Cotton Holdings Sellers, all of
               ----------------------
the  limited  partnership  interests  of  Cotton  Commercial  held by the Cotton
Commercial Sellers (the "Cotton Commercial LP Interests") and all of the limited
                         ------------------------------
partnership  interests  of  Cotton  Restoration  held  by the Cotton Restoration
Sellers  (the  "Cotton  Restoration  LP Interests" and, together with the Cotton
                ---------------------------------
Holdings  Shares  and  the  Cotton  Commercial  LP Interests, the "Cotton Equity
                                                                   -------------
Interests"),  the  Sellers  desire  to  sell  the  Cotton  Equity  Interests  to
---------
Purchaser;

                                      - 1 -
<PAGE>
     NOW, THEREFORE, in consideration of the mutual representations, warranties,
covenants and agreements herein contained, and upon and subject to the terms and
the  conditions  hereinafter  set forth, the parties do hereby agree as follows:

                                   ARTICLE I.
                  PURCHASE AND SALE OF COTTON EQUITY INTERESTS
                  --------------------------------------------

     Upon  the  terms  and  subject  to the conditions of this Agreement, at the
closing  of the transactions contemplated herein (the "Closing"), (a) the Cotton
                                                       -------
Holdings  Sellers  shall  sell,  assign, transfer and convey unto Purchaser, and
Purchaser  shall purchase and acquire from the Cotton Holdings Sellers, all (but
not  less  than  all)  of  the Cotton Holdings Shares, (b) the Cotton Commercial
Sellers  shall  sell,  assign, transfer and convey unto Purchaser, and Purchaser
shall purchase and acquire from the Cotton Commercial Sellers, all (but not less
than  all) of the Cotton Commercial LP Interests, and (c) the Cotton Restoration
Sellers  shall  sell,  assign, transfer and convey unto Purchaser, and Purchaser
shall  purchase  and  acquire  from the Cotton Restoration Sellers, all (but not
less  than  all)  of  the Cotton Restoration LP Interests, in each case free and
clear of any and all claims, liens, charges and encumbrances.  The Closing shall
occur  at  10:00  a.m.  on September 22, 2006, or such other date as the parties
mutually  agree (the "Closing Date"), at the offices of Paul, Hastings, Janofsky
                      ------------
&  Walker  LLP,  600  Peachtree  Street,  Suite  2400,  Atlanta,  GA  30308.

                                   ARTICLE II.
                                 PURCHASE PRICE
                                 --------------

     2.01     DETERMINATION OF  PURCHASE PRICE.  In consideration of the sale of
              --------------------------------
all  of  the  Cotton  Equity  Interests to Purchaser, Purchaser shall pay to the
Sellers aggregate consideration of up to $75,000,000 (the "Base Purchase Price")
                                                           -------------------
by  delivery  of  (i)  cash  (the  "Cash Consideration") and (ii) shares ("Stock
                                    ------------------                     -----
Consideration") of the Purchaser's Common Stock (the "Purchaser Stock"), as more
-------------                                         ---------------
fully  set  forth  below and subject to adjustment as provided herein, allocable
among  the  Sellers  as  set  forth  on  EXHIBIT  B  attached  hereto.
                                         ----------

     2.02     PAYMENT  OF  CASH  CONSIDERATION.
              --------------------------------

          (a)     On  August  21,  2006,  Purchaser paid to certain Sellers Cash
Consideration  in  an  amount  equal  to  $1,000,000  (the  "Non-Refundable Cash
                                                             -------------------
Consideration"),  as  more  fully  set  forth  on  EXHIBIT  B  attached  hereto.
-------------                                      ----------
Purchaser  acknowledges  and  agrees  that  if  the Agreement terminates for any
reason,  (i) the Sellers shall be entitled to retain any and all portions of the
Non-Refundable  Cash  Consideration  paid  by Purchaser to the Sellers, and (ii)
Purchaser  waives  all  claims  and  causes  of  action  with  respect  to  the
Non-Refundable  Cash  Consideration.

          (b)     At  Closing,  Purchaser  shall  deliver  to  the  Sellers Cash
Consideration  in  an  amount  equal  to  $20,000,000  (the  "Closing  Date Cash
                                                              ------------------
Consideration"),  less  the amount of any indebtedness for borrowed money of the
-------------
Cotton  Group  Companies outstanding on the Closing Date and not included in the
calculation  of  consolidated  Net  Working  Capital.

          (c)     At  Closing,  Purchaser shall deliver to the Seller additional
Cash Consideration in an amount equal to $5,000,000, in the form of a promissory
note  attached  hereto as EXHIBIT C (the "Seller Note"), which Seller Note shall
                          ---------       -----------
be  due  and  payable,  in  cash,  on

                                      - 2 -
<PAGE>
the  one year anniversary of the Closing Date, bearing interest from the Closing
Date  at  a rate of 9% per annum.  The principal amount of the Seller Note shall
be  subject  to  adjustment pursuant to Section 2.08 hereof.  Further, Purchaser
                                        ------------
may  set-off  against  any  amounts  due under the Seller Note the amount of any
Purchaser  Losses for which the Sellers must indemnify the Purchaser Indemnified
Parties  in  accordance  with  ARTICLE  X  hereof, including satisfaction of the
                               ----------
procedures  and  conditions  set  forth  in  Sections  10.03  and  10.06 hereof.
                                             ---------------       -----

          (d)     At  Closing,  Purchaser  shall  deliver to the Cotton Holdings
Sellers  additional  Cash  Consideration in an amount equal to be agreed upon by
the  parties,  which consideration shall not exceed $5,000,000, in the form of a
promissory  note  attached  hereto  as EXHIBIT D (the "Tax Reimbursement Note"),
                                       ---------       ----------------------
which  Tax  Reimbursement  Note  shall  be due and payable, in cash, on April 1,
2007, bearing zero interest.  The principal amount of the Tax Reimbursement Note
shall  be subject to reduction (a) to the extent that the actual Transaction Tax
Amount  (as defined below), calculated based on the Determination Date Financial
Statements, is less than the amount set forth in the preceding sentence, and (b)
for  the  full  amount  of  built-in gains Tax (as defined in Code Section 1374)
required  to  be  paid  by Cotton Holdings to any Taxing Authority (the "Section
                                                                         -------
1374  Tax")  in  connection  with the Section 338(h)(10) Election (as defined in
---------
Section 6.14(c) hereof) as reflected on the Final Statement of Section 1374 Tax.
For  purposes  of  this Section 2.02(d), "Transaction Tax Amount" shall mean the
excess  of  (i)  the  amount  of  Tax required to be paid by the Cotton Holdings
Sellers as a result of the acquisition of the Cotton Holdings Shares pursuant to
this  Agreement  (excluding  any  Section 1374 Tax), over (ii) the amount of Tax
that  would have been required to be paid by the Cotton Holdings Sellers had the
acquisition  of  the  Cotton  Holdings  Shares  been  structured  as  a tax free
reorganization  under  Code  Section 368 (assuming no more than 40% of the total
consideration  would  have  been  paid  in  the  form  of  Purchaser  Stock).

          (e)     At  Closing,  Purchaser  shall  deliver  to  the  Escrow Agent
(defined  below)  a  cash  amount equal to $17,200,000, to be held by the Escrow
Agent pursuant to the terms of this Section 2.02(d), Section 2.04 and the Escrow
Agreement  to  be  entered  into  by  and  among  the parties hereto in the form
attached  hereto  as  EXHIBIT E  (the  "Escrow  Agreement").  On  the  Final
                      ---------         -----------------
Determination  Date  (as defined in Section 2.04 below), Purchaser shall deliver
                                    ------------
to  the  Sellers  Cash Consideration in an amount equal to (i) $17,200,000, less
                                                                            ----
(ii) the amount, if any, by which the consolidated Net Working Capital set forth
on  the  final Statement of Net Worth is less than $3,900,000 (such amount being
the  "Final  Determination  Date  Cash Consideration" and, collectively with the
      ----------------------------------------------
Non-Refundable  Cash  Consideration  and the Initial Closing Cash Consideration,
the  "Aggregate  Cash  Consideration").
      ------------------------------

     2.03     PAYMENT  OF  STOCK  CONSIDERATION.  On the Closing Date, Purchaser
              ---------------------------------
shall  issue to the Sellers Stock Consideration of 1,786,666 shares of Purchaser
Stock.

     2.04     AGGREGATE  CASH  CONSIDERATIONADJUSTMENT  MECHANISM.
              ---------------------------------------------------

          (a)     As  soon  as practicable, but in no event more than sixty (60)
days  after the Closing Date, the Sellers shall cause the Cotton Group Companies
to  prepare  and  deliver  to  the  Purchaser (i) a statement (the "Statement of
                                                                    ------------
Section  1374 Tax") setting forth the amount of the Section 1374 Tax required to
-----------------
be paid by Cotton Holdings, and (ii)  a statement (the "Statement of Net Worth")
                                                        ----------------------
setting forth the net worth of the Cotton Group Companies as determined from the

                                      - 3 -
<PAGE>
audited consolidated balance sheet of the Cotton Group Companies as of the close
of  business  on  July 31, 2006 (the "Determination Date Financial Statements"),
                                      ---------------------------------------
prepared  from the audited consolidated balance sheet of the Companies as of the
close  of  business  on  July  31,  2006  and  in accordance with SCHEDULE 2.04.
                                                                  -------------

          (b)     The  Purchaser  and  its accountants and other representatives
shall  have  the  right  to  review  and verify the Determination Date Financial
Statements,  the  Statement  of Section 1374 Tax and the Statement of Net Worth,
and  the  Sellers  shall provide the Purchaser (i) with reasonable access to all
books, records, work papers, written procedures, and reports used to prepare the
Determination  Date  Financial Statements, the Statement of Section 1374 Tax and
the Statement of Net Worth, and (ii) personnel necessary to enable the Purchaser
and  its  accountants  and  other  representatives  to  fully  evaluate  the
Determination  Date  Financial Statements, the Statement of Section 1374 Tax and
the  Statement  of  Net  Worth.

          (c)     The  Purchaser shall have fifteen (15) days following the date
of  Purchaser's  receipt  of the Determination Date Financial Statements and the
Statement  of Section 1374 Tax during which to notify the Sellers of any dispute
of  any item contained therein, which notice shall set forth in detail the basis
for  such  dispute.  Purchaser  and the Sellers shall cooperate in good faith to
resolve  any such dispute as promptly as possible, and upon such resolution, the
Statement of Section 1374 Tax and the Statement of Net Worth shall be revised in
accordance  with  the  agreement of the Purchaser and the Sellers.  In the event
the  Purchaser  does  not  notify  the  Sellers  of any such dispute within such
fifteen  (15)-day period or notifies the Sellers within such period that it does
not  dispute any item contained therein, the Statement of Section 1374 Tax shall
become  the  Final  Statement of Section 1374 Tax and the Statement of Net Worth
shall  become  the Final Statement of Net Worth.  In the event the Purchaser and
the Sellers are unable to resolve any dispute regarding the Statement of Section
1374  Tax  and/or  the Statement of Net Worth within fifteen (15) days following
the  Sellers' receipt of notice of such dispute, such dispute shall be submitted
to,  and  all  issues  having a bearing on the dispute shall be resolved by, the
Houston,  Texas  office of a nationally recognized accounting firm that shall be
mutually  acceptable  to  the  Sellers  and  the Purchaser, which shall include,
without  limitation,  any "Big Four" accounting firm (the "Accounting Referee").
                                                           ------------------
In  resolving any such dispute, the Accounting Referee shall consider only those
items  or  amounts in the Determination Date Financial Statements, the Statement
of  Section  1374  Tax  or  Statement of Net Worth as to which the Purchaser has
disagreed.  The  Accounting  Referee's determination of the Statement of Section
1374  Tax  and/or  the  Statement of Net Worth shall be final and binding on the
Parties, and shall become the Final Statement of Section 1374 Tax, and the Final
Statement  of  Net  Worth,  as  applicable.  The  Accounting  Referee  shall use
commercially  reasonable  efforts  to  complete its work within thirty (30) days
following  its  engagement.   The  expenses  of  the Accounting Referee shall be
borne  100% by the non-prevailing party as determined by the Accounting Referee.
The  Statement  of  Net  Worth, as adjusted pursuant to this Section 2.04, shall
                                                             ------------
become  the  "Final  Statement  of  Net  Worth"  and the date on which Purchaser
              --------------------------------
delivers  to  Seller  the  Final  Statement  of  Net  Worth  shall be the "Final
                                                                           -----
Determination Date."  The Statement of Section 1374 Tax, as adjusted pursuant to
------------------
this  Section  2.04,  shall  become  the  "Final Statement of Section 1374 Tax."
      -------------                        ------------------------------------

                                      - 4 -
<PAGE>
     2.05     MAKE-WHOLE  ADJUSTMENT.
              ----------------------

          (a)     The  following  terms  have  the  meanings  set  forth  below:

               (i)     "Make-Whole  Date"  means  the  first  anniversary of the
                        ----------------
Closing  Date,  provided  that  if  such  date  falls on a non-business day, the
Make-Whole  Date  shall  be  the  preceding  business  day.

               (ii)     "Make  Whole  Deficit"  means the value, if positive, of
                         --------------------
(A) the Target Stock Consideration Value, minus (B) the product of (1) 1,786,666
                                          -----
multiplied  by  (2)  the  Market  Price  of  the  Purchaser  Stock during the 15
--------------
consecutive  trading  days  prior  to  the  Make-Whole  Date.

               (iii)     "Market  Price"  means, with respect to any period, the
                          -------------
weighted  average  sale  price  of  the  Purchaser  Stock  during such period as
determined  by  (i) the principal stock exchange, or the NASDAQ/NMS, as the case
may  be,  on  which  shares  of  Purchaser  Stock are then listed or admitted to
trading,  or  (ii)  if  the  Purchaser  Stock  is not then listed or admitted to
trading  on  any  stock  exchange  or  the  NASDAQ/NMS,  the average of the last
reported  closing  bid and asked prices on each such day in the over-the-counter
market, as furnished by the NASDAQ system or National Quotation Bureau, Inc., or
(iii)  if  neither  NASDAQ,  or  National  Quotation Bureau, Inc. is at the time
engaged  in  the  business  of  reporting  such prices, then as furnished by any
similar  firm  then  engaged  in  such  business

               (iv)     "NASDAQ/NMS"  means  that  National  Association  of
                         ----------
Securities  Dealers'  Automated  Quotation  National  Market  System.

               (v)     "Target  Stock  Consideration  Value"  means $26,800,000.
                        -----------------------------------

          (b)     In  the  event  that  the  Market Price of the Purchaser Stock
during  the fifteen consecutive trading days immediately prior to the Make-Whole
Date  is  less  than  $15.00  per  share  (the  "Target Per Share Stock Price"),
                                                 ----------------------------
Purchaser  shall,  at  Purchaser's  option, either (x) issue to the Sellers that
number  of  additional shares of Purchaser Stock (the "Make-Whole Shares") equal
                                                       -----------------
to  (1)  the  Make  Whole  Deficit, divided by the Market Price of the Purchaser
                                    ----------
Stock  on the Make-Whole Date, or (y) pay to the Sellers an amount in cash equal
to  (1)  the  Target Stock Consideration Value, less (2) the Make Whole Deficit.
                                                ----
Such  issuance  shall  be  completed or such cash payment shall be made no later
than  the  third  business  day  after  the  Make-Whole  Date.

          (c)     Notwithstanding  anything  to  the  contrary set forth herein,
Purchaser's  obligation  to  make any adjustment in accordance with this Section
                                                                         -------
2.05,  or  to issue any Make-Whole Shares, shall terminate in the event that, at
----
any time prior to the Make-Whole Date, the average Market Price Per Share of the
Stock  Consideration  during  any 90 consecutive trading days following the date
the  Sellers  are  entitled  to  freely  trade  the  Stock Consideration without
restrictions  pursuant  to  the  Registration  Rights  Agreement exceeds $15.00.
Further,  on  the  Make  Whole  Date,  Purchaser  may  reduce  the  Target Stock
Consideration  Value by the amount of any Purchaser Losses for which the Sellers
must  indemnify  the  Purchaser Indemnified Parties in accordance with ARTICLE X
                                                                       ---------
hereof,  including  satisfaction  of  the procedures and conditions set forth in
Sections  10.03  and  10.06  hereof.
---------------       -----

                                      - 5 -
<PAGE>
     2.06     INCENTIVE  COMPENSATION.
              -----------------------

          (a)     The  Sellers  shall,  for each Performance Year (as defined on
SCHEDULE  2.06(A)(1)),  be  entitled  to  earn  incentive  compensation, payable
--------------------
annually within 30 days following the filing of the Purchaser's 10-K for each of
the  fiscal years ending April 30, 2007, 2008 and 2009, based upon the financial
performance  of the Cotton Group Companies according to the formula set forth on
SCHEDULE  2.06(A)(1).  Upon determining the portion of the Bonus Pool Amount (as
--------------------
defined  on  SCHEDULE  2.06(A)(1)) payable for each Employment Year, the Sellers
             --------------------
shall notify Purchaser of the portion of such amount to be paid to each employee
identified  on  SCHEDULE  2.06(A)(2)  (the "Incentive Employees") (to the extent
                --------------------        -------------------
that  each  such  employee  continues  to  be entitled to incentive compensation
pursuant  to  the terms of his or her employment agreement with Purchaser or the
Cotton Group Companies) or any other employee who becomes eligible for incentive
compensation  pursuant  to the terms of his or her employment agreement with the
Corporation.

          (b)     The  Sellers  shall  be  entitled  to  earn  additional equity
compensation  based  upon  the  financial  performance  of  acquired  companies,
determined  in  accordance  with  the  provisions  of  SCHEDULE  2.06(B).
                                                       -----------------

     2.07     PURCHASER  STOCK  ISSUED  TO  THE  SELLER.
              -----------------------------------------

          (a)     No fractional shares of Purchaser Stock shall be issued to the
Sellers  hereunder,  and  the  number  of shares of Purchaser Stock to be issued
shall  be  rounded  down  to  the  nearest  whole  share.  If a fractional share
interest arises pursuant to any calculation in Section 2.06 or elsewhere herein,
                                               ------------
the  Purchaser  shall  eliminate  such  fractional  share interest by paying the
Sellers  the amount computed by multiplying the fractional interest by the price
of  a  full  share  (with  such price being the same price used to determine the
shares  then  being  issued).

          (b)     The Sellers shall be granted registration rights, with respect
to  all  shares  of  Purchaser  Stock  issued  to the Sellers hereunder, as more
specifically  set  forth  in  that  certain  Registration  Rights Agreement (the
"Registration  Rights  Agreement")  in  the  form attached  hereto as EXHIBIT F.
 -------------------------------                                      ---------

          (c)     Shares  of  Purchaser  Stock, when issued and delivered to the
Sellers  in  accordance  with the terms hereof, will be duly authorized, validly
issued,  fully-paid  and  non-assessable.

          (d)     The  stock  certificates  evidencing  the  shares of Purchaser
Stock  issued  to  Sellers  hereunder  will  bear  the  following  legend:

     THE  SHARES  OF  STOCK  EVIDENCED  BY  THIS STOCK CERTIFICATE HAVE NOT BEEN
     REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
     LAWS  OF  ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED
     OF  EXCEPT  PURSUANT  TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT
     AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION
     FROM  THE  REGISTRATION  REQUIREMENTS  OF  SUCH  ACT  AND  SUCH  LAWS.

                                      - 6 -
<PAGE>
     2.08     AGED  ACCOUNTS RECEIVABLE ADJUSTMENT.  Not later than fifteen (15)
              ------------------------------------
days  prior  to  the  one  year  anniversary  of  the  Closing  Date  (the "Aged
                                                                            ----
Receivables  Adjustment  Date"),  the  Purchaser  shall  deliver to the Seller a
-----------------------------
schedule  (the  "Aged Receivables Schedule") identifying all accounts receivable
                 -------------------------
included  on the Interim Financial Statements that have not been collected as of
the  Aged  Receivables  Adjustment  Date  (such  accounts receivable being "Aged
                                                                            ----
Receivables").  On  the  Aged  Receivables  Adjustment Date, the Purchaser shall
-----------
transfer  each  such  Aged Receivable to the Seller, and the principal amount of
the  Seller Note shall be reduced by the aggregate value of the transferred Aged
Receivables.  Upon  Purchaser's  transfer  of  the  Aged  Receivables to Seller,
Seller  shall  be  entitled  to  the  proceeds  of  the  collection  of any Aged
Receivables  following  the  Aged  Receivables  Adjustment  Date.

                                  ARTICLE III.
                    REPRESENTATIONS AND WARRANTIES OF SELLERS
                    -----------------------------------------

     Each Seller hereby represents and warrants to the Purchaser, only as to his
respective  ownership of Cotton Equity Interests, execution and delivery of this
Agreement,  investment  in  Purchaser  Stock  pursuant  to  the  transaction
contemplated  by this Agreement, and the other matters addressed in this Article
                                                                         -------
III  (and not as to the ownership of other Sellers, their execution and delivery
---
of  this  Agreement,  investment in Purchaser Stock or other such matters), that
the  statements contained in this Article III are correct and complete as of the
                                  -----------
date  of this Agreement, and will be correct and complete as of the Closing Date
as  though  made  then  and as though such date were substituted for the date of
this  Agreement  throughout  this Article III, except (i) to the extent any such
                                  -----------
representation  or  warranty  speaks to an earlier date and (ii) as set forth in
the or Schedules ("Schedules") to this Agreement delivered by the Sellers to the
                   ---------
Purchaser.

     3.01     POWER,  AUTHORITY  AND ORGANIZATION OF THE SELLER.  Seller has the
              -------------------------------------------------
right,  power and capacity to execute, deliver and perform this Agreement and to
consummate  the  transactions contemplated hereby.  This Agreement has been duly
and  validly  executed  and  delivered by Seller and constitutes Seller's legal,
valid  and  binding  obligation,  enforceable  in  accordance  with  its  terms.

     3.02     NO  CONFLICT.  The  execution  and  delivery  of this Agreement by
              ------------
Seller,  the consummation of the transactions contemplated herein by Seller, and
the  performance  of  the  covenants and agreements of Seller, will not, with or
without  the  giving  of  notice  or  the  lapse  of time, or both, (a) violate,
conflict  with  or result in a breach or default under any term or condition, or
result  in  the  termination,  of  any  mortgage,  indenture, contract, license,
permit,  instrument,  trust document, or other agreement, document or instrument
to  which Seller is a party or by which Seller or any of Seller's properties may
be  bound, or (b) violate any provision of law, statute, rule, regulation, court
order,  judgment  or  decree,  or ruling of any governmental authority, to which
Seller  is  a  party  or  by  which  Seller or Seller's properties may be bound.

     3.03     OWNERSHIP  OF  THE  COTTON  EQUITY  INTERESTS.  Seller  owns,
              ---------------------------------------------
beneficially  and of record, good and valid title to the Cotton Equity Interests
set  forth  beside  such  Seller's name on SCHEDULE 3.03 hereto, and such Cotton
                                           -------------
Equity  Interests  (a) are validly issued, fully paid and nonassessable, (b) are
free  and  clear of any liens, restrictions, claims, equities, charges, options,
rights  of  first  refusal or encumbrances, with no defects of title whatsoever,
and  (c)  constitute  all  of  the  issued  and  outstanding  stock  or  limited
partnership  interests  of  Cotton  Holdings,  Cotton

                                      - 7 -
<PAGE>
Restoration  and  Cotton  Commercial,  as  the  case  may be, other than limited
partnership interests in Cotton Restoration and Cotton Commercial owned directly
or  indirectly  by  Cotton  Holdings.  Other  than  the Cotton Equity Interests,
Seller  owns  no shares of capital stock, limited partnership interests or other
equity  securities  of  any  Cotton  Group  Company  and, except as set forth on
SCHEDULE  3.03,  Seller  does  not  have  any right of any kind to have any such
--------------
equity  security  issued.  Upon  the Closing Date, Purchaser shall have obtained
good  and  valid  title  to  the  Cotton Equity Interests, free and clear of any
liens,  restrictions,  claims,  equities,  options,  charges,  rights  of  first
refusal,  or  encumbrances  or  other restrictions, and with no defects of title
whatsoever.  Seller  has  full  and exclusive power, right and authority to vote
the Cotton Equity Interests.  Seller is not a party to or bound by any agreement
affecting  or  relating  to  its  right  to  transfer  or vote any Cotton Equity
Interest.

     3.04     ABSENCE OF OTHER CLAIMS.  No prior offer, issue, redemption, call,
              -----------------------
purchase,  sale,  merger,  transfer, involvement in any transfer, negotiation or
other  transaction  of  any  nature  or  kind  with respect to any capital stock
(including  shares,  offers, options, warrants, or debt convertible into shares,
options  or warrants) or other ownership interest in the Cotton Group Company in
which  Seller  owns a Cotton Equity Interest, that has given or may give rise to
(a)  any  valid  claim  or action by any person (including any former or present
holder  of  any of the Cotton Equity Interests) which is enforceable against the
Seller or such Cotton Group Company; or (b) any valid ownership interest in such
Cotton  Group  Company, and no fact or circumstance exists which could give rise
to  any  such  right,  claim,  action  or  interest  on  behalf  of  any person.

     3.05     INVESTMENT  REPRESENTATIONS.
              ---------------------------

          (a)     Seller  has  sufficient  knowledge and experience in financial
and  business  matters  to  be  able  to  evaluate  the  risks and merits of the
investment  represented  by  the  issuance  of  the  Purchaser Stock pursuant to
Article  II  hereof  (the  "Issued  Securities").
-----------                 ------------------

          (b)     Seller  is  aware  that the business of the Purchaser involves
significant  and  material  economic  variables  and  risks that could adversely
affect  Seller's  investment  in  the  Issued  Securities.

          (c)     Seller  is able to bear the economic risks of an investment in
the  Issued Securities, including the risk of losing all of such investment, and
Seller  has  no  need  for  liquidity  with  respect  to  such  investment.

          (d)     Seller  acknowledges  that no prospectus, offering circular or
other  offering  statement  containing  information  with  respect to the Issued
Securities  was  delivered  in  connection with Seller's investment.  Seller has
made  his  own  inquiry  and  analysis  with  respect  to  the Purchaser and its
business,  and  further  represents that Seller has had access, for a reasonable
time  prior  to the issuance of the Issued Securities, to information concerning
the  Purchaser  and  has  had  the  opportunity to ask questions of, and receive
answers  from,  officers of the Purchaser concerning an investment in the Issued
Securities  and the business, management and financial affairs of the Purchaser,
and to obtain additional information (to the extent the Purchaser possessed such
information  or  could  acquire  it  without  unreasonable  effort  or  expense)
necessary  to  verify  the accuracy of any information furnished to Seller or to
which  the  Seller  had  access.

                                      - 8 -
<PAGE>
          (e)     The  Issued Securities were not offered to the Seller by means
of  publicly  disseminated  advertisements  or sales literature, or as part of a
general solicitation, nor is Seller aware of any offers made to other persons by
such  means.

          (f)     Seller  acknowledges  that he has either been supplied with or
has  had  access  to  information  to  which  a reasonable investor would attach
significance in making investment decisions. In determining to proceed with this
investment,  Seller  has  relied  solely upon the results of his own independent
investigation  with  respect  to  the  Issued  Securities.

          (g)     Seller  is  an "accredited investor" as defined in Rule 501(a)
of Regulation D, promulgated under the Securities Act, which requires individual
investors  to  either  (i)  have  had individual income (exclusive of any income
attributable to a spouse) of more than $200,000, or joint individual income with
a  spouse  of  more  than  $300,000,  in each of the two most recent years and a
reasonable  expectation  of reaching that level of income in the current year or
(ii)  have  an  individual  net  worth (or combined net worth with a spouse), in
excess  of  $1,000,000.

          (h)     Seller  is acquiring the Issued Securities for his own account
and not with a view to resale or other distribution thereof inconsistent with or
in  violation  of the federal securities laws or the securities or Blue Sky laws
of  any  state.  No other person or entity will have any interest, beneficial or
otherwise,  in  the  Issued Securities that Seller is acquiring hereunder, other
than  a  community  property interest of Seller's spouse, if applicable, in such
Issued Securities under the laws of the State of Texas.  Seller is not obligated
to  transfer the Issued Securities or any portion thereof to any other person or
entity,  nor  does  Seller  have  any  agreement  or  understanding  to  do  so.

          (i)     Seller  acknowledges  and  agrees that he may not, directly or
indirectly,  sell, assign, pledge, give, subject to lien or security interest or
otherwise  dispose  of or encumber (collectively, "Transfer") all or any part of
                                                   --------
the  Issued  Securities  except  as  expressly  permitted by this Agreement, the
Registration  Rights  Agreement and applicable law.  Seller understands that the
Purchaser may, as a condition of any Transfer of any Issued Securities which are
not  registered  for sale pursuant to an effective registration statement of the
Purchaser,  require  that he deliver an opinion of counsel reasonably acceptable
to  the  Purchaser to the effect that neither the sale nor the proposed Transfer
will result in any violation of applicable state securities laws, the Securities
Act  or  the  securities  law  of  any  other  jurisdiction.

          (j)     Seller  acknowledges  that,  to  the  extent  Seller  deems
necessary,  he  has  relied  on  his own professional accounting, tax, legal and
financial  advisors  with  respect  to  an  investment  in the Purchaser and the
acquisition  of  the  Issued  Securities,  and  obtained, to the extent he deems
necessary,  such  professional advice with respect to the risks inherent in such
investment  and  the  suitability  of  an investment in the Issued Securities in
light  of  his  financial  condition  and  investment  needs.

          (k)     Any  non-public  information about the Purchaser that has been
disclosed  to  Seller  by  Purchaser or any of its representatives in connection
with  the  acquisition  of  the  Issued  Securities is deemed to be confidential
information  of  the  Purchaser,  and  Seller  hereby  agrees  that,  unless the
Purchaser  has  consented  in  writing  to the contrary, Seller shall treat such
information  as  Confidential  Information  under  this  Agreement.

                                      - 9 -
<PAGE>
          (l)     The  agreements,  representations  and  warranties made herein
extend  to and apply to all portions of the Issued Securities. The acceptance by
the  Sellers  of the Issued Securities shall constitute the Sellers confirmation
that all agreements and representations made herein shall be true and correct at
such  time.

                                   ARTICLE IV.
       REPRESENTATIONS AND WARRANTIES REGARDING THE COTTON GROUP COMPANIES
       -------------------------------------------------------------------

     Cotton  Holdings, Cotton Commercial and Cotton Restoration, and each of the
Sellers hereby jointly and severally represent and warrant to the Purchaser that
the  statements  contained in this Article IV are correct and complete as of the
                                   ----------
date  of this Agreement, and will be correct and complete as of the Closing Date
as  though  made  then  and as though such date were substituted for the date of
this  Agreement  throughout  this  Article IV, except (i) to the extent any such
                                   ----------
representation  or  warranty  speaks to an earlier date and (ii) as set forth in
the  Schedules.

     4.01     ORGANIZATION  AND  AUTHORIZATION.
              --------------------------------

          (a)     Each  Cotton Group Company is duly organized, validly existing
and in good standing under the laws of its incorporation as specified on EXHIBIT
                                                                         -------
A and has all requisite power and authority, corporate or otherwise, to carry on
-
and  conduct  its  business as it is now being conducted and to own or lease its
properties  and  assets,  and  is  duly  qualified  and  in good standing in the
jurisdictions  set  forth  on  SCHEDULE  4.01(a),  which, except as set forth on
                               -----------------
SCHEDULE  4.01(a),  are  the  only  jurisdictions  in  which  the  ownership  of
-----------------
properties  or  assets  of  each such Cotton Group Company or the conduct of the
Cotton  Group  Business  requires  such  qualification.

          (b)     EXHIBIT A sets  forth,  for each Cotton Group Company, (i) the
                  ---------
authorized  number  of  equity  interests in such Cotton Group Company, (ii) the
name  of each holder of equity interests in such Cotton Group Company, and (iii)
for  each  such  holder,  the number of equity interests held by such holder and
outstanding as of the date of this Agreement.  Except as set forth on EXHIBIT A,
                                                                      ---------
no  Cotton  Group  Company  has  any  interest,  direct  or indirect, and has no
commitment to purchase or otherwise acquire any interest, direct or indirect, in
any  other corporation, partnership, joint venture or other business enterprise.

          (c)     The  current  officers  and  directors  of  each  Cotton Group
Company  are  listed  on  SCHEDULE  4.01(c).
                          -----------------

          (d)     The  copies  of  the  company  records  of  the  Cotton  Group
Companies that have previously been delivered to Purchaser are true, correct and
complete copies of the corporate records of the Cotton Group Companies in effect
as  of  the date hereof.  The copies of the minutes of directors', shareholders'
and  partners'  meetings  and  the  stock  or  equity  books of the Cotton Group
Companies that have been delivered previously to Purchaser are true, correct and
complete  copies  of  the records of all directors', shareholders' and partners'
meetings  and equity issuances through and including the date hereof and, to the
Knowledge  of the Cotton Group Companies or any Seller, reflect all transactions
and  other  matters  required  to  be reflected in such records, as well as such
other  matters  customarily  contained  in  records  of  such  type.

                                     - 10 -
<PAGE>
     4.02     AUTHORIZED  AND  OUTSTANDING  STOCK.  All  of  the  Cotton  Equity
              -----------------------------------
Interests  are  validly  issued,  fully  paid and nonassessable.  All issuances,
transfers  or  purchases of Cotton Equity Interests have been in compliance with
all  applicable  agreements and all applicable laws, including federal and state
securities  laws,  and all taxes thereon have been paid.  There are no shares of
capital stock or other equity interests held in the treasury of any Cotton Group
Company.

     4.03     ABSENCE  OF  OTHER  CLAIMS.  Except as set forth on SCHEDULE 4.03,
              --------------------------                          -------------
there  are  not  outstanding,  nor  is  any  Cotton  Group Company bound by, any
subscriptions,  options,  preemptive  rights,  warrants,  calls,  commitments or
agreements  or  rights  of  any  character requiring any Cotton Group Company to
issue,  or  entitling  any person or entity to acquire, any additional shares of
capital stock or any other equity security, including any right of conversion or
exchange under any outstanding security or other instrument, and no Cotton Group
Company  is  obligated  to issue or transfer any of its equity interests for any
purpose.  There  are  no  outstanding obligations of any Cotton Group Company to
repurchase,  redeem  or otherwise acquire any outstanding equity interest in any
such  Cotton  Group  Company.

     4.04     NO CONFLICT.  The execution and delivery of this Agreement by each
              -----------
Cotton  Group  Company  that  is  a  signatory  hereto,  the consummation of the
transactions  contemplated  herein  by  each  Cotton  Group  Company  that  is a
signatory  hereto,  and  the performance of the covenants and agreements of each
Cotton  Group  Company that is a signatory hereto, will not, with or without the
giving  of  notice  or  the  lapse  of time, or both, (a) except as set forth on
Schedule  4.04,  violate  or  conflict with any of the provisions of any charter
--------------
document,  bylaw,  limited  liability  company agreement, operating agreement or
partnership  agreement  of  any Cotton Group Company, (b) except as set forth on
SCHEDULE  4.04, violate, conflict with or result in a breach or default under or
--------------
cause termination of any term or condition of any mortgage, indenture, contract,
license,  permit,  instrument,  trust  document, or other agreement, document or
instrument  to  which any Cotton Group Company is a party or by which any Cotton
Group  Company  or  the properties of any Cotton Group Company may be bound, (c)
violate  any provision of law, statute, regulation, court order or ruling of any
governmental authority, to which any Cotton Group Company is a party or by which
any  Cotton  Group  Company or the properties of any Cotton Group Company may be
bound,  or  (d) result in the creation or imposition of any lien, claim, charge,
restriction,  security  interest  or encumbrance of any kind whatsoever upon any
asset  of  any  Cotton  Group  Company.

     4.05     REQUIRED  CONSENTS AND APPROVALS.  Except as set forth on SCHEDULE
              --------------------------------                          --------
4.05,  no  consent  or approval is required by virtue of the execution hereof by
----
any  Seller  or  any  Cotton  Group  Company  or  the consummation of any of the
transactions  contemplated  herein  by any Seller or any Cotton Group Company to
avoid  the  violation  or  breach of, or the default under, or the creation of a
lien  on  any  assets  of any Cotton Group Company pursuant to the terms of, any
regulation,  order,  decree  or award of any court or governmental agency or any
lease,  agreement, contract, mortgage, note, license, or any other instrument to
which  any  Cotton Group Company is a party or to which any Cotton Group Company
or  the  property  or  assets  of  any Cotton Group Company or any of the Cotton
Equity  Interests  is  subject.

     4.06     NO  VIOLATION  OF  LAW.  No Cotton Group Company is, and no Cotton
              ----------------------
Group Company will be (by virtue of any past or present action, omission to act,
contract  to  which  it  is

                                     - 11 -
<PAGE>
a  party  or  any  occurrence  or state of facts whatsoever) in violation of any
applicable local, state or federal law, ordinance, regulation, order, injunction
or  decree,  or  any  other  requirement  of  any  governmental  body, agency or
authority or court binding on it, or relating to its property or business or its
advertising,  sales  or  pricing  practices  (including  any  antitrust laws and
regulations),  and  no  Cotton  Group Company hereafter will suffer or incur any
material  loss,  liability,  penalty  or  expense (including attorneys' fees) by
virtue  of  any  such  violation.

     4.07     FINANCIAL  STATEMENTS.  SCHEDULE  4.07  contains (i) the unaudited
              ---------------------   --------------
balance sheets of Cotton Commercial, Cotton Restoration, and Cotton Restoration,
LP  as  of the years ended October 31, 2005 and October 31, 2004 reviewed by the
Cotton  Group  Companies'  certified  public accountant (the "Reviewed Financial
                                                              ------------------
Statements"),  and the related statements of income, retained earnings, and cash
----------
flows  for  the  years  then  ended, and the related notes thereto; and (ii) the
unaudited  balance  sheets  of Cotton Commercial, Cotton Restoration, and Cotton
Restoration,  LP  as  of  July  31,  2006, and the related statements of income,
retained  earnings, and cash flows for the 9-month period then ended, or if such
interim  statements  are  not  commonly  prepared,  equivalent statements as are
commonly prepared (the "Interim Financial Statements", and collectively with the
                        ----------------------------
Reviewed  Financial  Statements,  the  "Current  Financial  Statements").  The
                                        ------------------------------
Reviewed  Financial  Statements  present  fairly  the  financial position of the
Cotton  Group  Companies as of the dates thereof, and the related results of its
operations  for  the years then ended.  The Interim Financial Statements present
fairly  the  financial  position  of  the  Cotton Group Companies as of the date
thereof,  and  the related results of its operations for the periods then ended.
The  Reviewed  Financial  Statements  have  been  prepared  in  accordance  with
generally accepted accounting principles, consistently applied ("GAAP"), and the
                                                                 ----
Interim  Financial  Statements  have  been  prepared in accordance with GAAP for
interim  statements  on a basis consistent with prior periods.  All adjustments,
consisting of normal, recurring accruals necessary for a fair presentation, have
been made in the Interim Financial Statements.  The balance sheets as of October
31,  2005 (the "Reviewed Balance Sheet Date") included in the Reviewed Financial
                ---------------------------
Statements  are  referred  to  herein  as  the "Reviewed Balance Sheets" and the
                                                -----------------------
unaudited  balance sheets as of July 31, 2006 (the "Interim Balance Sheet Date")
                                                    --------------------------
included  in  the  Interim  Financial  Statements  are referred to herein as the
"Interim  Balance  Sheets."
 ------------------------

     4.08     NO  UNDISCLOSED  LIABILITIES.  There  are  no  liabilities  of any
              ----------------------------
Cotton  Group  Company  of  any  kind  whatsoever,  whether accrued, contingent,
absolute  or  otherwise,  except  for:

          (a)     liabilities and obligations fully reflected or provided for in
the  Reviewed  Balance  Sheets,  the  Interim  Balance  Sheets or the Schedules;

          (b)     liabilities and obligations incurred in the Ordinary Course of
Business, consistent with past practice, since July 31, 2006, which individually
or  in  the  aggregate  are  not  in  excess  of  $50,000.00;  and

          (c)     liabilities  and  obligations  under  contracts  not  (i)
attributable to any failure by any Cotton Group Company to comply with the terms
thereof or any express or implied warranty, or (ii) entered into in violation of
this  Agreement  or  arising out of any such breach by any Cotton Group Company.

                                     - 12 -
<PAGE>
     4.09     REAL  PROPERTY.
              --------------

          (a)     SCHEDULE  4.09(a)  sets forth a complete and accurate list and
                  -----------------
description of all the real property that the Cotton Group Companies own, lease,
have  agreed (or have an option) to purchase, sell or lease, or may be obligated
to  purchase,  sell or lease (the "Real Property").  With respect to each parcel
                                   -------------
of  Real  Property that is owned by the Cotton Group Companies, Sellers or their
affiliates  and  required  to  be  listed and described on SCHEDULE 4.09(a), the
                                                           ----------------
Seller  has  or  will make available prior to Closing to Purchaser true, correct
and  complete copies of each instrument (if any) evidencing a grant by or to any
Cotton  Group  Company of an option to purchase or lease such parcel, each lease
and  leasehold  mortgage  (if  any)  with  respect to such parcel, and any title
policies  or  commitments  and  surveys  with  respect  to  such  parcel.

          (b)     The  Cotton  Group  Companies  have good, valid and marketable
title  to,  or  in  the  case  of  leased properties and assets, valid leasehold
interests  in,  all  of  their  material  properties  and  assets,  tangible and
intangible,  real,  personal  and mixed, movable and immovable, used or held for
use  in  their  business.

          (c)     Except  for  the  matters  set  forth on SCHEDULE 4.09(c) (the
                                                           ----------------
"Permitted  Liens"),  no  Real  Property  owned  by  the Cotton Group Companies,
 ----------------
Sellers  or  their affiliate, or, to the Knowledge of the Cotton Group Companies
or  any  Seller, any Real Property leased by the Cotton Group, is subject to (i)
any  governmental  decree  or  order  (or threatened or proposed decree or order
known  to  the  Cotton  Group  Companies  or the Sellers) to be sold or taken by
public  authority,  or  (ii) any liens, security interests, easements, rights of
way, building use restrictions, exceptions, variances, reservations, limitations
or  other  encumbrances  of  any  nature  whatsoever.

     4.10     PERSONAL  PROPERTY.
              ------------------

          (a)     SCHEDULE  4.10(a)  sets forth a complete and accurate list and
                  -----------------
description  of  all  personal  property  that the Cotton Group Companies own or
lease,  have  agreed  (or  have an option) to purchase, sell or lease, or may be
obligated  to  purchase, sell or lease, the net book value of which, as properly
reflected  in  the  books  and  records  of  the  Cotton  Group  Companies on an
individual,  item-by-item  basis,  exceeds  $1,000.00.

          (b)     The  Cotton  Group  Companies (i) have good and valid title to
all  the personal and mixed, tangible and intangible properties and assets which
it purports to own or which it uses in the conduct of the Cotton Group Business,
including  Intellectual  Property, Software and Licensed Software (as defined in
Section  4.12),  and  all  the personal properties and assets reflected, but not
-------------
shown  as  leased  or  encumbered, on the Reviewed Balance Sheet and the Interim
Balance  Sheet  (except  for inventory and assets sold in the Ordinary Course of
Business  and  supplies  consumed  in the Ordinary Course of Business), and (ii)
except  for  Permitted  Liens, owns such personal property free and clear of all
title  defects  or  objections,  liens,  restrictions, claims, charges, security
interests,  easements, or other encumbrances of any nature whatsoever, including
any  mortgages,  leases,  chattel  mortgages,  conditional  sales  contracts,
collateral,  security  arrangements  and  other  title  or  interest  retention
arrangements.  Except  as  set  forth  on

                                     - 13 -
<PAGE>
SCHEDULE  4.10(b), all personal property (including all improvements on any Real
-----------------
Property)  and  leasehold  improvements are located at the principal location of
the  Cotton  Group  Business.

          (c)     All  of the inventories of the Cotton Group Companies included
on the Interim Balance Sheets or subsequently acquired are merchantable and of a
quality and quantity usable and saleable in the Ordinary Course of Business, and
the  quantities  of  each  type  of  inventory  (whether  raw  materials,
work-in-process,  or  finished goods) are not excessive, and are consistent with
prior  levels.  All of the inventories of the Cotton Group Companies included on
the  Interim  Balance  Sheet are valued for the purposes thereof at the lower of
cost  or  market.

          (d)     SCHEDULE  4.10(d) contains a complete and accurate list of all
                  -----------------
leases  (including  any  capital  leases) and lease-purchase arrangements (other
than  Real  Property  leases) pursuant to which the Cotton Group Companies lease
personal  property  from others and which (i) require the Cotton Group Companies
to  pay,  for  rent  and any obligatory improvements, more than $5,000.00 in any
single year or $10,000.00 during the entire term of such lease or lease-purchase
arrangement  (including any renewal term that the Cotton Group Companies may not
avoid  by  refusing  to  renew  in  its  sole discretion), or (ii) provide for a
purchase  option for a price of more than $5,000.00.  SCHEDULE 4.10(d) specifies
                                                      ----------------
which  of such leases, if any, are capital leases.  All leases that are required
to  be  capitalized  by GAAP have been so accounted for in the Current Financial
Statements.  The Cotton Group Companies have made available to Purchaser a true,
correct and complete copy of each of the items required to be listed on SCHEDULE
                                                                        --------
4.10(d).
-------

     4.11     INDEBTEDNESS.  SCHEDULE  4.11  sets  forth  a  true,  correct  and
              ------------   --------------
complete  list and description of all instruments or other documents relating to
any  direct  or  indirect  indebtedness  for  borrowed money of the Cotton Group
Companies,  as  well  as  indebtedness  by  way  of lease-purchase arrangements,
guarantees,  undertakings  on  which  others  rely  in  extending credit and all
conditional  sales  contracts, chattel mortgages and other security arrangements
with  respect  to  personal property used or owned by the Cotton Group Companies
(other  than  those  set forth on SCHEDULE 4.10(d)).  The Cotton Group Companies
                                  -----------------
have  made  available  to Purchaser a true, correct and complete copy of each of
the  items  required  to  be  listed  on  SCHEDULE  4.11.
                                          --------------

     4.12     INTELLECTUAL  PROPERTY.
              ----------------------

          (a)     For  purposes  of  this  Agreement,  the  term  "Intellectual
                                                                   ------------
Property" shall mean all patents, patent rights, patent applications, registered
--------
trademarks and service marks, trademark rights,  trademark applications, service
mark  rights,  service  mark  applications,  trade names, registered copyrights,
copyright  rights,  domain  names  and  all intellectual, industrial software or
proprietary  rights and trade secrets, technology and know-how, owned or used by
the  Cotton  Group  Companies,  together  with any amendments, modifications and
supplements  thereto  and  in  each  case  all  goodwill associated therewith in
connection  with  the  business in which any such intellectual property is used.

          (b)     Identification  of  Intellectual  Property.  SCHEDULE  4.12(b)
                  ------------------------------------------   -----------------
sets  forth  a  true,  correct  and  complete  list  and full description of all
Intellectual  Property.  With  respect  to any registrations of the Intellectual
Property,  SCHEDULE  4.12(b)  also  sets  forth,  as  to  each  such item of the
           -----------------
Intellectual Property, the (i) relevant application or registration number, (ii)
relevant  filing,  registration,  issue or application date, (iii) record owner,
(iv)  country,  (v)  title  or  description  and

                                     - 14 -
<PAGE>
(vi)  remaining  life thereof.  In addition, SCHEDULE 4.12(b) identifies whether
                                             ----------------
each item of the Intellectual Property is owned by the Cotton Group Companies or
is possessed and used by the Cotton Group Companies under any license, contract,
agreement or other commitment and, if under any such commitment, the identity of
the  parties  thereto,  the  term  thereof  and  all  amounts payable thereunder
together  with  the  payment  terms  therefor.

          (c)     Ownership  and  Protection.  With  respect  to  each  item  of
                  --------------------------
Intellectual  Property  identified as being owned by the Cotton Group Companies,
the  Cotton  Group  Companies  own  all right, title and interest in and to such
Intellectual  Property,  and have not encumbered or impaired any rights in same.
The  Cotton  Group  Companies have obtained an enforceable written assignment of
all right, title and interest in and to each item of Intellectual Property owned
by  the  Cotton  Group Companies from each person or entity participating in the
discovery,  development  or  creation  of such item of Intellectual Property and
have  provided  to  Purchaser  true  and correct copies of each such assignment.
Except  as set forth on SCHEDULE 4.12(c), the Cotton Group Companies do not have
                        ----------------
any  obligation  to compensate, or to obtain the consent of, any third party for
the  use  of  any  item  of  Intellectual  Property.  All employees, independent
contractors,  or  other  persons  who  have had access to or participated in the
development  of  any  Intellectual  Property owned by the Cotton Group Companies
have  signed  appropriate  confidentiality and non-disclosure agreements and, in
the  case  of  independent contractors, appropriate work for hire agreements and
assignments,  sufficient to protect the Cotton Group Companies' ownership rights
in  Intellectual  Property  and the unauthorized use or disclosure of same.  All
registrations  and applications to register the Intellectual Property in each of
the countries in which any of the same is registered are valid and subsisting in
all  respects and have been properly maintained.  To the Knowledge of the Cotton
Group  Companies  or any Seller, no party has any claim to any moral rights with
respect  to  Intellectual  Property  owned  by  the  Cotton  Group  Companies.

          (d)     Litigation  and  Claims.  There is neither pending nor, to the
                  -----------------------
Knowledge  of  the  Cotton  Group  Companies or any Seller, threatened any suit,
action,  claim,  arbitration,  grievance, litigation, administrative or legal or
other  proceeding, or investigation, against the Cotton Group Companies or their
licensors  contesting  the  validity of, or the Cotton Group Companies' right to
use,  any  of  the  Intellectual  Property.

          (e)     Licenses.  The  Cotton  Group  Companies  have not granted any
                  --------
license or other right to use, in any manner, any item of Intellectual Property,
whether  or  not  requiring the payment of royalties, and no third party has any
right to use any Intellectual Property owned by the Cotton Group Companies.  The
Cotton  Group Companies have not licensed, leased, sold or otherwise transferred
or  disclosed  the  source  code  for any Intellectual Property to any person or
entity  other  than  to  the  Cotton  Group Companies' employees and independent
contractors  pursuant  to  agreements  with  such  employees  and  independent
contractors  protecting  the  intellectual  property  rights  therein  and  the
nondisclosure  thereof.

          (f)     Protection.  The  Cotton  Group  Companies  have  reasonably
                  ----------
protected  the  Intellectual  Property  as  the  proprietary  property and trade
secrets of the Cotton Group Companies.  There has not been any default under any
confidentiality  agreement  regarding the use and disclosure of the Intellectual
Property.

                                     - 15 -
<PAGE>
          (g)     Infringement.
                  ------------

               (i)     To  the  Knowledge  of  the Cotton Group Companies or any
Seller,  no  third  party  is  (A)  infringing  upon  all  or any portion of the
Intellectual  Property,  or  (B)  using  all  or any portion of the Intellectual
Property in derogation of any rights acquired by Purchaser under this Agreement.

               (ii)     There  is  no  interference  action  or other litigation
pending  or,  to  the  Knowledge  of  the  Cotton Group Companies or any Seller,
threatened  before  any  governmental entity (including the United States Patent
and  Trademark  Office  or  corresponding  governmental  entities  in  foreign
jurisdictions)  in  regard  to  any  of  the  Intellectual  Property.

               (iii)     None  of  the  Intellectual  Property  infringes  any
copyright,  trademark,  patent, trade secret, or other right of any third party.
The  Cotton  Group  Companies have not received any notice of infringement upon,
misappropriation  of or conflict with any asserted right of any third party, and
there  is  no  basis  for  any  such  notice.

               (iv)     The  inception, development and reduction to practice of
the  Intellectual  Property  have  not  constituted  or  involved,  and  do  not
constitute  or involve, the misappropriation of trade secrets or other rights of
any  other  person  or  entity  (including  any  governmental  entity).

     4.13     LITIGATION.  SCHEDULE  4.13  sets  forth  all  litigation, claims,
              ----------   --------------
suits,  actions,  investigations,  indictments  or  information,  proceedings or
arbitrations,  grievances  or  other  procedures  (including  grand  jury
investigations,  actions  or  proceedings,  and  product  liability and workers'
compensation  suits, actions or proceedings) pending, or to the Knowledge of the
Cotton  Group Companies or any Seller, threatened, before any court, commission,
arbitration  tribunal,  or  judicial, governmental or administrative department,
body,  agency, administrator or official, grand jury, or any other forum for the
resolution  of  grievances, against any Cotton Group Company or involving any of
their  properties  or  businesses,  and  (b) indicates which of such matters are
being  defended  by  an  insurance  carrier,  and  which of the matters being so
defended  are  being defended under a reservation of rights.  Further, except as
set  forth on SCHEDULE 4.13, there are no judgments, orders, writs, injunctions,
              -------------
decrees, indictments or information, grand jury subpoenas or civil investigative
demands,  plea  agreements, stipulations or awards (whether rendered by a court,
commission,  arbitration  tribunal,  or judicial, governmental or administrative
department,  body,  agency,  administrator  or official, grand jury or any other
forum  for the resolution of grievances) against or relating to any Cotton Group
Company  or  involving any of their properties or businesses.   The Cotton Group
Companies  have made available to Purchaser true, correct and complete copies of
all  pleadings,  briefs  and  other  documents filed in each pending litigation,
claim,  suit,  action,  investigation,  indictment  or  information, proceeding,
arbitration,  grievance  or  other  procedure  required to be listed on SCHEDULE
                                                                        --------
4.13,  and  the  judgments, orders, writs, injunctions, decrees, indictments and
----
information,  grand  jury  subpoenas  and  civil  investigative  demands,  plea
agreements,  stipulations  and  awards  required  to be listed on said Schedule.

                                     - 16 -
<PAGE>
     4.14     EMPLOYEES.
              ---------

          (a)     SCHEDULE 4.14(a) sets forth the names and current compensation
                  ----------------
(broken  down  by category, e.g., salary, bonus, commission) of all employees of
the  Cotton  Group  Companies,  together  with  the  date and amount of the last
increase  in  compensation for each such person.  To the Knowledge of the Cotton
Group  Companies  or  any  Seller,  no  employee intends to terminate his or her
employment  relationship  with  the  Cotton  Group  Companies as a result of the
transactions  contemplated  herein  or  otherwise.

          (b)     The Cotton Group Companies have conducted a thorough review of
their  employee records and have verified that each foreign national employee of
any  Cotton Group Company is authorized to be present and employed in the United
States.  The  Cotton  Group Companies are in full compliance with all applicable
laws,  regulations,  judgments and other requirements relating to the regulation
of  foreign nationals in the United States including those items relating to the
employment  and  compensation  of foreign nationals in the United States.  There
are  no  unresolved  past,  pending  or threatened administrative, regulatory or
judicial actions, proceedings, investigations, obligations, liabilities, losses,
decrees,  judgments,  penalties,  fines,  fees, demands, demand letters, orders,
directives, claims, or notices of noncompliance or violation relating in any way
to  any  Cotton  Group Company or their operations in connection with any Cotton
Group  Company's  employment  of  foreign  nationals.  As  used herein, the term
"foreign  national"  means a person who is not a citizen of the United States of
America.

     4.15     EMPLOYEE  BENEFITS.
              ------------------

          (a)     Employee  Benefit  Plans  and  Arrangements.
                  -------------------------------------------

               (i)     List  and Description of Plans and Arrangements. SCHEDULE
                       -----------------------------------------------  --------
4.15(a)(i)  sets  forth a true, correct and complete list and description of all
----------
agreements,  arrangements,  commitments,  policies or understandings of any kind
(whether  written  or  oral)  (A)  which  relate to employee benefits, (B) which
pertain  to  present  or  former  employees,  retirees, directors or independent
contractors (or their beneficiaries, dependents or spouses) of  the Cotton Group
Companies  or  the predecessors in interest of any Cotton Group Company, and (C)
which  are  currently  or  expected  to  be  adopted,  maintained, sponsored, or
contributed  to  by  any  Cotton  Group  Company,  any  of their predecessors in
interest  or  any employer which, under Section 414 of the Internal Revenue Code
(the  "Code"),  would constitute a single employer with any Cotton Group Company
       ----
(a  "Company  Affiliate") or as to which any Cotton Group Company or any Company
     ------------------
Affiliate  has  any  ongoing  liability  or obligation whatsoever (collectively,
"Employee  Benefit Plans"), including all: (1) employee benefit plans as defined
 -----------------------
in  Section  3(3)  of  the  Employee  Retirement Income Security Act of 1974, as
amended  ("ERISA"),  (2)  all  other  deferred  compensation,  early retirement,
           -----
incentive,  profit-sharing,  thrift, stock ownership, stock appreciation rights,
bonus,  stock option, stock purchase, welfare or vacation, or other nonqualified
benefit  plans  or  arrangements,  and  (3)  trusts,  group  annuity  contracts,
insurance  policies  or  other  funding  media  for  the  plans and arrangements
described  hereinabove.

               (ii)     Compliance  with  ERISA  and the Code. Each Cotton Group
                        -------------------------------------
Company  and  each  Company  Affiliate has complied with all of their respective
obligations  with respect to all Employee Benefit Plans (including (A) filing or
distributing  all  reports  or  notices

                                     - 17 -
<PAGE>
required  by ERISA or the Code and (B) complying with all requirements of Part 6
of  ERISA  and Code Section 4980B) and has maintained the Employee Benefit Plans
in  compliance with all applicable laws and regulations (including ERISA and the
Code).  Each  eligible  Employee  Benefit  Plan  has  received  a  favorable
determination letter from the Internal Revenue Service, and the Internal Revenue
Service  has  not  threatened  or  taken  any  action  to  revoke  any favorable
determination  letter issued with respect to any such Employee Benefit Plan.  No
amendment  to  any Employee Benefit Plan or related trust has been adopted since
receipt  of  the  most  recent  determination  letter issued with respect to the
Employee Benefit Plan or related trust which would cause disqualification of the
Employee  Benefit  Plan  or  related  trust.

               (iii)     Copies of Documents Provided to Purchaser.   The Cotton
                         -----------------------------------------
Group  Companies  have  made  available  to Purchaser true, correct and complete
copies  of  all  documents relating to the Employee Benefit Plans that Purchaser
has  requested, including: (A) all plan texts, amendments, trust instruments and
other agreements adopted or entered into in connection with each of the Employee
Benefit  Plans,  (B) all insurance and annuity contracts related to any Employee
Benefit  Plan,  (C)  the notices and election forms used to notify employees and
their  dependents  of  their continuation coverage rights under the Cotton Group
Companies'  group  health  plans  (under Code Section 4980B(f) and ERISA Section
606),  if  applicable,  and  (D)  the  most  recently available Form 5500 annual
reports,  certified  financial  statements,  actuarial  reports,  summary  plan
descriptions  and  favorable  determination letters, if applicable, for Employee
Benefit  Plans.  Since  the  date  such documents were supplied to Purchaser, no
plan  amendments  have been adopted, no changes to the documents have been made,
and  no such amendments or changes shall be adopted or made prior to the Closing
Date.

               (iv)     Agreements  to  Create,  Continue  or  Terminate  Plans.
                        -------------------------------------------------------
Neither  any  Cotton  Group Company nor any Company Affiliate has any agreement,
arrangement,  commitment  or  understanding,  whether legally binding or not, to
create  any  additional  Employee Benefit Plan or to continue, modify, change in
any  material  respect,  or  terminate  any  existing  Employee  Benefit  Plan.

               (v)     Agency  Review,  Taxes  and Fiduciary Liability.  None of
                       -----------------------------------------------
the  Employee Benefit Plans is currently under investigation, audit or review by
the  Department  of  Labor, the Internal Revenue Service or any other federal or
state agency or is liable for any federal, state, local or foreign taxes.  There
is no transaction in connection with which any Cotton Group Company, any Company
Affiliate or any fiduciary of any of the Employee Benefit Plans could be subject
to  either a civil penalty assessed pursuant to ERISA Section 502, a tax imposed
by Code Section 4975 or liability for a breach of fiduciary responsibility under
ERISA.

               (vi)     Claims  Against  Plans  and  Fiduciaries.  Other  than
                        ----------------------------------------
routine  claims  for  benefits  payable  to  participants  or  beneficiaries  in
accordance  with  the  terms of the Employee Benefit Plans, there are no claims,
pending  or,  to  the  Knowledge  of  the  Cotton Group Companies or any Seller,
threatened,  by  any  participant  or  beneficiary  against  any of the Employee
Benefit  Plans  or  any  fiduciary  of any of the Employee Benefit Plans, and no
basis  for  any  such  claim  or  claims  exists.

               (vii)     Retiree  Welfare  Benefits.  Neither  any  Cotton Group
                         --------------------------
Company  nor  any  Company  Affiliate  has  maintained  an Employee Benefit Plan
providing  group  health,  dental,

                                     - 18 -
<PAGE>
vision,  life  insurance  or  other  welfare  benefits  to  employees  following
retirement or other separation from service, except to the extent required under
Part  6  of  Title  I  of  ERISA  and  Code  Section  4980B.

          (b)     Defined  Benefit  Plans.  No  Cotton  Group  Company  has ever
                  -----------------------
maintained an Employee Benefit Plan that is a pension plan within the meaning of
ERISA  Section  3(2)  which  is subject to Title IV of ERISA (a "Defined Benefit
                                                                 ---------------
Plan"),  nor has any Cotton Group Company ever participated in a Defined Benefit
----
Plan that is a multi-employer plan within the meaning of ERISA Section 3(37)(A).
There  has never been any Defined Benefit Plan or multi-employer plan maintained
by  any  Cotton  Group  Company  or any Company Affiliate under which any Cotton
Group  Company  and  any  Company Affiliate currently have, or potentially could
ever  have,  any  obligation  or  liability  whatsoever  under  ERISA.

     4.16     COLLECTIVE  BARGAINING.  There  are no labor contracts, collective
              ----------------------
bargaining  agreements,  letters  of understanding or other arrangements, formal
or, to the Knowledge of the Cotton Group Companies or any Seller, informal, with
any  union  or  labor  organization  covering  any employees of any Cotton Group
Company  and  none  of  said  employees  are  represented  by any union or labor
organization.

     4.17     LABOR DISPUTES.  The Cotton Group Companies are in compliance with
              --------------
all federal and state laws respecting employment and employment practices, terms
and  conditions  of  employment, wages and hours. The Cotton Group Companies are
not  and have not been engaged in any unfair labor practice, and no unfair labor
practice  complaint  against  any  Cotton  Group  Company  is pending before the
National Labor Relations Board.  Neither any Cotton Group Company nor any Seller
knows  or has reason to know of any labor strike or other labor trouble actually
pending,  being threatened against, or affecting the Cotton Group Companies.  To
the  Knowledge  of  the  Cotton Group Companies or any Seller, relations between
management  and  labor  are  amicable  and  there  have  not been, nor are there
presently, any attempts to organize non-union employees, nor are there plans for
any  such  attempts.

     4.18     BANK  ACCOUNTS.  SCHEDULE  4.18  sets  forth  a  true, correct and
              --------------   --------------
complete  list  of  each bank or financial institution in which the Cotton Group
Companies  have  an  account or safe deposit box (giving the address and account
numbers)  and  the  names  of  the persons authorized to draw thereon or to have
access  thereto.

     4.19     ENVIRONMENTAL  MATTERS.
              ----------------------

          (a)     For  purposes  of this Section 4.19, the following terms shall
have  the  following  meanings:

               (i)     "Environmental  Claims"  shall  mean  any  and  all
                        ---------------------
administrative,  regulatory  or  judicial  actions,  causes  of  action,  suits,
investigations,  obligations,  liabilities,  losses,  proceedings,  decrees,
judgments,  penalties, fines, fees, demands, demand letters, orders, directives,
claims  (including  any  claims involving liability in tort, strict, absolute or
otherwise),  liens,  notices  of  noncompliance  or  violation,  and  legal  and
consultant  fees and costs of investigations or proceedings, relating in any way
to  any  Environmental  Law  or  the presence or Release (or alleged presence or
Release)  into  the  environment  of  any  Hazardous  Material  on,  at

                                     - 19 -
<PAGE>
or  from  the Real Property including and regardless of the merit of such Claim,
any  and  all Claims by any governmental or regulatory authority or by any third
party  or  other person for enforcement, mitigation, cleanup, removal, response,
remediation  or  other  actions  or damages, contribution, indemnification, cost
recovery,  compensation  or  injunctive  or  declaratory  relief pursuant to any
Environmental  Law  or  any  alleged injury or threat of injury to human health,
safety,  natural  resources  or  the  environment.

               (ii)     "Environmental  Laws"  shall mean all present and future
                         -------------------
federal,  state  and  local  laws,  statutes,  ordinances,  regulations,  codes,
policies,  rules,  directives,  orders,  decrees,  permits, licenses, approvals,
authorizations,  criteria,  guidelines,  covenants, deed restrictions, treaties,
conventions,  and  rules  of  common law now or hereafter in effect, and in each
case  as  amended,  and  any  judicial  or  administrative  judgment, opinion or
interpretation  thereof,  relating  to  the  regulation  or  protection of human
health,  safety,  natural  resources  or  the  environment,  including  laws and
regulations  (and all other items recited above) relating to the use, treatment,
storage,  management,  handling, manufacture, generation, processing, recycling,
distribution,  transport,  Release  or  threatened Release of or exposure to any
Hazardous  Material.

               (iii)     "Hazardous  Materials"  shall  mean,  collectively, any
                          --------------------
substance,  material, product, derivative, compound, mixture, mineral, chemical,
waste,  medical  waste  or  gas,  in  each  case  whether  naturally  occurring,
human-made  or  the  by-product of any process, including petroleum or petroleum
products  (A)  that  is  now or hereafter becomes defined or included within the
definition  of a "hazardous substance," "hazardous waste," "hazardous material,"
"toxic  chemical," "toxic substance," "hazardous chemical," "extremely hazardous
substance,"  "pollutant,"  "contaminant,"  or any other words of similar meaning
under  any  Environmental  Law,  (B)  exposure  to  which  or the presence, use,
generation,  treatment,  Release,  transport  or  storage  of  which  is  now or
hereafter  prohibited,  limited, restricted or regulated under any Environmental
Law  or  by  any governmental or regulatory authority, or (C) that could require
investigation,  response  or  remediation, or could support the assertion of any
Environmental  Claim.

               (iv)     "Release"  shall  mean the release, deposit, disposal or
                         -------
leakage  of  any  Hazardous  Material at, into, upon or under any land, water or
air,  or otherwise into the environment, including by means of burial, disposal,
discharge,  emission,  injection, spillage, leakage, seepage, leaching, dumping,
pumping,  pouring,  escaping,  emptying,  placement  and  the  like.

          (b)     Except  as  disclosed  on  SCHEDULE  4.19(b):
                                             -----------------

               (i)     Each  Cotton Group Company is in full compliance with all
applicable  Environmental  Laws;

               (ii)     Each  Cotton Group Company has all permits, licenses and
other  approvals  required under the Environmental Laws with respect to the Real
Property  and  such  Cotton  Group  Company's  operations  thereon;

               (iii)     There  are no past, pending or threatened Environmental
Claims  relating  to  the  any  Cotton  Group  Company's  operations or the Real
Property;

                                     - 20 -
<PAGE>
               (iv)     Hazardous  Materials  have not at any time been present,
generated,  used,  treated,  managed, recycled, stored or Released at, on, in or
under,  or  transported  to  or  from  the  Real  Property;

               (v)     Hazardous  Materials  have  not at any time been Released
at,  on,  in  or  under  any  other property in the vicinity or area of the Real
Property;

               (vi)     There  are  not  now and never have been any underground
storage  tanks  located  at, on or under the Real Property, there is no asbestos
contained  in,  forming part of, or contaminating any part of the Real Property,
and  no  polychlorinated  biphenyls  (PCBs)  are  used,  stored,  located  at or
contaminate  any  part  of  the  Real  Property;

               (vii)     There are no pending or threatened Environmental Claims
at  any  treatment,  storage  or  disposal  facility that has received Hazardous
Materials  from  or  generated  at  the  Real  Property;  and

               (viii)     There  are  no  past  or  present  facts,  actions,
activities,  circumstances,  conditions,  occurrences,  events  or  incidents,
including  the  Release  or presence of Hazardous Materials, that could (A) form
the  basis  of  an  Environmental  Claim  against  or involving any Cotton Group
Company  or  the Real Property, (B) cause the Real Property to be subject to any
restrictions on or affect its ownership, occupancy, use or transferability under
any  applicable  Environmental  Law,  (C) require the filing or recording of any
notice  or  restriction  relating  to the presence of Hazardous Materials in the
real  estate records in the county or municipality in which the Real Property is
located, other than any customary disclosure requirements in connection with the
transfer  of  the  Real  Property,  or  (D)  prevent  or  interfere  with  the
construction,  operation  or  maintenance  of  the  Real  Property.

     4.20     REQUIRED  LICENSES  AND  PERMITS.  The Cotton Group Companies have
              --------------------------------
all  licenses,  permits  or  other  authorizations  of  governmental authorities
necessary  for  the  conduct  of the Cotton Group Business, except to the extent
that  the  Cotton Group Companies are authorized pursuant to permits held by its
customers  to  conduct  operations and perform services in connection with their
respective  businesses.  A true, correct and complete list of all such licenses,
permits  and other authorizations (collectively, the "Cotton Authorizations") is
                                                      ---------------------
set  forth  on SCHEDULE 4.20.  The Cotton Group Companies have made available to
               -------------
Purchaser true, correct and complete copies of all written Cotton Authorizations
required  to  be  listed  on  SCHEDULE  4.20.
                              --------------

     4.21     INSURANCE  POLICIES.  SCHEDULE 4.21 sets forth a true, correct and
              -------------------   -------------
complete  list  and  description  of  all insurance policies in force naming the
Cotton  Group  Companies, or any employees thereof in their capacity as such, as
an  insured  or  beneficiary or as a loss payable payee, or for which any Cotton
Group  Company has paid or is obligated to pay all or part of the premiums.  The
Cotton  Group  Companies  have  not received notice of any pending or threatened
termination or premium increase (retroactive or otherwise) with respect thereto,
and  the  Cotton Group Companies are in compliance with all conditions contained
therein.  There  have  been  no  lapses  (whether  cured or not) in the coverage
provided  under  the  insurance  policies, referenced herein and as set forth on
SCHEDULE  4.21,  during  the term of such policies, as extended or renewed.  The
--------------
Cotton  Group  Companies  have  made  available  to  Purchaser true, correct and
complete  copies of each of the policies required to be listed on SCHEDULE 4.21.
                                                                  -------------

                                     - 21 -
<PAGE>
     4.22     MAJOR SUPPLIERS AND CUSTOMERS.  SCHEDULE 4.22 sets forth a list of
              -----------------------------   -------------
the  top  25  suppliers  of goods or services to and the top 25 customers of the
Cotton  Group  Companies  (by amounts paid or billed) during the 12-month period
ended  June  30,  2006  together,  in  each case, with the amount paid or billed
during  such  period.  The Cotton Group Companies are not engaged in any dispute
with  any  of  such  suppliers or customers. The Cotton Group Companies have not
been  advised  nor  have  any  reason  to  believe  that the consummation of the
transactions contemplated hereunder will have any adverse effect on the business
relationship  of  the Cotton Group Companies with any such supplier or customer.

     4.23     CONTRACTS AND COMMITMENTS.  SCHEDULE 4.23 sets forth a list of the
              -------------------------   -------------
Cotton  Group  Companies'  contracts  with  customers with an estimated value of
$50,000.00  or  more.  Except  as  set forth on SCHEDULES 4.10(d) (Leases), 4.11
                                                -----------------           ----
(Indebtedness),  4.12(d)  AND  (b) (Intellectual Property), 4.15(a)(i) (Employee
                 -----------------                          ----------
Benefit  Plans),  4.16  (Collective  Bargaining), 4.21 (Insurance Policies), and
                  ----                            ----
4.23  (Contracts  and  Commitments):
----

          (a)     The  Cotton  Group  Companies  do  not  have  any  outstanding
contract,  written  or  oral,  with  any  officer,  employee, agent, consultant,
advisor,  salesman,  manufacturer's  representative,  distributor,  dealer,
subcontractor, or broker that is not cancelable by the Cotton Group Companies on
notice  of  not  longer  than thirty (30) days and without liability, penalty or
premium  of  any  kind,  except  liabilities which arise as a matter of law upon
termination  of  employment,  or  any agreement or arrangement providing for the
payment  of  any  bonus  or  commission  based  on  sales  or  earnings;

          (b)     The  Cotton  Group  Companies  are  not under any liability or
obligation  under  any  agreement  pursuant  to  which  third  parties have been
provided with products that can be returned to the Cotton Group Companies in the
event  they are not sold and which could involve a liability of the Cotton Group
Companies  of  $25,000  or  more  in  the  aggregate;

          (c)     The  Cotton  Group  Companies  do not have (i) any outstanding
loan  or  loan  commitment  (excluding credit extended in the Ordinary Course of
Business  to  purchasers of job materials) to any person, or (ii) any factoring,
credit  line  or  subordination  agreement;

          (d)     Except as noted on SCHEDULE 4.11 (Indebtedness) and except for
                                     -------------
negotiable instruments in the process of collection,  the Cotton Group Companies
do  not  have  any  power of attorney outstanding or any contract, commitment or
liability  (whether  absolute,  accrued, contingent or otherwise), as guarantor,
surety,  co-signer, endorser, co-maker, indemnitor in respect of the contract or
commitment  of  any  other  person,  corporation,  partnership,  joint  venture,
association,  organization  or  other  entity;

          (e)     There  are  no  contracts  or  agreements  with  any director,
officer,  partner or shareholder of any Cotton Group Company, or with any person
related  to  any  such person or with any company or other organization in which
any  director,  officer,  partner or shareholder of any Cotton Group Company, or
anyone  related to any such person, has a direct or indirect financial interest;

                                     - 22 -
<PAGE>
          (f)     The  Cotton Group Companies are not subject to any contract or
agreement  containing covenants limiting the freedom of any Cotton Group Company
to  compete  in  any  line  of  business in any geographic area or requiring any
Cotton  Group  Company  to  share  any  profits;

          (g)     There is no contract, agreement or other arrangement entitling
any  person or other entity to any profits, revenues or cash flows of any Cotton
Group  Company  or  requiring  any payments or other distributions based on such
profits,  revenues  or  cash  flows;  and

          (h)     To  the Knowledge of the Cotton Group Companies or any Seller,
no  Cotton  Group  Company is a party to or bound by any presently or previously
existing  contract,  agreement  or  other arrangement that has had or may in the
future  have  a Material Adverse Effect upon the Cotton Group Business, earnings
or  financial  condition  of  any  Cotton  Group  Company.

The  Cotton  Group  Companies have made available to Purchaser true, correct and
complete  copies  of  all  contracts,  agreements,  plans,  leases, policies and
licenses  referred  to, or required to be referred to or listed on, any Schedule
delivered  hereunder.

     4.24     AGREEMENTS  IN  FULL FORCE AND EFFECT.  All contracts, agreements,
              -------------------------------------
plans, leases, policies and licenses referred to, or required to be referred to,
on any Schedule delivered hereunder are valid and binding, and are in full force
and  effect  and  are  enforceable in accordance with their terms, except to the
extent that the validity or enforceability thereof may be limited by bankruptcy,
insolvency,  reorganization  and  other similar laws affecting creditors' rights
generally  or  by  principles of equity.  Neither the Cotton Group Companies nor
any Seller has any Knowledge of any pending or threatened bankruptcy, insolvency
or similar proceeding with respect to any party to such agreements, and no event
has  occurred  which  (whether  with  or  without  notice,  lapse of time or the
happening  or  occurrence  of  any  other  event)  would  constitute  a  default
thereunder  by  any Cotton Group Company or to the Knowledge of the Cotton Group
Companies  or  any  Seller  any  other  party  thereto.

     4.25     ABSENCE  OF  CERTAIN  CHANGES  AND EVENTS.  Except as set forth in
              -----------------------------------------
SCHEDULE 4.25, since the Interim Balance Sheet Date,  the Cotton Group Companies
-------------
have  operated  only  in  the  Ordinary  Course  of  Business,  and  have  not:

          (a)     suffered  any  material  damage  or  destruction  adversely
affecting  any asset of the Cotton Group Companies or the Cotton Group Business;

          (b)     made any declaration, setting aside or payment of any dividend
or  other  distribution  of  assets  (whether  in  cash, stock or property) with
respect  to  the  Cotton Equity Interests, or any direct or indirect redemption,
purchase  or  other  acquisition of stock or equity interests, or otherwise made
any  payment  of  cash  or  any  transfer of other assets, to the Sellers or any
Cotton  Group  Company;

          (c)     suffered any Material Adverse Change in their working capital,
assets,  liabilities,  financial condition, business prospects, or relationships
with  any  suppliers  or  customers  listed  on  SCHEDULE  4.22;
                                                 --------------

          (d)     except  for  customary  increases  based on term of service or
regular promotion of non-officer employees, increased (or announced any increase
in)  the  compensation

                                     - 23 -
<PAGE>
payable  or  to  become  payable to any employee, or increased (or announced any
increase  in)  any  bonus,  insurance,  pension  or other employee benefit plan,
payment  or  arrangement  for  such  employees,  or  entered into or amended any
employment,  consulting,  severance  or  similar  agreement;

          (e)     incurred,  assumed  or  guaranteed any liability or obligation
(absolute,  accrued,  contingent or otherwise) other than in the Ordinary Course
of  Business;

          (f)     paid, discharged, satisfied or renewed any claim, liability or
obligation  other  than  payment  in  the  Ordinary  Course  of  Business;

          (g)     permitted any of their assets to be subjected to any mortgage,
lien,  security  interest,  restriction, charge or other encumbrance of any kind
except  for  Permitted  Liens;

          (h)     cancelled or forgiven any indebtedness or otherwise waived any
material  claims  or  rights;

          (i)     sold,  transferred  or  otherwise  disposed  of  any  of their
assets,  except  in  the  Ordinary  Course  of  Business;

          (j)     made any single capital expenditure or investment in excess of
$100,000.00;

          (k)     made  any  change  in  any  method,  practice  or principle of
financial  or  tax  accounting;

          (l)     managed  working  capital  components,  including  cash,
receivables,  other current assets, trade payables and other current liabilities
in  a  fashion  inconsistent  with  past  practice,  including  failing  to sell
inventory and other property in an orderly and prudent manner or failing to make
all  budgeted  and  other normal capital expenditures, repairs, improvements and
dispositions;

          (m)     paid,  loaned, advanced, sold, transferred or leased any asset
to  any  employee, except for normal compensation involving salary and benefits;

          (n)     issued  or  sold  any  of their equity interests or issued any
warrant,  option  or  other  right to purchase equity interests, or any security
convertible  into  equity  interests;

          (o)     entered  into  any  material  commitment or transaction, other
than in the Ordinary Course of Business, affecting the Cotton Group Business; or

          (p)     agreed  in writing, or otherwise, to take any action described
in  this  Section.

     4.26     ACCOUNTS  RECEIVABLE.
              --------------------

          (a)     All  accounts  receivable  owed to any Cotton Group Company by
any  director,  officer,  shareholder or employee of any Cotton Group Company or
any  relative  of  any

                                     - 24 -
<PAGE>
such  person  (including  those  accounts  receivable  reflected  on the Interim
Balance Sheets and incurred since the Interim Balance Sheet Date) have been paid
in  full  prior  to the date hereof or shall have been paid in full prior to the
Closing  Date,  except  for  the  promissory notes described on SCHEDULE 4.26(a)
                                                                ----------------
which  are  to  be  paid  at  or  immediately  following  the  Closing.

          (b)     All  accounts receivable of the Cotton Group Companies (i) are
valid,  existing  and  fully  collectible  (subject to an allowance for doubtful
accounts  in  the  amount set forth on the Final Statement of Net Worth) without
resort  to  legal  proceedings or collection agencies, (ii) represent monies due
for goods sold or services rendered in the Ordinary Course of Business except as
shown  on  SCHEDULE  4.26(b),  and  (iii) are not subject to any known defenses,
           -----------------
rights  of  set-off,  assignment,  restrictions,  security  interests  or  other
encumbrances,  except as shown on SCHEDULE 4.26(b).  Except as shown on SCHEDULE
                                  ----------------                      --------
4.26(b),  as  of  the  date  of such Schedule, all such accounts receivable were
-------
current,  and  the Cotton Group Companies are not aware of any dispute regarding
the  collectibility  of any such accounts receivable.  All reserves shown on the
Financial  Statements  are  adequate to cover all losses giving rise to any such
reserve.

     4.27     TAX  MATTERS.
              ------------

          (a)     Definitions.  For  purposes  of  this Agreement, the following
                  -----------
definitions  shall  apply:

               (i)     The  term  "Taxes"  shall  mean  all  Taxes,  however
                                   -----
denominated,  including  any  interest, penalties or other additions to Tax that
may  become  payable  in  respect  thereof, imposed by any federal, territorial,
state, local or foreign government or any agency or political subdivision of any
such  government,  which Taxes shall include, without limiting the generality of
the  foregoing,  all income or profits Taxes (including federal income Taxes and
state  income  Taxes),  payroll  and  employee  withholding  Taxes, unemployment
insurance,  social security Taxes, sales and use Taxes, ad valorem Taxes, excise
Taxes, franchise Taxes, gross receipts Taxes, business license Taxes, occupation
Taxes,  real  and  personal  property  Taxes,  stamp Taxes, environmental Taxes,
transfer  Taxes,  workers'  compensation,  Pension  Benefit Guaranty Corporation
premiums and other governmental charges, and other obligations of the same or of
a  similar  nature  to  any  of the foregoing, which any Cotton Group Company is
required  to  pay,  withhold  or  collect.

               (ii)     The  term  "Returns"  shall mean all reports, estimates,
                                    -------
declarations  of  estimated Tax, information statements and returns relating to,
or  required  to  be  filed in connection with, any Taxes, including information
returns  or  reports  with  respect  to backup withholding and other payments to
third  parties.

          (b)     Returns  Filed  and Taxes Paid.  Except as otherwise disclosed
                  ------------------------------
in SCHEDULE 4.27(b): (i) all Returns required to be filed by or on behalf of any
   ----------------
Cotton Group Company have been duly filed on a timely basis and such Returns are
true,  complete  and  correct  in all material respects, (ii) all material Taxes
shown  to  be  payable  on the Returns or on subsequent assessments with respect
thereto  have  been  paid in full on a timely basis, and no other material Taxes
are payable by any Cotton Group Company with respect to items or periods covered
by  such Returns (whether or not shown on or reportable on such Returns) or with
respect

                                     - 25 -
<PAGE>
to  any  period  prior  to  the  date of this Agreement, (iii) each Cotton Group
Company  has withheld and paid over all Taxes required to have been withheld and
paid  over,  and  complied with all information reporting and backup withholding
requirements, including maintenance of required records with respect thereto, in
connection  with  amounts  paid  or owing to any employee, creditor, independent
contractor,  or  other  third  party,  and (iv) there are no liens on any of the
assets  of  any Cotton Group Company with respect to Taxes, other than liens for
Taxes  not  yet  due  and  payable or for Taxes that any Cotton Group Company is
contesting  in  good  faith  through  appropriate  proceedings  and  for  which
appropriate  reserves have been established, which contested Taxes are disclosed
in  SCHEDULE  4.27(b).
    -----------------

          (c)     Tax  Deficiencies; Audits; Statutes of Limitations.  Except as
                  --------------------------------------------------
otherwise  disclosed  in SCHEDULE 4.27(c):  (i) the Returns of  the Cotton Group
                         ----------------
Companies  have  never  been audited by a government or Taxing authority, nor is
any such audit in process, pending or threatened (either in writing or verbally,
formally  or  informally),  (ii)  no  deficiencies  exist  or have been asserted
(either  in  writing  or verbally, formally or informally) or are expected to be
asserted  with respect to Taxes of any Cotton Group Company, and no Cotton Group
Company  has  received  notice  (either  in  writing  or  verbally,  formally or
informally)  or expects to receive notice that it has not filed a Return or paid
Taxes  required  to  be  filed  or  paid by it, (iii) no Cotton Group Company is
either  a  party  to  any  action  or proceeding for assessment or collection of
Taxes,  nor  has  such  event  been asserted or threatened (either in writing or
verbally,  formally  or  informally)  against any Cotton Group Company or any of
their  assets,  (iv)  no waiver or extension of any statute of limitations is in
effect  with  respect  to  Taxes or Returns of any Cotton Group Company, and (v)
each  Cotton  Group  Company has disclosed on its federal income Tax Returns all
positions  taken  therein  that  could give rise to a substantial understatement
penalty  within  the  meaning  of  Code  Section  6662.

          (d)     Tax  Sharing  Agreements.  Except  as  otherwise  disclosed in
                  ------------------------
SCHEDULE  4.27(d)  no  Cotton Group Company is (or has ever been) a party to any
----------------
Tax  sharing agreement or otherwise has any liability for the Taxes of any other
Person.

          (e)     Tax Elections and Special Tax Status.  No Cotton Group Company
                  ------------------------------------
has  filed  a consent pursuant to the collapsible corporation provisions of Code
Section  341(f).  No  Cotton  Group  Company is a party to any safe harbor lease
within the meaning of Code Section 168(f)(8), as in effect prior to amendment by
the  Tax Equity and Fiscal Responsibility Act of 1982.   No Cotton Group Company
is  or  has  been  a  United States real property holding corporation within the
meaning  of Code Section 897(c)(1)(A)(ii) during the applicable period specified
in  Code Section 897(c)(1)(A)(ii).  No Cotton Group Company has entered into any
compensatory  agreements  with  respect  to  the  performance  of services which
payment  thereunder  would  be  a nondeductible expense pursuant to Code Section
162(m)  or  280G  or  subject to an excise Tax to the recipient pursuant to Code
Section  4999.  No  Cotton  Group  Company has been a "distributing corporation"
(within  the  meaning  of  Code  Section  355(a)(1)(A)) within the 3-year period
ending  as  of  the  date  of  this  Agreement.  No  Cotton  Group  Company  has
participated in an international boycott as defined in Code Section 999.  Except
as  set  forth  on SCHEDULE 4.27(e), no Cotton Group Company has agreed to make,
                   ----------------
nor  is  required  to make, any adjustment under Code Sections 263A or 481(a) by
reason  of a change in accounting method or otherwise) or an election under Code
Section  1377(a)(2).  No  Cotton  Group Company has a permanent establishment in
any  foreign  country,  as  defined  in  any applicable Tax treaty or convention

                                     - 26 -
<PAGE>
between  the  United States and such foreign country.  Each Cotton Group Company
is in compliance with the terms and conditions of all applicable Tax exemptions,
Tax  agreements  or  Tax  orders of any government to which it may be subject or
which  it  may have claimed, and the transactions contemplated by this Agreement
will not have any adverse effect on such compliance.  No Cotton Group Company is
a  party  to  any  transaction,  understanding  or  arrangement  treated  as  a
reportable,  listed  or  substantially  similar  transaction  as  defined in the
Treasury  Regulations  promulgated  under  Code  Section  6011

          (f)     Tax Claims.     No claim has been made by any Taxing authority
                  ----------
in  a jurisdiction where the Cotton Group Companies do not file Returns that any
Cotton  Group  Company  is or may be subject to taxation by, or required to file
any  Return  in,  that  jurisdiction.

          (g)     S Corporation Status.  Since November 1, 2001, Cotton Holdings
                  --------------------
has  been and is currently a valid "S" corporation for all federal and state Tax
purposes  (and  will  be  up  to  the Closing Date), and no Taxing Authority has
challenged,  or  is  challenging,  the  S  election  of  Cotton  Holdings.

     4.28     BROKERAGE.  No  broker,  agent, or finder has rendered services to
              ---------
the  Cotton  Group  Companies or the Sellers in connection with the transactions
contemplated under this Agreement.  The Cotton Group Companies have not incurred
any  obligation  or liability, contingent or otherwise, for brokers' or finders'
fees  or  agents  commissions  or other similar payments in connection with this
Agreement  or  the  transactions  contemplated  hereby.

     4.29     DISCLOSURE.  No  representations,  warranties,  assurances  or
              ----------
statements by the Sellers or the Cotton Group Companies in this Agreement and no
statement  contained in any document (including the Financial Statements and the
Schedules),  certificates  or other writings furnished or to be furnished by the
Sellers  or the Cotton Group Companies (or caused to be furnished by the Sellers
or  the  Cotton  Group  Companies)  to  Purchaser  or any of its representatives
pursuant  to the provisions hereof contains or will contain any untrue statement
of material fact, or omits or will omit to state any fact necessary, in light of
the  circumstances  under  which  it  was  made, in order to make the statements
herein  or  therein  not  misleading.

                                   ARTICLE V.
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER
                   -------------------------------------------

     Purchaser  hereby  represents  and  warrants  to  the  Sellers  as follows:

     5.01     ORGANIZATION.  Purchaser  is a corporation duly organized, validly
              ------------
existing  and  in  good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to carry on and conduct its business
as  it is now being conducted and to own or lease its properties and assets, and
to  effect  the transactions contemplated hereunder and is duly qualified and in
good  standing  in  each  jurisdiction  in  which the conduct of the business of
Purchaser  or  the  ownership  of its properties and assets requires it to be so
qualified, except where the failure to be so qualified or in such good standing,
or  to  have  such  power  or  authority when taken together with all other such
failures,  is not reasonably likely to have a Purchaser Material Adverse Effect.
As  used in this Agreement, the term "Purchaser Material Adverse Effect" means a
                                      ---------------------------------
material  adverse  effect  on  the  financial condition, properties, business or
results  of  operation  of  Purchaser

                                     - 27 -
<PAGE>
and  its  subsidiaries taken as a whole; provided, however, that any such effect
                                         --------  -------
resulting  from  any  change  (i)  in  law,  rule  or  regulation  or  GAAP  or
interpretations  thereof  that  applies  to  Purchaser  or  (ii)  in economic or
business  conditions  generally  or  in  the  industries  in which the Purchaser
conducts  its  business  shall not be considered when determining if a Purchaser
Material  Adverse  Effect  has  occurred.

     5.02     AUTHORIZATION.  Purchaser  has  the  right,  power and capacity to
              -------------
execute,  deliver  and perform this Agreement and to consummate the transactions
contemplated hereby.  The execution, delivery and performance of this Agreement,
and the consummation of the transactions contemplated hereby, have been duly and
validly  authorized  by all necessary corporate action on the part of Purchaser.
This Agreement has been duly and validly executed and delivered by Purchaser and
constitutes  Purchaser's  legal,  valid  and  binding obligation, enforceable in
accordance  with  its  terms.

     5.03     NO  CONFLICT.  The  execution  and  delivery  of this Agreement by
              ------------
Purchaser,  the  consummation  of  the transactions contemplated herein, and the
performance  of  the  covenants  and  agreements  of Purchaser will not, with or
without  the  giving  of  notice  or  the lapse of time, or both, (a) violate or
conflict  with  any  of  the  provisions  of  any  charter  document or bylaw of
Purchaser,  (b)  violate,  conflict  with  or result in breach or default under,
result in the acceleration of any obligations or the creation of a lien, pledge,
security  interest  or other encumbrance on the assets of Purchaser pursuant to,
or cause termination of any term or condition of any mortgage, lease, indenture,
notes,  contract,  license,  permit,  instrument,  trust  document,  or  other
agreement, arrangement, obligation, document or instrument to which Purchaser is
a  party  or  by  which  Purchaser or any of its properties may be bound, or (c)
violate  any  provision of law, statute, rule, regulation, court order, judgment
or  decree,  or  ruling  of  any governmental authority, to which Purchaser is a
party  or  by  which  Purchaser  or  its  properties  may  be  bound.

     5.04     SEC  DOCUMENTS;  AGREEMENTS;  FINANCIAL  STATEMENTS;  OTHER
              -----------------------------------------------------------
INFORMATION.  The  Purchaser  is  subject  to  the reporting requirements of the
Exchange  Act  and  has  filed  with  the  Commission  all  reports,  schedules,
registration  statements  and definitive proxy statements that the Purchaser was
required  to  file with the Commission on or after April 30, 2006 (collectively,
the  "SEC  Documents").  Each SEC Document, as of the date of the filing thereof
      --------------
with  the Commission, complied in all material respects with the requirements of
the Securities Act or Exchange Act, as applicable, and the rules and regulations
promulgated  thereunder  and,  as  of  the date of such filing (or if amended or
superseded  by a filing prior to the date of this Agreement, then on the date of
such  filing),  such  SEC Document (including all exhibits and schedules thereto
and  documents  incorporated  by  reference  therein)  did not contain an untrue
statement  of  material  fact  or  omit  to state a material fact required to be
stated  therein  or  necessary  to  make the statements therein, in light of the
circumstances  under  which  they  were  made,  not  misleading.  All  documents
required  to  be  filed  as  exhibits  to  the  SEC Documents have been filed as
required.  As  of  their  respective  dates,  the  financial  statements  of the
Purchaser  included  in  the  SEC  Documents complied as to form in all material
respects  with  applicable  accounting  requirements and the published rules and
regulations  of  the  Commission with respect thereto. Such financial statements
have been prepared in accordance with GAAP consistently applied at the times and
during  the  periods  involved (except (i) as may be otherwise indicated in such
financial  statements  or  the  notes  thereto, or (ii) in the case of unaudited
interim statements, to the extent they may exclude footnotes or may be condensed
or summary statements) and fairly present in all material respects the financial
position  of  the  Purchaser  as  of  the

                                     - 28 -
<PAGE>
dates  thereof  and the results of its operations and cash flows for the periods
then  ended  (subject,  in  the case of unaudited statements, to normal year-end
adjustments).

     5.05     CAPITALIZATION.  The  capitalization  of  the  Purchaser as of the
              --------------
date hereof, including its authorized capital stock, the number of shares issued
and  outstanding,  the  number  of  shares  issuable  and  reserved for issuance
pursuant  to  the  Purchaser's  stock  option  plans,  and  the number of shares
issuable  and  reserved  for issuance pursuant to securities exercisable for, or
convertible  into or exchangeable for any shares of Common Stock is set forth on
Schedule  5.05  hereto.  All  of  such  outstanding shares of capital stock have
--------------
been,  or  upon issuance will be, validly issued, fully paid and non-assessable.
The  Purchaser  owns  all of the capital stock of each Subsidiary, which capital
stock  is  validly  issued,  fully paid and non-assessable, and no shares of the
capital  stock  of  the  Purchaser  or  any  of  its Subsidiaries are subject to
preemptive  rights  or  any  other  similar  rights  of  the stockholders of the
Purchaser  or any such Subsidiary or any encumbrances or other liens of any kind
created  by  or  through  the  Purchaser  or  any  such  Subsidiary.

     5.06     REPORTING  COMPANY.  The  Purchaser  is  subject  to the reporting
              ------------------
requirements  of  the  Exchange  Act, has a class of securities registered under
Section 12 of the Exchange Act, and has filed all reports required thereby.  The
Purchaser  is  eligible  to  register the Common Stock for resale in a secondary
offering  by  each  Seller  on a registration statement on Form SB-2 pursuant to
Rule  415  under  the  Securities  Act.

     5.07     FINANCIAL  CONDITION;  TAXES;  LITIGATION.
              -----------------------------------------

          (a)     Except  as  disclosed on Schedule 5.07 hereto, the Purchaser's
                                           -------------
financial  condition  is,  in  all  material  respects,  as described in the SEC
Documents,  except  for  changes  in  the ordinary course of business and normal
year-end  adjustments  that are not, in the aggregate, materially adverse to the
consolidated  business  or  financial  condition  of  the  Purchaser  and  its
Subsidiaries  taken  as  a  whole.  Except  as  otherwise  described  in the SEC
Documents,  there  has  been  no  (i) material adverse change to the Purchaser's
business,  operations,  properties, financial condition, prospects or results of
operations  since  the  date  of  the  Purchaser's most recent audited financial
statements contained in the SEC Documents or (ii) change by the Purchaser in its
accounting  principles,  policies  and  methods except as required by changes in
GAAP.

          (b)     The  Purchaser  and  each  of its Subsidiaries has prepared in
good  faith and duly and timely filed all tax returns required to be filed by it
and  such  returns  are  complete  and accurate in all material respects and the
Purchaser  and each of its Subsidiaries has paid all taxes required to have been
paid  by  it, except for taxes which it reasonably disputes in good faith or the
failure  of which to pay has not had or would not reasonably be expected to have
a  Purchaser  Material  Adverse  Effect.  Neither  the  Purchaser nor any of its
Subsidiaries has any material liability with respect to taxes that accrued on or
before  September 30, 2003 in excess of the amounts accrued with respect thereto
that  are  reflected  in  the financial statements included in the SEC Documents
filed  prior  to  the  date  hereof.

          (c)     Neither  the  Purchaser  nor  any  of  its Subsidiaries is the
subject  of  any  pending  or, to the Purchaser's Knowledge, threatened inquiry,
investigation  or  administrative  or  legal  proceeding by the Internal Revenue
Service,  the  taxing  authorities  of  any  state  or  local

                                     - 29 -
<PAGE>
jurisdiction, the Commission, the NASD, any state securities commission or other
governmental  authority.

          (d)     Except as described in the SEC Documents, there is no material
claim,  litigation  or administrative proceeding pending, or, to the Purchaser's
Knowledge,  threatened  or  contemplated,  against  the  Purchaser or any of its
Subsidiaries,  or  against any officer, director or employee of the Purchaser or
any  such  Subsidiary  in  connection  with  such person's employment therewith.
Neither  the  Purchaser  nor any of its Subsidiaries is a party to or subject to
the  provisions of, any order, writ, injunction, judgment or decree of any court
or  government  agency  or  instrumentality  that has had or would reasonably be
expected  to  have  a  Parent  Material  Adverse  Effect.

     5.08     LISTING.  The Purchaser Stock is traded on the OTC Bulletin Board.
              -------
The  Purchaser  currently  meets  the  continuing  eligibility  requirements for
listing  on  the OTC Bulletin Board and has not received any notice from the OTC
Bulletin  Board that it may not currently satisfy such requirements or that such
continued  listing  is in any way threatened.  The Purchaser has taken no action
designed  to, or which, to the Knowledge of the Purchaser, is likely to have the
effect  of,  terminating the registration of the Common Stock under the Exchange
Act  or  removing  the  Purchaser  Stock  from  the  OTC  Bulletin  Board.

     5.09     FINANCING.  Purchaser  has  or  will  have  available, immediately
              ---------
prior to and on the Closing Date, sufficient cash in immediately available funds
to  pay  the  aggregate  Cash  Consideration  (including  the  Closing Date Cash
Consideration  and  the highest possible amount of Final Determination Date Cash
Consideration  payable  to Sellers) pursuant to Article II and to consummate, on
                                                ----------
the  terms  contemplated  hereby,  the  other  transactions contemplated hereby.

     5.10     BROKERAGE.  No  broker,  agent  or finder has rendered services to
              ---------
Purchaser in connection with the transactions contemplated under this Agreement.

     5.11     DISCLOSURE.  No  representations,  warranties,  assurances  or
              ----------
statements  by  Purchaser  in  this  Agreement and no statement contained in any
document,  certificates  or  other  writings  furnished  or  to  be furnished by
Purchaser  (or  caused  to  be  furnished by Purchaser) to the Sellers or any of
their representatives pursuant to the provisions hereof contains or will contain
any  untrue  statement of material fact, or omits or will omit to state any fact
necessary,  in  light  of the circumstances under which it was made, in order to
make  the  statements  herein  or  therein  not  misleading.

     5.12     PURCHASER STOCK. The  shares  of  Purchaser Stock, when issued and
              --------------
delivered  to  the  Sellers  in  accordance with the terms hereof, shall be duly
authorized,  validly  issued,  fully-paid  and  non-assessable.

                                   ARTICLE VI.
                                    COVENANTS
                                    ---------

     6.01     OPERATIONS  OF  THECOTTON  GROUP  COMPANIES.   The  Cotton  Group
              -------------------------------------------
Companies and the Sellers hereby covenant and agree that, except as consented to
in writing by Purchaser, from and after the date hereof and prior to the Closing
Date,  the Cotton Group Companies shall, and the Sellers shall cause  the Cotton
Group  Companies  to,  operate  and  conduct  their  businesses

                                     - 30 -
<PAGE>
only in the Ordinary Course of Business.  Pursuant thereto and not in limitation
of  the foregoing, except as otherwise expressly contemplated by this Agreement,
from  and  after the date hereof and prior to the Closing Date, the Cotton Group
Companies  shall:

          (a)     use  Commercially  Reasonable  Efforts  to preserve intact the
goodwill  and  business  organization  of  the  Cotton Group Companies, keep the
officers and employees of  the Cotton Group Companies available to Purchaser and
preserve  the  relationships  and  goodwill  of  the Cotton Group Companies with
customers,  distributors,  suppliers,  employees  and  other persons or entities
having  business  relations  with  the  Cotton  Group  Companies;

          (b)     maintain  their  existence  and  good  standing  in  their
jurisdictions  of  organization  and  in  each  jurisdiction  listed on SCHEDULE
                                                                        --------
4.01(a);
-------

          (c)     duly  and  timely  file  or  cause to be filed all reports and
returns  required  to  be filed with any Governmental Entity and promptly pay or
cause  to  be  paid  when  due  all taxes, assessments and governmental charges,
including  interest  and  penalties levied or assessed, unless contested in good
faith  by  appropriate  proceedings;

          (d)     maintain  in  existing condition and repair (ordinary wear and
tear  excepted),  consistent  with past practices, all buildings, offices, shops
and  other  structures located on the Real Property, and all equipment, fixtures
and  other  tangible  personal  property  located  on  the  Real  Property;

          (e)     not  authorize  for  issuance, issue or deliver any additional
equity  interests  or  securities  convertible  into  or exchangeable for equity
interests  of  any  Cotton Group Company, or issue or grant any right, option or
other  commitment  for  the issuance of thereof, or split, combine or reclassify
any  equity  interests  of  any  Cotton  Group  Company;

          (f)     not  amend  or  modify  its charter documents, bylaws, limited
liability  company  agreements,  operating agreements or partnership agreements;

          (g)     not  create any subsidiary, acquire any capital stock or other
equity securities of any corporation or acquire any equity or ownership interest
in  any  business  or  entity;

          (h)     not  dispose  of or permit to lapse any ownership and/or right
to  the  use  of  any  patent,  trademark,  trade name, service mark, license or
copyright  of  the  Cotton  Group  Companies  (including any of the Intellectual
Property),  or dispose of or disclose to any person or entity, any trade secret,
formula,  process,  technology  or  know-how  of  the Cotton Group Companies not
heretofore  a  matter  of  public  knowledge;

          (i)     protect,  defend  and  maintain  the  ownership,  validity and
registration  of  the Intellectual Property, and not allow any of the registered
Intellectual  Property  to  be  abandoned, forfeited, cancelled, expunged and/or
dedicated  to  the  public;

          (j)     not  (i)  sell  any asset of the Cotton Group Companies, other
than  in  the  Ordinary  Course  of  Business,  (ii) create, incur or assume any
indebtedness  secured  by the assets of the Cotton Group Companies, (iii) grant,
create,  incur  or  suffer  to  exist  any  lien  or

                                     - 31 -
<PAGE>
encumbrance  on  the  assets of the Cotton Group Companies that did not exist on
the  date  hereof,  (iv) incur any liability or obligation (absolute, accrued or
contingent),  except  in  the  Ordinary  Course  of  Business, (v) write-off any
guaranteed  check,  note or account receivable, except in the Ordinary Course of
Business,  (vi)  write-down  the value of any asset or investment (including any
asset of the Cotton Group Companies) on the books or records of the Cotton Group
Companies,  except  for  depreciation and amortization in the Ordinary Course of
Business,  (vii)  cancel  any  debt or waive any claim or right, (viii) make any
commitment  for  any  capital  expenditure  to  be made on or following the date
hereof  in  excess of $100,000.00, or (ix) enter into any contract or commitment
which  imposes,  or  purports  to impose, any obligations or restrictions on any
Cotton  Group  Company;

          (k)     not  increase in any manner the compensation of, or enter into
any  new  bonus  or  incentive  agreement  or  arrangement  with,  any  of their
employees,  officers, directors or consultants, except in the Ordinary Course of
Business;  provided, however, that the Cotton Group Companies shall not take any
           --------  -------
action  described  in  this  Section  6.01(l)  with  respect to (i) any manager,
                             ----------------
officer  or  director  of  the  Cotton  Group Companies or (ii) any person whose
annualized  compensation  is $50,000.00 or more or whose annual compensation for
the  twelve  (12)-month  period  following  the  Closing  Date is expected to be
$50,000.00  or  more;

          (l)     not  pay  or  agree  to pay any additional pension, retirement
allowance  or  other employee benefit under any Employee Benefit Plans to any of
its  employees  or  consultants, whether past or present, except in the Ordinary
Course of Business; provided, however, that the Cotton Group Companies shall not
                    --------  -------
take  any  action  described  in  this  Section  6.01(m) with respect to (i) any
                                        ----------------
manager,  officer  or  director of the Cotton Group Companies or (ii) any person
whose annualized compensation is $50,000.00 or more or whose annual compensation
for  the  twelve  (12) month period following the Closing Date is expected to be
$50,000.00  or  more;

          (m)     except  as  required  by  applicable laws, not adopt, amend or
terminate  any Employee Benefit Plan or increase the benefits provided under any
Employee Benefit Plan, or promise or commit to undertake any of the foregoing in
the  future;

          (n)     not  enter  into  a  collective  bargaining  agreement;

          (o)     not  enter  into any employment agreement contemplating annual
compensation  for  the  twelve  (12)  month period following the Closing Date of
$50,000.00  or  more;

          (p)     not  settle  or compromise any legal proceedings related to or
in  connection  with  the  Cotton  Group  Companies or the Cotton Group Business
without  consultation  with  the  Purchaser;

          (q)     maintain  supplies  and  inventory  at  levels that are in the
Ordinary  Course  of  Business;

          (r)     continue  to  extend  customers  credit,  collect  accounts
receivable  and  pay  accounts  payable  and similar obligations in the Ordinary
Course  of  Business;

                                     - 32 -
<PAGE>
          (s)     perform  in  all  material  respects  all of their obligations
under  all  contracts  and  commitments,  and not default or suffer to exist any
event  or condition that with notice or lapse of time or both could constitute a
default under any such contracts or commitments (except those being contested in
good faith) and not enter into, assume or amend any contract or commitment other
than  in  the  Ordinary  Course  of  Business;

          (t)     not  pay,  discharge  or  satisfy  any  claim,  liability  or
obligation (absolute, contingent or otherwise) other than the payment, discharge
or  satisfaction  in  the Ordinary Course of Business of claims, liabilities and
obligations  reflected  or  reserved  against  in  the  Interim Balance Sheet or
incurred  in  the  Ordinary  Course  of  Business;

          (u)     not  increase  any  reserves  for  contingent  liabilities
(excluding  any  adjustment  to  bad  debt  reserves  in  the Ordinary Course of
Business);

          (v)     maintain  in  full  force  and  effect and in the same amounts
policies  of  insurance  comparable  in  amount  and  scope  of coverage to that
maintained  as of the date hereof by or on behalf of the Cotton Group Companies;

          (w)     continue  to  maintain  their  books and records in accordance
with  GAAP  consistently  applied  and on a basis consistent with past practice;

          (x)     continue  their  cash  management  practices  in  the Ordinary
Course  of  Business;  and

          (y)     not  authorize,  or  commit  or  agree  to  take,  any  of the
foregoing  actions,  which  the  Cotton Group Companies are required not to take
without  Purchaser's  prior  written  consent.

In  connection with the continued operation of the Cotton Group Companies during
the  period  commencing  on  the date hereof and ending on the Closing Date, the
Cotton  Group  Companies and the Sellers shall confer in good faith on a regular
and  frequent basis with Purchaser regarding operational matters and the general
status  of on-going operations of the Cotton Group Companies.   The Cotton Group
Companies  and  the Sellers hereby acknowledge that Purchaser does not and shall
not  waive  any  right  it  may  have  hereunder  solely  as  a  result  of such
consultations.  Neither  the  Sellers  nor the Cotton Group Companies shall take
any  action  that  would, or that could reasonably be expected to, result in any
representation  or  warranty  of  the  Sellers or the Cotton Group Companies set
forth  herein  to  become  untrue.

     6.02     ACCESS.  During  the  period  from  and  after the date hereof and
              ------
prior  to  the  Closing  Date, the Cotton Group Companies shall, and the Sellers
shall  cause  the  Cotton  Group  Companies  to,  (a)  provide Purchaser and its
designees (e.g., officers, counsel, accountants, actuaries, and other authorized
representatives)  with  such  information as Purchaser or its designees may from
time  to  time reasonably request with respect to the Cotton Group Companies and
the  transactions  contemplated by this Agreement, (b) provide Purchaser and its
designees,  access  during  regular business hours and upon reasonable notice to
the  books,  records,  offices, personnel, counsel, accountants and actuaries of
the  Cotton Group Companies, as Purchaser or its designees may from time to time
reasonably  request,  and  (c)  permit  Purchaser and its designees to make such
inspections  thereof  as  Purchaser  may  reasonably  request.  Any

                                     - 33 -
<PAGE>
investigation  shall  be  conducted  in  such  a  manner  so as not to interfere
unreasonably  with  the operation of the business of the Cotton Group Companies.
No  such  investigation  shall  limit  or  modify in any way the Sellers' or the
Cotton  Group  Companies'  obligations  with  respect  to  any  breach  of their
representations,  warranties,  covenants  or  agreements  contained  herein.

     6.03     TRANSFER  TAXES.  All  sales  or  transfer  taxes, including stock
              ---------------
transfer  taxes,  document  recording  fees,  real  property transfer taxes, and
excise  taxes,  arising  out  of  or  in connection with the consummation of the
transactions  contemplated  hereby  shall  be  paid by the Sellers.  The parties
shall  cooperate  in  the  preparation,  execution  and  filing  of all returns,
questionnaires, applications and other documents regarding any of such taxes and
all  transfer,  recording,  registration  and  other fees that become payable in
connection  with  the  transactions  contemplated  hereby  that  are required or
permitted  to  be  filed  at  or  prior  to  the  Closing  Date.

     6.04     PREPARATION  OF SUPPORTING DOCUMENTS.  In addition to such actions
              ------------------------------------
as  the  Cotton  Group  Companies  may  otherwise be required to take under this
Agreement  or  applicable  law to consummate this Agreement and the transactions
contemplated  hereby, the Sellers and the Cotton Group Companies shall take such
action,  shall  furnish  such  information,  and  shall prepare, or cooperate in
preparing,  and  execute  and  deliver  such  certificates, agreements and other
instruments as Purchaser may reasonably request from time to time, before, at or
after  the  Closing  Date,  with  respect  to  compliance  with  obligations  of
Purchaser,  the  Sellers  or  the  Cotton  Group  Companies  in  connection with
Purchaser's  purchase  of  the  Cotton  Equity  Interests from the Sellers.  Any
information  so  furnished by the Sellers or the Cotton Group Companies shall be
true,  correct  and  complete in all material respects and shall not contain any
untrue statement of a material fact or omit to state a material fact required to
be  stated  therein  or necessary to make the statements therein not misleading.

     6.05     NOTICES  OF  CERTAIN  EVENTS.  The  Sellers  and  the Cotton Group
              ----------------------------
Companies  shall  promptly  notify  Purchaser  of:

          (a)     any  fact, condition, change or event that, individually or in
the  aggregate,  results  in  any representation or warranty of the Cotton Group
Companies  or  the  Sellers  hereunder being inaccurate in any respect as of the
date  of  such  fact,  condition,  change  or  event  had such representation or
warranty  been  made  as  of  such  date;

          (b)     any  fact,  condition,  change  or  event  that  causes  or
constitutes  a  breach of any of the representations or warranties of the Cotton
Group  Companies  or  the  Sellers  hereunder  made  as  of  the  date  hereof;

          (c)     any  notice  or  other communication from any person or entity
alleging  that  the  consent  of  such person or entity is or may be required in
connection  with  the  transactions  contemplated  hereby;

          (d)     any  notice or other communication from or to any Governmental
Entity  in  connection  with  the  transactions  contemplated  hereby;

          (e)     any action, suit, claim, investigation or proceeding commenced
or,  to  the  Knowledge  of the Cotton Group Companies or any Seller, threatened
against,  relating  to  or  involving  or  otherwise  affecting the Cotton Group
Companies  or  the  Cotton  Group  Business  that,

                                     - 34 -
<PAGE>
if  pending  on the date hereof, would have been required to have been disclosed
pursuant  to Section 4.13 or that relate to the consummation of the transactions
             ------------
contemplated  hereby;  and

          (f)     (i) the damage or destruction by fire or other casualty of any
asset  of  the  Cotton  Group Companies or part thereof or (ii) any asset of the
Cotton  Group  Companies  or part thereof becoming the subject of any proceeding
(or,  to  the  Knowledge of the Cotton Group Companies or any Seller, threatened
proceeding)  for  the  taking  thereof  or  of  any  right  relating  thereto by
condemnation,  eminent  domain  or  other  similar  governmental  action.

The  Cotton  Group  Companies  and the Sellers hereby acknowledge that Purchaser
does  not and shall not waive any right it may have hereunder solely as a result
of  such notifications and any notification given pursuant to this  Section 6.05
                                                                    ------------
shall  (x)  not  have any effect for purposes of determining satisfaction of the
conditions  set  forth  in  Article IX of this Agreement, (y) be disregarded for
                            ----------
purposes  of  determining the obligations of the Sellers under Article X hereof,
                                                               ---------
and  (z)  not  in  any  way  limit Purchaser's exercise of its rights hereunder.

     6.06     SUPPLEMENTS  TO SCHEDULES.  From time to time prior to the Closing
              -------------------------
Date,  the  Cotton  Group Companies and the Sellers shall promptly supplement or
amend  the  Schedules  to  this  Agreement  with respect to any matter (a) first
existing  or  occurring after the date hereof which, if existing or occurring at
or  prior  to  such date, would have been required to be set forth in any of the
Schedules to this Agreement, or (b) that is necessary to correct any information
in  such  Schedules  that  is  inaccurate  on account thereof.  No supplement or
amendment  to  the  Schedules  shall have any effect for purposes of determining
satisfaction  of the conditions set forth in Article IX of this Agreement unless
                                             ----------
such supplement is accepted by Purchaser in writing in its sole discretion.  Any
information  contained  in any such supplement or amendment shall be disregarded
for  purposes  of  determining the obligations of the Cotton Group Companies and
the  Sellers  under  Article  X  hereof.
                     ----------

     6.07     NO  SOLICITATION  OF  TRANSACTIONS.  Neither  the  Cotton  Group
              ----------------------------------
Companies  nor  the  Sellers shall, directly or indirectly, through any officer,
director,  manager,  partner,  member  or  agent  of  any  of them or otherwise,
initiate,  solicit  or  encourage  (including  by  way  of furnishing non-public
information  or assistance), or enter into negotiations of any type, directly or
indirectly, or enter into a confidentiality agreement, letter of intent or other
similar  contract  or  commitment with any person or entity other than Purchaser
with  respect  to  a sale of all or any substantial portion of the assets of the
Cotton  Group  Companies, or a merger, consolidation, business combination, sale
of  all  or  any  substantial  portion  of  the  Cotton Equity Interests, or the
liquidation  or  similar  extraordinary  transaction  with respect to the Cotton
Group  Companies.  The  Cotton  Group  Companies  and  the  Sellers shall notify
Purchaser  orally  (within two (2) business days) and in writing (as promptly as
practicable)  of  all relevant terms of any inquiry or proposal by a third party
to  do  any of the foregoing that the Sellers, the Cotton Group Companies or any
of their officers, directors, partners, managers, employees, investment bankers,
financial  advisors, attorneys, accountants or other representatives may receive
relating  to  any  of such matters.  In the event such inquiry or proposal is in
writing, the Sellers and the Cotton Group Companies shall deliver to Purchaser a
copy  of  such  inquiry  or  proposal  together  with  such  written  notice.

                                     - 35 -
<PAGE>
     6.08     FILINGS;  OTHER  ACTIONS;  NOTIFICATION.
              ---------------------------------------

          (a)     The  Sellers and Purchaser shall cooperate with each other and
use  their  respective  Commercially  Reasonable  Efforts to take or cause to be
taken  all  actions, and do or cause to be done all things, necessary, proper or
advisable on its part under this Agreement and applicable laws to consummate and
make  effective  the  transactions  contemplated  by  this  Agreement as soon as
practicable,  including  preparing  and  filing  as  promptly as practicable all
documentation  to effect all necessary notices, reports and other filings and to
obtain  as  promptly  as  practicable  all  consents,  registrations, approvals,
permits  and authorizations necessary or advisable to be obtained from any third
party  and/or  any  Governmental  Entity in order to consummate the transactions
contemplated  by  this  Agreement.  Without  limiting  the  generality  of  the
foregoing,  the  Sellers and Purchaser have prepared and filed the notifications
required  under  the  Hart-Scott-Rodino  Antitrust  Improvements Act of 1976, as
amended  (the  "HSR Act").  Prior  to  the  Sellers'  and Purchaser's receipt of
                -------
clearance or notice of early termination from the applicable Governmental Entity
reviewing the Sellers' and Purchaser's filings made under the HSR Act, Purchaser
shall  not be entitled to, and shall not, exercise any decision making authority
or participate in any way in the management of the Cotton Group Companies except
as  provided  in Section 6.1 hereof.  Subject to applicable laws relating to the
                 -----------
exchange  of  information,  Purchaser  and  the  Sellers shall have the right to
review in advance, and to the extent practicable each will consult the other on,
all  the information relating to Purchaser or the Cotton Group Companies, as the
case may be, that appear in any filing made with, or written materials submitted
to,  any  third  party  and/or  any  Governmental  Entity in connection with the
transactions  contemplated by this Agreement. In exercising the foregoing right,
each  of  the  Sellers  and  Purchaser  shall  act reasonably and as promptly as
practicable.

          (b)     The  Sellers  and Purchaser each shall keep the other apprised
of the status of matters relating to completion of the transactions contemplated
hereby,  including  promptly furnishing the other with copies of notice or other
communications received by Purchaser, the Cotton Group Companies or the Sellers,
as  the  case  may  be, from any third party and/or any Governmental Entity with
respect to the transactions contemplated by this Agreement. Purchaser shall give
prompt  notice to the other of any change that is reasonably likely to result in
a  Purchaser  Material  Adverse  Effect.

     6.09     CONFIDENTIALITY.   The  Cotton  Group  Companies  and  the Sellers
              ---------------
shall hold in confidence at all times following the date hereof all Confidential
Information  and  shall  not  disclose,  publish  or  make  use  of Confidential
Information  at  any  time  following  the date hereof without the prior written
consent  of Purchaser.  For purposes hereunder, "Confidential Information" means
                                                 ------------------------
any  data or information of the Cotton Group Companies (including trade secrets)
that  is not generally known to the public or competitors regarding (for example
and  including)  (a)  business  process  models,  (b)  proprietary software, (c)
research,  development,  products, services, marketing, selling, business plans,
budgets,  unpublished  financial statements, licenses, prices, costs, contracts,
suppliers,  customers,  and  customer  lists,  (d)  the  identity,  skills  and
compensation  of  employees,  contractors,  and  consultants,  (e)  specialized
training,  (f)  discoveries,  developments,  trade secrets, processes, formulas,
data,  lists,  and  all  other works of authorship, mask works, ideas, concepts,
know-how, designs, and techniques, whether or not any of the foregoing is or are
patentable,  copyrightable,  or registrable under any intellectual property laws
or  industrial  property  laws  in  the United States or elsewhere, and (g) such
other

                                     - 36 -
<PAGE>
information  that  may  give  the  Cotton Group Companies a competitive business
advantage  or  the  disclosure of which could be detrimental to the interests of
the  Cotton  Group  Companies  and  from all of the relevant circumstances could
reasonably be assumed by any person or entity to be confidential and proprietary
to  the  Cotton  Group  Companies.  Notwithstanding  the  foregoing,  no data or
information  constitutes  "Confidential Information" if such data or information
                           ------------------------
is  publicly  known and in the public domain through means that do not involve a
breach by the Cotton Group Companies or any Seller of any covenant or obligation
set  forth  in  this  Agreement.

     6.10     PUBLICITY.  The  initial  press  release  shall  be  a joint press
              ---------
release  and  thereafter  the  Sellers, the Cotton Group Companies and Purchaser
each  shall  consult  with  each  other  prior  to issuing any press releases or
otherwise  making  public  announcements  with  respect  to  the  transactions
contemplated  by  this  Agreement and prior to making any filings with any third
party and/or any Governmental Entity (including any national securities exchange
or  interdealer  quotation  service)  with  respect  thereto,  except  as may be
required  by  law  or  by  obligations pursuant to any listing agreement with or
rules  of  any  national  securities  exchange or interdealer quotation service.

     6.11     EXPENSES.  All costs and expenses incurred in connection with this
              --------
Agreement  and  the transactions contemplated by this Agreement shall be paid by
the  party  incurring  such  expenses.

     6.12     NON-OPERATING  EXPENSES.  The Sellers shall cause the Cotton Group
              -----------------------
Companies  to  cause all non-operating expenses of the Cotton Group Companies to
be  paid  in full prior to the Closing Date, except for expenses that constitute
indebtedness  for borrowed money taken into account pursuant to SECTION 2.02(b),
                                                                ---------------
or  liabilities  taken  into  account in the Final Statement of Net Worth or the
determination  of  Net  Working  Capital  pursuant  to  SECTION  2.04.
                                                        -------------

     6.13     SPIN-OFF  AGREEMENT.  Prior to the Closing Date, Purchaser and the
              -------------------
Sellers  shall  use  commercially reasonable efforts to negotiate and execute an
agreement  regarding  the potential spin-off of the Disaster Remediation Holding
Company (as such term is defined on Schedule 6.13) from Purchaser with terms and
                                    -------------
conditions  to  be  mutually  agreed  upon  by  Purchaser  and  the  Sellers,
substantially  in  accordance  with  the  provisions  of  SCHEDULE  6.13.
                                                          --------------

     6.14     TAX  MATTERS.
              ------------

          (a)     Cooperation  on  Tax Matters.  The Sellers and Purchaser shall
                  ----------------------------
provide  each  other  with  such  cooperation  and information as either of them
reasonably  may  request  of  the  other  in  filing any tax return, amended tax
return,  determining  a  liability for taxes, participating in or conducting any
audit or other proceeding in respect of taxes.  Such cooperation and information
shall  include  providing  copies  of  relevant tax returns or portions thereof,
together with accompanying schedules, related work papers and documents relating
to  rulings  or  other  determinations  by  tax  authorities.  The  Sellers  and
Purchaser  shall  make  their respective employees available on a basis mutually
convenient  to  both  parties  to  provide  explanations  of  any  documents  or
information  provided  hereunder. Each of the Sellers and Purchaser shall retain
all  tax  returns, schedules and work papers, records and other documents in its
possession  relating  to  tax  matters  of  the  Cotton  Group Companies and the
business  and assets of the Cotton Group Companies for each taxable period first
ending  after  the  Closing  Date  and  for  all  prior  taxable

                                     - 37 -
<PAGE>
periods  until  the later of (i) the expiration of the statute of limitations of
the  taxable  periods  to  which  such  tax  returns and other documents relate,
without regard to extensions except to the extent notified by the other party in
writing  of  such  extensions  for the respective tax periods, or (ii) six years
following the due date (without extension) for such tax returns. Any information
obtained  under  this Section 6.14 shall be kept confidential in accordance with
                      ------------
the  provisions  of  this  Agreement  except  as  may  be otherwise necessary in
connection  with the filing of tax returns or claims for refund or in conducting
an  audit  or  other  proceeding.

          (b)     Tax  Returns  and  Payment  of  Taxes.
                  -------------------------------------

               (i)     The  Sellers  or  the Sellers' designee shall prepare and
timely  file  or  shall cause to be prepared and timely filed all Returns of the
Cotton  Group  Companies  for  tax  periods ending on or before the Closing Date
("Seller  Returns"),  and  shall pay or shall cause to be paid any and all Taxes
  ---------------
due  with  respect  to  such  Returns.  The  Sellers  shall  have  the exclusive
authority  and obligation to prepare or cause to be prepared all Seller Returns.
Such  authority shall include the determination of the manner in which any items
of income, gain, deduction, loss or credit arising out of the income, properties
and  operations  of the Cotton Group Companies shall be reported or disclosed in
such  Seller  Returns; provided, however, that such Returns shall be prepared by
                       --------  -------
treating  items  on  such Returns in a manner consistent with past practice with
respect  to  such  items,  unless otherwise required by law.  If any such Seller
Returns are due after the Closing Date and the Sellers are not authorized by law
to  file  such  Seller  Returns,  the Sellers shall submit drafts of such Seller
Returns  to  Purchaser  for its review at least 30 days prior to the due date of
any  such Return.  Such drafts of Seller Returns shall be subject to Purchaser's
review  and  approval,  which  approval  shall not be unreasonably withheld, and
Purchaser  shall  timely  file, or cause to be timely filed, such Seller Returns
with  the  appropriate  taxing  authority.

               (ii)     Purchaser  shall  prepare  (or  cause  to  be prepared),
execute,  and timely file all Returns of the Cotton Group Companies that are not
Seller  Returns,  and  shall  pay  (or cause to be paid) all Taxes to which such
Returns  relate for all periods covered by such Returns; provided, however, that
                                                         --------  -------
Sellers  shall  reimburse  Purchaser  for  all  portions  of such Taxes that are
applicable to Pre-Closing Tax Periods to the extent such Taxes are not reflected
in the reserve for Tax liability shown in the Final Statement of Net Worth, save
and  except for the Section 1374 Tax which shall be an obligation of and paid by
Purchaser.  All  such  Returns  shall  be  prepared  in accordance with the past
practice  of the Cotton Group Companies, unless otherwise required by applicable
law.  "Pre-Closing Tax Period" shall mean any tax period ending on or before the
       ----------------------
Closing  Date;  and,  with  respect to a Tax period that begins on or before the
Closing  Date  and ends thereafter, the portion of such tax period ending on the
Closing  Date.

               (iii)     For  purposes  of  calculating  Taxes applicable to the
Pre-Closing Tax Periods, the amount of any Tax (except Taxes based on the Cotton
Group  Companies'  income  or  gross-receipts)  owed  shall  be  apportioned  to
Pre-Closing  Tax  Periods  based  on  the  number of days for the portion of the
ending  on  and  including  the  Closing  Date.  Any  allocation  of  income  or
deductions  required to determine any Taxes based on the Cotton Group Companies'
income or gross-receipts applicable to a Pre-Closing Tax Period shall be made by
means  of a closing of the books and records of the Cotton Group Companies as of
the  close  of  business  on  the  Closing  Date.

                                     - 38 -
<PAGE>
          (c)     SECTION  338(h)(10)  ELECTION.
                  -----------------------------

               (i)     Purchaser  and the Cotton Holdings Sellers shall take all
steps necessary to make a timely, effective and irrevocable election pursuant to
Section  338(h)(10) of the Code (and, if permissible, under any applicable state
or  local  Tax  laws) with respect to the acquisition by Purchaser of the Cotton
Holdings  Shares  hereunder  to treat such purchase and sale as a deemed sale of
assets  for  federal  income  Tax  and  state income purposes (collectively, the
"Section  338(h)(10)  Election").  The Purchaser and the Cotton Holdings Sellers
 -----------------------------
and  their  respective  affiliates shall report the transactions consistent with
such  Section  338(h)(10)  Election  and shall take no position contrary thereto
unless  and to the extent required to do so pursuant to a final determination by
the  IRS  or  other  applicable  taxing  authority.

               (ii)     The  Cotton Holdings Sellers and Purchaser shall execute
at  the Closing any and all forms necessary to effectuate the Section 338(h)(10)
Election  (including, without limitation, Internal Revenue Service Form 8023 and
any  similar  forms  under  applicable  state  or  local  income  Tax  laws)
(collectively,  the "Section 338 Forms).  In the event, however, any Section 338
                     -----------------
Forms are not executed at the Closing, the Cotton Holdings Sellers and Purchaser
shall prepare and complete each such Section 338 Form no later than fifteen (15)
days  prior  to  the  date  each  such Section 338 Form is required to be filed.

               (iii)     Purchaser  shall  prepare  and  provide  to  the Cotton
Holdings Sellers within sixty (60) days after the Closing, a schedule allocating
the  Purchase  Price  among  the assets of the Cotton Group Companies (including
allocations at net depreciated tax value for fixed assets).  Such schedule shall
be  prepared  in  good faith and in accordance with applicable provisions of the
Code.  Unless  the  Cotton Holdings Sellers object to the Purchaser's allocation
schedule  within ten (10) days after receipt thereof, such schedule shall become
final  and,  absent  a  final  determination  by a governmental authority to the
contrary,  shall  be  binding upon the Cotton Holdings Sellers and Purchaser for
all  federal,  state  and  local  Tax  purposes.  If the Cotton Holdings Sellers
object  to  the Purchaser's allocation within ten (10) days of receipt, then the
parties  agree  to  meet  and resolve the dispute in good faith.  If the parties
fail  to  reach  an  agreement  on  the  allocation,  final  allocation shall be
determined  in  accordance  with  the dispute resolution procedures set forth in
Section  12.22  of this Agreement.  Any objection by the Cotton Holdings Sellers
to  the Purchaser's allocation schedule shall be made in good faith and based on
the  applicable  provisions  of  the  Code.

               (iv)     The  Cotton  Holdings  Sellers  and Purchaser agree that
neither  party  shall take any action to modify or revoke the Section 338(h)(10)
Election  following  the  filing  of  the Section 338 Forms, without the written
consent  of  the  other, unless required to do so by any governmental authority.
The  Cotton  Holdings  Sellers  and  Purchaser  shall  cause  their  respective
subsidiaries to file all Tax Returns in a manner consistent with the information
contained  in the Section 338 Forms, and neither shall take any position for tax
or  financial  purposes  that  is inconsistent with such information without the
prior  written  consent  of the other, which shall not be unreasonably withheld.

               (v)     The  Cotton Holdings Sellers shall be responsible for and
shall  pay  any  Taxes imposed on the Cotton Holdings Sellers or Cotton Holdings
(excluding  any  Section  1374 Tax) arising from the sale of the Cotton Holdings
Shares.

                                     - 39 -
<PAGE>
          (d)     Notwithstanding  anything  in  this Agreement to the contrary,
the  provisions of this Section 6.14 shall survive through the expiration of the
applicable  statute  of  limitations  as  the  same  may  be  extended.

     6.15     EMPLOYEE  BONUS POOL.  A pool of shares of Purchaser Stock (not to
              --------------------
exceed  700,000  shares) shall be made available in a non-statutory stock option
plan  for  the  benefit  of  certain  employees  of  the  Cotton  Group Entities
designated  by  the  Sellers, with an exercise price not to exceed an amount per
share  equal to (a) the Market Price of the Purchaser Stock on the Closing Date,
less  (b)  $2.50.
----

                                  ARTICLE VII.
                 CONDITIONS TO EACH PARTY'S OBLIGATION TO CLOSE
                 ----------------------------------------------

     The  respective  obligation  of  each  party  to  effect  the  transactions
contemplated  by this Agreement is subject to the satisfaction (or waiver) at or
prior  to  the  Closing  Date  of  each  of  the  following  conditions:

     7.01     REGULATORY  CONSENTS.  At  or  prior  to  the  Closing  Date,  all
              --------------------
notices, reports and other filings required to be made prior to the Closing Date
by  the Sellers, the Cotton Group Companies or Purchaser with, and all consents,
registrations,  approvals,  permits  and  authorizations required to be obtained
prior  to  the  Closing  Date  by  the  Sellers,  the  Cotton Group Companies or
Purchaser  from, any Governmental Entity (collectively, "Governmental Consents")
                                                         ---------------------
in  connection  with  the  execution  and  delivery  of  this  Agreement and the
consummation  of  the  transactions  contemplated  hereby  by  the  Sellers  and
Purchaser  shall  have  been made or obtained (as the case may be), except those
that  the failure to make or to obtain are not individually or in the aggregate,
reasonably  likely  to  have a Purchaser Material Adverse Effect or to provide a
reasonable  basis to conclude that the parties hereto or any of their affiliates
or  respective  directors,  officers,  agents, advisors or other representatives
would  be  subject  to  the  risk  of  criminal or material financial liability.

     7.02     LITIGATION.  No  court  or  Governmental  Entity  of  competent
              ----------
jurisdiction  shall  have  enacted, issued, promulgated, enforced or entered any
statute, law, ordinance, rule, regulation, judgment, decree, injunction or other
order  (whether  temporary,  preliminary  or  permanent)  that  is in effect and
restrains,  enjoins  or  otherwise  prohibits  consummation  of the transactions
contemplated  by  this  Agreement  (collectively,  an  "Order").
                                                        -----

                                  ARTICLE VIII.
                    CONDITIONS TO OBLIGATIONS OF THE SELLERS
                    ----------------------------------------

     The  obligation  of  the Sellers to effect the transactions contemplated by
this  Agreement  is  subject to the satisfaction (or waiver by the Seller) at or
prior  to  the  Closing  Date  of  each  of  the  following  conditions:

     8.01     REPRESENTATIONS  AND  WARRANTIES TRUE AND CORRECT AT CLOSING DATE.
              -----------------------------------------------------------------
Each  of  Purchaser's representations and warranties contained in this Agreement
that  are qualified by materiality shall be true and correct in all respects and
each  of  Purchaser's representations and warranties contained in this Agreement
that are not so qualified shall be true and correct in all material respects, in
each  case  as  of  the  date  of  this  Agreement  and on and as of the Closing

                                     - 40 -
<PAGE>
Date,  with  the  same  force  and  effect as though made on and as of such date
(except to the extent any such representation or warranty expressly speaks as of
an  earlier date), and Purchaser shall have delivered to the Seller certificates
dated  as of the Closing Date and signed on behalf of Purchaser by its President
to  such  effect.

     8.02     PERFORMANCE  OF  OBLIGATIONS.  Purchaser  shall have performed and
              ----------------------------
complied  in  all material respects with the respective covenants and agreements
set forth herein to be performed or complied with on or before the Closing Date;
and  Purchaser shall have delivered to the Company a certificate dated as of the
Closing  Date  and  signed  on  behalf of Purchaser by its President to all such
effects  and confirming such other matters as may be reasonably requested by the
Sellers.

     8.03     DOCUMENTS  SATISFACTORY  IN  FORM  AND SUBSTANCE.  All agreements,
              ------------------------------------------------
certificates and other documents delivered by Purchaser to the Sellers hereunder
or  in  connection  herewith  shall be in form and substance satisfactory to the
Sellers  and  their  counsel,  in  the  exercise  of  their reasonable judgment.

     8.04     CERTIFICATES.  Purchaser  shall  have  delivered  to  the  Sellers
              ------------
certificates  of the Secretary or Assistant Secretary of Purchaser (a) attaching
and  certifying  copies of the resolutions of its board of directors authorizing
the  execution,  delivery  and  performance  of  this  Agreement  and  the other
documents,  instruments  and certifications required or contemplated hereby, (b)
certifying  the  name,  title  and  true  signature of each officer of Purchaser
executing  or  authorized  to  execute  this  Agreement and the other documents,
instruments  and  certifications  required  or  contemplated  hereby,  and  (c)
attaching  and  certifying  a  true,  correct and complete copy of the bylaws of
Purchaser.

     8.05     NO  MATERIAL  CHANGE.  The  Purchaser  shall not have suffered any
              --------------------
Material Adverse Change in its business, prospects, financial condition, working
capital,  assets,  liabilities  (absolute,  accrued,  contingent  or otherwise),
reserves  or  operations.

     8.06     TERMINATION  OF  STANSELL  CONTINGENT  INTEREST.  The  contingent
              -----------------------------------------------
rights  of  Blake Stansell to obtain additional limited partnership interests in
Cotton  Commercial  USA,  LP,  as  set  forth  on SCHEDULE 3.03, shall have been
                                                  -------------
terminated  and Mr. Stansell shall have executed a release in form and substance
reasonably  acceptable  to  the  Purchaser.

     8.07     OPINION  OF  COUNSEL TO THE PURCHASER.  On or prior to the Closing
              -------------------------------------
Date,  Sellers  shall  have  received  from counsel to the Purchaser an opinion,
dated  the  Closing  Date,  in  a  form  to  be  agreed  upon  by  the  parties.

                                   ARTICLE IX.
                     CONDITIONS TO OBLIGATIONS OF PURCHASER
                     --------------------------------------

     The  obligations  of  Purchaser  to effect the transactions contemplated by
this  Agreement  are  subject to the satisfaction (or waiver by Purchaser) at or
prior  to  the  Closing  Date  of  each  of  the  following  conditions:

     9.01     REPRESENTATIONS  AND  WARRANTIES TRUE AND CORRECT AT CLOSING DATE.
              -----------------------------------------------------------------
Each of the representations and warranties of the Cotton Group Companies and the
Sellers  contained  in

                                     - 41 -
<PAGE>
this  Agreement  that  are qualified by materiality shall be true and correct in
all  respects  and  the Cotton Group Companies' and Sellers' representations and
warranties  contained  in this Agreement that are not so qualified shall be true
and  correct  in  all  material  respects,  in  each case as of the date of this
Agreement  and  on and as of the Closing Date, with the same force and effect as
though made on and as of such date (except to the extent any such representation
or  warranty expressly speaks as of an earlier date), and the Sellers shall have
delivered  to  Purchaser certificates dated as of the Closing Date and signed on
behalf  of  the  Cotton  Group  Companies  by  the  President  of each of Cotton
Holdings,  Cotton  Commercial  and  Cotton  Restoration  to  such  effect.

     9.02     PERFORMANCE  OBLIGATIONS.  The  Cotton  Group  Companies  and  the
              ------------------------
Sellers  shall  have  performed  and  complied in all material respects with the
covenants and agreements set forth herein to be performed or complied with by it
on or before the Closing Date; and the Sellers shall have delivered to Purchaser
certificates  dated  as  of  the Closing Date and signed on behalf of the Cotton
Group  Companies by the President or General Partner of each of Cotton Holdings,
Cotton  Commercial  and  Cotton  Restoration to such effect, and confirming such
other  matters  as  may  be  reasonably  requested  by  Purchaser.

     9.03     NO  MATERIAL CHANGE.  On or prior to the Closing Date, neither the
              -------------------
Sellers  nor the Cotton Group Companies shall have suffered any Material Adverse
Change  since the date of the Reviewed Financial Statements (whether or not such
change  is referred to or described in any Schedule) in its business, prospects,
financial  condition,  working  capital, assets, liabilities (absolute, accrued,
contingent  or  otherwise),  reserves  or  operations.

     9.04     OTHER  NECESSARY  CONSENTS.  On  or prior to the Closing Date, the
              --------------------------
Sellers  shall have obtained all consents and approvals required to be listed on
SCHEDULE  4.05.  With  respect to each such consent or approval, Purchaser shall
--------------
have  received  written  evidence,  satisfactory  to  it,  that  such consent or
approval  has  been  duly  and  lawfully  filed, given, obtained or taken and is
effective,  valid  and  subsisting.

     9.05     OPINION  OF  COUNSEL  TO  THE  SELLER.  On or prior to the Closing
              -------------------------------------
Date,  Purchaser  shall have received from counsel to the Sellers and the Cotton
Group  Companies an opinion, dated the Closing Date, in a form to be agreed upon
by  the  parties.

     9.06     NON-COMPETE  AGREEMENT.  On  or  prior  to  the Closing Date, each
              ----------------------
Seller  and  each  Incentive  Employee  shall  have  executed  and  delivered to
Purchaser  non-competition  agreements  substantially  in the form of EXHIBIT G.
                                                                      ---------

     9.07     DOCUMENTS  SATISFACTORY  IN  FORM  AND SUBSTANCE.  All agreements,
              ------------------------------------------------
certificates, opinions and other documents delivered by the Sellers to Purchaser
hereunder  shall  be  in  form  and  substance satisfactory to Purchaser and its
counsel,  in  the  exercise  of  their  reasonable  judgment.

     9.08     CERTIFICATES.  The  Sellers  shall  have  delivered  to Purchaser:
              ------------

          (a)     Certificates  of  the Secretary or Assistant Secretary of each
of  Cotton  Holdings, Cotton Commercial and Cotton Restoration (i) attaching and
certifying copies of the resolutions of its board of directors and shareholders,
or  its  partners,  authorizing  the  execution,

                                     - 42 -
<PAGE>
delivery  and performance of this Agreement and the other documents, instruments
and  certifications  required  or contemplated hereby, (ii) certifying the name,
title  and true signature of each officer or partner of such entity executing or
authorized  to  execute  this Agreement and the other documents, instruments and
certifications  required  or  contemplated  hereby,  and  (iii)  attaching  and
certifying  a  true,  correct  and  complete copies of the bylaws or partnership
agreement  of  such  entity;  and

          (b)     Copies  of  the  articles  of  incorporation  or  articles  of
formation of such entity certified by the Secretary of State of the jurisdiction
of  its incorporation and by its Secretary or Assistant Secretary, together with
a  certificates  of  good  standing  or  existence  as may be available from the
Secretaries  of  State  of its jurisdiction of incorporation or organization and
every  other  state of the United States in which the conduct of its business or
the  ownership  of  its  properties  and  assets requires it to be so qualified.

     9.09     EMPLOYMENT  AGREEMENTS.  On  or  prior  to  the Closing Date, each
              ----------------------
Seller  and  each  Incentive  Employee  shall  have  executed  and  delivered to
Purchaser  employment  agreements  substantially  in  the  form  of  EXHIBIT  H,
                                                                     ----------
provided,  that  Purchaser agrees that the salaries and benefits payable to such
--------
persons  shall  be  the  same  as  in effect on the date of this Agreement or as
otherwise  provided  on  EXHIBIT  H.
                         ----------

     9.10     RELEASE  OF  LIENS.  On  or  prior  to the Closing Date, Purchaser
              ------------------
shall  have  received  evidence  reasonably satisfactory to it that all liens or
encumbrances  affecting  any  asset  of  the  Cotton  Group  Companies have been
released,  except  for (i) liens or encumbrances arising out of indebtedness for
borrowed  money taken into account pursuant to SECTION 2.02(b), (ii) liabilities
                                               ---------------
taken  into  account in the Final Statement of Net Worth or the determination of
Net  Working Capital pursuant to SECTION 2.04, and (iii) purchase money security
                                 ------------
liens  on  equipment  incurred  in  the  ordinary  course  of  business.

                                   ARTICLE X.
                                 INDEMNIFICATION
                                 ---------------

     10.01     INDEMNIFICATION  OBLIGATIONS OF THESELLERS.  The Sellers (and the
               ------------------------------------------
Cotton  Group Companies prior to the Closing Date) shall, jointly and severally,
indemnify,  defend  and  hold  harmless  Purchaser and its affiliates, officers,
directors,  employees,  agents  and  representatives  and  the heirs, executors,
successors  and  assigns  of  any  of  the foregoing (the "Purchaser Indemnified
                                                           ---------------------
Parties")  from,  against,  and  in respect of, any and all claims, liabilities,
-------
obligations,  damages,  losses,  costs, expenses, penalties, fines and judgments
(at  equity  or  at  law,  including  statutory and common) and damages whenever
arising  or  incurred  (including  amounts  paid  in  settlement,  costs  of
investigation  and  reasonable  attorneys'  fees and expenses) arising out of or
relating  to:

          (a)     any  breach  or  inaccuracy  of any representation or warranty
made  by  the  Cotton  Group  Companies  or the Sellers in this Agreement or any
documents  or agreements executed and delivered by the Cotton Group Companies or
any  Seller  in  connection with the transactions contemplated by this Agreement
(without  regard  to  any  qualification  or  exception  contained  in  such
representation  or warranty relating to materiality or Material Adverse Effect),

                                     - 43 -
<PAGE>
whether  such representation and warranty is made as of the date hereof or as of
the  Closing  Date;  or

          (b)     any  breach  of any covenant, agreement or undertaking made by
the  Cotton Group Companies or the Sellers in this Agreement or in any documents
or agreements executed and delivered by the Cotton Group Companies or any Seller
in  connection  with  the  transactions  contemplated  by  this  Agreement.

The  claims,  liabilities,  obligations,  losses,  damages,  costs,  expenses,
penalties, fines and judgments of the Purchaser Indemnified Parties described in
this Section 10.01 as to which the Purchaser Indemnified Parties are entitled to
     -------------
indemnification  are  collectively  referred  to  as  "Purchaser  Losses".
                                                       -----------------

     10.02     INDEMNIFICATION  OBLIGATIONS  OF  PURCHASER.  Purchaser  shall
               -------------------------------------------
indemnify  and  hold harmless the Sellers and their heirs, executors, successors
and  assigns  (the "Seller Indemnified Parties") from, against and in respect of
                    --------------------------
any  and all claims, liabilities, obligations, losses, damages, costs, expenses,
penalties,  fines  and  judgments  (at equity or at law, including statutory and
common)  and  damages  whenever  arising  or incurred (including amounts paid in
settlement,  costs of investigation and reasonable attorneys' fees and expenses)
arising  out  of  or  relating  to:

          (a)     any  breach  or  inaccuracy  of any representation or warranty
made by Purchaser in this Agreement or in any document or agreement executed and
delivered  by Purchaser in connection with the transactions contemplated by this
Agreement,  whether  such  representation  and  warranty  is made as of the date
hereof  or  as  of  the  Closing  Date;  or

          (b)     any  breach  of any covenant, agreement or undertaking made by
Purchaser  in  this  Agreement  or  in  any  document  or agreement executed and
delivered  by Purchaser in connection with the transactions contemplated by this
Agreement;

The  claims,  liabilities,  obligations,  losses,  damages,  costs,  expenses,
penalties,  fines  and  judgments of the Seller Indemnified Parties described in
this  Section  10.02  as to which the Seller Indemnified Parties are entitled to
      --------------
indemnification  are  collectively  referred  to  as  "Seller  Losses".
                                                       --------------

     10.03     INDEMNIFICATION  PROCEDURE.
               --------------------------

          (a)     Promptly following receipt by a Purchaser Indemnified Party or
a  Seller Indemnified Party, as applicable (an "Indemnified Party") of notice by
                                                -----------------
a  third  party (including any Governmental Entity) of any complaint, dispute or
claim or the commencement of any audit, investigation, action or proceeding with
respect  to which such Indemnified Party may be entitled to receive payment from
the  other  party for any Purchaser Losses or any Seller Losses (as the case may
be), such Indemnified Party shall give Purchaser or the Sellers, as the case may
be  (the "Indemnifying Party"), reasonably prompt written notice thereof, but in
          ------------------
any  event not later than thirty (30) calendar days after receipt of such notice
of  such third party claim, provided, however, that the failure to so notify the
                            --------  -------
Indemnifying Party shall relieve the Indemnifying Party from liability hereunder
with respect to such claim only if, and only to the extent that, such failure to
so notify the Indemnifying Party prejudices the Indemnifying Party of rights and
defenses  otherwise  available  to  the  Indemnifying Party with respect to such
claim.  The  Indemnifying  Party  shall  have  the  right,  upon  written notice
delivered  to  the  Indemnified  Party

                                     - 44 -
<PAGE>
within  twenty  (20)  days  thereafter  assuming  full  responsibility  for  any
Purchaser  Losses  or  Seller  Losses  (as  the case may be) resulting from such
audit, investigation, action or proceeding, to assume the defense of such audit,
investigation,  action  or  proceeding,  including  the  employment  of  counsel
reasonably satisfactory to the Indemnified Party and the payment of the fees and
disbursements  of  such  counsel.  In  the event, however, that the Indemnifying
Party  declines  or  fails  to  assume  the defense of the audit, investigation,
action or proceeding on the terms provided above or to employ counsel reasonably
satisfactory to the Indemnified Party, in either case within such 20-day period,
then  any  Purchaser  Losses  or  any  Seller Losses (as the case may be), shall
include  the  reasonable  fees  and disbursements of counsel for the Indemnified
Party  as incurred.  In any audit, investigation, action or proceeding for which
indemnification  is  being  sought  hereunder  the  Indemnified  Party  or  the
Indemnifying  Party, whichever is not assuming the defense of such action, shall
have  the  right  to participate in such matter and to retain its own counsel at
such  party's  own expense.  The Indemnifying Party or the Indemnified Party (as
the  case  may  be)  shall  at  all  times  use  reasonable  efforts to keep the
Indemnifying Party or Indemnified Party (as the case may be) reasonably apprised
of  the  status  of  the  defense  of  any  matter  the  defense  of which it is
maintaining  and  to cooperate in good faith with each other with respect to the
defense  of  any  such  matter.

          (b)     No  Indemnified  Party  may  settle or compromise any claim or
consent  to  the  entry of any judgment with respect to which indemnification is
being  sought  hereunder  without  the prior written consent of the Indemnifying
Party,  unless  (i)  the  Indemnifying  Party  fails  to assume and maintain the
defense  of  such  claim  pursuant  to Section 10.03(a) or (ii) such settlement,
                                       ----------------
compromise  or  consent  includes  an  unconditional release of the Indemnifying
Party  and  its officers, directors, employees and affiliates from all liability
arising  out  of  such  claim.  An Indemnifying Party may not, without the prior
written  consent  of  the  Indemnified  Party, settle or compromise any claim or
consent  to  the  entry of any judgment with respect to which indemnification is
being  sought  hereunder  unless  (x)  such  settlement,  compromise  or consent
includes  an  unconditional  release  of the Indemnified Party and its officers,
directors,  employees  and  affiliates  from  all  liability arising out of such
claim, (y) does not contain any admission or statement suggesting any wrongdoing
or  liability  on  behalf  of the Indemnified Party and (z) does not contain any
equitable  order,  judgment  or  term  that  in any manner affects, restrains or
interferes  with the business of the Indemnified Party or any of the Indemnified
Party's  affiliates.

          (c)     In  the  event  an Indemnified Party claims a right to payment
pursuant  hereto, such Indemnified Party shall send written notice of such claim
to  the  appropriate  Indemnifying  Party (a "Notice of Claim").  Such Notice of
                                              ---------------
Claim  shall  specify  the basis for such claim.  The failure by any Indemnified
Party  so  to  notify  the Indemnifying party shall not relieve the Indemnifying
Party from any liability that it may have to such Indemnified Party with respect
to  any  claim  made pursuant to this Section 10.03(c), it being understood that
                                      ----------------
notices  for  claims in respect of a breach of a representation or warranty must
be  delivered  prior  to  the  expiration  of  the  survival  period  for  such
representation  or  warranty under Section 10.04.  In the event the Indemnifying
                                   -------------
Party  does  not  notify the Indemnified Party within thirty (30) days following
its receipt of such notice that the Indemnifying Party disputes its liability to
the  Indemnified  Party  under  this  Article  or  the amount thereof, the claim
specified by the Indemnified Party in such Notice of Claim shall be conclusively
deemed  a  liability  of the Indemnifying Party under this Section 10.03(c), and
                                                           ----------------
the Indemnifying Party shall pay the amount of such liability to the Indemnified
Party  on  demand or, in the case of any notice in which the amount of the claim
(or

                                     - 45 -
<PAGE>
any  portion  of  the claim) is estimated, on such later date when the amount of
such  claim  (or such portion of such claim) becomes finally determined.  In the
event  the  Indemnifying Party has timely disputed its liability with respect to
such  claim  as  provided above, as promptly as possible, such Indemnified Party
and  the appropriate Indemnifying Party shall establish the merits and amount of
such  claim  (by  mutual  agreement,  litigation, arbitration or otherwise) and,
within  five  (5)  Business Days following the final determination of the merits
and  amount  of  such claim, the Indemnifying Party shall pay to the Indemnified
Party immediately available funds in an amount equal to such claim as determined
hereunder.

     10.04     SURVIVAL  PERIOD.  The  representations  and  warranties  of  the
               ----------------
parties  contained  herein  shall  not  be extinguished by the Closing Date, but
shall  survive  the  Closing  Date  for,  and  all claims for indemnification in
connection  therewith  shall  be  asserted  not later than, eighteen (18) months
following  the  Closing  Date;  provided,  however, that the representations and
                                --------   -------
warranties  contained  in Section 3.01 (Power, Authority and Organization of the
                          ------------
Sellers),  Section 3.03 (Ownership of the Cotton Equity Interests), Section 4.01
           ------------                                             ------------
(Organization  and  Authorization),  Section  4.02  (Authorized  and Outstanding
                                     -------------
Stock),  Section 4.15 (Employee Benefits), Section 4.19 (Environmental Matters),
         ------------                      ------------
Section  4.27  (Tax  Matters),  and  Section 4.28 (Brokerage) (collectively, the
-------------                        ------------
"Surviving  Representations")  shall  survive  for  a  period  of four (4) years
 --------------------------
following  the  Closing  Date,  and  the  period  during  which  a  claim  for
indemnification  may  be  asserted in connection therewith shall continue during
such  four  (4)  year  period.  The  covenants  and  agreements  of  the parties
hereunder  shall  survive  without  limitation as to time, and the period during
which  a claim for indemnification may be asserted in connection therewith shall
continue indefinitely.  Notwithstanding the foregoing, if, prior to the close of
business  on the last day a claim for indemnification may be asserted hereunder,
an Indemnifying Party shall have been properly notified of a claim for indemnity
hereunder  and such claim shall not have been finally resolved or disposed of at
such  date,  such  claim  shall continue to survive and shall remain a basis for
indemnity  hereunder  until  such  claim  is  finally resolved or disposed of in
accordance  with  the  terms  hereof.

     10.05     LIABILITY  LIMITS.  Notwithstanding  anything to the contrary set
               -----------------
forth  herein,  the Purchaser Indemnified Parties shall not make a claim against
the Sellers for indemnification under Section 10.01(d) for Purchaser Losses, and
                                      ----------------
the  Sellers  will  have  no  liability  for  indemnification  of  any Purchaser
Indemnified  Party  pursuant  to Section 10.01(a) unless and until the aggregate
                                 ----------------
Losses  claimed thereunder exceed an amount equal to $250,000.00 (the "Threshold
                                                                       ---------
Amount"),  and  once the  aggregate amount of such Losses under Section 10.01(a)
------                                                          ----------------
exceeds the Threshold Amount, the Purchaser Indemnified Parties will be entitled
to recover all such Losses to which they are entitled in excess of the Threshold
Amount.  The total aggregate amount of the liability of the Seller for Purchaser
Losses  with  respect  any  claims  made pursuant to Section 10.01(a) other than
                                                     ----------------
Claims  arising  under  Section  4.19  (Environmental  Matters)  ("Environmental
                        -------------                              -------------
Claims")  shall  be  limited  to  $3,000,000.00 (the "Purchaser Cap"); provided,
------                                                -------------    --------
however,  that  with  respect to Environmental Claims the Purchaser Cap shall be
-------
increased  by  an additional $2,000,000 to $5,000,000 (the "Environmental Cap"),
                                                            -----------------
and  the  Seller  shall  be  liable  for  one  half  (1/2)  of the amount of any
Environmental Claims in excess of the Environmental Cap; provided, further, that
                                                         --------  -------
total  aggregate  amount  of  the  liability  of  the Company and the Seller for
Purchaser Losses arising out of fraud or willful misconduct shall not be subject
to  any  limits.  Notwithstanding  the  foregoing,  any  indemnification amounts
payable by the Sellers pursuant to this Article X will be reduced by any amounts
                                        ---------
actually  recovered  by  any  Purchaser  Indemnified

                                     - 46 -
<PAGE>
Party  under insurance policies or other collateral sources with respect to such
Losses  and  the  Purchaser shall use Commercially Reasonable Efforts to collect
any  such  amounts.

     10.06     DETERMINATION  OF PURCHASER LOSSES.  The Purchaser Losses payable
               ----------------------------------
by  a  Seller  hereunder shall be determined (i) by the written agreement of the
parties,  (ii)  by  a  final  judgment  or  decree  of  any  court  of competent
jurisdiction,  or  (iii)  by any other means agreed to in writing by the Sellers
and  the  Purchaser.  A judgment or decree of a court shall be deemed final when
the  time  for  appeal, if any, shall have expired and no appeal shall have been
taken  or  when  all  appeals  taken  have  been  fully  determined.

     10.07     INVESTIGATIONS.  The respective representations and warranties of
               --------------
the  parties  contained  in  this Agreement or any certificate or other document
delivered  by  any  party  at  or  prior  to the Closing Date, and the rights to
indemnification  set  forth  in  this  Article  X  shall not be deemed waived or
                                       ----------
otherwise affected by any investigation made, or knowledge acquired, by a party,
provided,  that  if  either  party  becomes aware of a fact which results in, or
--------
could  result  in,  a breach of a covenant or representation of the other party,
the  party  become  aware  of such fact shall promptly notify the other party of
such  fact,  provided,  further, that any party's failure to so notify the other
             --------   -------
party  shall  not  in  any  way  limit the rights of such party pursuant to this
Agreement  if  such failure does not result in a material prejudice to the other
party.

     10.08     SET-OFF.  Purchaser  shall  be  entitled to set-off any amount or
               -------
right it may be entitled to pursuant to this Agreement against any amount, right
or  obligations  owed  to  the  Sellers under this Agreement or any agreement or
documents  executed  and delivered in connection herewith; provided, that to the
                                                           --------
extent  that funds remain to be paid under the Tax Reimbursement Note, Purchaser
shall  set  off the amount of any Purchaser Losses against the Tax Reimbursement
Note and any cash payments or issuances of Make-Whole Shares pursuant to Section
                                                                         -------
2.05  prior  to  setting  off  such  amounts  against  the  Seller  Note.
----

     10.09     REDUCTION OF PURCHASE PRICE.  Any indemnification amounts payable
               ---------------------------
by  the  Sellers pursuant to this Article X shall be deemed to be a reduction in
                                  ---------
the  Purchase  Price.

     10.10     DAMAGES.      Notwithstanding  any  other  provision  in  this
               -------
Agreement  to  the contrary, no party shall be liable to the other party for any
punitive  or  exemplary  damages.

     10.11     EXCLUSIVE  REMEDY.      Except  as  otherwise  set  forth in this
               -----------------
Agreement, after the Closing indemnification pursuant to this Article X shall be
                                                              ---------
the  sole  and exclusive  remedy for the parties with respect to matters arising
under this Agreement of any kind or nature, including, for any misrepresentation
or  breach  of  any  warranty,  covenant,  or  other provision contained in this
Agreement,  and the parties hereby waive and release any other rights, remedies,
causes  of  action, or claims that either of them have or that may arise against
any  other  party  with  respect  thereto.

                                   ARTICLE XI.
                        TERMINATION PRIOR TO CLOSING DATE
                        ---------------------------------

     11.01     TERMINATION  OF  AGREEMENT.  This  Agreement may be terminated at
               --------------------------
any  time  prior  to  the  Closing  Date:

                                     - 47 -
<PAGE>
          (a)     By  the  mutual  written consent of Purchaser, the Sellers and
the  Cotton  Group  Companies;

          (b)     By  the  Sellers  in  writing, without liability, if Purchaser
shall  (i)  fail  to  perform  in  any material respect its agreements contained
herein  required  to be performed by it on or prior to the Closing Date, or (ii)
materially  breach any of its representations, warranties or covenants contained
herein,  which  failure  or  breach  is not cured within ten (10) days after the
Sellers  have  notified  Purchaser  of  their intent to terminate this Agreement
pursuant  to  this  subparagraph  (b);

          (c)     By  Purchaser  in  writing,  without  liability, if the Cotton
Group Companies or the Sellers shall (i) fail to perform in any material respect
their  agreements  contained herein required to be performed by them on or prior
to  the  Closing  Date,  or (ii) materially breach any of their representations,
warranties  or  covenants contained herein, which failure or breach is not cured
within  ten  (10) days after Purchaser has notified the Sellers of its intent to
terminate  this  Agreement  pursuant  to  this  subparagraph  (c);

          (d)     By  either  the  Sellers  or  Purchaser  in  writing,  without
liability,  if there shall be any order, writ, injunction or decree of any court
or  governmental  or  regulatory agency binding on Purchaser, the Sellers or the
Cotton  Group  Companies,  which prohibits or restrains Purchaser, the Seller or
the  Cotton  Group  Companies  from  consummating  the transactions contemplated
hereby,  provided  that  Purchaser,  the  Sellers and the Cotton Group Companies
shall  have  used  their  reasonable, good faith efforts to have any such order,
writ, injunction or decree lifted and the same shall not have been lifted within
30  days after entry, by any such court or governmental or regulatory agency; or

          (e)     By  either  the  Sellers  or  Purchaser,  in  writing, without
liability,  if for any reason the Closing Date has not occurred by September 29,
2006  other  than  as  a  result  of  the  breach of this Agreement by the party
attempting  to  terminate  the  Agreement.

     11.02     TERMINATION  OF  OBLIGATIONS.  Termination  of  this  Agreement
               ----------------------------
pursuant  to  this  Article  XI  shall  terminate all obligations of the parties
                    -----------
hereunder, except for the obligations under Sections 2.02(a), 6.09, 11.02, 12.07
                                            ----------------  ----  -----  -----
and  12.10 hereof; provided, however, that termination pursuant to subparagraphs
     -----         --------  -------
(b),  (c)  or  (e)  of  Section  11.01  hereof shall not relieve a defaulting or
                        --------------
breaching  party  from  any  liability  to  the  other  party  hereto.

                                  ARTICLE XII.
                                  MISCELLANEOUS
                                  -------------

     12.01     ENTIRE  AGREEMENT;  SURVIVAL.  This  Agreement  (including  the
               ----------------------------
Schedules  and  Exhibits  which  are  incorporated  herein) constitutes the sole
understanding  of  the  parties  with  respect  to  the  subject  matter hereof;
provided,  however,  that  this  provision is not intended to abrogate any other
--------   -------
written  agreement  between  the  parties executed with or after this Agreement.

     12.02     AMENDMENT.  No amendment, modification or alteration of the terms
               ---------
or  provisions  of  this  Agreement shall be binding unless the same shall be in
writing  and  duly  executed  by  the  parties  hereto.

                                     - 48 -
<PAGE>
     12.03     PARTIES  BOUND  BY AGREEMENT; SUCCESSORS AND ASSIGNS.  The terms,
               ----------------------------------------------------
conditions,  and obligations of this Agreement shall inure to the benefit of and
be  binding  upon  the  parties hereto and the respective successors and assigns
thereof.  This  Agreement  shall  not  be  assignable  by  operation  of  law or
otherwise.

     12.04     COUNTERPARTS;  FACSIMILE.  This  Agreement  may  be  executed  in
               ------------------------
multiple  counterparts,  each of which shall for all purposes be deemed to be an
original  and  all  of  which, when taken together, shall constitute one and the
same  instrument.  This  Agreement  may  be executed and delivered by facsimile.

     12.05     HEADINGS.  The  headings  of  the Sections and paragraphs of this
               --------
Agreement  are  inserted  for  convenience  only  and  shall  not  be  deemed to
constitute  part  of  this  Agreement  or  to  affect  the construction thereof.

     12.06     MODIFICATION  AND WAIVER.  Any of the terms or conditions of this
               ------------------------
Agreement may be waived in writing at any time by the party which is entitled to
the  benefits  thereof.  No  waiver  of  any of the provisions of this Agreement
shall  be  deemed  to or shall constitute a waiver of any other provision hereof
(whether  or  not  similar).

     12.07     EXPENSES.  Except  as  otherwise provided herein, the Sellers and
               --------
Purchaser  shall each pay all costs and expenses incurred by each of them, or on
their  behalf  respectively,  in  connection  with  this  Agreement  and  the
transactions  contemplated  hereby,  including  fees  and  expenses of their own
financial  consultants,  accountants and counsel.  All such expenses incurred by
the  Cotton  Group  Companies  in  connection  with  this  Agreement  and  the
transactions  contemplated  hereby shall be paid by the Sellers on or before the
Closing  Date.

     12.08     NOTICES.  Any  notice,  request, instruction or other document to
               -------
be  given  hereunder  by  any party hereto to any other party hereto shall be in
writing  and  delivered  personally  or  sent  by  registered  or certified mail
(including  by overnight courier such as FedEx or express mail service), postage
or  fees  prepaid,

     if to the Sellers or, prior to the   Cotton
     Closing Date, the Cotton Group       14345 Northwest Fwy.
     Companies to:                        Houston, TX.  77040
                                          Fax No.: (713) 856-7425
                                          Attention:  Pete Bell
                                                      Chairman/Founder

     with a copy to:                      Nance & Simpson, LLP
                                          2603 Augusta, Suite 1000
                                          Houston, Texas 77057
                                          Fax No.:  (713) 520-5109
                                          Attention:  Glynn Nance

     if to Purchaser to:                  Charys Holding Company, Inc.
                                          1117 Perimeter Center West, Suite N415
                                          Atlanta, Georgia 30338
                                          Attention:  Billy V. Ray, Jr., Chief
                                                      Executive Officer

                                     - 49 -
<PAGE>
     with a copy to:                      Paul, Hastings, Janofsky & Walker LLP
                                          600 Peachtree Street, N.E.
                                          Suite 2400
                                          Atlanta, GA  30308
                                          Fax No.:  (404) 815-2424
                                          Attention:  Wayne Bradley

or  at  such other address for a party as shall be specified by like notice  Any
notice  which  is  delivered  personally  in the manner provided herein shall be
deemed  to  have been duly given to the party to whom it is directed upon actual
receipt  by  such  party  or  the  office  of  such  party.  Any notice which is
addressed  and  mailed  in  the  manner  herein  provided  shall be conclusively
presumed  to  have  been duly given to the party to which it is addressed at the
close of business, local time of the recipient, on the fourth business day after
the  day it is so placed in the mail or, if earlier, the time of actual receipt.

     12.09     GOVERNING  LAW;  JURISDICTION.  This Agreement is executed by the
               -----------------------------
parties  hereto in and shall be construed in accordance with and governed by the
laws  of the State of Texas without giving effect to the principles of conflicts
of  law  thereof.  Each  of the parties hereto irrevocably agrees that any legal
action  or  proceeding  with  respect  to  this  Agreement  or  the transactions
contemplated  hereby,  or  for  recognition  and  enforcement of any judgment in
respect  hereof,  brought by the other party hereto or its successors or assigns
shall be brought and determined in state or federal courts sitting in the States
of  Georgia  or  Texas, and each party hereby irrevocably submits with regard to
any  such  action  or  proceeding  for  itself  and  in respect of its property,
generally  and  unconditionally,  to the exclusive jurisdiction of the aforesaid
courts.  Each  party hereto hereby irrevocably waives, and agrees not to assert,
by  way  of  a motion, as a defense, counterclaim or otherwise, in any action or
proceeding  with  respect  to  this  Agreement,  (a)  any  claim  that it is not
personally  subject to the jurisdiction of the above-named courts for any reason
other than the failure to lawfully serve process, (b) that it or its property is
exempt  or  immune from jurisdiction of any such court or from any legal process
commenced in such courts (whether through service of notice, attachment prior to
judgment,  attachment  in aid of execution of judgment, execution of judgment or
otherwise),  and (c) to the fullest extent permitted by applicable law, that (i)
the  suit,  action or proceeding in any such court is brought in an inconvenient
forum,  (ii) the venue of such suit, action or proceeding is improper, and (iii)
this  Agreement, or the subject matter hereof, may not be enforced in or by such
courts.

     12.10     PUBLIC  ANNOUNCEMENTS.  No  public  announcement shall be made by
               ---------------------
any  person  with  regard  to  the  transactions  contemplated by this Agreement
without  the  prior  consent  of the Sellers and Purchaser; provided that either
party may make such disclosure if advised by counsel that it is legally required
to  do  so.  The  Sellers, the Cotton Group Companies and Purchaser will discuss
any public announcements or disclosures concerning the transactions contemplated
by  this  Agreement with the other parties prior to making such announcements or
disclosures.

                                     - 50 -
<PAGE>
     12.11     KNOWLEDGE.  (a) (b) The Cotton Group Companies shall be deemed to
               ---------
have  "Knowledge"  of  a  particular  fact  or matter if an individual listed on
SCHEDULE  12.11(a)  is  actually  aware  of  such fact or matter without further
------------------
investigation  or  inquiry.

          (b)     An  individual Seller shall be deemed to have "Knowledge" of a
particular  matter  if  such  Seller  is  actually  aware of such fact or matter
without  further  investigation  or  inquiry.

          (c)     Purchaser  shall be deemed to have "Knowledge" of a particular
fact  or  matter if any of Billy Ray, Ray Smith, Kathy Catalano, Michael Oyster,
Troy Crochet or Michael Brenner is actually aware of such fact or matter without
further  inquiry.

     12.12     NO  THIRD-PARTY BENEFICIARIES.  With the exception of the parties
               -----------------------------
to  this  Agreement,  there  shall  exist  no  right  of  any  person to claim a
beneficial  interest in this Agreement or any rights occurring by virtue of this
Agreement.

     12.13     "INCLUDING".  Words  of inclusion shall not be construed as terms
               -----------
of limitation herein, so that references to "included" matters shall be regarded
as  non-exclusive,  non-characterizing  illustrations.

     12.14     GENDER  AND  NUMBER.  Where  the  context  requires, the use of a
               -------------------
pronoun  of one gender or the neuter is to be deemed to include a pronoun of the
appropriate  gender,  singular words are to be deemed to include the plural, and
vice  versa.

     12.15     REFERENCES.  Whenever  reference is made in this Agreement to any
               ----------
Article,  Section,  Schedule or Exhibit, such reference shall be deemed to apply
to  the specified Article or Section of this Agreement or the specified Schedule
or  Exhibit  to  this  Agreement.  The Schedules and Exhibits referenced in this
Agreement  are  attached hereto, are hereby incorporated into this Agreement and
are  hereby  made  a  part  hereof  as  if  set forth in full in this Agreement.

     12.16     SEVERABILITY.  In  case  any  one  or  more  of  the  provisions
               ------------
contained in this Agreement should be found by a court of competent jurisdiction
to be invalid, illegal or unenforceable in any respect against any party hereto,
such  invalidity, illegality, or unenforceability shall only apply to such party
in  the  specific  jurisdiction  where  such  judgment  shall  be  made, and the
validity,  legality,  and  enforceability  of the remaining provisions contained
herein  shall  not  in any way be affected or impaired thereby, except that this
Agreement  shall  not  be  reformed  in  any way that will deny to any party the
essential  benefits  of  this Agreement, unless such party waives in writing its
rights  to  such  benefits.

     12.17     FURTHER  ASSURANCES.  Each  of  the  parties  hereto will use its
               -------------------
reasonably  good  faith  efforts  to  take  all  actions  and  to  do all things
necessary,  proper  or  advisable  following  the Closing Date to consummate and
effectuate  the  transactions  contemplated  by  this  Agreement.

     12.18     CURRENCY.  All  payments  hereunder  or  contemplated  by  this
               --------
Agreement  shall  be  paid  in  U.S.  currency.

                                     - 51 -
<PAGE>
     12.19     ORDINARY  COURSE  OF  BUSINESS.  "Ordinary  Course  of  Business"
               ------------------------------    ------------------------------
means,  with  respect  to  actions  and operations conducted by the Cotton Group
Companies,  actions  and operations that are (a) consistent with the past custom
and  practices  of  the Cotton Group Companies, (b) taken in the ordinary course
of  the  normal,  day-to-day  operations  of the Cotton Group Companies, (c) not
required  to  be authorized by the Board of Directors or other governing body of
the  Cotton  Group Companies, and (d) similar in nature and magnitude to actions
and  operations  customarily  taken,  without  any authorization by the Board of
Directors  or  other  governing  body,  in  the  ordinary  course of the normal,
day-to-day operation of other companies that are in the same line of business as
the  Cotton  Group  Companies.

     12.20     COMMERCIALLY  REASONABLE  EFFORTS.  "Commercially  Reasonable
               ---------------------------------    ------------------------
Efforts"  means  efforts  which  are  designed  to  enable  a party, directly or
-------
indirectly, to satisfy a condition to or otherwise assist in the consummation of
a  desired  result and which do not require the performing party to expend funds
or  assume  liabilities  other  than  expenditures  and  liabilities  which  are
customary  and  reasonable  in  nature  and  amount  in  the  context  hereof.

     12.21     MATERIAL  ADVERSE  CHANGE  (OR EFFECT).  "Material Adverse Change
               --------------------------------------    -----------------------
(or  Effect)"  means  any change or effect that individually or in the aggregate
------------
with other changes or effects would be material and adverse to (a) the financial
condition,  assets,  liabilities,  businesses,  or  results or operations of any
Cotton Group Company or the Purchaser, as the case may be, or (b) the ability of
the Sellers or the Purchaser, as the case may be, to consummate the transactions
contemplated  hereby;  provided,  however,  that  any change or effect resulting
                       --------   -------
from,  or  directly  relating  to,  any of the following shall not be taken into
account  in  making any such determination and shall not be deemed to constitute
or  give  rise  to a Material Adverse Effect: (i) a change or effect which has a
similar  impact  on  comparable  businesses, (ii) a change or changes in general
business  or  economic  conditions,  including,  without  limitation, changes in
applicable  laws  or  regulations and changes in financial or market conditions,
(iii)  changes resulting from conditions generally affecting the geographic area
or  local, regional, or national industry in which the Cotton Group Companies or
the  Purchaser,  as  the  case  may  be, operates, (iv) acts of terrorism or war
(whether  or  not declared), (v) the performance by any party of its obligations
under  this  Agreement,  (vi)  the  compliance  by  any  party with any covenant
hereunder,  (vii)  the performance by any party of any action to which the other
party  has consented, (viii) the fact that the Purchaser is the purchaser of the
Cotton  Equity  Interests,  (ix)  the  announcement  of  the  transaction or the
existence  of this Agreement, or (x) the taking of any action by or on behalf of
the  other  party  or  its  Affiliates,  representatives,  or  agents.

     12.22     ARBITRATION.      The  parties  shall  use  their respective best
               -----------
efforts  to  resolve  any  disputes,  claims, or controversies arising out of or
relating  to  this  Agreement,  including  the  performance,  breach,  validity,
interpretation,  application,  or  termination thereof (a "Dispute").  Any party
                                                           -------
may give written notice of the existence of a Dispute (the "Notice of Dispute"),
                                                            -----------------
after  which the parties shall attempt to resolve the Dispute through good faith
negotiations by their respective authorized representatives.  If the parties are
unable to resolve the Dispute amicably within thirty (30) days after delivery of
the  written  Notice  of Dispute, or such other time as the parties may agree in
writing,  then  the  Dispute  shall be subject to arbitration in accordance with
this  Section.  Any Dispute not resolved amicably through good faith negotiation
as  provided  above shall be finally resolved by arbitration administered by the
American  Arbitration  Association in accordance with its Commercial Arbitration
Rules  as  then  in  effect  (the  "AAA
                                    ---

                                     - 52 -
<PAGE>
Rules"),  and  judgment  on  the  award  may  be  entered  in  any  court having
-----
jurisdiction  thereof.  In  the  event  that  any  party's claim or counterclaim
exceeds  $1,000,000, exclusive of interest or attorneys' fees, the Dispute shall
be  heard and determined by three arbitrators, each of whom shall be independent
and  impartial;  otherwise,  the  Dispute  shall  be heard and determined by one
arbitrator.  In  the  event  that  one  arbitrator  shall  hear the Dispute, the
parties  shall  attempt  to  agree  upon  a  qualified  individual  to  serve as
arbitrator.  If  the  parties  are unable to so agree within thirty (30) days of
the  commencement  of the arbitration, then the arbitrator shall be selected and
appointed in accordance with the AAA Rules.  In the event that three arbitrators
shall  hear  the  Dispute,  each  party  shall,  within  twenty  (20) days after
commencement  of  the  arbitration, select one person to act as arbitrator.  The
two arbitrators so selected shall, within twenty (20) days of their appointment,
select  a  third  arbitrator  who shall serve as the chairperson of the arbitral
panel.  The  arbitrators selected shall be qualified by education, training, and
experience  to  hear  and  determine matters in the nature of the Dispute.  If a
party  fails  to appoint an arbitrator as provided herein, or if the arbitrators
selected  by  the  parties  are  unable or fail to agree upon a third arbitrator
within  twenty (20) days of their appointment, or such other time as the parties
may  agree  in  writing, then that arbitrator shall be selected and appointed in
accordance with the AAA Rules.  Should an arbitrator die, resign, refuse to act,
or become incapable of performing his or her functions as an arbitrator, the AAA
may  declare  a vacancy on the Panel.  The vacancy shall be filled by the method
by  which that arbitrator was originally appointed.  The seat of the arbitration
shall be Houston, Texas.  The arbitrator(s) shall determine the matters at issue
in  the  Dispute  in  accordance with the substantive law of Texas.  The parties
hereby  waive  any claim to exemplary, punitive, or similar damages in excess of
compensatory  damages,  attorneys' fees, costs, and expenses of arbitration, and
the  arbitral panel is not empowered to and shall not award exemplary, punitive,
or  similar  damages  in excess of compensatory damages, attorneys' fees, costs,
and  expenses  of  arbitration.  The  award  of  the  arbitration(s) shall be in
writing  and  shall  set  out  the  reasons  therefor.

     12.23     ENFORCEMENT.  Prior  to  the Closing Date, the parties agree that
               -----------
irreparable  damage  would occur in the event that any of the provisions of this
Agreement  were  not  performed in accordance with their specified terms.  It is
accordingly  agreed that prior to the Closing Date the parties shall be entitled
to specific performance of the terms hereof, this being in addition to any other
remedy  to  which  they  are  entitled  at  law  or  in  equity.

                                   **********

                                     - 53 -
<PAGE>
     IN  WITNESS  WHEREOF,  each  of  the  parties  hereto has duly executed and
delivered  this  Agreement  as  of  the  date  first  above  written.

                                        CHARYS HOLDING COMPANY, INC.

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        COTTON HOLDINGS I, INC

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        COTTON COMMERCIAL USA, LP

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

                                        COTTON RESTORATION OF CENTRAL TEXAS, LP

                                        By:
                                           -------------------------------------
                                           Name:
                                           Title:

SELLER:                                 SELLER:
------                                  -------

--------------------------------------  ----------------------------------------
CHAD WEIGMAN                            BLAKE STANSELL

                  [SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT]

<PAGE>
SELLER:                                 SELLER:
------                                  -------

--------------------------------------  ----------------------------------------
BRYAN MICHALSKY                         JAMES SCAIFE

SELLER:                                 SELLER:
------                                  -------

--------------------------------------  ----------------------------------------
RANDALL THOMPSON                        PETE BELL

SELLER:                                 SELLER:
------                                  -------

--------------------------------------  ----------------------------------------
DARYN EBRECHT                           RUSSELL WHITE

SELLER:
-------

--------------------------------------
JOHNNY SLAUGHTER

                  [SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT]

<PAGE>
<TABLE>
<CAPTION>
                                    EXHIBIT A
                                    ---------

                             COTTON GROUP COMPANIES

-------------------------------------------------------------
NAME  JURISDICTION  AUTHORIZED #  NAME OF EACH  INTEREST HELD
                    OF INTERESTS     HOLDER        BY EACH
                                                   HOLDER
----  ------------  ------------  ------------  -------------
<S>   <C>           <C>           <C>           <C>

-------------------------------------------------------------
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                    EXHIBIT B
                                    ---------

                  PURCHASE PRICE ALLOCATION AMONG SHAREHOLDERS

-------------------------------------------------------------------------
SELLER      NON-       SELLER      STOCK          FINAL       INCENTIVE
         REFUNDABLE     NOTE   CONSIDERATION  DETERMINATION  COMPENSATION
            CASH                                DATE CASH     PERCENTAGE
        CONSIDERATION                         CONSIDERATION
------  -------------  ------  -------------  -------------  ------------
<S>     <C>            <C>     <C>            <C>            <C>

-------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    EXHIBIT C
                                    ---------

                                 PROMISSORY NOTE
                                  [SELLER NOTE]

$                                                               Atlanta, Georgia
 -------------                                                            , 2006
                                                              --------- --

          FOR  VALUE  RECEIVED,  the undersigned, C&B Holdings, Inc., a Delaware
corporation  ("Maker"), hereby promises to pay to the order of [           ], an
               -----                                            -----------
individual  resident  of the State of Texas ("Seller"), at                    ,
                                              ------       -------------------
or such other place as Seller shall designate in writing, in lawful money of the
United  States  of  America,  the  principal  sum  of
                                                       ------------------
($             ) subject to the terms hereof, together with interest thereon, at
  -------------
the rate hereinafter set forth below, with such principal sum and interest being
payable  as  set  forth below.  This promissory note ("Note") is being delivered
                                                       ----
pursuant  to  Section  2.02(d)  of  that  certain  Stock and Limited Partnership
Interest  Purchase Agreement, dated as of September 1, 2006, by and among Charys
Holding  Company, Inc. ("Guarantor"), Cotton Holdings 1, Inc., Cotton Commercial
                         ---------
USA,  LP,  Cotton  Restoration  of  Central  Texas, LP and the Sellers set forth
therein  (the "Purchase Agreement"), and is subject in all respects to the terms
               ------------------
and  conditions  thereof,  including  without  limitation adjustment pursuant to
Section  2.02(d)  thereof.  Terms  not otherwise defined in this Note shall have
the  meaning  set  forth  in  the  Purchase  Agreement.

     Section  I.     Rate  of  Interest
                     ------------------

          From  and  after  the date hereof, simple interest shall accrue on the
outstanding  principal balance of this Note at a rate equal to nine percent (9%)
per annum, calculated on the basis of 365 days per year and actual days elapsed.

     Section  II.    Payment  of  Principal  and  Interest
                     -------------------------------------

          The  principal  amount evidenced by this Note shall be due and payable
in  full  by  Maker  on  April 1, 2007. Maker shall have the right to prepay the
indebtedness  evidenced  by  this Note, in full or in part, at any time, without
penalty,  fee  or  charge.

          Notwithstanding any provision in this Note to the contrary, the entire
principal amount outstanding hereunder shall be due and payable in full by Maker
in  the  event  that:

          (a)     Seller's  employment  is terminated without cause by Maker (as
described  in  Section  5(d)  of  Seller's  Employment  Agreement  with  Cotton
Holdings),  Cotton  Holdings,  or  other  subsidiary  or  affiliate  of Maker or
Guarantor  that  is  the employer of Seller as the "Company" defined in Seller's
Employment  Agreement  of  even  date  herewith;  or

          (b)     A  change  of control occurs with respect to Maker, Guarantor,
Cotton  Holdings or Cotton Commercial, which shall be deemed to have occurred in
the  event  any person or group of persons (within the meaning of Section 13(d))
of  the  Securities  Exchange  Act  of  1934,  as  amended,  acquires beneficial
ownership  (within  the  meaning  of the aforesaid Section 13(d), by conveyance,
sale, lease, assignment, transfer or other disposal, of all or substantially all

<PAGE>
of  the property, business or assets of any one or more of such, or greater than
50% voting control of any one or more of such companies, and one or more of such
person(s)  acquiring  beneficial  ownership  is  a  third  party  not related to
Guarantor.

     Section  III.     Events  of  Default
                       -------------------

          For  purposes  of  this  Note,  the occurrence of any of the following
events  or  conditions  shall  constitute  an  event  of  default  hereunder:

          (a)     Maker  shall  fail  to  pay in full any amount under this Note
when  due  and such default shall continue uncured for a period of 15 dyas after
Seller  notifies  Maker  of  such  default;  or

          (b)     Maker  shall:  (i)  file a voluntary petition or assignment in
bankruptcy  or a voluntary petition or assignment or answer seeking liquidation,
reorganization,  arrangement,  readjustment  of  its  debts, or any other relief
under  the Bankruptcy Reform Act of 1978, as amended (the "Bankruptcy Code"), or
                                                           ---------------
under  any  other  act or law pertaining to insolvency or debtor relief, whether
State,  Federal,  or  foreign,  now  or  hereafter existing; (ii) enter into any
agreement  indicating  consent  to,  approval  of,  or acquiescence in, any such
petition or proceeding; (iii) apply for or permit the appointment, by consent or
acquiescence,  of  a receiver, custodian or trustee of all or a substantial part
of  its  property;  (iv) make an assignment for the benefit of creditors; (v) be
unable  or  shall  fail  to pay its debts generally as such debts become due, or
(vi)  admit  in  writing  its inability or failure to pay its debts generally as
such  debts  become  due;

          (c)     There  occurs  (i)  a  filing  or issuance against Maker of an
involuntary  petition  in  bankruptcy  or  seeking  liquidation, reorganization,
arrangement,  readjustment of its debts or any other relief under the Bankruptcy
Code,  or  under any other act or law pertaining to insolvency or debtor relief,
whether  State,  Federal  or  foreign,  now  or  hereafter  existing;  (ii)  the
involuntary appointment of a receiver, liquidator, custodian or trustee of Maker
or  for  all  or  a substantial part of its property; or (iii) the issuance of a
warrant  of  attachment,  execution  or  similar  process  against  all  or  any
substantial  part  of  the  property  of  Maker  and  such  shall  not have been
discharged  (or  provision shall not have been made for such discharge), or stay
of  execution  thereof shall not have been procured, within sixty (60) days from
the  date  of  entry  thereof;

          (d)     There  occurs  an Event of Default or other material breach by
Maker  (or  by  Cotton  Holdings  or another subsidiary or affiliate of Maker or
Guarantor,  as  applicable)  (i) under the Pledge Agreement defined in Section V
below,  (ii)  under  any of the other Promissory Notes [Tax Notes] or Promissory
Notes  [Seller Notes] of even date herewith executed by Maker and payable to the
other Sellers or any of the Pledge Agreements securing such Promissory Notes, or
(iii)  the  Employment Agreement of even date herewith by and between Seller, as
the  employee, and Maker, Cotton Holdings, or another subsidiary or affiliate of
Maker  or  Guarantor,  as  the  "Company"  defined  therein;  and

          (e)     There  occurs  a  breach  or  default  by  Guarantor under the
Purchase  Agreement,  the Registration Rights Agreement or the Escrow Agreement,
or  a  breach  or  default

                                        2
<PAGE>
by  Maker, Guarantor, or any subsidiary or affiliate of Maker or Guarantor under
any credit facility entered into to finance the transactions contemplated by the
Purchase  Agreement,  or any other indebtedness of any such parties to which the
payment  of  this  Note  or  any  of the security interests or guaranty securing
payment  of  this  Note  have  been  subordinated.

          Upon  any  such  event of default, the total outstanding principal and
accrued,  unpaid  interest  shall  become  immediately  due and payable, and the
entire unpaid principal of this Note shall bear interest until paid at a rate of
interest  equal  to the lesser of (i) eighteen percent (18%) per annum, computed
on the basis of 365 days per year for the actual number of days elapsed, or (ii)
the  Highest Lawful Rate (defined below).  Forbearance by Seller to exercise its
rights  with  respect  to  any failure or breach of Maker shall not constitute a
waiver  of  the  right  as to any subsequent failure or breach.  For purposes of
this Note, "Highest Lawful Rate" means the maximum non-usurious rate of interest
            -------------------
permitted  by  applicable  federal  or  Texas  law  from  time  to  time.

     All  agreements between Maker and Seller, whether now existing or hereafter
arising  and whether written or oral, are hereby expressly limited so that in no
event,  whether by reason of acceleration of maturity hereof or otherwise, shall
the  amount paid or agreed to be paid to the Seller for the use, forbearance, or
detention  of the money to be loaned hereunder, or otherwise, exceed the Highest
Lawful  Rate. If fulfillment of any provision hereof or of any loan agreement or
other  document evidencing or securing the indebtedness evidenced hereby, at the
time  performance of such provision shall be due, shall involve transcending the
limit  of  validity  prescribed  by  law,  then,  automatically  and without the
requirement  for  affirmative  action,  the  obligation to be fulfilled shall be
reduced  to  the  limit of such validity. Should Seller ever receive anything of
value  deemed  interest  under this Note under applicable law which would exceed
interest  at  the Highest Lawful Rate, an amount equal to any excessive interest
shall  be  applied  to the reduction of the principal amount owing hereunder and
not to the payment of interest, or if such excessive interest exceeds the unpaid
balance  of  principal  hereof,  such excess shall be refunded to the Maker. All
sums  paid or agreed to be paid to Seller for the use, forbearance, or detention
of  the  indebtedness  of  Maker  to  Seller  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 rate of
interest on account of such indebtedness is uniform throughout the term thereof.
The  provisions of this paragraph shall control all agreements between Maker and
Seller.

     Section  IV.     Guaranty
                      --------

          Subject  to  the  rights  of  Maker  under the Promissory Note and the
Purchase  Agreement,  Guarantor hereby guarantees to Seller full payment of this
Note  as  and  when  due as well as all renewals, rearrangements, extensions and
modifications  thereof  and  any  sums  due  or  to  become  due pursuant to any
instruments  which  secure  the  payment  of this Note (the "Obligations").  Any
                                                             -----------
dispute  between Guarantor and Seller shall be subject to the dispute resolution
requirements  of  the  Purchase  Agreements,  provided  that Seller shall not be
required  to  (i)  proceed  against  Maker  in  any manner or make any effort at
collection of this Note from Maker, (ii) proceed against or exhaust any security
held  from Maker or any other person, (iii) have Maker joined with Guarantor, to
the  full  extent not legally mandated, in any suit arising out of this guaranty
or  this  Note,  or  (iv)  pursue any other remedy in Seller's power whatsoever.

                                        3
<PAGE>
Guarantor  waives  presentment, grace, demand, protest and notice of protest and
dishonor  on  any  and  all  forms of this Note, notice of intent to accelerate,
notice  of  acceleration,  and  notice  of disposition of collateral, and waives
notice  of  the  amount  of the Note outstanding at any time, and also notice of
acceptance  of  this  guaranty.  Acceptance on the part of Seller is presumed by
its  request  for  this  guaranty  and  delivery  of  this  guaranty  to Seller.
Guarantor's  guaranty  herein  reasonably  may be expected to benefit Guarantor,
directly  or  indirectly, and the entry into, and performance of, the provisions
of  this  guaranty are in the best interests of Guarantor.  Guarantor recognizes
that  Seller  is  relying  upon  this guaranty and the undertakings of Guarantor
herein  in  making  an  extension  of credit to Maker, and acknowledges that the
execution and delivery of this guaranty by Guarantor are material inducements to
Seller  in  entering  into  this  transaction.

     Section  V.     Security  for  Obligations
                     --------------------------

          Payment  of  this  Note  is  secured  by  a  pledge  of the collateral
described  in the Pledge Agreement, dated of even date herewith, attached hereto
as  Exhibit  A,  and  the  guaranty  set  forth  in  Section  IV  above.

     Section  VI.     General  Provisions
                      -------------------

          Time  is  of  the  essence  of  this  Note  and,  in case this Note is
collected  by law or through an attorney at law, or under advice herefrom, Maker
agrees  to pay all costs of collection, including reasonable attorneys' fees and
expenses.

     This  Note  is  a  "Negotiable Instrument" pursuant to Section 9.401 of the
Texas  Business  &  Commerce  Code,  as  amended.

     Seller  may  transfer, sell or assign this Note or his rights hereunder, in
whole  or  part,  without  the  requirement  of  the  consent  of  Maker.

     THIS  NOTE,  AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS
(WITHOUT  REGARD  TO  PRINCIPLES  OF  CONFLICT  OF  LAWS).

                            [SIGNATURE PAGE FOLLOWS]

                                        4
<PAGE>
     IN  WITNESS WHEREOF, the undersigned Maker has hereunto executed and sealed
this  instrument  as  of  the  day  and  year  first  above  written.

                                        MAKER:

                                        C&B  HOLDINGS,  INC.

                                        By:
                                             -----------------------------------
                                                  Troy Crochet
                                                  President

                                        AGREED AND ACKNOWLEDGED
                                        BY:

                                        SELLER:

                                        --------------------------
                                        [           ]
                                         -----------

CHARYS  HOLDING  COMPANY,  INC.
FOR  PURPOSES  OF  SECTION  IV  ONLY:

By:
   --------------------------------
     Billy  V.  Ray  Jr.
     Chief  Executive  Officer

                      (Signature Page to Promissory Note)

                                        5
<PAGE>
                                    EXHIBIT A
                                    ---------

                                PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT ("Agreement") is entered into and made effective
                                  ---------
as  of  [            ],  2006  by  and  between  C&B  HOLDINGS, INC., a Delaware
         --------  --
corporation  ("Pledgor"),  and  [             ],  an  individual resident of the
               -------           -------------
State  of  Texas  ("Pledgee").
                    -------

                              W I T N E S S E T H:

          WHEREAS,  under  that  certain  Stock and Limited Partnership Interest
Purchase  Agreement,  dated as of September 1, 2006, by and among Charys Holding
Company,  Inc.,  Cotton  Holdings  1,  Inc.,  Cotton  Commercial USA, LP, Cotton
Restoration  of  Central  Texas,  LP  and  the  Sellers  set  forth therein (the
"Purchase  Agreement"), consideration is payable to Pledgee by the issuance of a
 -------------------
Promissory  Note  in  the  principal  amount of [           ] ($         ), such
                                                 -----------    ---------
amount  to  be  reduced  in  accordance  with  the  terms  and conditions of the
Promissory  Note  (the  "Note")  (Terms  not otherwise defined in this Agreement
                         ----
shall  have  the  meaning  set  forth  in  the  Purchase  Agreement);

     WHEREAS,  pursuant  to  the  terms  of  the  Purchase Agreement, Pledgor is
acquiring one hundred percent (100%) of the issued and outstanding capital stock
and  limited  partnership  interests  (the "Equity Interests"), no par value per
                                            ----------------
share, of Cotton Holdings 1, Inc., Cotton Commercial USA, LP, Cotton Restoration
of  Central  Texas,  LP,  including  without limitation the Equity Interests set
forth  on  Schedule  1  hereto  (the  "Pledged  Equity  Interests");
                                       --------------------------

     WHEREAS,  Pledgor  has  contemporaneously executed and delivered to Pledgee
the  Note;  and

     WHEREAS,  Pledgee desires to secure Pledgor's obligations under the Note by
having  Pledgor  grant  Pledgee  a  security  interest  in  the  Pledged  Equity
Interests.

                                A G R E E M E N T

     1.     PLEDGE.  Pledgor  hereby  creates  and  grants to Pledgee a security
interest  in  all of the Pledged Equity Interests, which term shall include also
(a)  all  securities,  instruments and other property ("Additional Property") at
                                                        -------------------
any  time  received  or  receivable  by Pledgor by reason of any stock dividend,
stock  split,  recapitalization,  reclassification,  merger,  consolidation,
liquidation, exchange, renewal, substitution, or other transaction regarding the
Pledged Equity Interests or regarding any Additional Property; (b) all dividends
and  interest  received  or receivable on any of the Pledgee Equity Interests or
any Additional Property; and (c) all proceeds of the foregoing.  Neither Pledgor
nor  Pledgee  shall  encumber  or  dispose  of any portion of the Pledged Equity
Interests,  in  any  manner,  except in accordance with this Agreement.  Pledgor
agrees  to  deliver  to  Pledgee  contemporaneously  with  the  signing  of this
Agreement  all  stock  and

                                        6
<PAGE>
other  certificates  and  other  like  instruments evidencing the Pledged Equity
Interests,  duly  endorsed  or accompanied by stock power(s) signed in blank and
otherwise  sufficient  to  perfect  in  favor  of  Pledgee the security interest
granted  herein.

     2.     OBLIGATIONS  SECURED.  The  security  interest  created  by  this
Agreement  secures  the  following:

     (a)  Timely  payment  of  all  amounts  due  under  the Note, including any
          and  all  modifications,  extensions or renewals thereof (collectively
          the  "Obligations").

     (b)  Performance  and  discharge  of  every  obligation,  covenant  and
          agreement  of  Pledgor  contained  in  this  Agreement.

     3.     VOTING  RIGHTS.  During  the  term of this Agreement, and so long as
there  is  no  default  or  breach  by  Pledgor with respect to the Obligations,
Pledgor  shall  have  the  sole  and  exclusive right to vote the Pledged Equity
Interests,  provided  however  that  no portions of the Pledged Equity Interests
shall  be  voted  in  favor  of  any matter which may adversely affect or impair
payment  or  performance  of  the Obligations, and on request by Pledgee upon an
event  of  default,  Pledgor  shall  duly and timely execute proxies in favor of
Pledgee or Pledgee's designated proxy or other representative. Upon breach of or
default  under  the  Obligations,  all voting rights with respect to the Pledged
Equity  Interests  shall  belong  exclusively  to  Pledgee.

     4.     WARRANTIES  AND  REPRESENTATIONS.  Pledgor  warrants  and represents
that  Pledgor  is  the sole owner of all right, title and interest in and to the
Pledged Equity Interests, that Pledgor has not previously assigned, transferred,
encumbered or conveyed any interest in any of the Pledged Equity Interests, that
all  of  the  Pledged  Equity Interests are free and clear of any lien, security
interest  or  encumbrance  (except as set forth in Section 6 of this Agreement),
that  Pledgor  has  the  full  right,  power and authority to pledge the Pledged
Equity  Interests  in  accordance  with  this  Agreement,  that  there  are  no
restrictions  upon  such  pledge  of  the  Pledged  Equity Interests and that no
consent  of  any  other  party  is  required to enter into this Agreement and to
create  the  security  interest and make the pledge set forth in this Agreement.

     5.     SUBORDINATION.  Notwithstanding  anything  to the contrary set forth
herein,  Pledgee  hereby agrees that the security interest in the Pledged Equity
Interests  and all other rights granted to Pledgee pursuant to the Note and this
Agreement  are subordinated to any credit facility or facilities entered into by
Pledgor, Charys Holding Company, Inc., or any subsidiary or affiliate of Pledgor
or Charys Holding Company, Inc., to finance the transactions contemplated by the
Purchase  Agreement.

     6.     TERM.  This Agreement shall remain in full force and effect from the
effective  date  hereof until such time as all of the Obligations have been paid
and  satisfied  in  full.  Upon  payment,  performance  and  satisfaction of the
Obligations,  taking  into  account any credits or offsets against same to which
Pledgor  may  be  entitled, Pledgee shall transfer, convey and return to Pledgor
all of the Pledged Equity Interests and any certificate evidencing same and this
Agreement  shall  thereupon  be  rendered  null  and  void.

                                        7
<PAGE>
     7.     DEFAULT.  As  used  in this Agreement, "Default" shall be any or all
of  the  following:

     (a)  The failure  of  Pledgor  punctually  and  completely to observe, keep
          or  perform  any  covenant,  agreement  or  condition required by this
          Agreement.

     (b)  The failure  of  Pledgor  to  timely  pay  or  perform the Obligations
          in  accordance  with  their  terms,  or  other  default  in  Pledgor's
          obligations  under  any  document  or  instrument  evidencing  the
          Obligations.

     (c)  The assumption  of  jurisdiction,  custody  or  control  of any of the
          assets  of  Pledgor  under the provisions of any presently existing or
          future  law  providing  for  bankruptcy,  insolvency,  reorganization,
          dissolution,  liquidation or winding up of corporations or other legal
          entities.

     (d)  If a final  judgment  for  the  payment  of  money  shall  be rendered
          against the Pledgor and within thirty (30) days after the entry of the
          judgment,  it has not been discharged or execution of the judgment has
          not  been  stayed pending appeal, or if, within thirty (30) days after
          the  expiration  of  any  stay,  the judgment has not been discharged.

     8.     PLEDGEE'S  REMEDIES.  In  the  event  of  Default,  at the option of
Pledgee  or  other  holder  of  the  Obligations,  the  Obligations shall become
immediately  due  and  payable  without  presentment  or demand or any notice to
Pledgor  or  any  other person obligated thereon, and the Pledgee shall have and
may  exercise with reference to the Pledged Equity Interests and the Obligations
any  and  all  of  the  rights and remedies of a secured party under the Uniform
Commercial  Code  as  adopted  in  the  State of Texas, and as otherwise granted
herein  or  under any other applicable law or under any other agreement executed
by  Pledgor,  including,  without  limitation,  the  right and power to sell, at
public  or  private  sale  or  sales,  or  otherwise  dispose  of or possess for
Pledgee's  exclusive  benefit the Pledged Equity Interests and any part or parts
thereof  in any manner authorized or permitted under this Agreement or under the
Uniform  Commercial Code after default by the Pledgor, and to apply the proceeds
thereof  toward  payment of any costs and expenses and attorneys' fees and legal
expenses  thereby incurred by the Pledgee and toward payment of the Obligations,
in  such  order or manner as Pledgee may elect.  To the extent permitted by law,
Pledgor  expressly waives any notice of sale or other disposition of the Pledged
Equity  Interests  and  any  other  rights or remedies of Pledgor or formalities
prescribed  by  law  relative  to  sale  or  disposition  of  the Pledged Equity
Interests,  or  exercise  of any other right or remedy of Pledgee existing after
default  hereunder;  and to the extent any such notice is required and cannot be
waived,  Pledgor  agrees  that if such notice is mailed, postage prepaid, to the
Pledgor  at  the address of Pledgor last known to Pledgee at least five (5) days
before  the  time  of  the  sale  or  disposition,  such  notice shall be deemed
reason-able  and  shall fully satisfy any requirement for giving of said notice.

     Pledgor  hereby  agrees  to cooperate fully with Pledgee in order to permit
Pledgee  to  sell,  at  foreclosure  or  other  private sale, the Pledged Equity
Interests  pledged hereunder.  Specifically, Pledgor agrees to fully comply with
the  Securities  Laws  of  the  United  States  and  of  any  state  and

                                        8
<PAGE>
to  take  such action as may be necessary to permit Pledgee to sell or otherwise
transfer  the  securities  pledged  hereunder  in  compliance  with  such  laws.

     All  remedies  of  Pledgee hereunder shall be cumulative, and the waiver or
exercise  of  any  remedy  by  Pledgee  shall not preclude exercise of any other
remedy  if  permitted  or  authorized  by  law.

     9.     ASSIGNMENTS.  During  the  term  of  this  Agreement, Pledgor hereby
covenants  and  agrees  that  Pledgor  shall not sell, assign, transfer, convey,
encumber  or  otherwise  dispose  of  any right, title or interest in any of the
Pledged  Equity  Interests, or commit to any such assignment or transfer, except
with  the  prior  written  consent  of  Pledgee,  which  consent may be given or
withheld  in  Pledgee's  sole  discretion.  In  the event of the sale, transfer,
conveyance,  encumbrance  or other disposition of said Pledged Equity Interests,
the  same  shall  be  subject  to  all  of  the  provisions  hereunder,  unless
specifically  waived  in  writing  by  Pledgee.  This Agreement and the security
interest  created  by  this  Agreement  shall be assignable by Pledgee and shall
inure  to  the  benefit  of  Pledgee's  heirs,  executors, administrators, legal
representatives,  successors  and assigns, and shall be binding upon Pledgor and
Pledgor's  legal  representatives,  successors  and  assigns.

     10.     BENEFITS;  BINDING  EFFECT.  Subject  to other provisions contained
herein  with  respect  to assignment, this Agreement shall be for the benefit of
and  shall  be  binding  upon  the  parties  hereto  and their respective heirs,
executors,  administrators,  legal  representatives,  successors  and  assigns.

     11.     JURISDICTION.  This  Agreement  shall  be construed and enforced in
accordance  with  the  laws  of  the  State  of  Texas.

     12.     FINANCING  STATEMENT.  Pledgor (as debtor) hereby grants to Pledgee
(as  secured  party)  the  right  to  execute and file, on Pledgor's behalf, any
financing  statements Pledgee may desire to file in connection with the security
interests  granted  herein.  Alternatively,  a  carbon,  photographic  or  other
reproduction  of this Agreement shall be sufficient as a financing statement for
filing  in  any  jurisdiction.

     13.     MISCELLANEOUS  PROVISIONS.

     (a)  No Waiver  of  Rights  or  Remedies.  No  failure  or delay by Pledgee
          -----------------------------------
          in  exercising any right, power or privilege given by any provision of
          this  Agreement  shall  operate  as  a  waiver  of  the  provision.
          Additionally,  no  single  or  partial exercise of any right, power or
          privilege  shall preclude any other or further exercise of that or any
          other  right,  power  or  privilege.

     (b)  Severability.  Should  any  one  or  more  of  the  provisions of this
          ------------
          Agreement  be  determined  to  be  illegal or unenforceable, all other
          provisions  of this Agreement shall be valid, binding and effective as
          if  the illegal or unenforceable provisions had never been included in
          this  Agreement.

                                        9
<PAGE>
     (c)  Integrated  Agreement.  This  Agreement  constitutes  the  entire
          ---------------------
          Agreement  between  the  parties with respect to the matters contained
          herein  and  there  are  no  agreements, understandings, restrictions,
          warranties or representations between the parties other than those set
          forth  or  provided  for  in  this  Agreement  or in any instrument or
          document  evidencing  the  Obligations.

     IN  WITNESS  WHEREOF,  the  parties  have  duly caused this Agreement to be
executed  as  of  the  date  first  above  written.

                            [SIGNATURE PAGE FOLLOWS]

                                       10
<PAGE>
     IN WITNESS WHEREOF, Pledgor has duly executed this Agreement as of the date
first  above  written.

                                        PLEDGOR:

                                        C&B  HOLDINGS,  INC.

                                        By:
                                             -----------------------------------
                                                  Troy  Crochet
                                                  President

                                        PLEDGEE:

                                        ------------------------------
                                        [          ]
                                         ----------

                    (Signature Page to the Pledge Agreement)

<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE 1
                            PLEDGED EQUITY INTERESTS

--------------------------------------------------------------------------------
ENTITY
---------------------------------------  ---------------------------------------
<S>                                      <C>
Cotton Holdings 1, Inc.
---------------------------------------  ---------------------------------------
Cotton Commercial USA, LP
---------------------------------------  ---------------------------------------
Cotton Restoration of Central Texas, LP
--------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    EXHIBIT D
                                    ---------

                             TAX REIMBURSEMENT NOTE

                                 PROMISSORY NOTE
                                   [TAX NOTE]

$                                                              Atlanta,  Georgia
 -------------                                                            , 2006
                                                              --------- --

          FOR  VALUE  RECEIVED,  the undersigned, C&B Holdings, Inc., a Delaware
corporation  ("Maker"), hereby promises to pay to the order of [           ], an
               -----                                            -----------
individual  resident  of the State of Texas ("Seller"), at                     ,
                                              ------       --------------------
or such other place as Seller shall designate in writing, in lawful money of the
United  States  of  America,  the  principal  sum  of
                                                       ------------------
($             ) subject to the terms hereof, together with interest thereon, at
  -------------
the rate hereinafter set forth below, with such principal sum and interest being
payable  as  set  forth below.  This promissory note ("Note") is being delivered
                                                       ----
pursuant  to  Section  2.02(d)  of  that  certain  Stock and Limited Partnership
Interest  Purchase Agreement, dated as of September 1, 2006, by and among Charys
Holding  Company, Inc. ("Guarantor"), Cotton Holdings 1, Inc., Cotton Commercial
                         ---------
USA,  LP,  Cotton  Restoration  of  Central  Texas, LP and the Sellers set forth
therein  (the "Purchase Agreement"), and is subject in all respects to the terms
               ------------------
and  conditions  thereof,  including  without  limitation adjustment pursuant to
Section  2.02(d)  thereof.  Terms  not otherwise defined in this Note shall have
the  meaning  set  forth  in  the  Purchase  Agreement.

     Section  I.     Rate  of  Interest
                     ------------------

          From  and  after  the date hereof, simple interest shall accrue on the
outstanding  principal balance of this Note at a rate equal to zero percent (0%)
per annum, calculated on the basis of 365 days per year and actual days elapsed.

     Section  II.     Payment  of  Principal  and  Interest
                      -------------------------------------

          The  principal  amount evidenced by this Note shall be due and payable
in  full  by  Maker  on  April 1, 2007. Maker shall have the right to prepay the
indebtedness  evidenced  by  this Note, in full or in part, at any time, without
penalty,  fee  or  charge.

          Notwithstanding any provision in this Note to the contrary, the entire
principal amount outstanding hereunder shall be due and payable in full by Maker
in  the  event  that:

          (a)     Seller's  employment  is terminated without cause by Maker (as
described  in  Section  5(d)  of  Seller's  Employment  Agreement  with  Cotton
Holdings),  Cotton  Holdings,  or  other  subsidiary  or  affiliate  of Maker or
Guarantor  that  is  the employer of Seller as the "Company" defined in Seller's
Employment  Agreement  of  even  date  herewith;  or

          (b)     A  change  of control occurs with respect to Maker, Guarantor,
Cotton  Holdings or Cotton Commercial, which shall be deemed to have occurred in
the  event  any person or group of persons (within the meaning of Section 13(d))
of  the  Securities  Exchange  Act  of  1934,  as  amended,  acquires beneficial
ownership  (within  the  meaning  of the aforesaid Section 13(d), by conveyance,
sale, lease, assignment, transfer or other disposal, of all or substantially all

<PAGE>
of  the property, business or assets of any one or more of such, or greater than
50% voting control of any one or more of such companies, and one or more of such
person(s)  acquiring  beneficial  ownership  is  a  third  party  not related to
Guarantor.

     Section  III.     Events  of  Default
                       -------------------

          For  purposes  of  this  Note,  the occurrence of any of the following
events  or  conditions  shall  constitute  an  event  of  default  hereunder:

          (a)     Maker  shall  fail  to  pay in full any amount under this Note
when  due  and such default shall continue uncured for a period of 15 dyas after
Seller  notifies  Maker  of  such  default;  or

          (b)     Maker  shall:  (i)  file a voluntary petition or assignment in
bankruptcy  or a voluntary petition or assignment or answer seeking liquidation,
reorganization,  arrangement,  readjustment  of  its  debts, or any other relief
under  the Bankruptcy Reform Act of 1978, as amended (the "Bankruptcy Code"), or
                                                           ---------------
under  any  other  act or law pertaining to insolvency or debtor relief, whether
State,  Federal,  or  foreign,  now  or  hereafter existing; (ii) enter into any
agreement  indicating  consent  to,  approval  of,  or acquiescence in, any such
petition or proceeding; (iii) apply for or permit the appointment, by consent or
acquiescence,  of  a receiver, custodian or trustee of all or a substantial part
of  its  property;  (iv) make an assignment for the benefit of creditors; (v) be
unable  or  shall  fail  to pay its debts generally as such debts become due, or
(vi)  admit  in  writing  its inability or failure to pay its debts generally as
such  debts  become  due;

          (c)     There  occurs  (i)  a  filing  or issuance against Maker of an
involuntary  petition  in  bankruptcy  or  seeking  liquidation, reorganization,
arrangement,  readjustment of its debts or any other relief under the Bankruptcy
Code,  or  under any other act or law pertaining to insolvency or debtor relief,
whether  State,  Federal  or  foreign,  now  or  hereafter  existing;  (ii)  the
involuntary appointment of a receiver, liquidator, custodian or trustee of Maker
or  for  all  or  a substantial part of its property; or (iii) the issuance of a
warrant  of  attachment,  execution  or  similar  process  against  all  or  any
substantial  part  of  the  property  of  Maker  and  such  shall  not have been
discharged  (or  provision shall not have been made for such discharge), or stay
of  execution  thereof shall not have been procured, within sixty (60) days from
the  date  of  entry  thereof;

          (d)     There  occurs  an Event of Default or other material breach by
Maker  (or  by  Cotton  Holdings  or another subsidiary or affiliate of Maker or
Guarantor,  as  applicable)  (i) under the Pledge Agreement defined in Section V
below,  (ii)  under  any of the other Promissory Notes [Tax Notes] or Promissory
Notes  [Seller Notes] of even date herewith executed by Maker and payable to the
other Sellers or any of the Pledge Agreements securing such Promissory Notes, or
(iii)  the  Employment Agreement of even date herewith by and between Seller, as
the  employee, and Maker, Cotton Holdings, or another subsidiary or affiliate of
Maker  or  Guarantor,  as  the  "Company"  defined  therein;  and

          (e)     There  occurs  a  breach  or  default  by  Guarantor under the
Purchase  Agreement,  the Registration Rights Agreement or the Escrow Agreement,
or  a  breach  or  default

                                        2
<PAGE>
by  Maker, Guarantor, or any subsidiary or affiliate of Maker or Guarantor under
any credit facility entered into to finance the transactions contemplated by the
Purchase  Agreement,  or any other indebtedness of any such parties to which the
payment  of  this  Note  or  any  of the security interests or guaranty securing
payment  of  this  Note  have  been  subordinated.

          Upon  any  such  event of default, the total outstanding principal and
accrued,  unpaid  interest  shall  become  immediately  due and payable, and the
entire unpaid principal of this Note shall bear interest until paid at a rate of
interest  equal  to the lesser of (i) eighteen percent (18%) per annum, computed
on the basis of 365 days per year for the actual number of days elapsed, or (ii)
the  Highest Lawful Rate (defined below).  Forbearance by Seller to exercise its
rights  with  respect  to  any failure or breach of Maker shall not constitute a
waiver  of  the  right  as to any subsequent failure or breach.  For purposes of
this Note, "Highest Lawful Rate" means the maximum non-usurious rate of interest
            -------------------
permitted  by  applicable  federal  or  Texas  law  from  time  to  time.

     All  agreements between Maker and Seller, whether now existing or hereafter
arising  and whether written or oral, are hereby expressly limited so that in no
event,  whether by reason of acceleration of maturity hereof or otherwise, shall
the  amount paid or agreed to be paid to the Seller for the use, forbearance, or
detention  of the money to be loaned hereunder, or otherwise, exceed the Highest
Lawful  Rate. If fulfillment of any provision hereof or of any loan agreement or
other  document evidencing or securing the indebtedness evidenced hereby, at the
time  performance of such provision shall be due, shall involve transcending the
limit  of  validity  prescribed  by  law,  then,  automatically  and without the
requirement  for  affirmative  action,  the  obligation to be fulfilled shall be
reduced  to  the  limit of such validity. Should Seller ever receive anything of
value  deemed  interest  under this Note under applicable law which would exceed
interest  at  the Highest Lawful Rate, an amount equal to any excessive interest
shall  be  applied  to the reduction of the principal amount owing hereunder and
not to the payment of interest, or if such excessive interest exceeds the unpaid
balance  of  principal  hereof,  such excess shall be refunded to the Maker. All
sums  paid or agreed to be paid to Seller for the use, forbearance, or detention
of  the  indebtedness  of  Maker  to  Seller  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 rate of
interest on account of such indebtedness is uniform throughout the term thereof.
The  provisions of this paragraph shall control all agreements between Maker and
Seller.

     Section  IV.     Guaranty
                      --------

          Subject  to  the  rights  of  Maker  under the Promissory Note and the
Purchase  Agreement,  Guarantor hereby guarantees to Seller full payment of this
Note  as  and  when  due as well as all renewals, rearrangements, extensions and
modifications  thereof  and  any  sums  due  or  to  become  due pursuant to any
instruments  which  secure  the  payment  of this Note (the "Obligations").  Any
                                                             -----------
dispute  between Guarantor and Seller shall be subject to the dispute resolution
requirements  of  the  Purchase  Agreements,  provided  that Seller shall not be
required  to  (i)  proceed  against  Maker  in  any manner or make any effort at
collection of this Note from Maker, (ii) proceed against or exhaust any security
held  from Maker or any other person, (iii) have Maker joined with Guarantor, to
the  full  extent not legally mandated, in any suit arising out of this guaranty
or  this  Note,  or  (iv)  pursue any other remedy in Seller's power whatsoever.

                                        3
<PAGE>
Guarantor  waives  presentment, grace, demand, protest and notice of protest and
dishonor  on  any  and  all  forms of this Note, notice of intent to accelerate,
notice  of  acceleration,  and  notice  of disposition of collateral, and waives
notice  of  the  amount  of the Note outstanding at any time, and also notice of
acceptance  of  this  guaranty.  Acceptance on the part of Seller is presumed by
its  request  for  this  guaranty  and  delivery  of  this  guaranty  to Seller.
Guarantor's  guaranty  herein  reasonably  may be expected to benefit Guarantor,
directly  or  indirectly, and the entry into, and performance of, the provisions
of  this  guaranty are in the best interests of Guarantor.  Guarantor recognizes
that  Seller  is  relying  upon  this guaranty and the undertakings of Guarantor
herein  in  making  an  extension  of credit to Maker, and acknowledges that the
execution and delivery of this guaranty by Guarantor are material inducements to
Seller  in  entering  into  this  transaction.

     Section  V.     Security  for  Obligations
                     --------------------------

          Payment  of  this  Note  is  secured  by  a  pledge  of the collateral
described  in the Pledge Agreement, dated of even date herewith, attached hereto
as  Exhibit  A,  and  the  guaranty  set  forth  in  Section  IV  above.
    ----------

     Section  VI.     General  Provisions
                      -------------------

          Time  is  of  the  essence  of  this  Note  and,  in case this Note is
collected  by law or through an attorney at law, or under advice herefrom, Maker
agrees  to pay all costs of collection, including reasonable attorneys' fees and
expenses.

     This  Note  is  a  "Negotiable Instrument" pursuant to Section 9.401 of the
Texas  Business  &  Commerce  Code,  as  amended.

     Seller  may  transfer, sell or assign this Note or his rights hereunder, in
whole  or  part,  without  the  requirement  of  the  consent  of  Maker.

     THIS  NOTE,  AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS
(WITHOUT  REGARD  TO  PRINCIPLES  OF  CONFLICT  OF  LAWS).

                            [SIGNATURE PAGE FOLLOWS]

                                        4
<PAGE>
     IN  WITNESS WHEREOF, the undersigned Maker has hereunto executed and sealed
this  instrument  as  of  the  day  and  year  first  above  written.

                                        MAKER:

                                        C&B  HOLDINGS,  INC.

                                        By:
                                             ------------------------------
                                                  Troy Crochet
                                                  President

                                        AGREED AND ACKNOWLEDGED
                                        BY:

                                        SELLER:

                                        ------------------------------
                                        [           ]
                                         -----------

CHARYS  HOLDING  COMPANY,  INC.
FOR  PURPOSES  OF  SECTION  IV  ONLY:

By:
   --------------------------------
     Billy  V.  Ray  Jr.
     Chief  Executive  Officer

                       (Signature Page to Promissory Note)

                                        5
<PAGE>
                                    EXHIBIT A
                                    ---------

                                PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT ("Agreement") is entered into and made effective
                                  ---------
as  of  [            ],  2006  by  and  between  C&B  HOLDINGS, INC., a Delaware
         --------  --
corporation  ("Pledgor"),  and  [             ],  an  individual resident of the
               -------           -------------
State  of  Texas  ("Pledgee").
                    -------

                              W I T N E S S E T H:

          WHEREAS,  under  that  certain  Stock and Limited Partnership Interest
Purchase  Agreement,  dated as of September 1, 2006, by and among Charys Holding
Company,  Inc.,  Cotton  Holdings  1,  Inc.,  Cotton  Commercial USA, LP, Cotton
Restoration  of  Central  Texas,  LP  and  the  Sellers  set  forth therein (the
"Purchase  Agreement"), consideration is payable to Pledgee by the issuance of a
 -------------------
Promissory  Note  in  the  principal  amount of [           ] ($         ), such
                                                 -----------    ---------
amount  to  be  reduced  in  accordance  with  the  terms  and conditions of the
Promissory  Note  (the  "Note")  (Terms  not otherwise defined in this Agreement
                         ----
shall  have  the  meaning  set  forth  in  the  Purchase  Agreement);

     WHEREAS,  pursuant  to  the  terms  of  the  Purchase Agreement, Pledgor is
acquiring one hundred percent (100%) of the issued and outstanding capital stock
and  limited  partnership  interests  (the "Equity Interests"), no par value per
                                            ----------------
share, of Cotton Holdings 1, Inc., Cotton Commercial USA, LP, Cotton Restoration
of  Central  Texas,  LP,  including  without limitation the Equity Interests set
forth  on  Schedule  1  hereto  (the  "Pledged  Equity  Interests");
                                       --------------------------

     WHEREAS,  Pledgor  has  contemporaneously executed and delivered to Pledgee
the  Note;  and

     WHEREAS,  Pledgee desires to secure Pledgor's obligations under the Note by
having  Pledgor  grant  Pledgee  a  security  interest  in  the  Pledged  Equity
Interests.

                                A G R E E M E N T

     1.     PLEDGE.  Pledgor  hereby  creates  and  grants to Pledgee a security
interest  in  all of the Pledged Equity Interests, which term shall include also
(a)  all  securities,  instruments and other property ("Additional Property") at
                                                        -------------------
any  time  received  or  receivable  by Pledgor by reason of any stock dividend,
stock  split,  recapitalization,  reclassification,  merger,  consolidation,
liquidation, exchange, renewal, substitution, or other transaction regarding the
Pledged Equity Interests or regarding any Additional Property; (b) all dividends
and  interest  received  or receivable on any of the Pledgee Equity Interests or
any Additional Property; and (c) all proceeds of the foregoing.  Neither Pledgor
nor  Pledgee  shall  encumber  or  dispose  of any portion of the Pledged Equity
Interests,  in  any  manner,  except in accordance with this Agreement.  Pledgor
agrees  to  deliver  to  Pledgee  contemporaneously  with  the  signing  of this
Agreement  all  stock  and

                                        6
<PAGE>
other  certificates  and  other  like  instruments evidencing the Pledged Equity
Interests,  duly  endorsed  or accompanied by stock power(s) signed in blank and
otherwise  sufficient  to  perfect  in  favor  of  Pledgee the security interest
granted  herein.

     2.     OBLIGATIONS  SECURED.  The  security  interest  created  by  this
Agreement  secures  the  following:

     (a)  Timely  payment  of  all  amounts  due  under  the Note, including any
          and  all  modifications,  extensions or renewals thereof (collectively
          the  "Obligations").

     (b)  Performance  and  discharge  of  every  obligation,  covenant  and
          agreement  of  Pledgor  contained  in  this  Agreement.

     3.     VOTING  RIGHTS.  During  the  term of this Agreement, and so long as
there  is  no  default  or  breach  by  Pledgor with respect to the Obligations,
Pledgor  shall  have  the  sole  and  exclusive right to vote the Pledged Equity
Interests,  provided  however  that  no portions of the Pledged Equity Interests
shall  be  voted  in  favor  of  any matter which may adversely affect or impair
payment  or  performance  of  the Obligations, and on request by Pledgee upon an
event  of  default,  Pledgor  shall  duly and timely execute proxies in favor of
Pledgee or Pledgee's designated proxy or other representative. Upon breach of or
default  under  the  Obligations,  all voting rights with respect to the Pledged
Equity  Interests  shall  belong  exclusively  to  Pledgee.

     4.     WARRANTIES  AND  REPRESENTATIONS.  Pledgor  warrants  and represents
that  Pledgor  is  the sole owner of all right, title and interest in and to the
Pledged Equity Interests, that Pledgor has not previously assigned, transferred,
encumbered or conveyed any interest in any of the Pledged Equity Interests, that
all  of  the  Pledged  Equity Interests are free and clear of any lien, security
interest  or  encumbrance  (except as set forth in Section 6 of this Agreement),
that  Pledgor  has  the  full  right,  power and authority to pledge the Pledged
Equity  Interests  in  accordance  with  this  Agreement,  that  there  are  no
restrictions  upon  such  pledge  of  the  Pledged  Equity Interests and that no
consent  of  any  other  party  is  required to enter into this Agreement and to
create  the  security  interest and make the pledge set forth in this Agreement.

     5.     SUBORDINATION.  Notwithstanding  anything  to the contrary set forth
herein,  Pledgee  hereby agrees that the security interest in the Pledged Equity
Interests  and all other rights granted to Pledgee pursuant to the Note and this
Agreement  are subordinated to any credit facility or facilities entered into by
Pledgor, Charys Holding Company, Inc., or any subsidiary or affiliate of Pledgor
or Charys Holding Company, Inc., to finance the transactions contemplated by the
Purchase  Agreement.

     6.     TERM.  This Agreement shall remain in full force and effect from the
effective  date  hereof until such time as all of the Obligations have been paid
and  satisfied  in  full.  Upon  payment,  performance  and  satisfaction of the
Obligations,  taking  into  account any credits or offsets against same to which
Pledgor  may  be  entitled, Pledgee shall transfer, convey and return to Pledgor
all of the Pledged Equity Interests and any certificate evidencing same and this
Agreement  shall  thereupon  be  rendered  null  and  void.

                                        7
<PAGE>
     7.     DEFAULT.  As  used  in this Agreement, "Default" shall be any or all
of  the  following:

     (a)  The failure  of  Pledgor  punctually  and  completely to observe, keep
          or  perform  any  covenant,  agreement  or  condition required by this
          Agreement.

     (b)  The failure  of  Pledgor  to  timely  pay  or  perform the Obligations
          in  accordance  with  their  terms,  or  other  default  in  Pledgor's
          obligations  under  any  document  or  instrument  evidencing  the
          Obligations.

     (c)  The assumption  of  jurisdiction,  custody  or  control  of any of the
          assets  of  Pledgor  under the provisions of any presently existing or
          future  law  providing  for  bankruptcy,  insolvency,  reorganization,
          dissolution,  liquidation or winding up of corporations or other legal
          entities.

     (d)  If a final  judgment  for  the  payment  of  money  shall  be rendered
          against the Pledgor and within thirty (30) days after the entry of the
          judgment,  it has not been discharged or execution of the judgment has
          not  been  stayed pending appeal, or if, within thirty (30) days after
          the  expiration  of  any  stay,  the judgment has not been discharged.

     8.     PLEDGEE'S  REMEDIES.  In  the  event  of  Default,  at the option of
Pledgee  or  other  holder  of  the  Obligations,  the  Obligations shall become
immediately  due  and  payable  without  presentment  or demand or any notice to
Pledgor  or  any  other person obligated thereon, and the Pledgee shall have and
may  exercise with reference to the Pledged Equity Interests and the Obligations
any  and  all  of  the  rights and remedies of a secured party under the Uniform
Commercial  Code  as  adopted  in  the  State of Texas, and as otherwise granted
herein  or  under any other applicable law or under any other agreement executed
by  Pledgor,  including,  without  limitation,  the  right and power to sell, at
public  or  private  sale  or  sales,  or  otherwise  dispose  of or possess for
Pledgee's  exclusive  benefit the Pledged Equity Interests and any part or parts
thereof  in any manner authorized or permitted under this Agreement or under the
Uniform  Commercial Code after default by the Pledgor, and to apply the proceeds
thereof  toward  payment of any costs and expenses and attorneys' fees and legal
expenses  thereby incurred by the Pledgee and toward payment of the Obligations,
in  such  order or manner as Pledgee may elect.  To the extent permitted by law,
Pledgor  expressly waives any notice of sale or other disposition of the Pledged
Equity  Interests  and  any  other  rights or remedies of Pledgor or formalities
prescribed  by  law  relative  to  sale  or  disposition  of  the Pledged Equity
Interests,  or  exercise  of any other right or remedy of Pledgee existing after
default  hereunder;  and to the extent any such notice is required and cannot be
waived,  Pledgor  agrees  that if such notice is mailed, postage prepaid, to the
Pledgor  at  the address of Pledgor last known to Pledgee at least five (5) days
before  the  time  of  the  sale  or  disposition,  such  notice shall be deemed
reason-able  and  shall fully satisfy any requirement for giving of said notice.

     Pledgor  hereby  agrees  to cooperate fully with Pledgee in order to permit
Pledgee  to  sell,  at  foreclosure  or  other  private sale, the Pledged Equity
Interests  pledged  hereunder. Specifically, Pledgor agrees to fully comply with
the  Securities  Laws  of  the  United  States and of any state and

                                        8
<PAGE>
to  take  such action as may be necessary to permit Pledgee to sell or otherwise
transfer  the  securities  pledged  hereunder  in  compliance  with  such  laws.

     All  remedies  of  Pledgee hereunder shall be cumulative, and the waiver or
exercise  of  any  remedy  by  Pledgee  shall not preclude exercise of any other
remedy  if  permitted  or  authorized  by  law.

     9.     ASSIGNMENTS.  During  the  term  of  this  Agreement, Pledgor hereby
covenants  and  agrees  that  Pledgor  shall not sell, assign, transfer, convey,
encumber  or  otherwise  dispose  of  any right, title or interest in any of the
Pledged  Equity  Interests, or commit to any such assignment or transfer, except
with  the  prior  written  consent  of  Pledgee,  which  consent may be given or
withheld  in  Pledgee's  sole  discretion.  In  the event of the sale, transfer,
conveyance,  encumbrance  or other disposition of said Pledged Equity Interests,
the  same  shall  be  subject  to  all  of  the  provisions  hereunder,  unless
specifically  waived  in  writing  by  Pledgee.  This Agreement and the security
interest  created  by  this  Agreement  shall be assignable by Pledgee and shall
inure  to  the  benefit  of  Pledgee's  heirs,  executors, administrators, legal
representatives,  successors  and assigns, and shall be binding upon Pledgor and
Pledgor's  legal  representatives,  successors  and  assigns.

     10.     BENEFITS;  BINDING  EFFECT.  Subject  to other provisions contained
herein  with  respect  to assignment, this Agreement shall be for the benefit of
and  shall  be  binding  upon  the  parties  hereto  and their respective heirs,
executors,  administrators,  legal  representatives,  successors  and  assigns.

     11.     JURISDICTION.  This  Agreement  shall  be construed and enforced in
accordance  with  the  laws  of  the  State  of  Texas.

     12.     FINANCING  STATEMENT.  Pledgor (as debtor) hereby grants to Pledgee
(as  secured  party)  the  right  to  execute and file, on Pledgor's behalf, any
financing  statements Pledgee may desire to file in connection with the security
interests  granted  herein.  Alternatively,  a  carbon,  photographic  or  other
reproduction  of this Agreement shall be sufficient as a financing statement for
filing  in  any  jurisdiction.

     13.     MISCELLANEOUS  PROVISIONS.

     (a)  No Waiver  of  Rights  or  Remedies.  No  failure  or delay by Pledgee
          -----------------------------------
          in  exercising any right, power or privilege given by any provision of
          this  Agreement  shall  operate  as  a  waiver  of  the  provision.
          Additionally,  no  single  or  partial exercise of any right, power or
          privilege  shall preclude any other or further exercise of that or any
          other  right,  power  or  privilege.

     (b)  Severability.  Should  any  one  or  more  of  the  provisions of this
          ------------
          Agreement  be  determined  to  be  illegal or unenforceable, all other
          provisions  of this Agreement shall be valid, binding and effective as
          if  the illegal or unenforceable provisions had never been included in
          this  Agreement.

                                        9
<PAGE>
     (c)  Integrated  Agreement.  This  Agreement  constitutes  the  entire
          ---------------------
          Agreement  between  the  parties with respect to the matters contained
          herein  and  there  are  no  agreements, understandings, restrictions,
          warranties or representations between the parties other than those set
          forth  or  provided  for  in  this  Agreement  or in any instrument or
          document  evidencing  the  Obligations.

     IN  WITNESS  WHEREOF,  the  parties  have  duly caused this Agreement to be
executed  as  of  the  date  first  above  written.

                            [SIGNATURE PAGE FOLLOWS]

                                       10
<PAGE>
     IN WITNESS WHEREOF, Pledgor has duly executed this Agreement as of the date
first  above  written.

                                        PLEDGOR:

                                        C&B  HOLDINGS,  INC.

                                        By:
                                             -----------------------------------
                                                Troy  Crochet
                                                President

                                        PLEDGEE:

                                        ------------------------------
                                        [          ]
                                         ----------

                    (Signature Page to the Pledge Agreement)

<PAGE>
<TABLE>
<CAPTION>
                                   SCHEDULE 1
                            PLEDGED EQUITY INTERESTS

--------------------------------------------------------------------------------
ENTITY
---------------------------------------  ---------------------------------------
<S>                                      <C>
Cotton Holdings 1, Inc.
---------------------------------------  ---------------------------------------
Cotton Commercial USA, LP
---------------------------------------  ---------------------------------------
Cotton Restoration of Central Texas, LP
--------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                    EXHIBIT E
                                    ---------

                                ESCROW AGREEMENT

     This  ESCROW AGREEMENT (the "Escrow Agreement") is made and entered into as
                                  ----------------
of               ,  2006  (the  "Effective  Date"),  by and among CHARYS HOLDING
    -------------                ---------------
COMPANY,  INC., a Delaware corporation ("Purchaser"), COTTON HOLDINGS 1, INC., a
                                         ---------
Delaware  corporation  ("Cotton  Holdings"),  COTTON COMMERCIAL USA, LP, a Texas
                         ----------------
limited  partnership ("Cotton Commercial"), COTTON RESTORATION OF CENTRAL TEXAS,
                       -----------------
LP,  a  Texas limited partnership ("Cotton Restoration"), Bryan Michalsky, James
                                    ------------------
Scaife, Randall Thompson, Daryn Ebrecht and Pete Bell (collectively, the "Cotton
                                                                          ------
Holdings  Sellers"),  Chad Weigman and Blake Stansell (collectively, the "Cotton
-----------------                                                         ------
Commercial  Sellers")  and Johnny Slaughter and Russell White (collectively, the
-------------------
"Cotton  Restoration Sellers" and, together with the Cotton Holdings Sellers and
 ---------------------------
Cotton  Commercial  Sellers,  the "Sellers"), and Sterling Bank - Heights Office
                                   -------
(the  "Escrow  Agent").
       -------------

                              W I T N E S S E T H:

     WHEREAS,  Sellers  and  Purchaser  have entered into that certain STOCK AND
LIMITED  PARTNERSHIP  INTEREST  PURCHASE  AGREEMENT  (the "Purchase Agreement"),
                                                           ------------------
dated  as  of September 1, 2006, whereby the Sellers have agreed to sell, assign
and  transfer  to the Purchaser, and Purchaser has agreed to purchase and accept
certain  stock and limited partnership interests of Sellers (the "Transaction"),
                                                                  -----------
all  upon  the  terms  of  the  Purchase  Agreement.  Any  capitalized  term not
specifically  defined herein shall have the meaning assigned to such term in the
Purchase  Agreement;  and

     WHEREAS,  Sellers  and Purchaser have consummated the Transaction as of the
Effective  Date  in  accordance  with  the  Purchase Agreement and other closing
documents  executed  at  closing  (the Purchase Agreement and such other closing
documents  being  hereinafter sometimes collectively referred to as the "Closing
                                                                         -------
Documents");  and
---------

     WHEREAS,  under  Section  2.02(e)  of  the Purchase Agreement, Purchaser is
obligated  to  pay to Sellers the Final Determination Date Cash Consideration on
the  Final  Determination  Date,  and  for  such  purpose  the  cash  sum  of
$17,200,000.00  (the "Escrow Funds") is being herewith delivered to Escrow Agent
                      ------------
at  Closing  to  be  held by Escrow Agent and distributed in accordance with the
terms  of  Sections  2.02(e)  and 2.04 of the Purchase Agreement and this Escrow
Agreement;  and

     WHEREAS, Sellers and Purchaser desire that the Escrow Agent hold the Escrow
Funds  until the Final Determination Date and make distribution of such funds in
accordance  with  Sections  2.02(e)  and 2.04 of the Purchase Agreement and this
Escrow  Agreement;  and

     WHEREAS,  Sellers  and  Purchaser have requested Escrow Agent to act in the
capacity  of escrow agent under this Escrow Agreement, and Escrow Agent, subject
to  the  terms  and  conditions  hereof,  has  agreed  to  so  act.

     NOW,  THEREFORE,  in consideration of the premises and mutual covenants and
agreements  contained  herein,  the  parties  hereto  agree  as  follows:

<PAGE>
                                   ARTICLE I.
                                 ESCROWED FUNDS
                                 --------------

     1.1     The  Sellers  and  Purchaser hereby appoint the Escrow Agent as the
escrow  agent  under this Escrow Agreement, and Escrow Agent hereby accepts such
appointment.

     1.2     At  Closing  and upon execution of this Escrow Agreement, Purchaser
shall  deliver the Escrow Funds to the Escrow Agent,  to be held by Escrow Agent
in  accordance  with  the  terms  hereof.

                                   ARTICLE II.
                   DELIVERY OF ESCROWED FUNDS BY ESCROW AGENT.
                   ------------------------------------------

     2.1     The  Escrow  Agent  shall  hold  the Escrowed Funds in escrow until
authorized  hereunder  to  deliver  the  same  or any portion thereof under this
Article  II.

     2.2     In  the  event  that  the  Escrow  Agent is in receipt of a written
authorization  ("Authorization") signed by all the parties hereto other than the
                 -------------
Escrow  Agent,  Escrow  Agent  shall  promptly  disburse  the  Escrowed Funds in
accordance  with the Authorization.  In the event that the provisions of Section
2.04(c)  are  invoked  by  Purchaser  with  respect  to  the  appointment  of an
Accounting  Referee,  the  Escrow  Agent  shall  distribute  the Escrow Funds in
accordance  with the Accounting Referee's final determination as contemplated by
Section  2.04(c)  of  the  Purchase  Agreement.  In  the  event that neither the
Accounting  Referee's final determination or an Authorization is received by the
Escrow  Agent  on or before the Final Determination Date, the Escrow Agent shall
distribute  the entire Escrow Funds to Sellers in accordance with Exhibit "B" of
the  Purchase  Agreement.

                                  ARTICLE III.
                             SETTLEMENT OF DISPUTES.
                             ----------------------

     3.1     Any  dispute  which  may arise under this Escrow Agreement shall be
settled  either by mutual agreement of the parties in such dispute (evidenced by
appropriate instructions in writing to the Escrow Agent signed by the parties to
this  Escrow  Agreement  other  than  Escrow  Agent,  or  by a binding and final
arbitration  award,  or  by  a  final  judgment,  order  or decree of a court of
competent  jurisdiction  in  the  United  States of America, the time for appeal
therefrom  having  expired  and  no appeal having been perfected), all costs and
expenses  of  which (including reasonable attorneys' fees) shall be borne by the
party  against whom the dispute is settled as aforesaid.  The Escrow Agent shall
be  under  no  duty  to institute or defend any such proceedings and none of the
costs  and  expenses of any such proceedings shall be borne by the Escrow Agent.
Prior  to  the  settlement  of any dispute as provided in this Articles 3.1, the
Escrow  Agent  is  authorized  and  directed  to  retain  in  the Escrow Agent's
possession,  without  liability  to  anyone,  such portion of the Escrowed Funds
which  is  the  subject  of  or  involved  in  the  dispute.

                                   ARTICLE IV.
                          CONCERNING THE ESCROW AGENT.
                          ---------------------------

     4.1     The  Escrow  Agent  shall be entitled to the fees stated on EXHIBIT
                                                                         -------
"A"  attached  hereto  (which  is incorporated herein for all purposes as though
---
fully  set  forth)  for  the  Escrow  Agent's  services  hereunder  and shall be
reimbursed  for  all  reasonable  expenses,  disbursements

                                        2
<PAGE>
and  advances  (including  reasonable  attorneys' fees and expenses) incurred or
made  by the Escrow Agent in performance of the Escrow Agent's duties hereunder.
One-half  of  such reasonable compensation, disbursements, expenses and advances
shall  be  paid  by  Purchaser  and  one-half by the Sellers upon request by the
Escrow  Agent  and,  in  the  case of any such reimbursement, upon submission by
Escrow  Agent  to  Purchaser  and  Sellers  of  a  reasonably  detailed itemized
statement  related  to  the  amounts  to  be  reimbursed.

     4.2     The  Escrow  Agent  may  resign  and  be discharged from the Escrow
Agent's  duties  hereunder  at  any time by giving notice of such resignation to
Purchaser  and Sellers specifying a date (not less than 30 days after the giving
of  such  notice)  when such resignation shall take effect.  Promptly after such
notice,  a  successor  escrow  agent  shall  be appointed by mutual agreement of
Purchaser  and  Sellers,  which  successor  escrow agent shall become the Escrow
Agent  hereunder  upon  the  resignation  date  specified  in  such  notice.  If
Purchaser  and  Sellers are unable to agree upon a successor escrow agent within
thirty  (30) days after such notice, the Escrow Agent shall appoint a successor.
The  Escrow  Agent  shall  continue  to serve until the Escrow Agent's successor
accepts  the  escrow  by  written  notice to the parties hereto and receives the
Escrowed Funds.  Purchaser and Sellers may agree at any time to substitute a new
escrow  agent  by  giving  notice  thereof  to  the  Escrow  Agent  then acting.

     4.3     The  Escrow  Agent  undertakes  to  perform  such  duties  as  are
specifically  set  forth  herein.  The  Escrow  Agent  acting or refraining from
acting  in  good  faith  shall not be liable for any mistake of fact or error in
judgment by the Escrow Agent or for any acts or omissions by the Escrow Agent of
any kind unless caused by willful misconduct or gross negligence, and the Escrow
Agent  shall  be  entitled to rely, and shall be protected in doing so, upon (i)
any  written  notice, instrument or signature believed by the Escrow Agent to be
genuine and to have been signed or presented by the proper party or parties duly
authorized  to do so, and (ii) the advice of counsel (which may be of the Escrow
Agent's  own  choosing).  The  Escrow Agent shall have no responsibility for the
contents  of  any  writing  submitted to the Escrow Agent hereunder and shall be
entitled  in  good faith to rely thereon without any liability upon the contents
thereof.

     4.4     Purchaser  and Sellers agree to indemnify, defend and hold harmless
the  Escrow  Agent  against any and all liabilities incurred by the Escrow Agent
hereunder  as a consequence of their respective actions, and each further agrees
jointly  to indemnify, defend and hold harmless the Escrow Agent against any and
all  liabilities  incurred  by  the  Escrow  Agent  hereunder  which  are  not a
consequence of their respective actions, except, in either case, for liabilities
incurred  by  the  Escrow  Agent  resulting  from the Escrow Agent's own willful
misconduct  or  gross  negligence.

     4.5     Should any controversy arise involving the parties hereto or any of
them  or  any other person, firm or entity with respect to this Escrow Agreement
or  the  Escrowed  Funds,  or  should  a  substitute  escrow  agent  fail  to be
designated, if Escrow Agent should be in doubt as to what action to take, Escrow
Agent  shall  have  the  right,  but  not the obligation, either to (a) withhold
delivery  of  the  Escrowed  Funds  until  the  controversy  is  resolved,  the
conflicting  demands  are  withdrawn or its doubt is resolved or (b) institute a
petition  or  bill  for  interpleader  in any court of competent jurisdiction to
determine  the  rights  of  the  parties  hereto.  The  right of Escrow Agent to
institute such a petition or bill of interpleader shall not, however, modify the
manner  in  which  the  Escrow  Agent  is  entitled to make disbursements of the
Escrowed  Funds as herein set forth other than to tender the Escrowed Funds into
the  registry  of  such  court.  In the

                                        3
<PAGE>
event  Escrow  Agent  is  a  party  to  any dispute, Escrow Agent shall have the
additional  right  to  refer  such  controversy to binding arbitration. Should a
petition  or  bill  for  interpleader  be  instituted, or should Escrow Agent be
threatened  with  litigation  or  become  involved  in  litigation  or  binding
arbitration in any manner whatsoever in connection with this Escrow Agreement or
the  Escrowed  Funds, then the parties hereby jointly and severally agree to pay
Escrow  Agent  from  the  deposit  its  attorneys'  fees  and  any and all other
disbursements, expenses, losses, costs and damages of Escrow Agent in connection
with or resulting from such threatened or actual litigation or arbitration prior
to  any  disbursement  hereunder.

     4.6.     RELIANCE;  LIABILITY.  Escrow  Agent may rely on, and shall not be
liable  for  acting  or  refraining  from acting in accordance with, any written
notice,  instruction  or  request  or  other  paper furnished to it hereunder or
pursuant  hereto  and  believed  by  it to be genuine and to have been signed or
presented  by  the property party or parties.  Escrow Agent shall be responsible
for holding, investing and disbursing the Escrowed Funds pursuant to this Escrow
Agreement;  provided, however, that in no event shall Escrow Agent be liable for
any  lost  profits,  lost  savings or other special, exemplary, consequential or
incidental  damages  in  excess  of  Escrow  Agent's fee hereunder and provided,
further, that Escrow Agent shall have no liability for any loss arising from any
cause  beyond  its  control,  including, but not limited to, the following:  (a)
acts  of  God, force majeure, including, without limitation, war (whether or not
declared  or  existing),  revolution,  insurrection,  riot,  civil  commotion,
accident, fire, explosion, stoppage of labor, strikes and other differences with
employees;  (b)  the  act,  failure  or  neglect  of  any  party or any agent or
correspondent or any other person selected by Escrow Agent for the remittance of
funds;  (c)  any  delay,  error,  omission  or  default  of  any  mail, courier,
telegraph,  cable  or  wireless agency or operator; or (d) the acts or edicts of
any  government  or  governmental  agency  or  other  group of entity exercising
governmental  powers.  Escrow  Agent  shall  not be responsible or liable in any
manner  whatsoever  for the sufficiency, correctness, genuineness or validity of
the  subject  matter  of  this  Escrow  Agreement  or any part hereof or for the
transaction or transactions requiring or underlying the execution of this Escrow
Agreement,  the form or execution hereof or for the identity or authority of any
person  executing  this  Escrow  Agreement  or any part hereof or depositing the
Escrowed  Funds.

     4.7     INDEMNIFICATION.  Sellers  and  Purchaser  hereby  jointly  and
severally  indemnify Escrow Agent, its officers, directors, partners, employees,
agents  and  counsel  ("Indemnified  Party")  against, and hold each Indemnified
                        ------------------
Party  harmless  from,  any and all losses, costs, damages, expenses, claims and
attorneys'  fees  including,  but  not  limited  to,  costs  of  investigation,
litigation  and  arbitration,  tax liability and loss on investments suffered or
incurred  by  any Indemnified Party in connection with or arising from or out of
this  Escrow  Agreement,  except  such  acts or omissions as may result from the
willful  misconduct  or  gross  negligence of such Indemnified Party.  IT IS THE
EXPRESS  INTENT  OF  EACH  OF  SELLERS  AND  PURCHASER  TO INDEMNIFY EACH OF THE
INDEMNIFIED  PARTIES  FOR,  AND  HOLD THEM HARMLESS AGAINST, THEIR OWN NEGLIGENT
ACTS  OR  OMISSIONS,  AND THE SELLERS AND PURCHASER HEREBY ACKNOWLEDGE THAT THIS
PROVISION  SATISFIES  THE  TEXAS  EXPRESS  NEGLIGENCE  RULE  AND IS CONSPICUOUS.

                                        4
<PAGE>
                                   ARTICLE V.
                                  MISCELLANEOUS
                                  -------------

     5.1     NOTICES. Any notice or other communication required or permitted to
be  given  under  this  Escrow  Agreement by any party hereto to any other party
hereto  shall  be  considered  as properly given if in writing and (a) delivered
against  receipt  therefor,  (b)  mailed by registered or certified mail, return
receipt  requested  and  postage prepaid or (c) sent by telefax machine, in each
case  to  the  address  or  telefax number, as the case may be, set forth below:

     If  to  Escrow  Agent:

     Sterling  Bank  -  Heights  Office
     2201  Mangum  Road
     Houston  77092
     Fax  No.:  (713)861-9056
     Attn:  Scott  Lester

     If to Sellers or, prior to the Closing Date, the Cotton Group Companies to:

     Cotton
     14345 Northwest Fwy.
     Houston, TX.  77040
     Fax No.: (713) 856-7425
     Attention:  Pete Bell, Chairman/Founder

     With a copy to:

     Nance & Simpson, LLP
     2603 Augusta, Suite 1000
     Houston, Texas 77057
     Fax No.:  (713) 520-5109
     Attention:  Glynn Nance

     If to Purchaser to:

     Charys Holding Company, Inc.
     1117 Perimeter Center West, Suite N415
     Atlanta, Georgia 30338
     Attention:  Billy V. Ray, Jr., Chief Executive Officer

     With a copy to:

     Paul, Hastings, Janofsky & Walker LLP
     600 Peachtree Street, N.E., Suite 2400
     Atlanta, GA  30308
     Fax No.:  (404) 815-2424
     Attention:  Wayne Bradley

Delivery  of  any  communication given in accordance herewith shall be effective
only  upon  actual  receipt  thereof  by  the  party  or  parties  to  whom such
communication  is  directed.  Any  party to this Escrow Agreement may change the
address  to  which communications hereunder are to be directed by giving written
notice  to  the  other  party  or  parties hereto in the manner provided in this
section.

                                        5
<PAGE>
     5.2     CONSULTATION WITH LEGAL COUNSEL.  Escrow Agent may consult with its
counsel or other counsel satisfactory to it concerning any question relating to
its duties or responsibilities hereunder or otherwise in connection herewith and
shall not be liable for any action taken, suffered or omitted by it in good
faith upon the advice of such counsel.

     5.3     CHOICE  OF  LAWS; CUMULATIVE RIGHTS.  This Escrow Agreement and the
Escrowed  Funds shall be construed under, and governed by, the laws of the State
of  Texas,  excluding, however, (a) its choice of law rules and (b) the portions
of  the  Texas  Trust  Code  Sec.  111.001,  et  seq. of the Texas Property Code
concerning  fiduciary duties and liabilities of trustees.  All of Escrow Agent's
rights  hereunder  are  cumulative  of  any  other rights it may have at law, in
equity  or otherwise.  The parties hereto agree that the forum for resolution of
any  dispute  arising under this Escrow Agreement shall be Harris County, Texas,
and  the  Sellers  and  Purchaser  hereby consent, and submit themselves, to the
jurisdiction  of  any  state  or  federal court sitting in Harris County, Texas.

     5.4     SEVERABILITY.  If  one  or  more of the provisions hereof shall for
any  reason be held to be invalid, illegal or unenforceable in any respect under
applicable law, such invalidity, illegality or unenforceability shall not affect
any  other provisions hereof, and this Escrow Agreement shall be construed as if
such  invalid,  illegal,  or  unenforceable  provision  had never been contained
herein,  and  the  remaining  provisions  hereof  shall  be given full force and
effect.

     5.5     TERMINATION.  This  Escrow  Agreement  shall  terminate  upon  the
disbursement  of  the Escrowed Funds in full, pursuant to this Escrow Agreement.

     5.6     GENERAL.  The  section  headings contained in this Escrow Agreement
are  for  reference purposes only and shall not affect in any way the meaning or
interpretation  of this Escrow Agreement.  This Escrow Agreement may be executed
simultaneously  in  two  or  more counterparts, each of which shall be deemed an
original,  but  all  of  which  together  shall  constitute  one  and  the  same
instrument.  The  terms and provisions of this Escrow Agreement or any provision
hereof may be amended, modified, waived or terminated only by written instrument
duly  signed  by the parties hereto or their successors or assigns.  This Escrow
Agreement  shall inure to the benefit of and be binding upon the parties hereto,
and  their  respective  heirs,  devisees,  executors,  administrators,  personal
representatives, successors, trustees, receivers and Permitted Assigns.  Nothing
in  this  Escrow  Agreement,  express or implied, is intended to confer upon any
other  person's  rights or remedies under or by reason of this Escrow Agreement.
Neither  the  existence  of  this  Escrow  Agreement nor the disbursement of the
Escrowed  Funds  or  any  portion thereof shall be construed or interpreted as a
limitation or waiver of any rights, remedies or claims any of the parties hereto
may  have  under  any  agreement,  at  law,  in  equity  or  otherwise.

     5.7     DEFINED  TERMS.  Any  term  not being defined herein shall have the
meaning  ascribed  to  such  term  in  the  Purchase  Agreement.

     5.8     FURTHER  ASSURANCES.  Each  of the parties hereto agrees to perform
any  further  acts  and  to  execute  and  deliver  any  further  documents  and
instruments  which  may  be  necessary and appropriate in order to carry out the
intent  of  this  Escrow  Agreement.  Further, the parties agree that they shall
furnish  Escrow  Agent  with federal tax identification numbers for the interest

                                        6
<PAGE>
bearing  account  for  the  Escrowed Funds, and such other information as may be
reasonably  requested  by  Escrow  Agent  from  time  to  time  hereafter.

                            [SIGNATURE PAGES FOLLOW]

                                        7
<PAGE>
     IN  WITNESS  WHEREOF,  each  of  the  parties  hereto has duly executed and
delivered  this  Escrow  Agreement  as  of  the  date  first  above  written.

                                        CHARYS HOLDING COMPANY, INC.

                                        By:
                                                --------------------------------
                                                Name:
                                                Title:

                                        COTTON HOLDINGS I, INC

                                        By:
                                                --------------------------------
                                                Name:
                                                Title:

                                        COTTON COMMERCIAL USA, LP

                                        By:
                                                --------------------------------
                                                Name:
                                                Title:

                                        COTTON RESTORATION OF CENTRAL TEXAS, LP

                                        By:
                                                --------------------------------
                                                Name:
                                                Title:

SELLER:                                 SELLER:
------                                  ------

--------------------------------------  ----------------------------------------
CHAD WEIGMAN                            BLAKE STANSELL

                                        8
<PAGE>
SELLER:                                 SELLER:
------                                  ------

--------------------------------------  ----------------------------------------
BRYAN MICHALSKY                         JAMES SCAIFE

SELLER:                                 SELLER:
------                                  ------

--------------------------------------  ----------------------------------------
RANDALL THOMPSON                        PETE BELL

SELLER:                                 SELLER:
------                                  ------

--------------------------------------  ----------------------------------------
DARYN EBRECHT                           RUSSELL WHITE

SELLER:
------

-------------------------------------
JOHNNY SLAUGHTER

                                        ESCROW AGENT:

                                        STERLING BANK - HEIGHTS OFFICE

                                        By:
                                                --------------------------------
                                                Name:
                                                Title:

                                        9
<PAGE>
                                   EXHIBIT "A"

                                ESCROW AGENT FEES
                                -----------------

<PAGE>
                                    EXHIBIT F
                                    ---------

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

     THIS  REGISTRATION  RIGHTS  AGREEMENT  (this  "Agreement"),  dated  as  of
                                                    ---------
[             ],  2006,  by  and  among CHARYS HOLDING COMPANY, INC., a Delaware
 ---------  --
corporation  (the  "Company"), and the investors set forth on the signature page
                    -------
hereto  (the  "Investors").
               ---------

     WHEREAS:

     A.     Company  and  the  Investors  have  entered into a Stock and Limited
Partnership  Interest Purchase Agreement (the "Stock Purchase Agreement"), dated
                                               ------------------------
as  of  September  1,  2006, pursuant to which the Investors shall sell, assign,
transfer and convey unto Company, and Company shall purchase from the Investors,
all  of  the issued and outstanding capital stock of Cotton Holdings 1, Inc. and
limited  partnership  interests  in,  Cotton  Commercial  USA,  LP  and  Cotton
Restoraction  of  Central  Texas,  LP  (collectively,  the  "Cotton Equity");
                                                             -------------

     B.     As part of the consideration of the sale of the Cotton Equity to the
Company, the Company shall issue to the Investors shares of the Company's Common
Stock  (the  "Company  Common  Stock");
              ----------------------

     C.     To  induce  the  Investors to execute and deliver the Stock Purchase
Agreement,  Company  has agreed to provide certain registration rights under the
Securities  Act  of 1933, as amended, and the rules and regulations there under,
or  any  similar  successor  statute  (collectively,  the "Securities Act"), and
                                                           --------------
applicable  state  securities  laws;  and

     D.     Capitalized  terms  used but not otherwise defined herein shall have
the  meanings  set  forth  in  the  Stock  Purchase  Agreement.

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein  and  other  good  and valuable consideration, the receipt and
sufficiency  of  which are hereby acknowledged, Company and the Investors hereby
agrees  as  follows:

     1.     DEFINITIONS.
            -----------

     As  used  in  this  Agreement, the following terms shall have the following
meanings:

          (a)     "Commercially  Reasonable  Efforts"  means  efforts  which are
                   ---------------------------------
designed to enable a party, directly or indirectly, to satisfy a condition to or
otherwise  assist  in  the  consummation  of  a  desired result and which do not
require  the  performing  party to expend funds or assume liabilities other than
expenditures  and  liabilities  which are customary and reasonable in nature and
amount  in  the  context  hereof.

          (b)     "Person"  means a corporation, a limited liability company, an
                   ------
association,  a  partnership,  an  organization,  a  business,  an individual, a
governmental  or  political  subdivision  thereof  or  a  governmental  agency.

<PAGE>
          (c)     "Register,"  "registered,"  and  "registration"  refer  to  a
                   --------     ----------          ------------
registration  effected  by  preparing  and  filing  a Registration Statement (as
defined  below)  in  compliance with the Securities Act and pursuant to Rule 415
under the Securities Act or any successor rule providing for offering securities
on  a  continuous or delayed basis ("Rule 415"), and the declaration or ordering
                                     --------
of  effectiveness  of  such  Registration  Statement  by  the  Commission.

     2.     REGISTRATION  RIGHTS.
            --------------------

          (a)     Registration.  Subject  to  the terms of that certain Investor
                  ------------
Registration  Rights Agreement, dated May 19, 2006, by and among the Company and
Gottbetter  Capital  Master,  Ltd. and that certain Investor Registration Rights
Agreement,  dated  August 30, 2006, by and among the Company and the Buyers that
are  parties thereto (collectively, the "Gottbetter Agreements"), and subject to
                                         ---------------------
the  terms  of  this Agreement, on or prior to the ninetieth (90th) calendar day
after  the  Closing Date, the Company shall prepare and file with the Securities
and  Exchange  Commission  (the  "Commission")  a registration statement on Form
                                  ----------
SB-2,  amend  its existing registration statement on Form SB-2 presently on file
with  the  Commission  if  not  yet  declared  effective,  or  file  such  other
appropriate  form  for which the Company is then eligible in accordance herewith
(the  "Registration  Statement") covering the resale of the Company Common Stock
       -----------------------
to  be  issued  pursuant  to  the  Stock  Purchase  Agreement  (the "Registrable
                                                                     -----------
Securities")  to  the  extent  then  registrable  pursuant  to  the  rules  and
----------
regulations  of  the Commission for an offering to be made on a continuous basis
pursuant  to  Rule  415.  Only  two  Registration  Statements  shall be required
hereunder.  Company Common Stock issued pursuant to the Stock Purchase Agreement
shall  cease to be Registrable Securities if sold or transferred by any Investor
to  any other Person and, in any event, on and after such date when such Company
Common  Stock  may  be  sold without volume restrictions pursuant to Rule 144(k)
under  the  Securities  Act  as  determined  by counsel to Company pursuant to a
written opinion letter to such effect, addressed and acceptable to the Company's
transfer agent and the Investors.  The Company shall use Commercially Reasonable
Efforts  to file the Registration Statement within 90 days following the Closing
Date,  and  use  Commercially  Reasonable  Efforts  to  cause  the  Registration
Statement  to  be  declared  effective  under the Securities Act within 180 days
after  the  filing  thereof.  Further,  the  Company  shall  use  Commercially
Reasonable  Efforts  to  keep  the Registration Statement continuously effective
under  the Securities Act, subject to Section 2(b) below, for a period of  three
(3)  years  following  the  Closing  Date  (the  "Registration  Period").
                                                  --------------------

          (b)     Suspension  Rights.  Notwithstanding  anything  herein  to the
                  ------------------
contrary,  the  Company  shall  have  the  right  to  suspend  the  use  of  the
Registration Statement for a period not greater than forty-five (45) consecutive
days  (the  "Suspension  Period"),  but  not  more  than  one  time  during  the
             ------------------
Registration  Period,  if,  in  the good faith opinion of the Company's Board of
Directors,  after  consultation  with  counsel,  material, nonpublic information
exists,  including  the  proposed  acquisition  or  divestiture of assets by the
Company  or the existence of pending material corporate developments, the public
disclosure of which would be necessary to cause the Registration Statement to be
materially  true  and  to contain no material misstatements or omissions, and in
each  such  case,  where,  in  the  good faith opinion of the Company's Board of
Directors, such disclosure would be reasonably likely to have a material adverse
effect  on  the  Company  or on the proposed transaction or the Company requires
time  to  prepare  a  post-effective  amendment to the Registration Statement in
order  to  disclose  such  material  information.  The  Company  shall  give the
Investors  notice  promptly  upon  knowledge  that  a

                                        2
<PAGE>
Suspension  Period (without indicating the nature of such Suspension Period) may
occur  and  prompt  written  notice  if  a Suspension Period will occur and such
notices  must  be acknowledged in writing by the Investors.  During the pendency
of  any  Suspension  Period,  no  holder  of Company Common Stock registered for
resale  on  such  Registration Statement shall attempt any public resale of such
securities  by  the Registration Statement.  Upon the conclusion of a Suspension
Period,  the  Company  shall  provide  the  Investors  written  notice  that the
Registration  Statement  is  again  available  for  use.

          (c)     Piggyback  Rights.  For  a  period of  thirty-six (36)  months
                  -----------------
following the Second Closing Date, each time the Company shall determine to file
a  registration  statement under the Securities Act (excluding a registration on
Form S-4 or S-8, or successor forms thereto, or a registration statement on Form
S-1  or  SB-2  covering  solely an employee benefit plan) in connection with the
proposed  offer  and  sale for money of any of its securities either for its own
account  or  on  behalf  of any other security holder, the Company shall, if the
Investors  continue  to  own  any Company Common Stock at such time, give prompt
written  notice  of  such  determination  to the Investors.  Each Investor shall
provide  a  written  request to the Company if he desires to participate in such
registration  (the  "Investor  Notice"), stating the number of shares of Company
                     ----------------
Common  Stock  then  constituting Registrable Securities to be registered, which
Investor  Notice  must  be  given  within ten (10) days after the receipt by the
Investors  of the Company's notice.  Upon receipt of the Investor Notice, except
as  expressly  provided  otherwise  in  this  Section  2(c)  and  subject to any
prohibitions  or  restrictions  set forth in any other agreement in existence on
the  date  hereof  granting  registration  rights  with respect to shares of the
Company's  capital  stock,  the Company shall cause all shares of Company Common
Stock  constituting  Registrable  Securities with respect to which the Investors
have  requested  registration  to be included in such registration statement and
registered  under  the Securities Act, all to the extent requisite to permit the
sale  or other disposition by the Investors of the Company Common Stock to be so
registered.  The  Company  shall  have  the  right  to  withdraw and discontinue
registration pursuant to this Section 2(c) of the shares of Company Common Stock
if  at  any  time prior to the effective date of the registration statement, the
registration  of the securities to be registered on behalf of the Company or any
other  participating  security  holders  is  withdrawn  or discontinued.  If the
registration for which the Company gives written notice pursuant to this Section
2(c)  is  for  a public offering involving an underwriting, the Company shall so
advise  the Investors as a part of its written notice.  In such event, the right
of  the  Investors  to  registration  pursuant  to  this  Section  2(c) shall be
conditioned  upon the Investors' participation in such underwriting as a selling
stockholder (including the execution and delivery of the applicable underwriting
agreement) and the inclusion of the Investors' shares of Company Common Stock in
the  underwriting  to  the  extent  provided  herein.  The  Company shall not be
required  to  include  any  of  the  shares of Company Common Stock constituting
Registrable  Securities  in  any registration statement to the extent the public
offering  involves  an underwriting and the managing underwriter thereof advises
the  Company  in  writing  that in their opinion the number of shares of Company
Common  Stock  requested  to  be included exceeds the number that can be sold in
such  offering,  at  a  price  reasonably  related to fair market value.  To the
extent  the  managing  underwriter  provides  such advice, the shares of Company
Common  Stock  to  be included pursuant to this Section 2(c) shall be reduced as
required  by such underwriter.  Notwithstanding anything herein to the contrary,
the Company shall not be required to register Registrable Securities pursuant to
this  Section  2(c)  on  any  registration  statement prepared for the resale of
securities  in  connection  with  the  Gottbetter  Agreements.

                                        3
<PAGE>
          (d)     Procedure.  If  and  whenever  the  Company is required by the
                  ---------
provisions of this Section 2 to effect the registration of shares of Registrable
Securities  under  the  Securities  Act,  the  Company,  at  its  expense and as
expeditiously  as  reasonably  possible shall, in accordance with the Securities
Act  and  all  applicable  rules  and  regulations,  prepare  and  file with the
Commission  a  registration  statement with respect to such securities and shall
use  Commercially  Reasonable  Efforts  to  cause such registration statement to
become  and  remain  effective  to  the extent required hereby, and, during such
period,  prepare and file with the Commission such amendments and supplements to
such  registration  statement  and  the  prospectus  contained therein as may be
necessary  to  keep  such registration statement effective and such registration
statement and prospectus accurate and complete, subject to any Suspension Period
pursuant to Section 2(b) hereof.  The Company shall furnish to the Investors and
to  the underwriters of securities being registered such number of copies of the
registration  statement  and  each amendment and supplement thereto, preliminary
prospectus,  final  prospectus and such other documents as such underwriters and
holders  may  reasonably  request  in order to facilitate the public offering of
such  securities.  In  addition,  the  Company  shall otherwise use Commercially
Reasonable  Efforts  to take such other actions as are necessary and appropriate
to  effect  any  such  registration  in  compliance  with  all provisions of the
Securities  Act  and  all  applicable  state  securities  laws, including, using
Commercially Reasonable Efforts to register or qualify the securities covered by
such registration statement under such state securities or Blue Sky laws of such
jurisdictions  as reasonably necessary to effect the sale thereof and such other
actions  as  the  Investors  shall reasonably request (provided that the Company
shall  not be required thereby to qualify to do business in such jurisdiction or
consent,  generally,  to  the  service  of  process  therein).

     3.     RELATED  OBLIGATIONS.
            --------------------

          (a)     The  Company  shall  keep the Registration Statement effective
pursuant  to  Rule  415 at all times until the date on which the Investors shall
have  sold all the Registrable Securities covered by such Registration Statement
(the  "Registration  Period"),  which  Registration  Statement  (including  any
       --------------------
amendments  or supplements thereto and prospectuses contained therein) shall not
contain any untrue statement of a material fact or omit to state a material fact
required  to  be stated therein, or necessary to make the statements therein, in
light  of  the  circumstances  in  which  they  were  made,  not  misleading.

          (b)     The  Company  shall  prepare  and  file  with  the  SEC  such
amendments  (including  post-effective  amendments)  and  supplements  to  the
Registration  Statement  and  the  prospectus  used  in  connection  with  such
Registration  Statement,  which  prospectus  is to be filed pursuant to Rule 424
promulgated  under  the  Securities  Act,  as  may  be  necessary  to  keep such
Registration  Statement  effective  at all times during the Registration Period,
and,  during  such period, comply with the provisions of the Securities Act with
respect  to the disposition of all Registrable Securities of the Company covered
by  such  Registration  Statement  until  such  time  as all of such Registrable
Securities  shall  have been disposed of in accordance with the intended methods
of  disposition  by  the  seller  or  sellers  thereof  as  set  forth  in  such
Registration  Statement.  In  the  case  of  amendments  and  supplements  to  a
Registration Statement which are required to be filed pursuant to this Agreement
(including  pursuant  to  this Section 3(b)) by reason of the Company's filing a
report on Form 10-KSB, Form 10-QSB or Form 8-K or any analogous report under the
Securities  Exchange  Act  of 1934, as amended (the "Exchange Act"), the Company
                                                     ------------
shall  incorporate  such report by reference into the Registration Statement, if
applicable,  or  shall

                                        4
<PAGE>
file  such  amendments  or supplements with the SEC on the same day on which the
Exchange  Act  report  is filed which created the requirement for the Company to
amend  or  supplement  the  Registration  Statement.

          (c)     The Company shall furnish to the Investors, without charge, at
least  one  (1) copy of (i) such Registration Statement as declared effective by
the  SEC  and  any  amendment(s)  thereto,  including  financial  statements and
schedules,  all  documents  incorporated  therein by reference, all exhibits and
each  preliminary  prospectus,  (ii)  the  final  prospectus  included  in  such
Registration Statement and all amendments and supplements thereto (or such other
number  of  copies as the Investors may reasonably request) and (iii) such other
documents  as the Investors may reasonably request from time to time in order to
facilitate the disposition of the Registrable Securities owned by the Investors.

          (d)     The  Company  shall use Commercially Reasonable Efforts to (i)
register  and  qualify  the  Registrable  Securities  covered  by a Registration
Statement  under  such other securities or "blue sky" laws of such jurisdictions
in  the United States as the Investors reasonably request, (ii) prepare and file
in  those  jurisdictions,  such amendments (including post-effective amendments)
and  supplements to such registrations and qualifications as may be necessary to
maintain  the  effectiveness  thereof during the Registration Period, (iii) take
such  other  actions  as  may  be  necessary  to maintain such registrations and
qualifications  in  effect at all times during the Registration Period, and (iv)
take  all  other  actions  reasonably  necessary  or  advisable  to  qualify the
Registrable  Securities  for sale in such jurisdictions; provided, however, that
the  Company  shall  not  be  required in connection therewith or as a condition
thereto  to  (w) make any change to its certificate of incorporation or by-laws,
(x)  qualify  to do business in any jurisdiction where it would not otherwise be
required  to  qualify  but  for this Section 3(d), (y) subject itself to general
taxation  in  any such jurisdiction, or (z) file a general consent to service of
process  in  any  such  jurisdiction.  The  Company  shall  promptly  notify the
Investors  of the receipt by the Company of any notification with respect to the
suspension  of  the  registration  or  qualification  of  any of the Registrable
Securities  for sale under the securities or "blue sky" laws of any jurisdiction
in the United States or its receipt of actual notice of the initiation or threat
of  any  proceeding  for  such  purpose.

          (e)     As  promptly as practicable after becoming aware of such event
or  development,  the  Company  shall  notify  the  Investors  in writing of the
happening  of  any  event  as  a  result  of  which the prospectus included in a
Registration  Statement,  as  then  in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under
which  they  were  made,  not  misleading  (provided that in no event shall such
notice  contain  any  material,  nonpublic  information), and promptly prepare a
supplement  or  amendment  to such Registration Statement to correct such untrue
statement  or  omission,  and  deliver a copy of such supplement or amendment to
each  Investor.  The Company shall also promptly notify the Investors in writing
(i)  when  a prospectus or any prospectus supplement or post-effective amendment
has  been  filed,  and  when  a  Registration  Statement  or  any post-effective
amendment  has  become  effective  (notification  of such effectiveness shall be
delivered  to the Investors by facsimile on the same day of such effectiveness),
(ii)  of  any request by the SEC for amendments or supplements to a Registration
Statement  or  related  prospectus  or  related  information,  and  (iii) of the
Company's

                                        5
<PAGE>
reasonable  determination  that  a  post-effective  amendment  to a Registration
Statement  would  be  appropriate.

          (f)     The  Company  shall  use  Commercially  Reasonable  Efforts to
prevent the issuance of any stop order or other suspension of effectiveness of a
Registration  Statement,  or  the  suspension of the qualification of any of the
Registrable  Securities for sale in any jurisdiction within the United States of
America  and, if such an order or suspension is issued, to obtain the withdrawal
of  such  order  or suspension at the earliest possible moment and to notify the
Investors  of  the  issuance  of  such  order  and the resolution thereof or its
receipt  of actual notice of the initiation or threat of any proceeding for such
purpose.

          (g)     At  the reasonable request of the Investors, the Company shall
furnish  to  the Investors, on the date of the effectiveness of the Registration
Statement  and  thereafter  from time to time on such dates as the Investors may
reasonably request (i) a letter, dated such date, from the Company's independent
certified  public  accountants  in form and substance as is customarily given by
independent  certified  public  accountants  to  underwriters in an underwritten
public  offering,  and  (ii)  an  opinion,  dated  as  of  such date, of counsel
representing  the  Company for purposes of such Registration Statement, in form,
scope  and substance as is customarily given in an underwritten public offering,
addressed  to  the  Investors.

          (h)     The  Company  shall  make  available  for  inspection  by  the
Investors  and  the  Investors'  accountant  or  other  agent (collectively, the
"Inspectors") all pertinent financial and other records, and pertinent corporate
 ----------
documents  and properties of the Company (collectively, the "Records"), as shall
                                                             -------
be  reasonably  deemed  necessary  by  each  Inspector,  and cause the Company's
officers,  directors and employees to supply all information which the Inspector
may  reasonably request; provided, however, that each Inspector shall agree, and
the  Investors hereby agree, to hold in strict confidence and shall not make any
disclosure  (except  to  the  Investors)  or use any Record or other information
which  the  Company  determines  in  good faith to be confidential, and of which
determination  the Inspectors are so notified, unless (x) the disclosure of such
Records  is  necessary  to  avoid  or  correct a misstatement or omission in any
Registration  Statement  or  is otherwise required under the Securities Act, (y)
the  release  of  such  Records  is  ordered pursuant to a final, non-appealable
subpoena  or order from a court or government body of competent jurisdiction, or
(z)  the  information  in  such Records has been made generally available to the
public  other  than by disclosure in violation of this or any other agreement of
which the Inspector and the Investors have knowledge.  Each Investor agrees that
it  shall,  upon  learning  that disclosure of such Records is sought in or by a
court  or  governmental  body  of competent jurisdiction or through other means,
give  prompt  notice  to  the  Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a protective
order  for,  the  Records  deemed  confidential.

          (i)     The  Company  shall  hold  in  confidence  and  not  make  any
disclosure  of  information  concerning  the  Investors  provided to the Company
unless (i) disclosure of such information is necessary to comply with federal or
state  securities  laws, (ii) the disclosure of such information is necessary to
avoid or correct a misstatement or omission in any Registration Statement, (iii)
the  release  of  such  information  is  ordered pursuant to a subpoena or other
final,  non-appealable  order  from  a  court  or governmental body of competent
jurisdiction,  or (iv) such information has been made generally available to the
public  other  than  by  disclosure  in  violation

                                        6
<PAGE>
of  this  Agreement  or  any other agreement.  The Company agrees that it shall,
upon  learning  that  disclosure  of such information concerning any Investor is
sought  in  or  by  a  court  or  governmental body of competent jurisdiction or
through  other means, give prompt written notice to such Investor and allow such
Investor, at such Investors' expense, to undertake appropriate action to prevent
disclosure  of,  or  to  obtain  a  protective  order  for,  such  information.

          (j)     The  Company  shall use Commercially Reasonable Efforts either
to  cause all the Registrable Securities covered by a Registration Statement (i)
to  be  listed on each securities exchange on which securities of the same class
or  series issued by the Company are then listed, if any, if the listing of such
Registrable  Securities  is  then  permitted under the rules of such exchange or
(ii)  the  inclusion  for  quotation  on  the National Association of Securities
Dealers,  Inc.  OTC Bulletin Board for such Registrable Securities.  The Company
shall  pay  all  fees  and expenses in connection with satisfying its obligation
under  this  Section  3(j).

          (k)     The  Company shall cooperate with the Investors, to the extent
applicable, to facilitate the timely preparation and delivery of certificates to
a  transferee  of any Investor (not bearing any restrictive legend) representing
the  Registrable  Securities  to be offered pursuant to a Registration Statement
and enable such certificates to be in such denominations or amounts, as the case
may  be, as such Investor may reasonably request and registered in such names as
such  Investor  may  request.

          (l)     The Company shall use Commercially Reasonable Efforts to cause
the  Registrable  Securities covered by the applicable Registration Statement to
be  registered  with  or  approved  by  such  other  governmental  agencies  or
authorities  as  may  be  necessary  to  consummate  the  disposition  of  such
Registrable  Securities.

          (m)     The  Company  shall  make  generally available to its security
holders  as  soon  as  practical,  but not later than ninety (90) days after the
close  of  the  period covered thereby, an earnings statement (in form complying
with the provisions of Rule 158 under the Securities Act) covering a twelve (12)
month  period  beginning  not  later  than the first day of the Company's fiscal
quarter  next  following  the  effective  date  of  the  Registration Statement.

          (n)     The  Company  shall  otherwise  use  Commercially  Reasonable
Efforts  to  comply  with  all  applicable  rules  and regulations of the SEC in
connection  with  any  registration  hereunder.

          (o)     Within  two  (2)  business days after a Registration Statement
which  covers  Registrable  Securities  is  declared  effective  by the SEC, the
Company shall deliver, and shall cause legal counsel for the Company to deliver,
to  the  transfer  agent  for  such  Registrable  Securities (with copies to the
Investors)  confirmation  that  such  Registration  Statement  has been declared
effective  by  the  SEC  in  the  form  attached  hereto  as  Exhibit  A.
                                                              ----------

          (p)     The  Company shall take all other reasonable actions necessary
to  expedite  and  facilitate  disposition  by  the  Investors  of  Registrable
Securities  pursuant  to  a  Registration  Statement.

                                        7
<PAGE>
     4.     OBLIGATIONS  OF  THE  INVESTORS.
            -------------------------------

          (a)     Compliance.  Each  Investor  covenants  and  agrees  that such
                  ----------
Investor will comply with the prospectus delivery requirements of the Securities
Act  as  applicable  to  it  in  connection with sales of Registrable Securities
pursuant  to  a  registration  statement  of  the  Company.

          (b)     Investor  Information.  As  a condition to the registration of
                  ---------------------
any  Registrable Securities under Section 2 hereof, the Company may require each
Investor to furnish to the Company (i) a certified statement as to the number of
shares  of Company Common Stock then beneficially owned, and if requested by the
Commission,  the  controlling Person thereof, (ii) a description of any material
relationship  between  such  Investor  and  the  Company,  its  predecessors  or
affiliates,  within  the  past  three  years  and  (iii)  such other information
regarding  such  Investor  as is required for such registration by the rules and
regulations  of  the  Commission.

          (c)     Inside  Information.  Each  Investor  acknowledges  that  such
                  -------------------
Investor's  relationship  with  the  Company  may  give  such Investor access to
certain non-public material information of the Company (i.e. information that is
likely  to have a significant impact on the decision of a Person to buy, sell or
hold  Company  stock),  which information will only be considered to be publicly
available  when  it  has  been  released  to  the public through a Company press
release or Commission filing and the investing public has had sufficient time to
absorb  and  evaluate  its  impact.  Each  Investor  acknowledges  that  federal
securities  laws  prohibit  such  Investor and members of such Investor's family
from  buying  or selling stock of the Company while having knowledge of material
nonpublic  information  about  the Company or the market for the Company's stock
(so-called  "inside  information"), and, notwithstanding any other rights of the
Investors  set  forth  herein,  each  Investor  covenants not to buy or sell any
Company  stock  based  on  inside  information,  nor  to  communicate any inside
information  to  a  third  party.

          (d)     Restrictions on Sale of Registrable Securities.  Each Investor
                  -----------------------------------------------
covenants  and  agrees  that,  for  a  period  of  six  (6) months following the
effectiveness  of  a  registration  statement  with  respect  to the Registrable
Securities,  such  Investor  will not sell, assign, transfer or convey more than
fifty  percent (50%) of such Registrable Securities held by such Investor.  Each
Investor  covenants and agrees that he will not engage in any short sales of, or
hedging  transactions  with  respect  to  the  Company Common Stock held by such
Investor.

     5.     EXPENSES  OF  REGISTRATION.
            --------------------------

     All  expenses  incurred  in  connection  with  registrations,  filings  or
qualifications  pursuant  to  the  Agreement  including, without limitation, all
registration,  listing  and  qualifications fees, printers, legal and accounting
fees  shall  be  paid  by  the  Company.

     6.     INDEMNIFICATION.
            ---------------

     With respect to Registrable Securities which are included in a Registration
Statement  under  this  Agreement:

          (a)     The  Company  will,  and hereby does, indemnify, hold harmless
and  defend the Investors, the directors, officers, partners, employees, agents,
representatives  of,  and

                                        8
<PAGE>
each  Person,  if  any,  who  controls  any  Investor  within the meaning of the
Securities Act or the Securities Exchange Act of 1934, as amended, and the rules
and regulations there under, or any similar successor statute (collectively, the
"Exchange  Act")  (each,  an  "Indemnified Person"), against any losses, claims,
 -------------                 ------------------
damages,  liabilities,  judgments,  fines, penalties, charges, costs, reasonable
attorneys'  fees,  amounts  paid  in  settlement  or  expenses, joint or several
(collectively,  "Claims")  incurred in investigating, preparing or defending any
                 ------
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by  or  before  any  court  or  governmental, administrative or other
regulatory  agency,  body  or  the  Commission,  whether  pending or threatened,
whether  or  not an indemnified party is or may be a party thereto ("Indemnified
                                                                     -----------
Damages"),  to  which  any of them may become subject insofar as such Claims (or
-------
actions  or  proceedings,  whether  commenced or threatened, in respect thereof)
arise  out  of  or  are  based  upon: (i) any untrue statement or alleged untrue
statement  of  a material fact in a Registration Statement or any post-effective
amendment  thereto or in any filing made in connection with the qualification of
the  offering  under the securities or other "blue sky" laws of any jurisdiction
in which Registrable Securities are offered ("Blue Sky Filing"), or the omission
                                              ---------------
or  alleged  omission  to state a material fact required to be stated therein or
necessary  to  make  the  statements  therein  not  misleading;  (ii) any untrue
statement  or alleged untrue statement of a material fact contained in any final
prospectus  (as  amended  or  supplemented,  if  the Company files any amendment
thereof  or  supplement  thereto with the Commission) or the omission or alleged
omission  to  state  therein  any material fact necessary to make the statements
made  therein,  in light of the circumstances under which the statements therein
were  made,  not  misleading; or (iii) any violation or alleged violation by the
Company  of  the  Securities  Act,  the  Exchange Act, any other law, including,
without  limitation,  any  state securities law, or any rule or regulation there
under  relating to the offer or sale of the Registrable Securities pursuant to a
Registration  Statement  (the matters in the foregoing clauses (i) through (iii)
being,  collectively,  "Violations").  The Company shall reimburse the Investors
                        ----------
and  each such controlling Person promptly as such expenses are incurred and are
due  and  payable,  for  any  legal  fees  or  disbursements or other reasonable
expenses incurred by them in connection with investigating or defending any such
Claim.  Notwithstanding  anything  to  the  contrary  contained  herein,  the
indemnification agreement contained in this Section 6(a): (x) shall not apply to
a  Claim by an Indemnified Person arising out of or based upon a Violation which
occurs  in reliance upon and in conformity with information furnished in writing
to  the  Company by such Indemnified Person expressly for use in connection with
the  preparation  of the Registration Statement or any such amendment thereof or
supplement thereto; (y) shall not be available to an Investor to the extent such
Claim  is  based  on  a  failure  of  such Investor to deliver or to cause to be
delivered  the  prospectus made available by the Company, if such prospectus was
timely made available by the Company pursuant to Section 2(d); and (z) shall not
apply  to amounts paid in settlement of any Claim if such settlement is effected
without  the  prior  written  consent of the Company, which consent shall not be
unreasonably  withheld.  Such  indemnity  shall  remain in full force and effect
regardless  of  any investigation made by or on behalf of the Indemnified Person
and  shall  survive  the transfer of the Registrable Securities by the Investor.

          (b)     In  connection  with  a  Registration Statement, each Investor
agrees  to  indemnify,  hold  harmless and defend, to the same extent and in the
same manner as is set forth in Section 6(a), the Company, each of its directors,
each  of its officers, employees, representatives, or agents and each Person, if
any,  who  controls  the Company within the meaning of the Securities Act or the
Exchange  Act  (each  an  "Indemnified  Party"),  against  any  Claim  or
                           ------------------

                                        9
<PAGE>
Indemnified  Damages  to  which  any  of  them  may  become  subject,  under the
Securities  Act,  the  Exchange  Act  or  otherwise,  insofar  as  such Claim or
Indemnified Damages arise out of or is based upon any Violation, in each case to
the  extent, and only to the extent, that such Violation occurs in reliance upon
and  in  conformity  with  written  information furnished to the Company by such
Investor  expressly for use in connection with such Registration Statement; and,
subject  to  Section  6(d),  such  Investor  will  reimburse  any legal or other
expenses  reasonably  incurred  by  them  in  connection  with  investigating or
defending  any  such  Claim;  provided,  however,  that  the indemnity agreement
contained  in  this  Section 6(b) and the agreement with respect to contribution
contained  in  Section  7  shall  not apply to amounts paid in settlement of any
Claim  if  such settlement is effected without the prior written consent of such
Investor,  which  consent  shall  not  be unreasonably withheld.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on  behalf  of  such  Indemnified  Party  and  shall survive the transfer of the
Registrable  Securities  by  any  Investor.  Notwithstanding  anything  to  the
contrary  contained  herein,  the  indemnification  agreement  contained in this
Section  6(b)  with  respect to any prospectus shall not inure to the benefit of
any  Indemnified  Party  if  the  untrue  statement or omission of material fact
contained  in the prospectus was corrected and such new prospectus was delivered
to an Investor prior to such Investor's use of the prospectus to which the Claim
relates.

          (c)     Promptly after receipt by an Indemnified Person or Indemnified
Party  under  this  Section  6  of  notice  of the commencement of any action or
proceeding  (including any governmental action or proceeding) involving a Claim,
such  Indemnified  Person  or  Indemnified  Party  shall,  if a Claim in respect
thereof  is  to  be  made  against  any indemnifying party under this Section 6,
deliver  to the indemnifying party a written notice of the commencement thereof,
and  the  indemnifying party shall have the right to participate in, and, to the
extent  the  indemnifying  party so desires, jointly with any other indemnifying
party  similarly  noticed, to assume control of the defense thereof with counsel
mutually  satisfactory  to  the indemnifying party and the Indemnified Person or
the  Indemnified  Party,  as  the  case  may  be;  provided,  however,  that  an
Indemnified  Person  or Indemnified Party shall have the right to retain its own
counsel  with  the  fees  and expenses of not more than one (1) counsel for such
Indemnified  Person  or  Indemnified Party to be paid by the indemnifying party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation  by  such  counsel of the Indemnified Person or Indemnified Party
and  the  indemnifying  party  would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other  party  represented  by  such counsel in such proceeding.  The Indemnified
Party or Indemnified Person shall cooperate fully with the indemnifying party in
connection  with  any  negotiation or defense of any such action or claim by the
indemnifying  party  and shall furnish to the indemnifying party all information
reasonably  available  to  the  Indemnified  Party  or  Indemnified Person which
relates  to  such  action  or  claim.  The  indemnifying  party  shall  keep the
Indemnified  Party  or  Indemnified Person fully apprised at all times as to the
status  of  the defense or any settlement negotiations with respect thereto.  No
indemnifying  party  shall  be liable for any settlement of any action, claim or
proceeding  effected  without its prior written consent; provided, however, that
the  indemnifying  party shall not unreasonably withhold, delay or condition its
consent.  No  indemnifying party shall, without the prior written consent of the
Indemnified  Party  or  Indemnified  Person, consent to entry of any judgment or
enter  into  any  settlement  or  other  compromise which does not include as an
unconditional  term  thereof  the  giving  by  the claimant or plaintiff to such
Indemnified  Party  or  Indemnified  Person  of  a release from all liability in

                                       10
<PAGE>
respect  to such claim or litigation.  Following indemnification as provided for
hereunder,  the  indemnifying  party  shall  be  subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or  corporations relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice  to  the  indemnifying party within a
reasonable  time  of  the commencement of any such action shall not relieve such
indemnifying  party  of  any  liability to the Indemnified Person or Indemnified
Party  under this Section 5, except to the extent that the indemnifying party is
prejudiced  in  its  ability  to  defend  such  action.

          (d)     The  indemnification  required by this Section 5 shall be made
by  periodic  payments  of  the  amount  thereof  during  the  course  of  the
investigation  or defense, as and when bills are received or Indemnified Damages
are  incurred.

          (e)     The indemnity agreements contained herein shall be in addition
to  (i)  any  cause  of  action  or  similar  right  of the Indemnified Party or
Indemnified  Person  against  the  indemnifying  party  or  others, and (ii) any
liabilities  the  indemnifying  party  may  be  subject  to pursuant to the law.

     7.     CONTRIBUTION.
            ------------

     To the extent any indemnification by an indemnifying party is prohibited or
limited  by  law, the indemnifying party agrees to make the maximum contribution
with respect to any amounts for which it would otherwise be liable under Section
6 to the fullest extent permitted by law; provided, however, that: (i) no seller
of  Registrable  Securities  guilty  of fraudulent misrepresentation (within the
meaning  of  Section  11(f)  of  the  Securities  Act)  shall  be  entitled  to
contribution  from  any  seller  of Registrable Securities who was not guilty of
fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
Securities  shall be limited in amount to the net amount of proceeds received by
such  seller  from  the  sale  of  such  Registrable  Securities.

     8.     AMENDMENT  OF  REGISTRATION  RIGHTS.
            -----------------------------------

     Provisions  of this Agreement may be amended and the observance thereof may
be waived (either generally or in a particular instance and either retroactively
or  prospectively),  only  with the written consent of the Company and Investor.
Any  amendment  or  waiver  effected  in accordance with this Section 8 shall be
binding  upon  Investor  and  the  Company.

     9.     MISCELLANEOUS.
            -------------

          (a)     Any  notices,  consents,  waivers  or  other  communications
required  or  permitted to be given under the terms of this Agreement must be in
writing  and  will  be  deemed  to  have  been delivered: (i) upon receipt, when
delivered  personally;  (ii)  upon  receipt,  when  sent  by facsimile (provided
confirmation  of  transmission  is  mechanically or electronically generated and
kept  on file by the sending party); or (iii) one (1) business day after deposit
with  a  nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same.  The addresses and facsimile numbers
for  such  communications  shall  be:

                                       11
<PAGE>
If to the Company, to:                  Charys Holding Company Inc.
                                        1117 Perimeter Center West, Suite N415
                                        Atlanta, GA 30338
                                        Attention:   Billy Ray, Jr.
                                        Telephone:   (678) 443-2300
                                        Facsimile:   (678) 443-2320

With a copy to:                         Paul, Hastings, Janofsky & Walker LLP
                                        600 Peachtree Street, N.E., Suite 2400
                                        Atlanta, GA  30308
                                        Attention:   Wayne Bradley
                                        Telephone:   (404) 815-2202
                                        Facsimile:   (404) 685-5202

If to Investors, to:                    The address of each Investor set forth
                                        Beside such Investor's name on the
                                        Signature Page hereto

With a copy to:                         Nance & Simpson, LLP
                                        2603 Augusta, Suite 1000
                                        Houston, Texas  77057
                                        Attention:   Glynn Nance
                                        Telephone:   (713) 520-9100
                                        Facsimile:   (713) 520-5109

or to such other address and/or facsimile number and/or to the attention of such
other  Person  as  the  recipient party has specified by written notice given to
each  other  party  five  (5)  days  prior  to the effectiveness of such change.
Written  confirmation  of  receipt  (A)  given  by the recipient of such notice,
consent,  waiver  or  other  communication,  (B)  mechanically or electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and  an  image  of the first page of such transmission or (C)
provided  by a courier or overnight courier service shall be rebuttable evidence
of  personal  service,  receipt  by  facsimile  or  receipt  from  a  nationally
recognized  overnight  delivery  service  in accordance with clause (i), (ii) or
(iii)  above,  respectively.

          (b)     Failure  of  any  party  to exercise any right or remedy under
this  Agreement  or  otherwise,  or delay by a party in exercising such right or
remedy,  shall  not  operate  as  a  waiver  thereof.

          (c)     The  parties  hereto agree that the internal laws of the State
of  Georgia  shall govern this Agreement and the exhibits hereto, including, but
not limited to, all issues related to usury.  Any action to enforce the terms of
this  Agreement or any of its exhibits shall be brought exclusively in the state
and/or  federal  courts  situated in the States of Georgia or Texas.  Each party
hereby  irrevocably  waives  personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof to
such party at the address for such notices to it under this Agreement and agrees
that  such  service  shall constitute good and sufficient service of process and
notice  thereof.  Nothing  contained  herein  shall  be

                                       12
<PAGE>
deemed to limit in any way any right to serve process in any manner permitted by
law.  If  any  provision  of this Agreement shall be invalid or unenforceable in
any  jurisdiction,  such  invalidity  or  unenforceability  shall not affect the
validity  or  enforceability  of  the  remainder  of  this  Agreement  in  that
jurisdiction  or  the  validity  or  enforceability  of  any  provision  of this
Agreement  in  any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT  IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF  ANY  DISPUTE  HEREUNDER  OR  IN  CONNECTION  HEREWITH OR ARISING OUT OF THIS
AGREEMENT  OR  ANY  TRANSACTION  CONTEMPLATED  HEREBY.

          (d)     This  Agreement,  the  Stock  Purchase  Agreement,  and  the
documents  referred  to  in  the  Stock Purchase Agreement constitute the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof.  There are no restrictions, promises, warranties or undertakings, other
than  those  set  forth  or referred to herein and therein.  This Agreement, the
Stock  Purchase  Agreement,  and the documents referred to in the Stock Purchase
Agreement  supersede  all  prior agreements and understandings among the parties
hereto  with  respect  to  the  subject  matter  hereof  and  thereof.

          (e)     This  Agreement  shall  inure to the benefit of and be binding
upon  the  permitted  successors  and  assigns  of  each  of the parties hereto.

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

          (g)     This Agreement may be executed in identical counterparts, each
of  which  shall be deemed an original but all of which shall constitute one and
the  same agreement.  This Agreement, once executed by a party, may be delivered
to  the other party hereto by facsimile transmission of a copy of this Agreement
bearing  the  signature  of  the  party  so  delivering  this  Agreement.

          (h)     Each  party  shall  do  and  perform,  or cause to be done and
performed,  all  such further acts and things, and shall execute and deliver all
such  other  agreements,  certificates,  instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

          (i)     The  language  used in this Agreement will be deemed to be the
language  chosen  by  the parties to express their mutual intent and no rules of
strict  construction  will  be  applied  against  any  party.

          (j)     This  Agreement  is  intended  for  the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit  of,  nor  may  any  provision  hereof be enforced by, any other Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13
<PAGE>

     IN  WITNESS  WHEREOF,  the  parties  have  caused  this Registration Rights
Agreement  to  be  duly  executed  as  of  day  and  year  first  above written.

                                        COMPANY:
                                        CHARYS HOLDING COMPANY INC.

                                        By:
                                           --------------------------------
                                        Name:  Billy Ray, Jr.
                                        Title:  Chief Executive Officer

                                        INVESTORS:

-----------------------------------     -----------------------------------
CHAD WEIGMANN                           BLAKE STANSELL

-----------------------------------     -----------------------------------
BRYAN MICHALSKY                         JAMES SCAIFE

-----------------------------------     -----------------------------------
RANDALL THOMPSON                        PETE BELL

-----------------------------------     -----------------------------------
DARYN EBRECHT                           RUSSELL WHITE

-----------------------------------
JOHNNY SLAUGHTER

                 SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

                                       14
<PAGE>
                                    EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT
                            -------------------------

-------------------------

-------------------------

-------------------------

     Re:     CHARYS  HOLDING  COMPANY  INC.

Mr.             :
     -----------

     We  are counsel to Charys Holding Company Inc., a Delaware corporation (the
"Company").  In  connection  with  the  Company's obligations under that certain
 -------
Registration Rights Agreement (the "Registration Rights Agreement") entered into
                                    -----------------------------
by and between the Company and yourself, on                  , the Company filed
                                            ------------ ----
a  Registration  Statement  on  Form           (File No. 333-             ) (the
                                      --------               -------------
"Registration  Statement")  with  the  Securities  and  Exchange Commission (the
 -----------------------
"SEC")  relating to the Registrable Securities which names each of the Investors
 ---
as  a  selling  stockholder  thereunder.

     In  connection with the foregoing, we advise you that a member of the SEC's
staff  has  advised  us by telephone that the SEC has entered an order declaring
the  Registration Statement effective under the Securities Act of 1933 at [ENTER
TIME  OF  EFFECTIVENESS]  on  [ENTER  DATE  OF  EFFECTIVENESS]  and  we  have no
knowledge,  after  telephonic  inquiry  of a member of the SEC's staff, that any
stop  order suspending its effectiveness has been issued or that any proceedings
for  that  purpose  are  pending  before,  or  threatened  by,  the  SEC and the
Registrable Securities are available for resale under the Securities Act of 1933
pursuant  to  the  Registration  Statement.

                                      Very truly yours,

                                      [LAW FIRM]

                                      By:
                                         -------------------------------

                                       15

<PAGE>
                                    EXHIBIT G
                                    ---------

                            NON-COMPETITION AGREEMENT

     THIS NON-COMPETITION AGREEMENT (this "Agreement") is made       , 2006 (the
                                           ---------           ------
"Effective  Date"), by and between [           ] ("Seller") and [           ], a
 ---------------                    -----------    ------        -----------
                      ("Company").  All  capitalized terms not otherwise defined
--------------------    -------
herein shall have the meaning given to them in the Stock and Limited Partnership
Interest  Purchase  Agreement,  dated as of         , 2006, among Charys Holding
                                            --------
Company,  Inc.  ("Charys"),  Cotton Holdings 1, Inc., Cotton Commercial USA, LP,
                  ------
Cotton  Restoration  of  Central  Texas,  LP and the Sellers thereto (the "Stock
                                                                           -----
Purchase  Agreement").
-------------------

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS,  Seller  holds shares of stock or limited partnership interests in
Cotton  Holdings  1,  Inc.,  Cotton  Commercial USA, LP or Cotton Restoration of
Central  Texas,  LP, and is an executive officer of such entity, which is in the
business  of  providing  fire  and  water  restoration  services  to  customers
throughout  the  United  States  of  America  (the  "Business");
                                                     --------

     WHEREAS, pursuant to the Stock Purchase Agreement, Charys is purchasing all
of  the  outstanding  equity  interests  of  Cotton  Holdings  1,  Inc.,  Cotton
Commercial  USA,  LP  and  Cotton  Restoration  of  Central  Texas,  LP;

     WHEREAS,  contemporaneously  herewith, Seller and Company are entering into
an  Employment  Agreement  (the  "Employment  Agreement");
                                  ---------------------

     WHEREAS,  Charys  would not have entered into the Stock Purchase Agreement,
and  Company  would  not  have  entered  into  the Employment Agreement, without
ensuring  the  confidentiality  of  certain  information  and protection against
competition  and  solicitation  by  the  Seller;

     WHEREAS, Company, or its respective assigns, will continue to engage in its
business  throughout  the Gulf Coast region of the United States of America (the
"Territory");  and
 ---------

     NOW,  THEREFORE,  for  and  in  consideration  of  the mutual covenants and
agreements  contained  herein and in the Stock Purchase Agreement and Employment
Agreement,  the  benefits  which  Seller  will  receive  from  the  transactions
contemplated by the Stock Purchase Agreement and Employment Agreement, and other
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  the  parties  hereto  agree  as  follows:

1.   COVENANTS

     1.1     Acknowledgements  by  Seller.  Seller  acknowledges  the following:
             ----------------------------

          (a)     Seller  has  been  engaged  in the Business.  Such Business is
highly  competitive.

          (b)     Seller's  participation  in  the  Business has provided Seller
with  valuable, confidential and proprietary information concerning the Business
and  its  future  plans,  much  of  which  Seller  participated  in  developing.

                                       -1-
<PAGE>
          (c)     Seller  has  had  access  to  and  has  become acquainted with
various  trade  secrets,  proprietary data and other confidential information of
the  Business  and  may  have  contributed  to  such  information, consisting of
documents,  files,  software,  development work computer programs and databases,
processes, techniques and procedures, and related documentation, compilations of
information,  records  and  specifications,  used in or related to the Business,
including:

               (i)     business  information,  such  as (but not limited to) the
business  practices, suppliers, operational methods, technical processes, future
plans,  techniques,  patent  information and applications, leases, contracts and
business  plans;

               (ii)     financial  information,  such  as  (but  not limited to)
earnings,  sales,  assets, debts, prices, pricing structure, margins, volume and
quantities  of  purchases  or  sales,  and  other  financial  data;

               (iii)     marketing  information  such  as  (but  not limited to)
prior, ongoing or proposed marketing programs, presentations or agreements by or
on  behalf  of the Business, pricing information, marketing tests and results of
marketing  efforts;

               (iv)     personnel  information,  such  as  (but  not limited to)
employees'  personal  or  medical  histories,  compensation,  employee incentive
programs,  terms  of  employment,  actual  or  proposed  promotions,  hirings,
resignations,  terminations  including  reasons  for such terminations, training
methods  and  other  personnel  information;

               (v)     customer  information, such as (but not limited to) past,
existing  or  prospective  customers'  names, addresses or backgrounds, customer
specifications and requirements, prices that particular or various customers are
charged  or  pay for services, proposals or agreements between customers and the
Business,  status  of customers' accounts, and other information about actual or
prospective  customers;  and

               (vi)     customer  or  prospective  customer  trade  secrets,
proprietary  data  and other confidential information that is provided to Seller
for  the  sole  and  exclusive purpose of permitting Seller to market or provide
products or services of the Business to such customers or prospective customers.

          (d)     Any  unauthorized  possession,  communication  or  use  of
Confidential Information (defined below) would enable Seller (or any third party
to  whom  the  Seller might disseminate the Confidential Information) to compete
unfairly  with  Company  by  using the Confidential Information to such person's
advantage.

          (e)     The  agreements  and covenants contained in this Agreement are
essential  to  protect  the  interests  of  Company  in  connection  with  the
transactions  contemplated  by  the  Stock  Purchase  Agreement.

          (f)     Company and Charys would not have consummated the transactions
contemplated  by  the  Stock  Purchase Agreement, and the Company would not have
entered  into  the  Employment  Agreement,  but for the agreements and covenants
contained  in  this  Agreement.

                                       -2-
<PAGE>
     For  purposes  of  this  Agreement,  the  trade  secrets  and  confidential
information  referred  to  in Section 1.1(c) above, including those described in
subsections  1.1(c)(i)  through  (vi),  shall be collectively referred to as the
"Confidential  Information";  provided, however, that "Confidential Information"
 -------------------------
shall  not  include  information  that (A) is available from sources, other than
Seller  or their respective affiliates, which sources Seller reasonably believes
do  not  have  a  duty  of  confidentiality  to  Company  with  respect  to such
information,  or  (B) is or becomes publicly available other than as a result of
any  Seller's  breach  of  this  Agreement.

     1.2     Noncompetition.  For  a  period of three (3) years from the date of
             --------------
this  Agreement  or,  if  longer,  for  a  period  beginning on the date of this
Agreement  and  ending two (2) years after the Employment Agreement's Expiration
Date (as defined in the Employment Agreement), (the "Restricted Period"), Seller
                                                     -----------------
shall  not,  on  his  own behalf or on behalf of others, directly or indirectly,
own,  manage,  operate,  control,  invest  in,  or participate in the ownership,
management,  operations,  or  control  of, lend any Seller's name or any similar
name  to,  any  person,  entity  or  business  engaged  in  the  Business in the
Territory.  Notwithstanding  the  foregoing, Seller shall not be prohibited from
having  beneficial  ownership of up to 2% of the equity interest of any business
entity,  the  equity  securities  of  which  are registered under the Securities
Exchange  Act  of  1934,  as  amended.

     1.3     Nondisclosure of Confidential Information.
             -----------------------------------------

          (a)     Seller  acknowledges  that  (i)  Company  has a legitimate and
continuing proprietary interest in the Confidential Information that Company has
acquired for significant consideration; and (ii) in order to guard such interest
of Company, it is necessary for Company to protect all Confidential Information.
Seller  agrees that his obligations under Section 1.3(b) of this Agreement shall
be  absolute  and  unconditional.

          (b)     Seller  shall  not,  directly  or  indirectly,  during  the
Restricted Period, use, exploit, publish or otherwise disclose in any manner any
Confidential  Information, and shall otherwise keep all Confidential Information
confidential.  Notwithstanding  the  foregoing,  Seller  shall  be  entitled  to
disclose  Confidential  Information  as  may  be  required  by  applicable  law,
including a subpoena or court or administrative order, provided that in any such
case  Seller  shall use reasonable efforts to give advance written notice of any
such  disclosure to Company and Chayrs. In addition, Seller shall be entitled to
use  or disclose Confidential Information to the extent necessary to (i) prepare
tax  returns  of  Seller  or (ii) to enforce its rights under the Stock Purchase
Agreement  and  other  documents  executed  in  connection  therewith.

          (c)     Seller acknowledges that all physical property of the Business
in  the  direct  or  indirect possession of any Seller, including all documents,
files,  software,  development  work computer programs and databases, processes,
techniques  and  procedures,  and  related  documentation,  compilations  of
information,  records,  specifications,  equipment and similar items relating to
the  Business  or  any  of  the Customers, whether or not prepared by Seller and
whether  or  not  such  property  is  Confidential Information, (i) is and shall
remain the exclusive property of the Business and (ii) shall not be removed from
the premises of the Business.   For purposes of this Section 1.3 and Section 1.5
of this Agreement, "Customers" shall mean any customer of the Company, and their
                    ---------
respective  affiliates, successors, and assigns, as of the date hereof and as of
the  Employment  Agreement's  Expiration  Date.

                                       -3-
<PAGE>
     1.4     Nonsolicitation  of  Employees.  Seller  shall  not,  directly  or
             ------------------------------
indirectly,  solicit  the  employment  of,  employ,  recruit,  or  retain  as an
independent  contractor or otherwise, any current employee of Company, or in any
way  induce  or  cause  any  current  or  future  employee  of  Company,  or any
independent  contractor  with  whom  Company  does  business,  to  terminate its
relationship with Company, or otherwise interfere or attempt to interfere in any
way  with  any  such relationship in accordance with the terms of the Employment
Agreement.

     1.5     Nonsolicitation of Customers.  During the Restricted Period, Seller
             ----------------------------
shall  not,  on  its  or  his  own  behalf  or  on behalf of others, directly or
indirectly,  solicit  any Customers for the purpose of engaging in the Business.

     1.6     Non-Disparagement.  Unless  necessary  to  prosecute  any  claims
             -----------------
against  each other  pursuant to this Agreement, the Stock Purchase Agreement or
as  required  by  law,  including  in  response  to  a  subpoena  or  court  or
administrative  order,  neither  Company nor Seller shall, during the Restricted
Period  or  anytime  thereafter,  disparage  the  other  or any of its officers,
directors,  employees  or  direct or indirect equity owners (or their respective
officers,  directors  or  employees)  in any way, including by making statements
that  would  call  into  question  the  professional  competence,  billing  or
distribution  practices,  business  competence  or  reputation  of  any of them.

2.     RIGHTS  AND  REMEDIES  UPON  BREACH.

Seller  acknowledges  that  (a) the provisions of this Agreement are fundamental
and  essential  for  the  protection  of  Company's  legitimate  business  and
proprietary interests; (b) such provisions are reasonable and appropriate in all
respects; and (c) any breach of this Agreement will result in irreparable damage
to  Company for which an adequate monetary remedy does not exist and a remedy at
law  may  prove  to  be  inadequate.  Accordingly, in the event of any actual or
threatened  breach by Seller of any provision of Sections 1.2, 1.3, 1.4, 1.5, or
1.6,  Company  shall,  in  addition  to  any other remedies permitted by law, be
entitled  to seek, and Seller consents to, equitable remedies including specific
performance,  injunctive relief, a temporary restraining order, and temporary or
permanent  injunctions,  in  any  court of competent jurisdiction, to prevent or
otherwise  restrain a breach of such provision, without the necessity of proving
harm or damages or the posting of any bond or other security, and to recover any
and  all  costs  and expenses, including reasonable attorneys' fees, incurred in
enforcing  this  Agreement against Seller.  Such relief shall be in addition to,
and  not  in  substitution  of,  any  other  remedies available to Company.  The
existence  of  any  claim or cause of action of Seller against Company shall not
constitute a defense to the enforcement by Company of the covenants contained in
Sections  1.2,  1.3, 1.4, 1.5 or 1.6.  Seller shall not defend any such claim or
cause  of  action  on  the  basis  that there is an adequate remedy at law.  The
Restricted  Period  shall  be  extended  by any period during which Seller is in
breach  of  this  Agreement  as  finally  determined  by  a  court  of competent
jurisdiction.

3.     SEVERABILITY;  BLUE  PENCILING.

The  necessity  of  each  of the restrictions set forth above and the nature and
scope  of each such restriction has been carefully considered, bargained for and
agreed  to by Company, Charys and Seller (each a "Party", and, collectively, the
                                                  -----
"Parties").  The  Parties  hereby agree and acknowledge that the duration, scope
 -------
and  geographic  area  applicable  to  each  of  the  restrictions

                                       -4-
<PAGE>
set  forth  in  this  Agreement  are  fair,  reasonable  and  necessary.  The
consideration  provided  for  in  the  Stock  Purchase  Agreement,  Employment
Agreement,  and  recited  in  this  Agreement  is  sufficient  and  adequate  to
compensate  Seller  for  agreeing  to each of the restrictions contained in this
Agreement.  However,  in  the  event that any portion of this Agreement shall be
determined by any court of competent jurisdiction to be unenforceable, including
by  reason  of its being extended over too great a period of time or too large a
geographic area or over too great a range of activities, it shall be interpreted
to  extend  only  over  the  maximum period of time, geographic area or range of
activities  as  to  which  it  may be enforceable.  Each provision and part of a
provision  of  this Agreement shall be deemed a separate and severable covenant.
It is the desire and intent of the Parties that the provisions of this Agreement
shall  be  enforced  to the fullest extent permissible under the laws and public
policies  applied  in  each  jurisdiction  in  which such enforcement is sought.
Accordingly,  a  court  of  competent  jurisdiction  is  directed  to modify any
provision  to  the extent necessary to render such provision enforceable, and if
such cannot be lawfully done, to sever any such portion of a provision, but only
such  portion  of  a provision as necessary to cause the remaining provisions or
portions  of  such  provision  to  be  enforceable.

4.     MISCELLANEOUS.

     4.1     Representations  of  Seller.  Seller  represents  and warrants that
             ---------------------------
Seller  has  read  and  understands  this Agreement and has consulted with legal
counsel  who  has  explained all of its terms and provisions and that the agreed
upon  consideration  for  the  undertakings  made by Seller in this Agreement is
adequate.  Seller  acknowledges  and agrees that the restrictions on competitive
activities  and  the  other  undertakings  made by Seller in this Agreement will
adversely  affect  such Seller's ability to obtain future business and to engage
in  other pursuits and that Seller nonetheless intends to be bound by all of the
restrictions,  undertakings  and  other  obligations required in this Agreement.

     4.2     Amendments  and  Waiver.  No  amendment,  waiver  or  consent  with
             -----------------------
respect  to  any  provision  of  this  Agreement shall in any event be effective
unless  it  is  in  writing  and signed by the Parties, and then such amendment,
waiver  or  consent shall be effective only in the specific instance and for the
specific  purpose  for  which  given.  Any  Party's  lack  of enforcement of any
provision  of  this  Agreement  shall  not  be  construed  as  a waiver, and the
nonbreaching  Party  may  elect to enforce any such provision at any time in the
event of a past, repeated or continuing breach.  The rights and remedies in this
Agreement are the exclusive rights and remedies that the Parties may have upon a
breach  of  this  Agreement.

     4.3     Notices.  All notices or other communications required or permitted
             -------
under  this  Agreement  shall be in writing and will be deemed to have been duly
given when (a) delivered by hand, (b) sent by facsimile, provided that a copy is
mailed by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight courier service (receipt
requested),  in each case to the appropriate addresses and fax numbers set forth
below  (or  to  such other addresses and fax numbers as a party may designate by
notice  to  the  other  parties):

                                       -5-
<PAGE>
SELLER:                           COMPANY:
                                  [                           ]
--------------------               ---------------------------

--------------------

--------------------              ----------------------------

                                  ----------------------------
                                  Attn:  Chairman of the Board
With a copy to:

--------------------              With copies to:

--------------------              CHARYS HOLDING COMPANY, INC.
                                  1117 Perimeter Center West, Suite N415
--------------------              Atlanta, Georgia 30338
Fax No.:     (   )    -           Attention : Billy V. Ray, Jr.,
              ---  --- ----       Chief Executive Officer
Attention:
            -------------         and

                                  Paul, Hastings, Janofsky & Walker, LLP
                                  600 Peachtree Street N.E., Suite 2400
                                  Atlanta, Georgia 30308-2222
                                  Fax No: (404) 815-2424
                                  Attention: Wayne Bradley

          Either  Party  may  change  its address for receiving notice by giving
written  notice  to  the other Party in the manner provided in this Section 4.3.

     4.4     Governing Law.  This Agreement shall be governed by, and construed,
             -------------
enforced  and  interpreted  in  accordance  with,  the substantive laws (without
regard  to  its  conflicts  of  laws  provisions)  of  the  State  of  Texas.

     4.5     Successors  and  Assigns.  This  Agreement,  and  the  rights  and
             ------------------------
obligations  of the Parties, shall inure to the benefit of and be binding on the
Parties  and their respective successors and assigns.  Seller not may assign any
rights,  benefits,  duties  or  obligations  under  this  Agreement.

     4.6     Entire Agreement.  This Agreement, the Stock Purchase Agreement and
             ----------------
the  documents  referred  to  therein,  and the Employment Agreement express the
entire  agreement  and  understanding  between  the  Parties with respect to the
subject  matter  hereof,  and  all  promises,  representations,  understandings,
arrangements  and  prior agreements are merged herein and therein and superseded
hereby  and  thereby.

     4.7     Rules  of Construction.  The term "including" shall mean "including
             ----------------------
without  limitation."  The  term "person" shall be broadly construed to mean any
individual,  trust,  partnership,  corporation,  limited  liability  company,
organization,  joint  venture  or  any  other  entity

                                       -6-
<PAGE>
or body of any nature.  The Article, Section and other headings contained herein
are  for  reference purposes only and shall not affect in any way the meaning or
interpretation  of  this  Agreement.

     4.8     Expenses.  Each  Party  shall  pay  its  own  costs and expenses in
             --------
connection  with  the  transactions  contemplated  by  this  Agreement.

     4.9     Counterparts.  This  Agreement  may  be  executed  in  multiple
             ------------
counterparts,  each  of which shall for all purposes be deemed to be an original
and  all  of  which,  when  taken  together,  shall  constitute one and the same
instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       -7-
<PAGE>
     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
first  above  written.

COMPANY:                                SELLER:

[                                ]
 --------------------------------

By:
    -------------------------------     -----------------------------------
                                        [NAME]
Name:
      -----------------------------

Title:  Chairman  of  the  Board

                   SIGNATURE PAGE TO NON-COMPETITION AGREEMENT

<PAGE>
                                    EXHIBIT H
                                    ---------

                              EMPLOYMENT AGREEMENT
                              --------------------

     I,     ,  agree to the terms and conditions of employment with [          ]
       -----                                                         ----------
a  [          ]  ("Company"),  (1)  set  forth  in  this  Employment  Agreement
    ----------     -------
("Agreement"). All capitalized terms not otherwise defined herein shall have the
  ---------
meaning  given  to  them  in the Stock and Limited Partnership Interest Purchase
Agreement,  dated  as  of  July    ,  2006,  among  Charys Holding Company, Inc.
                                 --
("Charys"),  Cotton  Holdings  1,  Inc.,  Cotton  Commercial  USA,  LP,  Cotton
  ------
Restoration  of  Central  Texas, LP, and the individual signatories thereto (the
"Stock  Purchase  Agreement").
 --------------------------

          1.     TERM  OF  EMPLOYMENT.  My employment under this Agreement shall
commence on        , 2006 ("Effective Date") and end on the third anniversary of
            -------         --------------
the  Effective  Date  ("Expiration  Date"),  or  such  earlier  date on which my
                        ----------------
employment  is  terminated  under  Section 5 of this Agreement, provided that if
neither  party  provides notice of termination to the other party not later than
90  days  prior  to the Expiration Date or the expiration date of any subsequent
term, this Agreement shall automatically extend for an additional one year term.
If  the  Company  continues  to  employ  me  beyond  the Expiration Date without
entering  into  a written agreement extending the term of this Agreement, except
as  provided  in  a new written employment agreement between the Company and me,
all  obligations and rights under this Agreement shall prospectively lapse as of
the  Expiration  Date,  except  the Company's ongoing indemnification obligation
under  Section  4(g),  my confidentiality and other obligations under Section 6,
and  our  mutual arbitration obligations under Section 8, and I thereafter shall
be  an  at-will  employee  of  the  Company.

          2.     NATURE  OF  DUTIES.  I shall be the Company's [          ].  As
                                                                ----------
such,  I  shall  work  exclusively  for  the  Company  and shall have all of the
customary  powers  and  duties  associated with that position.  I agree that the
Company  may alter my duties from time to time.  I shall devote my full business
time  and  effort to the performance of my duties for the Company, which I shall
perform  faithfully  and  to  the best of my ability.  I shall be subject to the
Company's  policies,  procedures  and approval practices, as generally in effect
from time to time.  Notwithstanding the foregoing or any other provision of this
Agreement, it shall not be a breach or violation of this Agreement for me to (i)
serve  on  corporate  (subject  to  approval  of the Board), civic or charitable
boards  or  committees,  (ii)  deliver lectures, fulfill speaking engagements or
teach at educational institutions, or (iii) manage personal investments, so long
as  such activities do not significantly interfere with or significantly detract
from  the  performance  of my responsibilities to the Company in accordance with
this  agreement.

          3.     PLACE  OF  PERFORMANCE.  I shall be based at [               ],
                                                               ---------------
except  for  required  travel  on  the  Company's  business.

          4.     COMPENSATION  AND  RELATED  MATTERS.

                (a)      BASE  SALARY.  [          ]
                                         ----------

--------------------
(1) Will likely be either Cotton Holdings or the Disaster Remediation Holding
Company.

<PAGE>
               (b)     BONUS.  As  determined  by  the board of directors of the
Company.

               (c)     AUTOMOBILE  ALLOWANCE.  The  Company  shall  provide  an
automobile, or shall provide to me an automobile allowance equal to [          ]
                                                                     ----------
per  month.

               (d)     STANDARD  BENEFITS.  During  my  employment,  I  shall be
entitled  to continue to participate in all employee benefit plans and programs,
including  paid  vacations, that are provided by the Company as of        , 2006
                                                                   -------
in  accordance  with  the  terms of those plans and programs and applicable law.

               (e)     401(K).  During  my  employment,  I  shall be entitled to
continue  to  participate  in  the Company's 401(k) plan, in accordance with the
terms  of  that  plan  and  applicable  law.

               (f)     INDEMNIFICATION.  The Company shall extend to me the same
indemnification  arrangements  as  are  generally  provided  to  other similarly
situated  Company  executives,  including  after  termination  of my employment.

               (g)     EXPENSES.  I  shall  be  entitled  to  receive  prompt
reimbursement  for  all  reasonable and customary travel and business expenses I
incur  in  connection with my employment, but I must incur and account for those
expenses  in  accordance  with  the  policies  and procedures established by the
Company.

               (h)     SARBANES-OXLEY  ACT LOAN PROHIBITION.  To the extent that
any  Company benefit, program, practice, arrangement, or this Agreement would or
might  otherwise  result  in my receipt of an illegal loan ("Loan"), the Company
                                                             ----
shall  use  reasonable efforts to provide me with a substitute for the Loan that
is  lawful  and  of  at  least equal value to me.  If this cannot be done, or if
doing  so  would  be significantly more expensive to the Company than making the
Loan,  the Company need not make the Loan to me or provide me substitute for it.

          5.     TERMINATION.

               (a)     RIGHTS  AND  DUTIES.  If  my  employment is terminated, I
shall  be entitled to the amounts or benefits shown on the applicable row of the
following  table,  subject  to the balance of this Section 5.  The Company and I
shall  have  no  further obligations to each other, except the Company's ongoing
indemnification  obligation  under  Section  4(g),  my confidentiality and other
obligations  under  Section  6,  and  our  mutual  arbitration obligations under
Section  8,  or  as set forth in any written agreement I subsequently enter into
with  the  Company.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
<S>           <C>
DISCHARGE     Payment or provision when due of (1) any unpaid base salary,
FOR CAUSE     expense reimbursements, and vacation days accrued prior to
              termination of employment, and (2) other unpaid vested amounts or
              benefits under Company compensation, incentive, and benefit plans.
--------------------------------------------------------------------------------

<PAGE>
--------------------------------------------------------------------------------
DISABILITY    Same as for "Discharge for Cause" EXCEPT that I also shall be
              potentially eligible for disability benefits under any Company-
              provided disability plan in which I then participate.
------------  ------------------------------------------------------------------
DISCHARGE     Same as for "Discharge for Cause" EXCEPT that, in exchange for
OTHER THAN    my execution of a release in accordance with this section, my base
FOR CAUSE     salary, but not my employment, shall continue through the
OR            Agreement's Expiration Date, or for 12 weeks, whichever comes
DISABILITY    first.
------------  ------------------------------------------------------------------
RESIGNATION   Same as for "Discharge for Cause."
------------  ------------------------------------------------------------------
DEATH         Same as for "Discharge for Cause" EXCEPT that payments shall be
              made to the person or entity prescribed by Company policies.
------------  ------------------------------------------------------------------
EXPIRATION    Same as for "Discharge for Cause."
OF
AGREEMENT
--------------------------------------------------------------------------------
</TABLE>

               (b)     DISCHARGE  FOR  CAUSE.  The  Company  may  terminate  my
employment  at  any  time  if  it  believes  in  good faith that it has Cause to
terminate  me.  "Cause"  shall  include,  but  not  be  limited  to:
                 -----

                    (i)     my refusal to follow the Company's lawful directions
or my material failure to perform my duties (other than by reason of physical or
mental  illness,  injury, or condition), in either case, after I have been given
notice  of  my  default  and  a  reasonable  opportunity  to  cure  my  default;

                    (ii)     my  material  failure  to  comply  with  Company
policies;

                    (iii)     my  engaging in conduct that is or may be unlawful
or  disreputable,  to the possible detriment of the Company and its subsidiaries
and  affiliates,  and  their  predecessors  and  successors ("Group"), or my own
                                                              -----
reputation;

                    (iv)     my seeking, exploring, or accepting a position with
another  business enterprise or venture without the Company's written consent at
any  time  more  than  90  days  before  the  Expiration  Date;  or

<PAGE>
                    (v)     my engaging in activities on behalf of an enterprise
which  competes  or plans to compete with the Company or any of its subsidiaries
or  affiliates.

If  my  employment  ends  for any reason other than discharge by the Company for
Cause,  but  at a time when the Company had Cause to terminate me (or would have
had  Cause  if it then knew all relevant facts), my termination shall be treated
as  a  discharge  by  the  Company  for  Cause.

               (c)     TERMINATION  FOR  DISABILITY.  Except  as  prohibited  by
applicable  law,  the  Company  may  terminate  my  employment  on  account  of
Disability,  or  may transfer me to inactive employment status, which shall have
the  same  effect  under  this  Agreement  as  a  termination  for  Disability.
"Disability"  means  a  physical  or  mental  illness, injury, or condition that
 ----------
prevents  me  from  performing  my  duties, as determined under Company policies
relating  to disability applicable to me and other similarly situated employees.

               (d)     DISCHARGE  OTHER  THAN  FOR  CAUSE  OR  DISABILITY.  The
Company  may  terminate  my  employment  at any time for any reason, and without
advance  notice.  If  I  am terminated by the Company other than for Cause under
Section  5(b)  or  for  Disability  under  Section 5(c), I will only receive the
special benefits provided for a non-Cause discharge under Section 5(a) if I sign
a  general  release  form  furnished to me by the Company (which may include any
provision  customary  in  formal  settlement  agreements  and  general releases,
including  such  things as my release of the Company and all conceivably related
persons  or  entities  ("affiliates")  from  all  known  and  unknown claims, my
covenant  never  in the future to pursue any released claim, my promise never to
seek  employment with the Company or any affiliate in the future, my promise not
to  solicit current or former customers, employees, suppliers or, to the fullest
extent  lawful,  engage  in business activities that compete with the Company or
any  affiliate,  or  disclose  or  use  any of their proprietary or trade secret
information) within 60 days after my employment ends (or within 60 days after an
arbitrator  determines that I am entitled to such payments if I sign the general
release)  and  I  do  not  thereafter  properly  revoke  the  release.

               (e)     RESIGNATION.  I  promise  not  to  resign  my  employment
before  the  Expiration Date without giving the Company at least 30 days advance
written notice.  If I resign, the Company may accept my resignation effective on
the  date  set  forth  in  my  notice or any earlier date.  If I resign, I shall
nevertheless  remain  employed  under  this  Agreement  except to the extent the
Company  elects  to  cancel  it.

               (f)     DEATH.  If I die while employed under this Agreement, the
payments  required  by  Section  5(a)  in  the  event of my death shall be made.

               (g)     TRANSFERS TO GROUP MEMBER.  My transfer to another member
of  the  Group  shall  not  be  deemed a termination of my employment under this
Agreement  if  it  assumes  this  Agreement.

               (h)     DISPUTES  UNDER  THIS  SECTION.  All disputes relating to
this  Agreement,  including disputes relating to this section, shall be resolved
by  final  and binding arbitration under Section 8.  For example, if the Company
and  I  disagree as to whether the Company had Cause to terminate my employment,
we  will  resolve  the  dispute  through arbitration; the arbitrator will decide
whether  the  Company  had  Cause  to  terminate  me.

<PAGE>
               (i)     AMOUNTS OWED TO THE COMPANY.  Any amounts payable to me
under this section shall first be applied to repay any amounts I owe the
Company.

          6.     CONFIDENTIALITY.  I acknowledge that as an integral part of the
Company's  business,  the  Company  has  developed,  and  will  develop,  at  a
considerable  investment  of  time and expense, marketing and business plans and
strategies,  procedures,  methods  of  operation  and marketing, financial data,
lists  of  actual  and  potential customers and suppliers, and independent sales
representatives  and related data, technical procedures, engineering and product
specifications,  plans for development and expansion, and other confidential and
sensitive  information,  and  I  acknowledge  that  the Company has a legitimate
business  interest  in  protecting  the  confidentiality of such information.  I
acknowledge  that  I  will  be  entrusted  with  such  information  as  well  as
confidential  information  belonging  to  customers,  suppliers, and other third
parties.

               (a)     "TRADE SECRETS" are defined as information, regardless of
form,  belonging  to  the  Company,  licensed  by  it,  or  disclosed to it on a
confidential  basis  by  its  customers,  suppliers,  or  other  third  parties,
including,  but  not  limited  to,  technical  or  nontechnical  data, formulae,
patterns,  compilations,  programs,  devices,  methods,  techniques,  drawings,
processes,  financial  data,  product  plans,  or  lists  of actual or potential
customers  or  suppliers  which  are  not  commonly known by or available to the
public  and  which information: (i) derives economic value, actual or potential,
from not being generally known to, and not being readily ascertainable by proper
means  by,  other  persons  who can obtain economic value from its disclosure or
use;  and  (ii)  is  the  subject  of  efforts  that  are  reasonable  under the
circumstances  to  maintain  its  secrecy.

               (b)     "CONFIDENTIAL  INFORMATION"  is  defined  as information,
regardless of form, belonging to the Company, licensed by it, or disclosed to it
on  a  confidential  basis  by its customers, suppliers, or other third parties,
other  than Trade Secrets, which is material and valuable to the Company and not
generally  known  by  the  public.

               (c)     PROMISE  NOT  TO  DISCLOSE.  I  promise  never  to use or
disclose  any  Trade  Secret  before  it  has  become generally known within the
relevant  industry  through no fault of my own.  I agree that this promise shall
never expire.  I further promise that, while this Agreement is in effect and for
2 years after its termination, I will not, without the prior written approval of
the  Company,  disclose  any  Confidential  Information  before  it  has  become
generally  known  within  the  relevant  industry  through  no  fault of my own.

               (d)     PROMISE  NOT  TO  SOLICIT.  To prevent me from inevitably
breaking  this  promise, I further agree that, while this Agreement is in effect
and  for 24 months after its termination:  (1) as to any customer or supplier of
the  Group  with  whom  I  had  dealings  or  about  whom I acquired proprietary
information  during  my employment, I will not solicit or attempt to solicit (or
assist  others  to  solicit)  the  customer  or supplier to do business with any
person  or entity other than the Group; and (2) I will not solicit or attempt to
solicit  (or  assist  others  to  solicit)  for employment any person who is, or
within the preceding 12 months was, an officer, manager, employee, or consultant
of  the  Group.

<PAGE>
               (e)     PROMISE  NOT  TO  ENGAGE  IN CERTAIN EMPLOYMENT.  I agree
that, while this Agreement is in effect and for 24 months after its termination,
I  will not accept any employment or engage in any activity, without the written
consent  of  the  Board if the loyal and complete fulfillment of my duties would
inevitably  require  me  to  reveal  or  utilize  Trade  Secrets or Confidential
Information,  as  reasonably  determined  by  the  Board.

               (f)     RETURN  OF  INFORMATION.  When  my  employment  with  the
Company  ends,  I  will  promptly  deliver  to  the  Company, or, at its written
instruction,  destroy,  all  documents, data, drawings, manuals, letters, notes,
reports, electronic mail, recordings, and copies thereof, of or pertaining to it
or  any  other Group member in my possession or control.  In addition, during my
employment  with  the  Company or the Group and thereafter, I agree to meet with
Company  personnel  and,  based  on  knowledge  or  insights  I gained during my
employment  with  the  Company  and the Group, answer any question they may have
related  to  the  Company  or  the  Group.

               (g)     PROMISE  TO  DISCUSS  PROPOSED  ACTIONS  IN  ADVANCE.  To
prevent  the  inevitable  use  or  disclosure  of  Trade Secrets or Confidential
Information,  I  promise  that,  before  I  disclose  or  use  Trade  Secrets or
Confidential Information and before I commence employment, solicitations, or any
other activity that could possibly violate the promises I have just made, I will
discuss my proposed actions with an attorney for the Company, who will advise me
in  writing  whether  my  proposed  actions  would  violate  these  promises.

               (h)     INTELLECTUAL  PROPERTY.  Intellectual property (including
such  things  as all ideas, concepts, inventions, plans, developments, software,
data,  configurations, materials (whether written or machine-readable), designs,
drawings,  illustrations,  and photographs, that may be protectable, in whole or
in  part,  under  any  patent,  copyright,  trademark,  trade  secret,  or other
intellectual  property  law), developed, created, conceived, made, or reduced to
practice  during my Company employment (except intellectual property that has no
relation  to  the Group or any Group customer that I developed, purely on my own
time  and  at  my  own expense), shall be the sole and exclusive property of the
Company,  and  I  hereby  assign  all my rights, title, and interest in any such
intellectual  property  to  the  Company.

               (i)     EXECUTION  OF INNOVATION AGREEMENT.  I agree to the terms
of  the  Company's Assignment of Inventions agreement, which is attached to this
Agreement as Schedule 1, and I promise to execute it contemporaneously with this
             ----------
Agreement.

               (j)     ENFORCEMENT  OF THIS SECTION.  This section shall survive
the  termination  of  this  Agreement for any reason.  I acknowledge that (a) my
services  are  of a special, unique, and extraordinary character and it would be
very  difficult  or  impossible  to  replace  them, (b) this section's terms are
reasonable and necessary to protect the Company's legitimate interests, (c) this
section's restrictions will not prevent me from earning or seeking a livelihood,
(d)  this  section's restrictions shall apply wherever permitted by law, and (e)
my  violation of any of this section's terms would irreparably harm the Company.
Accordingly,  I  agree that, if I violate any of the provisions of this section,
the  Company  or  any  Group  member  shall be entitled to, in addition to other
remedies  available  to it, an injunction to be issued by any court of competent
jurisdiction  restraining  me  from  committing or continuing any such violation

<PAGE>
without  the  need  to prove the inadequacy of money damages or post any bond or
for  any  other  undertaking.

          7.     NOTICE.

               (a)     TO  THE  COMPANY.  I  will send all communications to the
Company  in  writing,  addressed  as follows (or in any other manner the Company
notifies  me  to  use):

          If Mailed:     [                         ]
                          -------------------------

                         ---------------------------

                         ---------------------------
                         Attention:  Chairman of the Board

          With a copy to:
                     Charys Holding Company, Inc.
                     1117 Perimeter Center West, Suite N 415
                     Atlanta, Georgia 30338
                     Attention: Billy V. Ray, Jr., Chief Executive Officer

               (b)     TO  ME.  All  communications  from  the  Company  to  me
relating  to  this Agreement must be sent to me in writing as follows (or in any
other  manner  that  I  notify the Company) at my Company office or in any other
manner  I  notify  the  Company  to  use.

If mailed:
                                           -------------------------

                                           -------------------------

                                           -------------------------

                                           -------------------------
With a copy to:
                                           -------------------------

                                           -------------------------

                                           -------------------------

                                           -------------------------

               (c)     TIME NOTICE DEEMED GIVEN.  Notice shall be deemed to have
been  given  when  delivered  or,  if  earlier  (1) when mailed by United States
certified  or registered mail, return receipt requested, postage prepaid, or (2)
faxed  with  confirmation  of delivery, in either case, addressed as required in
this  section.

          8.     ARBITRATION  OF DISPUTES.  All disputes between the Company and
me  are  to  be resolved by final and binding arbitration in accordance with the
separate  Arbitration  Agreement attached as Schedule 2 to this Agreement.  This
                                             ----------
section  shall  remain  in  effect  after  the  termination  of  this Agreement.

          9.     GOLDEN  PARACHUTE  LIMITATION.  I  agree  that  my payments and
benefits under this Agreement and all other contracts, arrangements, or programs
shall  not,  in  the aggregate, exceed the maximum amount that may be paid to me
without  triggering  golden  parachute  penalties under Section 280G and related
provisions  of  the  Internal  Revenue  Code,  as

<PAGE>
determined in good faith by the Company's independent auditors.  If any benefits
must  be  cut  back to avoid triggering such penalties, my benefits shall be cut
back in the priority order designated by the Company.  If an amount in excess of
the  limit  set  forth  in  this  section is paid to me, I will repay the excess
amount  to  the  Company  upon demand, with interest at the rate provided for in
Internal  Revenue  Code  Section  1274(b)(2)(B).  The  Company  and  I  agree to
cooperate  with  each  other  in  connection with any administrative or judicial
proceedings  concerning  the  existence  or amount of golden parachute penalties
with  respect  to  payments  or  benefits  I  receive.

          10.     AMENDMENT.  No  provisions  of this Agreement may be modified,
waived,  or  discharged except by a written document signed by a duly authorized
Company  officer  and  me.  Thus, for example, promotions, commendations, and/or
bonuses  shall  not,  by themselves, modify, amend, or extend this Agreement.  A
waiver  of  any  conditions  or provisions of this Agreement in a given instance
shall not be deemed a waiver of such conditions or provisions at any other time.

          11.     INTERPRETATION;  EXCLUSIVE  FORUM.  The  validity,
interpretation,  construction,  and  performance  of  this  Agreement  shall  be
governed  by  the laws of the State of Texas (excluding any that mandate the use
of  another  jurisdiction's  laws).  Any  litigation,  arbitration,  or  similar
proceeding  with  respect to such matters only may be brought within that state,
and all parties to this Agreement consent to that state's jurisdiction and agree
that  venue  anywhere  in  that  state  would  be  proper.

          12.     SUCCESSORS.  This  Agreement  shall be binding upon, and shall
inure  to  the benefit of, me and my estate, but I may not assign or pledge this
Agreement  or  any rights arising under it, except to the extent permitted under
the  terms of the benefit plans in which I participate.  Without my consent, the
Company  may  assign this Agreement to any affiliate or successor that agrees in
writing  to  be  bound  by  this  Agreement,  after  which  any reference to the
"Company"  in  this Agreement shall be deemed to be a reference to the affiliate
or  successor,  and  the  Company  thereafter  shall  have  no  further primary,
secondary  or  other responsibilities or liabilities under this Agreement of any
kind.

          13.     TAXES.  The  Company  shall  withhold  taxes  from payments it
makes  pursuant  to this Agreement as it determines to be required by applicable
law.

          14.     VALIDITY.  The invalidity or unenforceability of any provision
of  this  Agreement shall not affect the validity or enforceability of any other
provision  of  this  Agreement, which shall remain in full force and effect.  In
the  event  that a court of competent jurisdiction determines that any provision
of  this  Agreement  is  invalid  or  more  restrictive than permitted under the
governing  law  of  such  jurisdiction,  then  only  as  to  enforcement of this
Agreement  within  the  jurisdiction  of  such  court,  such  provision shall be
interpreted and enforced as if it provided for the maximum restriction permitted
under  such  governing  law.

          15.     COUNTERPARTS.  This  Agreement  may  be  executed  in multiple
counterparts,  each  of which shall for all purposes be deemed to be an original
and  all  of  which,  when  taken  together,  shall  constitute one and the same
instrument.

<PAGE>
          16.     ENTIRE AGREEMENT.  All oral or written agreements or
representations, express or implied, with respect to the subject matter of this
Agreement are set forth in this Agreement.  However, this Agreement does not
override other written agreements I have executed relating to specific aspects
of my employment, such as conflicts of interest.

          17.     FORMER  EMPLOYERS.  I  am  not  subject  to  any  employment,
confidentiality,  or  other  agreement or restriction that would prevent me from
fully  satisfying  my duties under this Agreement or that would be violated if I
did  so.  Without  the  Company's  prior written approval, I promise I will not:

               (a)     disclose  proprietary  information  belonging to a former
employer  or  other  entity  without  its  written  permission;

               (b)     contact  any  former employer's customers or employees to
solicit  their  business  or  employment  on  behalf  of  the  Group;  or

               (c)     distribute  announcements about or otherwise publicize my
employment  with  the  Group.

I  will  indemnify and hold the Company harmless from any liabilities, including
defense  costs,  it  may  incur because I am alleged to have broken any of these
promises  or improperly revealed or used such proprietary information or to have
threatened  to  do  so, or if a former employer challenges my entering into this
Agreement  or  rendering  services  pursuant  to  it.

          18.     DEPARTMENT  OF HOMELAND SECURITY VERIFICATION REQUIREMENT.  If
I have not already done so, I agree to timely file all documents required by the
Department  of  Homeland Security to verify my identity and my lawful employment
in the United States.  Notwithstanding any other provision of this Agreement, if
I  fail to meet any such requirements promptly after receiving a written request
from  the  Company  to  do  so,  I  agree  that  my  employment  shall terminate
immediately  and  that  I  shall  not  be  entitled to any compensation from the
Company  of  any  type.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>
--------------------------------------------------------------------------------
I  ACKNOWLEDGE THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY AND ME
RELATING  TO THE SUBJECTS COVERED IN THIS AGREEMENT ARE CONTAINED IN IT AND THAT
I  HAVE  ENTERED  INTO  THIS  AGREEMENT  VOLUNTARILY  AND NOT IN RELIANCE ON ANY
PROMISES  OR  REPRESENTATIONS  BY THE COMPANY OTHER THAN THOSE CONTAINED IN THIS
AGREEMENT  ITSELF.

I  UNDERSTAND THAT PAUL, HASTINGS, JANOFSKY & WALKER LLP (PHJ&W) REPRESENTED THE
COMPANY,  NOT  ME,  IN  NEGOTIATING THIS CONTRACT; I WAS REPRESENTED BY SEPARATE
COUNSEL.  TO  THE  EXTENT  PHJ&W  HAS  REPRESENTED  ME,  IS  REPRESENTING ME, OR
REPRESENTS  ME  IN  THE  FUTURE,  I  IRREVOCABLY  WAIVE ANY CONFLICT OF INTEREST
OBJECTIONS  I  MAY  HAVE  TO ITS REPRESENTATION OF THE COMPANY AS TO ANY MATTERS
RELATING  TO  MY  EMPLOYMENT  BY  THE COMPANY, INCLUDING THE NEGOTIATION OF THIS
CONTRACT.

I  FURTHER  ACKNOWLEDGE  THAT  I  HAVE  CAREFULLY  READ  THIS  AGREEMENT, THAT I
UNDERSTAND ALL OF IT, AND THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS THIS
AGREEMENT,  TOGETHER  WITH  ALL ATTACHED SCHEDULES AND EXHIBITS, WITH MY PRIVATE
LEGAL COUNSEL AND HAVE AVAILED MYSELF OF THAT OPPORTUNITY TO THE EXTENT I WISHED
TO  DO  SO.  I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT
TO  A  JURY  TRIAL.
--------------------------------------------------------------------------------

Date:                                     [             ]
      ---------------------                -------------

                                          By:
                                             -----------------------------------
                                          Name:
                                               ---------------------------------
                                          Title: Chairman of the Board

Date:                                     [             ]
      ---------------------                -------------

                                          --------------------------------------

            SIGNATURE PAGE TO [                ] EMPLOYMENT AGREEMENT
                               ----------------

<PAGE>
                                   Schedule 1
                                   ----------

                            ASSIGNMENT OF INVENTIONS
                            ------------------------

1.     I  will  promptly disclose in writing to the Company all Inventions.  For
purposes of this Agreement, "Invention" shall mean any discovery, whether or not
                             ---------
patentable,  as  well  as  improvements  thereto,  which  is  conceived or first
practiced  by  me,  alone  or in a joint effort with others, whether prior to or
following execution of this Agreement, which:  (i) may be reasonably expected to
be  used  in  a  product of the Company; (ii) results from work that I have been
assigned as part of my duties as an employee of the Company; (iii) is in an area
of  technology  which  is  the  same as or substantially related to the areas of
technology  with  which  I  am  involved;  (iv)  is useful, or which the Company
reasonably expects may be useful, in any manufacturing or product design process
of  the  Company;  or  (v)  utilizes  any  Confidential  Information.

2.     All  Inventions  developed  while employed by the Company in the scope of
such my employment and duties belong to and are the sole property of the Company
and  will  be  subject  to  this  Agreement.  I assign to the Company all right,
title, and interest I may have or may acquire in and to all Inventions.  I shall
sign  and  deliver  to  the  Company  (during  and  after  employment) any other
documents that the Company considers reasonably necessary to provide evidence of
(i)  the  assignment of all of my rights, if any, in any Inventions and (ii) the
Company's  ownership  of  such  Inventions.

3.     I  will  assist  the  Company in applying for, prosecuting, obtaining, or
enforcing  any  patent,  copyright, or other right or protection relating to any
Invention,  all  at  the  Company's  expense  but without consideration to me in
excess  of  my  salary  or  wages.  If the Company requires any assistance after
termination  of  my employment, I will be compensated for time actually spent in
providing  that  assistance  at  an hourly rate equivalent to my salary or wages
during  the  last  period  of  employment  with  the  Company.

4.     If the Company is unable to secure my signature on any document necessary
to  apply  for,  prosecute,  obtain,  or enforce any patent, copyright, or other
right  or  protection  relating  to  any  Invention, whether due to my mental or
physical  incapacity  or  any  other  cause,  I hereby irrevocably designate and
appoint  the  Company  and each of its duly authorized officers and agents as my
agent  and attorney-in-fact, to act for and in my behalf to execute and file any
such  document  and  to  do  all  other  lawfully  permitted acts to further the
prosecution,  issuance,  and enforcement of patents, copyrights, or other rights
or  protections,  with the same force and effect as if executed and delivered by
me.

                            [SIGNATURE PAGE FOLLOWS]

<PAGE>
EMPLOYEE:                      [                                ]
                                --------------------------------

-----------------------        -------------------------------------------------
Signature of Employee          Signature of Authorized Company Representative

-----------------------        -------------------------------------------------
Print Name of Employee         Title of Representative

-----------------------        -------------------------------------------------
Date                           Date

              SIGNATURE PAGE TO ASSIGNMENT OF INVENTIONS AGREEMENT

<PAGE>
                                   Schedule 2
                                   ----------

                      MUTUAL AGREEMENT TO ARBITRATE CLAIMS
                      ------------------------------------

          I  recognize  that  differences  may  arise between the Company and me
during  or  following my employment with the Company, and that those differences
may  or  may  not  be  related to my employment.  I understand and agree that by
entering  into  this  Mutual  Agreement  to  Arbitrate  Claims  ("Agreement"), I
                                                                  ---------
anticipate  gaining  the  benefits  of  a  speedy,  impartial, final and binding
dispute-resolution  procedure.

          Except  as  provided  in  this  Agreement, the Federal Arbitration Act
shall  govern  the  interpretation,  enforcement and all proceedings pursuant to
this Agreement.  To the extent that the Federal Arbitration Act is inapplicable,
or  held  not  to require arbitration of a particular claim or claims, state law
pertaining  to  agreements  to  arbitrate  shall  apply.

Claims  Covered  by  the  Agreement
-----------------------------------

          The Company and I mutually consent to the resolution by arbitration of
all  claims or controversies ("claims"), past, present or future, whether or not
arising  out  of  my  employment (or its termination), that the Company may have
against  me or that I may have against any of the following (1) the Company, (2)
its  officers,  directors,  employees  or  agents  in  their capacity as such or
otherwise, (3) the Company's parent, subsidiary and affiliated entities, (4) the
Company's  benefit  plans  or  the plans' sponsors, fiduciaries, administrators,
affiliates  and  agents,  and/or  (5) all successors and assigns of any of them.

          The  only claims that are arbitrable are those that, in the absence of
this  Agreement,  would  have been justiciable under applicable state or federal
law.  The  claims  covered  by  this  Agreement include, but are not limited to:
claims for wages or other compensation due; claims for breach of any contract or
covenant  (express  or  implied);  tort  claims;  claims  for  discrimination
(including,  but  not  limited  to,  race,  sex,  sexual  orientation, religion,
national origin, age, marital status, physical or mental disability or handicap,
or  medical condition); claims for benefits (except claims under an I benefit or
pension plan that either (1) specifies that its claims procedure shall culminate
in an arbitration procedure different from this one, or (2) is underwritten by a
commercial  insurer  which  decides  claims);  and  claims  for violation of any
federal,  state,  or  other governmental law, statute, regulation, or ordinance,
except  claims  excluded  in  the section of this Agreement entitled "Claims Not
Covered  By  The  Agreement."

          Except as otherwise provided in this Agreement, both the Company and I
agree  that  neither  of  us  shall  initiate  or  prosecute  any  lawsuit  or
administrative  action (other than an administrative charge of discrimination to
the  Equal  Employment  Opportunity  Commission,  California  Department of Fair
Employment  and  Housing  or  similar  fair  employment  practices agency, or an
administrative  charge  within  the

<PAGE>
jurisdiction  of  the National Labor Relations Board), in any way related to any
claim  covered  by  this  Agreement.

Claims  Not  Covered  by  the  Agreement
----------------------------------------

          Claims for workers' compensation or unemployment compensation benefits
are  not  covered  by  this  Agreement.

          Also  not  covered  are  claims  by the Company or by me for temporary
restraining  orders or preliminary injunctions ("temporary equitable relief") in
cases  in which such temporary equitable relief would be otherwise authorized by
law.  Such  resort  to temporary equitable relief shall be pending and in aid of
arbitration  only,  and in such cases the trial on the merits of the action will
occur  in  front  of,  and will be decided by, the Arbitrator, who will have the
same  ability  to  order legal or equitable remedies as could a court of general
jurisdiction.

Time  Limits  for  Commencing  Arbitration  and  Required  Notice  of All Claims
--------------------------------------------------------------------------------

          The  Company  and  I  agree that the aggrieved party must give written
notice  of  any  claim  to  the  other party no later than the expiration of the
statute  of  limitations  (deadline  for filing) that the law prescribes for the
claim.  Otherwise, the claim shall be void and deemed waived.  I understand that
the aggrieved party is encouraged to give written notice of any claim as soon as
possible  after  the  event  or  events  in  dispute  so that arbitration of any
differences  may  take  place  promptly.

          Written  notice  to the Company, or its officers, directors, employees
or agents, shall be sent to the Company's chief operating officer or chief legal
officer  or person with similar authority at the Company's then-current address.
I  will  be  given  written  notice at the last address recorded in my personnel
file.

          The  written  notice  shall  identify  and  describe the nature of all
claims  asserted,  the  facts upon which such claims are based and the relief or
remedy  sought.  The  notice  shall  be  sent to the other party by certified or
registered  mail,  return  receipt  requested.

Representation
--------------

          Any  party  may  be represented by an attorney or other representative
selected  by  the  party.

Discovery
---------

          Each  party  shall have the right to take depositions of up to 10 fact
witnesses  and  any expert witness designated by another party.  Each party also
shall  have  the right to make requests for production of documents to any party
and  to  subpoena

<PAGE>
documents  from third parties.  Requests for additional discovery may be made to
the Arbitrator selected pursuant to this Agreement.  The Arbitrator may grant an
order  for  such requested additional discovery if the Arbitrator finds that the
party  requires  it  to  adequately  arbitrate  a claim, taking into account the
parties'  mutual  desire  to  have  a  fast,  cost-effective  dispute resolution
mechanism.

Designation  of  Witnesses
--------------------------

          At  least  30  days  before the arbitration, the parties must exchange
lists  of  witnesses, including any experts, and copies of all exhibits intended
to  be  used  at  the  arbitration.

Subpoenas
---------

          Each  party  shall  have the right to subpoena witnesses and documents
for  the  arbitration  as  well  as  documents  relevant  to the case from third
parties.

Arbitration  Procedures
-----------------------

          The  arbitration  will  be  held  under  the  auspices of a sponsoring
organization,  either  the  American Arbitration Association ("AAA") or Judicial
                                                               ---
Arbitration  &  Mediation  Services,  with  the  designation  of  the sponsoring
organization  to  be  made  by  the  party  who  did  not  initiate  the  claim.

          The  Company  and  I agree that, except as provided in this Agreement,
the  arbitration  shall  be  in  accordance  with  the sponsoring organization's
then-current  employment  arbitration rules/procedures.  The Arbitrator shall be
either  a retired judge, or an attorney who is experienced in employment law and
licensed  to practice law in the state in which the arbitration is convened (the
"Arbitrator").  The  arbitration shall take place in or near the city in which I
 ----------
am  or  was  last  employed  by  the  Company.

          The  Arbitrator  shall  be  selected  as  follows.  The  sponsoring
organization  shall give each party a list of eleven (11) arbitrators drawn from
its  panel  of  employment  dispute arbitrators.  Each party shall have ten (10)
calendar days from the postmark date on the list to strike all names on the list
it  deems  unacceptable.  If  only  one  common name remains on the lists of all
parties,  that  individual  shall be designated as the Arbitrator.  If more than
one  common  name  remains on the lists of all parties, the parties shall strike
names  alternately  from  the  list of common names until only one remains.  The
party  who  did  not  initiate  the claim shall strike first.  If no common name
exists on the lists of all parties, the sponsoring organization shall furnish an
additional  list  of eleven (11) arbitrators from which the parties shall strike
alternately,  with the party initiating the claim striking first, until only one
name  remains.  That  person  shall  be  designated  as  the  Arbitrator.

                                     -3-
<PAGE>
     The Arbitrator shall apply the substantive law (and the law of remedies, if
applicable)  of  the state in which the claim arose, or federal law, or both, as
applicable  to the claim(s) asserted.  The Arbitrator is without jurisdiction to
apply  any  different  substantive law or law of remedies.  The Federal Rules of
Evidence  shall apply.  The Arbitrator shall have exclusive authority to resolve
any  dispute  relating  to  the interpretation, applicability, enforceability or
formation  of this Agreement, including but not limited to any claim that all or
any  part of this Agreement is void or voidable.  The arbitration shall be final
and  binding  upon  the  parties,  except  as  provided  in  this  Agreement.

          The Arbitrator shall have jurisdiction to hear and rule on pre-hearing
disputes  and  is  authorized to hold pre-hearing conferences by telephone or in
person,  as  the  Arbitrator  deems  advisable.  The  Arbitrator  shall have the
authority  to entertain a motion to dismiss and/or a motion for summary judgment
by  any  party  and  shall  apply the standards governing such motions under the
Federal  Rules  of  Civil  Procedure.

          Either  party,  at  its expense, may arrange for and pay the cost of a
court  reporter  to  provide  a  stenographic  record  of  proceedings.

          Should  any  party refuse or neglect to appear for, or participate in,
the  arbitration  hearing, the Arbitrator shall have the authority to decide the
dispute  based  upon  whatever  evidence  is  presented.

          Either  party,  upon  request  at the close of hearing, shall be given
leave  to  file a post-hearing brief.  The time for filing such a brief shall be
set  by  the  Arbitrator.

          The  Arbitrator  shall render an award and written opinion in the form
typically rendered in labor arbitrations no later than thirty (30) days from the
date the arbitration hearing concludes or the post-hearing briefs (if requested)
are  received,  whichever  is  later.  The opinion shall include the factual and
legal  basis  for  the  award.

          Either party shall have the right, within twenty (20) days of issuance
of  the Arbitrator's opinion, to file with the Arbitrator a motion to reconsider
(accompanied  by a supporting brief), and the other party shall have twenty (20)
days  from  the  date  of the motion to respond.  The Arbitrator thereupon shall
reconsider  the  issues  raised  by  the motion and, promptly, either confirm or
change  the  decision, which (except as provided by law) shall then be final and
conclusive  upon  the  parties.

Arbitration  Fees  and  Costs
-----------------------------

          The Company will be responsible for paying any filing fee and the fees
and  costs  of  the  Arbitrator;  provided,  however,  that  if  I  am the party
initiating  the  claim,  I  will contribute an amount equal to the filing fee to
initiate a claim in the court of general jurisdiction in the state in which I am
(or  was  last) employed by the Company.  Each party shall pay for its own costs
and  attorneys'  fees,  if  any.  However,  if  any  party

                                     -4-
<PAGE>
prevails on a statutory claim which affords the prevailing party attorneys' fees
and  costs,  or  if  there  is a written agreement providing for attorneys' fees
and/or  costs,  the Arbitrator may award reasonable attorneys' fees and/or costs
to  the  prevailing party, applying the same standards a court would apply under
the  law  applicable  to  the  claim(s).

Judicial  Review
----------------

          Either  party  may  bring  an  action  in  any  court  of  competent
jurisdiction  to  compel  arbitration  under  this  Agreement  and to enforce an
arbitration  award.

Interstate  Commerce
--------------------

          I  understand  and  agree  that the Company is engaged in transactions
involving  interstate  commerce.

Requirements  for  Modification  or  Revocation
-----------------------------------------------

          This  Agreement  to  arbitrate  shall  survive  the  termination of my
employment  and  the  expiration of any benefit plan.  It can only be revoked or
modified  by  a writing signed by both the Company's Chief Executive Officer and
me  which  specifically  states  an  intent  to revoke or modify this Agreement.

Sole  and  Entire  Agreement
----------------------------

          This  is  the  complete  agreement  of  the  parties on the subject of
arbitration of disputes (except for any arbitration agreement in connection with
any  pension  or  benefit  plan).  This  Agreement  supersedes  any  prior  or
contemporaneous  oral  or  written  understandings  on the subject.  No party is
relying  on  any representations, oral or written, on the subject of the effect,
enforceability or meaning of this Agreement, except as specifically set forth in
this  Agreement.

Construction
------------

          If any provision of this Agreement is adjudged to be void or otherwise
unenforceable,  in  whole  or  in  part,  such adjudication shall not affect the
validity  of  the remainder of the Agreement.  All other provisions shall remain
in  full  force  and  effect.

Consideration
-------------

          The promises by the Company and by me to arbitrate differences, rather
than litigate them before courts or other bodies, provide consideration for each
other.

                                     -5-
<PAGE>
Not  an  Employment  Agreement

          This  Agreement  is  not,  and  shall  not be construed to create, any
contract  of employment, express or implied.  Nor does this Agreement in any way
alter  the  "at-will"  status  of  my  employment.

Voluntary  Agreement
--------------------

          I  ACKNOWLEDGE  THAT  I  HAVE  CAREFULLY  READ  THIS AGREEMENT, THAT I
UNDERSTAND ITS TERMS, THAT ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN THE COMPANY
AND  ME  RELATING  TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT,
AND  THAT  I  HAVE ENTERED INTO THE AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON
ANY  PROMISES  OR  REPRESENTATIONS  BY THE COMPANY OTHER THAN THOSE CONTAINED IN
THIS  AGREEMENT  ITSELF.

          I UNDERSTAND THAT BY SIGNING THIS AGREEMENT I AM GIVING UP MY RIGHT TO
A  JURY  TRIAL.

                                                              Employee initials:

                                                              ------------------

          I FURTHER ACKNOWLEDGE THAT I HAVE BEEN GIVEN THE OPPORTUNITY TO
DISCUSS THIS AGREEMENT WITH MY PRIVATE LEGAL COUNSEL AND HAVE AVAILED MYSELF OF
THAT OPPORTUNITY TO THE EXTENT I WISH TO DO SO.

EMPLOYEE:                      [                    ]
                                --------------------

-----------------------        -------------------------------------------------
Signature of Employee          Signature of Authorized Company Representative

-----------------------        -----------------------
Print Name of Employee         Title of Representative

-----------------------        -----------------------
Date                           Date

             SIGNATURE PAGE TO MUTUAL AGREEMENT TO ARBITRATE CLAIMS

                                     -6-
<PAGE>
                               SCHEDULE 2.06(A)(1)

                           INCENTIVE COMPENSATION (1)

On  the date that is 30 days following the issuance of Purchaser's Form 10K (the
"Incentive Bonus Date") for the fiscal years 2007, 2008 and 2009 (each such year
 --------------------
being  a  "Performance Year"), the board of directors of Purchaser (the "Board")
           ----------------                                              -----
shall  pay  to the Sellers a bonus based on a comparison of the audited year-end
financials  of  the  Cotton  Group  Companies to the projected financials of the
Cotton  Group  Companies.  Based  on the results of such comparison, the Sellers
may  be  eligible  for  an  incentive  bonus  calculated  as  follows:

1.     For  each  Performance Year, the total amount of the bonus pool available
shall  be  equal  to  25%  of  the  audited  pre-tax  income of the Cotton Group
Companies  for  such  Performance  Year  (the  "Bonus  Pool  Amount").
                                                -------------------

2.     The  aggregate  amount  of incentive bonuses payable for each Performance
Year  shall  be  an amount equal to (a) the Bonus Pool Amount, multiplied by (b)
the  percentage  set  forth in the table below opposite the applicable Financial
Performance  Target,  calculated  as  set  forth  herein.

<TABLE>
<CAPTION>
------------------------------------------------------------------------
<S>                                                               <C>
Actual Performance < 5% Financial Performance Target                  0%
------------------------------------------------------------------------
Actual Performance >= 5% but < 20% Financial Performance Target       5%
------------------------------------------------------------------------
Actual Performance >= 20% but < 35% Financial Performance Target     20%
------------------------------------------------------------------------
Actual Performance >= 35% but < 50% Financial Performance Target     35%
------------------------------------------------------------------------
Actual Performance >= 50% but < 65% Financial Performance Target     50%
------------------------------------------------------------------------
Actual Performance >= 65% but < 80% Financial Performance Target     70%
------------------------------------------------------------------------
Actual Performance >= 80% but < 90% Financial Performance Target     90%
------------------------------------------------------------------------
Actual Performance >= 90% but < 100% Financial Performance Target   100%
------------------------------------------------------------------------
Actual Performance >= 100% but < 110% Financial Performance Target  110%
------------------------------------------------------------------------
Actual Performance >= 110% Financial Performance Target             120%
------------------------------------------------------------------------
</TABLE>

3.     The  "Financial  Performance  Target" shall be an amount equal to (i) the
             ------------------------------
sum of the (x) Revenue Factor, (y) EBITDA Factor, and (z) Net Income Factor, for
each  Performance  Year,  as  set  forth  below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------
PERFORMANCE YEAR  PROJECTED REVENUE  PROJECTED EBITDA  PROJECTED NET
                                                          INCOME
----------------  -----------------  ----------------  -------------
<S>               <C>                <C>               <C>
     FY 2007
----------------  -----------------  ----------------  -------------
     FY 2008
----------------  -----------------  ----------------  -------------
     FY 2009
--------------------------------------------------------------------
</TABLE>

----------------------
     (1)  To  be  allocated  pro rata with Troy Crochet and certain employees of
Crochet  &  Borel  Services,  Inc.,  as  agreed by the Sellers and Troy Crochet.

<PAGE>
4.     "Actual  Performance"  shall  be an amount equal to the sum of actual (i)
Revenue  Factor,  (ii)  EBITDA  Factor  and  (iii)  Net  Income  Factor, for any
Performance  Year.

5.     The  Revenue Factor, the EBITDA Factor and the Net Income Factor shall be
calculated  in  accordance  with  GAAP.

Any  bonus  due  shall  be  payable  in cash, to the extent such cash payment is
permitted  under  the  loan  agreements  to which the Cotton Group Companies and
Purchaser  are  a party.  If such agreements do not permit payment of such bonus
in  cash,  then the bonus shall be paid in shares of Charys common stock, at the
Market  Price  as  of  the  last trading day of the applicable Performance Year.

     For  purposes  of  this  Exhibit A, the terms set forth above shall mean as
                              ---------
follows:

         (i)   Revenue  Factor  shall be a percentage equal to  the  product  of
               ---------------
               (x)  forty  percent  (40%)  multiplied  by  (y)  a  fraction  the
               numerator of which is the Cotton Group Companies' actual revenues
               for a Performance Year and the denominator of which is the Cotton
               Group  Companies'  projected  revenues  for  such  corresponding
               Performance  Year.

         (ii)  EBITDA  Factor shall be a percentage equal  to,  the  product  of
               -------------
               (x)  fifty  percent  (50%)  multiplied  by  (y)  a  fraction  the
               numerator  of  which is the Cotton Group Companies' actual EBITDA
               for a Performance Year and the denominator of which is the Cotton
               Group  Companies'  projected  EBITDA  for  such  corresponding
               Performance  Year.

         (iii) Net  Income  Factor  shall  be  a  percentage  equal  to,  the
               -------------------
               product  of  (x)  ten  percent  (10%)  multiplied  by  (y)  a
               fraction  the  numerator  of which is the Cotton Group Companies'
               actual  audited pre-tax net income for a Performance Year and the
               denominator  of  which  is  the Cotton Group Companies' projected
               pre-tax  net  income  for  such  corresponding  Performance Year.

<PAGE>
EXAMPLE  CALCULATION
--------------------

By  way  of  example,  and  for  illustrative purposes only, the following model
depicts  the  manner  in  which  the  bonus  shall  be  calculated  for a single
Performance  Year.  The  numbers and assumptions used herein are not intended to
be  the  final  projections  or  Bonus Pool Amount for purposes of this Schedule
                                                                        --------
2.06(1).
--------

<TABLE>
<CAPTION>
---------------------------------------------------------------------------
PERFORMANCE YEAR  PROJECTED REVENUE   PROJECTED EBITDA     PROJECTED NET
                                                               INCOME
----------------  ------------------  -----------------  ------------------
<S>               <C>                 <C>                <C>
     FY 2007      $        5,000,000  $       1,000,000  $          500,000
----------------  ------------------  -----------------  ------------------
PERFORMANCE YEAR    ACTUAL REVENUE      ACTUAL EBITDA     ACTUAL NET INCOME
----------------  ------------------  -----------------  ------------------
     FY 2007      $        6,000,000  $         800,000  $          250,000
---------------------------------------------------------------------------
</TABLE>

Whereby:

1)  Revenue  Factor  =  48%;  EBITDA  Factor  =  40%;  Net  Income  Factor=5%

2)  Calculation  Value  =  48%  +  40%  +  5%  =  93%

3)  Incentive  Bonus  payable  based  on  a  calculation  value of 93% = $58,125

<PAGE>
                               SCHEDULE 2.06(A)(2)

                               INCENTIVE EMPLOYEES

<PAGE>
                                SCHEDULE 2.06(B)

                     INTEGRATION INCENTIVE COMPENSATION (2)

During  the  period  beginning  on  the  Closing  Date  and  ending on the third
anniversary  of  the  Closing  Date  (the  "Integration  Incentive Period"), the
                                            -----------------------------
Sellers  shall  be  entitled  to  additional  equity  compensation determined in
accordance  with  the  following  provisions:

1.     As soon as reasonably practicable following the Closing Date, the Sellers
shall  provide  to  the  Purchaser  a schedule identifying potential acquisition
targets  conducting  business  similar  to  the  Cotton  Group  Business  (the
"Acquisition  Targets" and each, an "Acquisition Target").  For each Acquisition
 --------------------                ------------------
Target,  the  Sellers  shall  identify  the  target  annual revenue (the "Target
                                                                          ------
Revenue")  of  such  Acquisition  Target.
-------

2.     On  the  third  anniversary  of  the  Closing  Date, the Sellers shall be
entitled  to  a bonus calculated as follows, payable in cash or shares of shares
of  Charys  common  stock,  in  Purchaser's  discretion:  (A)  Bonus Multiplier,
multiplied  by  (B)  the  Integration  Bonus  Pool.
--------------

The  term  "Bonus  Multiplier" means a percentage, (A) the numerator of which is
            -----------------
the  actual  aggregate  revenue  for  all  Acquisition Targets measured over the
trailing  twelve  months  from Charys' fiscal year end in the year in which such
Acquisition Target is acquired (or, if the target is acquired in September 2006,
the  actual revenue of the Acquisition Target from 5-1-06 thru 4-31-07), and (B)
the  denominator  of  which  is the aggregate Target Revenue for all Acquisition
Targets.  An  example  calculation  of  the  Bonus  Multiplier  is  as  follows:

<TABLE>
<CAPTION>
----------------------------------------
                          First Year
          Projected         Actual
           Millions    in year acquired
--------  ----------  ------------------
<S>       <C>         <C>
Target A  $       30  $              20
Target B  $       20  $              20
Target C  $      100  $             110
Target D  $       40  Did not acquire
Target E  $       10  $              40
--------  ----------  ------------------
          $      200  $             190

LIMIT                             95.00%
----------------------------------------
</TABLE>

----------------------
     (2)  To  be  allocated  pro rata with Troy Crochet and certain employees of
Crochet  &  Borel  Services,  Inc.,  as  agreed by the Sellers and Troy Crochet.

<PAGE>
The term "Integration Bonus Pool" means the aggregate audited pre-tax revenue of
          ----------------------
all  Acquisition  Targets  during  the Integration Incentive Period.  An example
calculation  of  the  Integration  Bonus  Pool  follows:

<TABLE>
<CAPTION>
------------------------------------------------------
                        Actual
                        Pre-tax
                         Year 1      Year 2     Year 3
---------------------  ---------  -----------  -------
<S>                    <C>        <C>          <C>
Target A               $       3  $        -1  $    -2
Target B               $       2  $         2  $     1
Target C                          $        15  $    17
Target D
Target E                                       $    15
---------------------  ---------  -----------  -------
                       $       5  $        16  $    31

POOL                   $       1  $         4  $     8

TOTAL POOL PAYABLE AT END OF YEAR THREE        $    13
AMOUNT EARNED LIMITED TO 95%                   $ 12.35
------------------------------------------------------
</TABLE>

<PAGE>
                                  SCHEDULE 6.13

                               SPIN-OFF AGREEMENT

The  following  general  terms and conditions shall be more fully reflected in a
definitive  agreement  to  be  negotiated  in  good  faith  and,  if  reasonably
acceptable  to  both  Purchaser  and  the  Sellers, executed, on or prior to the
Closing  Date.

     -    Purchaser  shall  maintain  separate  books  and  records  and
          separately  audited  financial  statements  for a to-be-formed holding
          company  holding  (the  "Disaster Remediation Holding Company") all of
                                   ------------------------------------
          Purchaser's  current  future  subsidiaries  operating  in the Disaster
          Remediation  industry  (the  "Disaster Remediation Businesses") during
                                        -------------------------------
          the  period  beginning  on  the  Closing  and  ending  on  the  third
          anniversary  of  the Closing (the "Preparation Period") and during the
                                             ------------------
          period  ending  on  the third anniversary of the Closing and ending on
          the  sixth  anniversary  of  the  Closing  (the  "Option  Period").
                                                            --------------

     -    During  the  Option  Period,  Sellers,  collectively  with  the
          management  of  all  of  Purchaser's  Disaster  Remediation Businesses
          (collectively  with  Sellers,  the  "Disaster  Remediation  Management
                                               ---------------------------------
          Team"),  may  cause Purchaser to effectuate a spin-off of the Disaster
          ----
          Remediation Holding Company (a "Spin-Off Transaction") into a separate
                                          --------------------
          publicly-traded  entity  provided that the conditions set forth in the
          following  section  are  met.

     -    The Disaster  Remediation  Management  Team  may  only cause Purchaser
          to  effectuate a Spin-Off Transaction in the event that (a) during the
          three  year period prior to the Disaster Remediation Management Team's
          notification  of  its  intent  to effectuate a spin-off (the "Spin-Off
                                                                        --------
          Notice  Date")  the  aggregate net revenue of the Disaster Remediation
          ------------
          Holding  Company was greater than or equal to $750,000,000, (b) during
          the three year period prior to the Spin-Off Notice Date, the aggregate
          net  earnings  of the Disaster Remediation Holding Company are greater
          than or equal to $150,000,000, (c) the Disaster Remediation Management
          Team  collectively  hold  in  excess  of  10,000,000 shares of Charys'
          common  stock,  and  (d)  the per share Market Price of Charys' common
          stock  for  twenty (20) consecutive trading days prior to the Spin-Off
          Notice  Date is in excess of $20 per share, adjusted for any splits or
          dividends  occurring  between the Closing Date and the Spin-Off Notice
          Date.

     -    The Spin-Off  Transaction  shall  be  effectuated  by granting to each
          shareholder  of  Purchaser  as  of  the effective date of the Spin-Off
          Transaction  one  publicly  traded  share  of the Corporation for each
          share of Purchaser Stock held by such Shareholder. Simultaneously with
          the  issuance  of such shares, each member of the Disaster Remediation
          Management  Team  shall  tender  to Purchaser not less than 80% of the
          shares  of  Purchaser  Stock  held  by  such  member  of  the Disaster
          Remediation  Management Team in exchange for an equal number of shares
          of  the  Disaster  Remediation  Holding  Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]