Document:

EXHIBIT
10.3

PROMISSORY
NOTE

	
  $14,200,000

  	
   

  	
  Atlanta, Georgia

  October 20, 2006

  

FOR VALUE RECEIVED, the
undersigned, Ayin Holding Company Inc., a Delaware corporation (“Maker”),
hereby promises to pay to the order of Lori Mitchell, an individual resident of
the State of Louisiana (“Seller”), at Lafayette, Louisana, or such other
place as Holder shall designate in writing, in lawful money of the United
States of America, the principal sum of Fourteen Million Two Hundred Thousand
Dollars ($14,200,000) subject to adjustment pursuant to Section IV below, together
with interest thereon, at the rate hereinafter set forth below, with such
principal sum and interest being payable as set forth below.

Section I.               Definitions

All capitalized terms not otherwise defined herein
shall have the meaning given to them in the Stock Purchase Agreement, dated as
of June 20, 2006, among Complete Tower Sources, Inc. (“CTSI”), Maker,
Seller, and certain other parties identified therein (the “Stock Purchase
Agreement”).

For the purposes of this Note, the terms set forth
below shall be defined as follows:

(a)           Holder shall mean Seller, or
any subsequent holder hereof.

(b)           Maturity Date shall mean the second
anniversary of this Note.

(c)           Company shall mean Complete Tower
Sources, Inc.

(d)                                 Senior
Lender shall mean McMahan Securities Co., or any replacement lender or
lenders providing, directly or indirectly, senior debt to Company.

(e)                                  EBITDA
means, for any period, the net income (or loss) of Company, for such period,
adjusted (i) to add thereto (to the extent deducted from revenues in
determining net income), without duplication, (A) interest expense, (B)
depreciation and amortization expense, and (C) the annual salary paid to the
Seller by Company, and (D) the accrual of the 2005 profit distribution,
including any provisions or payments made for payroll and benefit Taxes
associated therewith, and (ii) to subtract therefrom (to the extent included in
determining net income) (A) consolidated interest income, (B) income not
related to the Company Business, and (C) any extraordinary, unusual or
non-recurring income or gain, including gain on the sale of any asset, business
or subsidiary outside the ordinary course of business, in each case determined
on a basis consistent with United States 

 

generally accepted
accounting principals (applied on a basis constituent with the Audited
Financial Statements) utilizing the percentage completion method of accounting.

Section II.              Rate of Interest

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

Section III.             Payment of Principal and
Interest

The principal amount evidenced by this Note shall be
payable by Maker in two equal annual installments of $7,100,000, plus accrued
interest, subject to adjustment pursuant to Section IV below (the “Annual
Note Payment”), not later than the fifth (5th) business day following the Final
Calculation Date (as defined below) for each of the two Calculation Periods (as
defined below) ending in 2007 and 2008 (each a “Note Payment Date”); provided,
however, that any cash payments due hereunder shall be subject to the
terms of the loan agreements to which Parent and Company are parties.

Section IV.              Annual Note Payment Adjustment.  At the end of each of the first two
twelve-month periods following December 18, 2006 (Closing Date) (each, a “Calculation
Period”, and collectively, the “Calculation Periods”), Maker and Holder
shall compare the audited EBITDA of Company to the projected EBITDA of Company,
and the Annual Note Payment shall be subject to adjustment as follows:

(a)           Within 120 days after each Calculation
Period, Maker shall cause to be prepared and delivered to Holder an audited
statement of Company’s EBITDA for the preceding twelve-month period (the “Audited
EBITDA”).  The Audited EBITDA shall
be prepared in accordance with GAAP.

(b)           If, during a Calculation Period, Company
shall achieve or exceed eighty-five percent (85%) of the projected EBITDA as
set forth below (the “Minimum EBITDA Target”), as evidenced by Company’s
Audited EBITDA for such Calculation Period, the Annual Note Payment for the
corresponding Calculation Period shall not be subject to adjustment.  If, during a Calculation Period, Company
shall not achieve or exceed the Minimum EBITDA Target, as evidenced by the
Company’s Audited EBITDA for such Calculation Period, the Annual Note Payment
for such Calculation Period shall be reduced (i) by ten (10%) percent, plus (ii) an additional two percent (2%) for each one
percent (1%) the Audited EBITDA for such Calculation Period is below the Minimum
EBITDA Target, provided that in no event shall any Annual Note Payment be
reduced more than fifty-percent (50%).

	
  Calculation Period

  	
   

  	
  Projected EBITDA

  	
   

  	
  Minimum EBITDA

  Target

  	
   

  
	
  1

  	
   

  	
  $

  	
  12,000,000

  	
   

  	
  $

  	
  10,200,000

  	
   

  
	
  2

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  10,625,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

For purposes of this Section IV, if Holder has any
objection to the Audited EBITDA, as calculated by Maker for any Calculation
Period, Holder shall deliver to Maker a detailed statement describing Holder’s
objections within 30 days after receiving the Audited EBITDA (and if Holder
does not object within such 30-day period, then Holder shall be deemed to have
accepted the Audited EBITDA as calculated by Maker for such Calculation Period).  Maker and Holder shall use their reasonable
best efforts to resolve any such objections. 
If a final resolution is not obtained within 30 days after Maker has
received Holder’s statement of objections, Maker and Holder shall appoint a nationally-recognized
accounting firm as is mutually acceptable to them, to resolve any remaining
objections.  The decision of such
accounting firm shall be final and binding on all parties.  If any unresolved objections are submitted to
an accounting firm for resolution as provided above, the fees and expenses
shall be borne (i) by Maker, in the event such accounting firm determines that
the Audited EBITDA is 100% or more of the amount calculated by Maker, or (ii)
by Holder, in the event such accounting firm determines that the Audited EBITDA
is less than 100% of the amount calculated by Maker. The date upon which
the Audited EBITDA is finally determined pursuant to this subsection (b) shall
be deemed the “Final Calculation Date”.

Section V.              Subordination

Holder acknowledges and agrees that the entire
outstanding principal balance of the indebtedness evidenced by this Note,
together with all accrued and unpaid interest, shall be expressly subordinate
and junior in right of payment and exercise of remedies to the prior payment in
full of all amounts owed to Senior Lender. 
Holder hereby acknowledges and agrees that all rights and privileges
vested in it as the legal holder of this Note shall be and are subordinate and
inferior to the rights, liens, and privileges vested in Senior Lender.

Section VI.             Holder’s Right of First Refusal

Prior to Senior Lender exercising any right to accelerate
the indebtedness owed to it by Maker, Holder shall have the right to pay in
full all outstanding principal and interest any other amounts owing by Maker
and Company to Senior Lender (the “Right of First Refusal”).  If Holder exercises the Right of First
Refusal, then Maker hereby acknowledges and agrees that it shall tender to
Holder, for no additional consideration, all of the issued and outstanding
capital stock of Company.  Maker agrees
to cause Senior Lender to agree to the foregoing, and shall provide a copy of
such agreement to Holder.

Section VII.           Prepayments

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.  All prepayments shall be
applied first to interest accrued hereunder, then to principal.

Section
VIII.          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
Annual Note Payment under this Note when due;

(b)           Any representation or warranty of
Maker contained in this Note shall prove to have been untrue in any material
respect when made;

(c)           Maker shall default in the observance
or performance of any material covenant or agreement contained in this Note,
and such default shall continue uncured for a period of 45 days after Holder
notifies Maker of such default;

(d)           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; and

(e)           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.

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 twelve percent (12%), computed on the basis
of 365 days per year for the actual number of days elapsed.  Forbearance by Holder 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.

Section
IX.            Guaranty

Charys Holding Company, Inc., a Delaware corporation (“Guarantor”)
guarantees and promises to and for the benefit of Holder that Maker shall
perform its payment obligations under this Note (the “Obligations”).  If Maker defaults in its Obligations, Holder
shall provide Guarantor and Maker notice of such default within fifteen (15)
days after the occurrence of such default. 
If Maker has not cured such default within thirty (30) business days
after receipt of the 

 

notice, Holder may proceed to enforce against
Guarantor or Maker any rights that Holder may have under this Note or pursuant
to applicable laws. For the avoidance of doubt, the guaranty set forth in this
Section IX requires Guarantor to perform the Obligations to the same extent,
and only to such extent, that Maker is obligated to do so.  Any dispute between Guarantor and Holder
shall be subject to the dispute resolution requirements of the Stock Purchase
Agreement.  Holder acknowledges and
agrees that the guaranty provisions under this Section IX shall be subject to
the terms of all loan agreements to which Guarantor and Maker are a party to,
and that this guaranty is subordinate to any guarantee that Guarantor must
provide to a lender providing financing in connection with the Stock Purchase
Agreement and the transactions contemplated thereby.

Section
X.              General Provisions

In no event shall the amount of interest due or
payable hereunder exceed the maximum rate of interest allowed by applicable
law, and in the event any such payment is inadvertently paid by Maker or
inadvertently received by Holder, then such excess sum shall be credited as a
payment of principal, unless Maker shall notify Holder, in writing, that Maker
elects to have such excess sum returned to it forthwith.  It is the express intent hereof that Maker
not pay and Holder not receive, directly or indirectly in any manner
whatsoever, interest in excess of that which may be legally paid by Maker under
applicable law.

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.

Maker hereby waives presentment, demand for payment,
notice of protest and notice of non-payment.

This Note is non-negotiable and the obligations of
Maker hereunder are subject in all respects to Maker’s rights under the Stock
Purchase Agreement and the continued employment of Carrol Castille under that
certain Employment Agreement (“Employment Agreement”), dated the date
hereof, by and between Carrol Castille and Complete Tower Sources, Inc under
the terms and conditions set forth herein and therein. Seller acknowledges and
agrees that upon any termination of Carrol Castille effected pursuant to
Sections 5.1 or 5.5(a) of the Employment Agreement, the Seller shall forfeit,
for each complete month of the Initial Term (as that term is defined in the
Employment Agreement) remaining, Seller’s right to receive 1/36th of the
aggregate unpaid amount (including principal and interest) under this Note. Seller
acknowledges that Maker is a third party beneficiary of the Employment
Agreement.

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 LOUISIANA (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS). ANY DISPUTE HEREUNDER SHALL BE SUBJECT TO THE DISPUTE RESOLUTION
REQUIREMENTS OF THE STOCK PURCHASE AGREEMENT.

(THE REMAINDER OF THIS PAGE HAS
BEEN INTENTIONALLY LEFT BLANK)

 

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

	
  

  	
  MAKER:

  
	
   

  	
   

  	
   

  
	
   

  	
  AYIN HOLDING COMPANY INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jimmy Taylor

  
	
   

  	
   

  	
  Jimmy Taylor

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  AGREED AND ACKNOWLEDGED

  
	
   

  	
  BY:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  /s/ Lori Mitchell

  
	
   

  	
  Lori Mitchell

  

 

CHARYS HOLDING COMPANY, INC.

for purposes of Section IX only:

	
  By:

  	
  /s/ Billy V. Ray Jr.

  	
   

  
	
  Name:

  	
  Billy V. Ray Jr.

  	
   

  
	
  Title:

  	
  CEO

  	
   

  

 

(Signature
Page to Amended CTSI SPA Promissory Note)EXHIBIT
10.4

CLOSING PROMISSORY
NOTE

	
  $20,812,500

  	
   

  	
  Atlanta, Georgia

  October 20, 2006

  

FOR VALUE RECEIVED, the
undersigned, Charys Holding Company, Inc., a Delaware corporation, and Ayin
Holding Company Inc., a Delaware corporation and a wholly owned subsidiary of
Charys Holding Company, Inc. (collectively the “Maker”), hereby promises
to pay to the order of Matthew B. Mitchell,
an individual resident of the State of Louisiana (“Seller”), at
Lafayette, Louisiana, or such other place as Seller shall designate in writing,
in lawful money of the United States of America, the principal sum of Twenty
Million Eight Hundred Twelve Thousand Five Hundred Dollars ($20,812,500) 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 in connection with that
certain letter agreement, of even date herewith, by and among Complete Tower Sources,
Inc., Mitchell Site Acq., Inc., the respective equityowners thereof, and Maker
(the “Letter Agreement”), and is subject in all respects to the terms
and conditions thereof. Terms not otherwise defined in this Note shall have the
meaning set forth in the Letter 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, plus
accrued interest, shall be payable by Maker on December 18, 2006 (the “Maturity
Date”). 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.  All prepayments shall be applied
first to interest accrued hereunder, then to principal.

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 upon the Maturity Date; 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; and

(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 fifteen (15) days from the date of entry thereof.

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 twelve percent (12%), computed on the basis
of 365 days per year for the actual number of days elapsed.  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.

Section
IV.             Obligations

Upon payment of this Note Seller will deliver his
stock in Mitchell Site Acq., Inc. to Purchaser herein.

Section
V.              General Provisions

In no event shall the amount of interest due or
payable hereunder exceed the maximum rate of interest allowed by applicable
law, and in the event any such payment is inadvertently paid by Maker or
inadvertently received by Seller, then such excess sum shall be credited as a
payment of principal, unless Maker shall notify Seller, in writing, that Maker
elects to have such excess sum returned to it forthwith.  It is the express intent hereof that Maker
not pay and Seller not receive, directly or indirectly in any manner
whatsoever, interest in excess of that which may be legally paid by Maker under
applicable law.

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

(THE REMAINDER OF THIS PAGE HAS
BEEN INTENTIONALLY LEFT BLANK)

 

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

	
  

  	
  MAKER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CHARYS HOLDING COMPANY, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Billy V. Ray Jr.

  	
   

  	
   

  
	
   

  	
   

  	
  Billy V. Ray,
  Jr.

  	
   

  	
   

  
	
   

  	
   

  	
  Chief Executive
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AYIN HOLDING COMPANY INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Jimmy R. Taylor

  	
   

  	
   

  
	
   

  	
   

  	
  Jimmy R. Taylor

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AGREED AND ACKNOWLEDGED BY:

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLER:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ Matthew B. Mitchell

  	
   

  	
   

  
	
   

  	
  Matthew B. Mitchell

  	
   

  	
   

  

 

(Signature
Page to Amended MSAI Closing Promissory Note)

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