Document:

ex4_2.htm

    
      
        

      

      

    

    

      
        (SEE
REVERSE SIDE FOR ADDITIONAL PROVISIONS) THIS WARRANT WILL BE VOID IF NOT
EXERCISED PRIOR TO 5:00 P.M. YORK CITY TIME, JUNE 18, 2011 NUMBER BZ0001
WARRANTS BZ INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE CUSIP 09746Y 11
3 THIS CERTIFIES THAT, for value received is the registered holder of a warrant
or warrants (each a “Warrant”) to purchase one fully paid and non-assessable
share of Common Stock, par value $.0001 per share (“Shares”), of Boise Inc., a
Delaware corporation (the “Company”), for each Warrant evidenced by this Warrant
Certificate. Each Warrant entitles the holder thereof to purchase from the
Company, commencing on the later of (i) the Company’s consummation of a merger,
capital stock exchange, asset acquisition or other similar business combination
and (ii) June 19, 2008 and terminating at 5:00 p.m. New York City time on the
earlier to occur of (i) June 18, 2011 or (ii) the date fixed for redemption of
such Warrant as described in the following paragraph, such number of Shares of
the Company at the price of $7.50 per share, upon surrender of this Warrant
Certificate and payment of the Warrant Price at the office or agency of the
Warrant Agent, Continental Stock Transfer & Trust Company, but only subject
to the conditions set forth herein and in the Warrant Agreement between the
Company and Continental Stock Transfer & Trust Company dated as of June 19,
2007 (the “Warrant Agreement”). The Warrant Agreement is hereby incorporated
herein by reference and made a part hereof. The Company shall not be obligated
to deliver any securities pursuant to the exercise of a Warrant and shall have
no obligation to settle a Warrant exercise unless a registration statement under
the Securities Act of 1933, as amended (the “Act”), with respect to the Common
Stock is effective, subject to the Company satisfying its obligations under
Section 7.4 of the Warrant Agreement to use its best efforts. In the event that
a registration statement with respect to the Common Stock underlying a Warrant
is not effective under the Act, the holder of such Warrant shall not be entitled
to exercise such Warrant and such Warrant may have no value and expire
worthless. In no event will the Company be required to net cash settle any
Warrant exercise. The Warrant Agreement provides that upon the occurrence of
certain events, the Warrant Price and the number of Warrant Shares purchasable
hereunder, set forth on the face hereof, may, subject to certain conditions, be
adjusted. The term Warrant Price as used in this Warrant Certificate refers to
the price per Share at which Shares may be purchased at the time the Warrant is
exercised. The Company reserves the right to redeem the Warrant at any time
prior to its exercise, with a notice of redemption in writing to the holders of
record of the Warrant, giving 30 days’ notice of such redemption at any time
after the Warrant becomes exercisable if the last sale price of the Shares has
been at least $14.25 per share on each of 20 trading days within any 30 trading
day period ending on the third business day prior to the date on which notice of
such redemption is given. The redemption price of the Warrants is to be $.01 per
Warrant. Any Warrant either not exercised or tendered back to the Company by the
end of the date specified in the notice of redemption shall be canceled on the
books of the Company and have to further value except for the $.01 redemption
price. COUNTER SIGNED CONTINENTAL STOCK TRANSFER & TRUST COMPANY(JERSEY
CITY, N.J.)AS WARRANT AGENT BY: AUTHORIZED SIGNATURE SECRETARY BY
PRESIDENT

         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      BOISE
INC.

    

    
      

    

    
      ADDITIONAL
PROVISIONS

    

    
      

    

    
      No
fraction of a Share will be issued upon any exercise of a Warrant. If the holder
of a Warrant would be entitled to receive a fraction of a Share upon any
exercise of a Warrant, the Company shall, upon such exercise, round up or down
to the nearest whole number the number of Shares to be issued to such
holder.

    

    
      Upon any
exercise of any Warrants for less than the total number of full Shares provided
for herein, there shall be issued to the registered holder hereof or the
registered holder’s assignee a new Warrant Certificate covering the number of
Shares for which Warrants have not been exercised.

    

    
      Warrant
Certificates, when surrendered at the office or agency of the Warrant Agent by
the registered holder hereof in person or by attorney duly authorized in
writing, may be exchanged in the manner and subject to the limitations provided
in the Warrant Agreement, but without payment of any service charge, for another
Warrant Certificate or Warrant Certificates of like tenor and evidencing in the
aggregate a like number of Warrants.

    

    
      Upon due
presentment for registration of transfer of the Warrant Certificate at the
office or agency of the Warrant Agent, a new Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of
Warrants shall be issued to the transferee in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any applicable tax or other governmental
charge.

    

    
      The
Company and the Warrant Agent may deem and treat the registered holder as the
absolute owner of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, of any distribution to the registered holder, and for all other
purposes, and neither the Company nor the Warrant Agent shall be affected by any
notice to the contrary.

    

    
      A Warrant
does not entitle the registered holder to any of the rights of a stockholder of
the Company.

       

    

    
      
        
          

        

    

    
      SUBSCRIPTION
FORM

    

    
      To Be
Executed by the Registered Holder in Order to Exercise
Warrants

    

    
      

    

    
      The
undersigned Registered Holder irrevocably elects to exercise___________________Warrants
represented by this Warrant Certificate, and to purchase the
shares of Common Stock issuable upon the exercise of such Warrants. and request
that Certificates for such shares shall be issued in the name
of

    

    
      

    

    
      	 
	
              (PLEASE
      TYPE OR PRINT NAME AND ADDRESS)

            
	 
	 
	 
	 
	 
	
              (SOCIAL
      SECURITY OR TAX IDENTIFICATION NUMBER)

            
	
               

            	 
	
              and
      be delivered to

            	 
	
              (PLEASE
      PRINT OR TYPE NAME AND ADDRESS)

            

    

    
      

    

    
      and, if
such number of Warrants shall not be all the Warrants evidenced by this Warrant
Certificate, that a new Warrant Certificate for the balance of such Warrants be
registered in the name of, and delivered to, the Registered Holder at the
address stated below:

    

    
      

    

    
      

    

    
      	
              Dated:

            	  
      	 	  
      
	 	 	 	
              (SIGNATURE)

            
	 	 	 	  
      
	 	 	 	
              (ADDRESS)

            
	 	 	 	  
      
	 	 	 	 
	 	 	 	  
      
	 	 	 	
              (TAX
      IDENTIFICATION NUMBER)

            

    

    
       

      
        

      

    

    
      ASSIGNMENT

    

    
      To Be
Executed by the Registered Holder in Order to Assign Warrants

    

    
      

    

    
      	
              For
      Value Received,

            	 	
              hereby
      sell, assign, and transfer unto

            
	
               

            	 	
               

            

    

    
      
        
          

        

        
          	 
	
                  (PLEASE
      TYPE OR PRINT NAME AND ADDRESS)

                
	 
	 
	 
	 
	 
	
                  (SOCIAL
      SECURITY OR TAX IDENTIFICATION NUMBER)

                
	
                   

                	 
	
                  and
      be delivered to

                	 
	
                  (PLEASE
      PRINT OR TYPE NAME AND ADDRESS)

                

        

        
           

        

      

    

    
      	 	
              
                of the Warrants represented by this Warrant Certificate, and hereby irrevocably constitute and

              

            

    

    

    
      	
              appoint

            	 	
              
                Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises.

              

            

    

    
      

    

    
      	
              Dated:

            	 	 	 
	 	 	 	
              (SIGNATURE)

            

    

    
      

    

    
      THE
SIGNATURE TO THE ASSIGNMENT OF THE SUBSCRIPTION FORM MUST CORRESPOND TO THE NAME
WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR, WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A
COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE AMERICAN STOCK
EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR CHICAGO STOCK
EXCHANGE.ex10_1.htm

    
      

    

    Exhibit 10.1

     

    
      EXECUTION
COPY

    

    
       

    

    
      

    

    
      RESTRUCTURING
AGREEMENT

    

    
      

    

    
      This
RESTRUCTURING AGREEMENT (together with the Term Sheet (as defined below), the
"Agreement"),
dated as of February 13, 2008, is made by and among Charys Holding Company,
Inc., a Delaware corporation ("Charys") and Crochet
& Borel Services, Inc. (the "Subsidiary", and
together with Charys, the "Company") and each
of the undersigned holders (the "Participating
Holders"), which entities are either (a) beneficial owners of the 8.75%
Senior Convertible Notes due 2012 issued by Charys (the "Notes") pursuant to
that certain Indenture, dated as of February 16, 2007 (the "Indenture") by and
between The Bank of New York Trust Company, N.A., as trustee, and Charys (the
"Indenture"),
or (b) investment managers or advisors acting on behalf of certain beneficial
holders of the Notes;

    

    
      

    

    
      WHEREAS,
the Company and the Participating Holders have engaged in negotiations with the
objective of reaching an agreement for a Restructuring (as defined below) of the
Company, including the indebtedness outstanding under the
Notes;

    

    
      

    

    
      WHEREAS,
the Company and the Participating Holders now desire to implement a financial
restructuring (the "Restructuring") of
the Company that is substantially consistent with the terms and conditions set
forth in the term sheet (together with the Exhibits and Schedules attached
thereto, the "Term
Sheet") attached hereto as Exhibit A;

    

    
      

    

    
      WHEREAS,
in order to implement the Restructuring, the Company has agreed, on the terms
and conditions set forth in this Agreement and the Term Sheet, to use its best
efforts to consummate the Restructuring through a pre-negotiated plan of
reorganization (the "Reorganization
Plan"), the requisite acceptances of which shall be solicited following
commencement of cases ("Chapter 11 Cases")
by Charys and the Subsidiary under chapter 11 of title 11 of the United States
Code, 11 U.S.C. §§ 101-1532 (as amended, the "Bankruptcy Code") in
the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy
Court");

    

    
      

    

    
      WHEREAS,
to expedite and ensure the implementation of the Restructuring, each of the
Participating Holders is prepared to commit, on the terms and subject to the
conditions of this Agreement and applicable law, to, if and when solicited in
accordance with applicable bankruptcy law, vote (or, in the case of managed or
advised accounts, instruct its custodial agents to vote) to accept the
Reorganization Plan and support its confirmation and to, in either case, perform
its other obligations hereunder.

    

    
      

    

    
      NOW
THEREFORE, in consideration of the promises and the mutual covenants and
agreements set forth herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and each
Participating Holder hereby agree as follows:

    

    
      

    

    
      1.          Term Sheet. The Term Sheet is
incorporated herein and is made part of this Agreement. The general terms and
conditions of the Restructuring are set forth in the Term Sheet. In the event of
any inconsistencies between the terms of this Agreement and the Term Sheet, the
Term Sheet shall govern.

    

    
       

      2.         
Condition Precedent. It is a
condition precedent to the effectiveness of this Agreement that (i) the
Restructuring as set forth in the Term Sheet be approved by the Company's Board
of Directors, which approval shall be obtained prior to the filing of the
Chapter 11 Cases and (ii) that the Chapter 11 Cases are commenced no later than
6:00 p.m. (NY Time) on February 14, 2008.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      3.           Means for Effectuating the
Restructuring. The Company shall seek to effectuate the Restructuring
through the commencement of the Chapter 11 Cases and the confirmation and
consummation of the Reorganization Plan.

    

    
      

    

    
      4.          
Preparation of Restructuring
Documents.

    

    
      

    

    
      
        	
              	
                a)

              	
                No later than the date hereof,
      the Company shall instruct its counsel to prepare all of the documents
      necessary to commence the Chapter 11 Cases (collectively, the "Chapter
      11 Documents"),
      which shall include, without limitation, the
      following:

              

      

    

    
      

    

    
      
        	
                 
      

              	
                (i)

              	
                Petitions for relief under
      chapter 11 of the Bankruptcy Code for Charys and the Subsidiary (the
      "Petitions"):

              

      

    

    
      

    

    
      
        	
              	
                (ii)

              	
                A disclosure statement, including
      customary exhibits, related to the Reorganization Plan (the
      "Disclosure
      Statement"") that
      complies with
      section 1125 of the Bankruptcy
Code;

              

      

    

    
      

    

    
      
        	
              	
                (iii)

              	
                The
      Reorganization Plan, which shall incorporate the terms and conditions set
      forth in the Term Sheet and such other terms and conditions agreed upon by
      the Company and the Participating Holders, including any exhibits and,
      prior to confirmation, plan supplement documents (which shall include
      appropriate revised corporate governance
  documents);

              

      

    

    
      

    

    
      
        	
              	
                (iv)

              	
                A
      proposed order confirming the Reorganization Plan;
  and

              

      

    

    
      

    

    
      
        	
                 
      

              	
                (v)

              	
                Any other typical or necessary
      motions and applications for relief filed by the Company on the date
      of the commencement of the Chapter 11 Cases (the
      "First
      Day Pleadings").

              

      

    

    
      

    

    
      Each
Chapter 11 Document shall be in the form and substance reasonably acceptable to
the Participating Holders prior to its filing with the Bankruptcy
Court.

    

    
      

    

    
      5.          Company Undertakings. The
Company hereby agrees to use its best efforts to, as applicable, (i) take all
acts reasonably necessary to effectuate and consummate the Restructuring and
(ii) implement all reasonable steps necessary to obtain an order of the
Bankruptcy Court confirming the Reorganization Plan, in each case, as
expeditiously as possible. The Company hereby agrees that it will not take any
action inconsistent with this Agreement or the Reorganization
Plan.

    

    
      

    

    
      6.          The Participating Holders' Undertakings. (I) Each of the
Participating Holders agrees that, subject to the conditions that (i) subject to
section 9(xii) below, the terms of any applicable agreements, including without
limitation, the Reorganization Plan and all other Chapter 11 Documents
implementing the Restructuring embody the terms set forth in the Term Sheet and
are in form and substance reasonably satisfactory to the Participating Holders,
(ii) no Agreement Termination Event (as defined below) shall have occurred and
be continuing, and (iii) the Company has not terminated this Agreement after the
occurrence of a Company Termination Event (as defined
below):

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
      
        	
              	
                a)

              	
                it
      will vote its claims to accept the Reorganization Plan by delivering its
      duly executed and timely completed ballot or ballots accepting the
      Reorganization Plan to the voting agent if and when solicited after the
      approval by the Bankruptcy Court of the Disclosure Statement, provided
      such Reorganization Plan contains terms and conditions effectuating the
      Restructuring that substantially conform in all respect to this Agreement
      and the Term Sheet; and

              

      

    

    
      

    

    
      
        	
              	
                b)

              	
                it
      will not (i) object to, delay or take any other action to interfere,
      directly or indirectly, in any respect with acceptance or implementation
      of the Reorganization Plan, or (ii) encourage any person or entity to do
      any of the foregoing, or (iii) propose, file, support, encourage, vote for
      or engage in discussions with any person or entity concerning any
      restructuring, workout or plan of reorganization for the Company other
      than the Reorganization Plan so long as the Reorganization Plan contains
      terms and conditions effectuating the Restructuring that substantially
      conform in all respect to this Agreement and the Term
    Sheet.

              

      

    

    
      

    

    
      (II)
Notwithstanding anything to the contrary herein, nothing contained herein shall
prevent any Participating Holder from taking any actions (or refraining from
taking any actions), or from revoking any vote or consent previously given, at
any time at or following the termination of this Agreement pursuant to Section
9, or from enforcing its rights under this Agreement.

    

    
      

    

    
      7.           Conduct of Business. Charys
and the Subsidiary agree that, prior to the Effective Date (as defined below) of
the Reorganization Plan and prior to termination of this Agreement pursuant to
Section 9 below, unless the Participating Holders consent to such actions in
writing:

    

    
      

    

    
      
        	
              	
                a)

              	
                The
      Company shall not (i) directly or indirectly engage in, agree to or
      consummate any transaction that is not on an arms' length basis or outside
      the ordinary course of its business (other than the Restructuring) or
      incur any liability outside the ordinary course of business, or that is
      not on an arms' length basis, and, if between unaffiliated parties, also
      on market terms or (ii) enter into any transaction or perform any act
      which would constitute any breach by it of any of its representations,
      warranties, covenants or obligations
hereunder;

              

      

    

    
      

    

    
      
        	
              	
                b)

              	
                Charys
      and the Subsidiary shall maintain their corporate existence and Charys
      shall maintain its qualification in good standing under the laws of each
      state or other jurisdiction in which it is organized or required to be
      qualified to do business and is presently so
  qualified;

              

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
       

    

    
      
        	
              	
                c)

              	
                The
      Company shall not pay any dividends to holders of common and/or preferred
      equity in Charys (the "Old Equity") or make any
      distributions to Old Equity;

              

      

    

    
      

    

    
      
        	
              	
                d)

              	
                The
      Company shall not make any payments on or account of existing indebtedness
      (other than secured indebtedness after Bankruptcy Court approval upon
      notice (including to the Participating Holders) and, if necessary, a
      hearing) other than in the ordinary course of
  business;

              

      

    

    
      

    

    
      
        	
              	
                e)

              	
                Except
      as expressly allowed in this Agreement, the Company shall not directly or
      indirectly, and shall cause each of its direct and indirect subsidiaries
      not to directly or indirectly do or permit to occur any of the following:
      (i) issue, sell, pledge, dispose of, or encumber any additional shares of,
      or any options, warrants, conversion privileges or rights of any kind to
      acquire any shares of, any of its equity interests; (ii) amend or propose
      to amend its respective articles of incorporation or comparable
      organizational documents; (iii) split, combine, or reclassify any
      outstanding shares of its capital stock or other equity interests, or
      declare, set aside, or pay any dividend or other distribution payable in
      cash, stock, property, or otherwise with respect to any of its equity
      interests; (iv) redeem, purchase, or acquire or offer to acquire any of
      its equity interests; (v) acquire, transfer, or sell (by merger, exchange,
      consolidation, acquisition of stock or assets, or otherwise) any
      corporation, partnership, joint venture, or other business organization or
      division, or any assets with a value in excess of $100,000; provided, however,
      nothing herein shall prohibit any operating subsidiary from acquiring,
      transferring, or selling assets in the ordinary course of business; (vi)
      incur any indebtedness for borrowed money or issue any debt securities
      outside the ordinary course of business; (vii) enter into or amend any
      material contracts or employment agreements other than, in the case of
      direct and indirect subsidiaries, in the ordinary course of business;
      (viii) approve any bonuses (other than, in the case of direct and indirect
      subsidiaries, for ordinary non-senior management bonuses programs),
      severance or other employee benefit other than in the ordinary course of
      business or as provided in the Term Sheet; or (ix) enter into or propose
      to enter into, or modify or propose to modify, any agreement, arrangement,
      or understanding with respect to any of the matters set forth in this
      Section 7(e);

              

      

    

    
      

    

    
      
        	
              	
                f)

              	
                AlixPartners
      shall continue to be retained as financial advisors to the Company and
      shall have all access and information as AlixPartners determines
      appropriate in its role as financial advisor;
  and

              

      

    

    
      

    

    
      
        	
              	
                g)

              	
                The
      Company shall promptly, and in any event within three (3) business days
      after receipt or knowledge of the same by any of them, notify (i) the
      Participating
      Holders, or (ii) counsel for the Participating Holders of any governmental
      or third party notices, complaints, investigations, hearings, orders,
      decrees or judgments (or communications indicating that any of the
      foregoing may be contemplated or threatened) which could reasonably be
      anticipated to (i) have a Material Adverse Effect (as defined below) or
      (ii) prevent or delay the timely consummation of the Restructuring.
      "Material Adverse Effect" shall mean any change, event, occurrence,
      effect, or state of facts that, individually, or aggregated with other
      such matters, is materially adverse to the business, assets (including
      intangible assets), properties, prospects, condition (financial or
      otherwise), or results of operations of the Company and its subsidiaries
      taken as a whole, but excluding changes, events, occurrences, effects or
      states of fact that customarily occur as a result of the commencement of a
      case under chapter 11 of the Bankruptcy
  Code.

              

      

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
       

    

    
      8.          Timetable. The Company shall
file petitions commencing the Chapter 11 Cases no later than 6:00 p.m. (NY Time)
on February 14, 2008. The Reorganization Plan and Disclosure Statement shall be
filed as soon as practicable after commencement of the Chapter 11 Cases but in
no event later than March 31, 2008.

    

    
      

    

    
      9.          Termination of Agreement. This
Agreement shall terminate upon the occurrence of any "Agreement Termination
Event" or a "Company Termination
Event" (each as hereinafter defined), unless the occurrence of such
Agreement Termination Event is waived in writing by the Participating Holders.
If any Agreement Termination Event occurs (and has not been waived) or a Company
Termination Event occurs at the time when permission of the Bankruptcy Court
shall be required for any Participating Holder to change or withdraw (or cause
to be changed or withdrawn) its votes to accept the Reorganization Plan, the
Company shall not oppose any attempt by such Participating Holder to change or
withdraw (or cause to be changed or withdrawn) such votes at such time. Upon the
occurrence of an Agreement Termination Event, unless such Agreement Termination
Event is waived in accordance with the terms hereof, Or upon the occurrence of a
Company Termination Event, this Agreement shall terminate and no party hereto
shall have any continuing liability or obligation to any other party hereunder
and (i) each of the Participating Holders shall have all rights and remedies
available to it under the Indenture, applicable law, or otherwise with respect
to any default under the Indenture that may have occurred at any time prior to
such event, and (ii) the obligations of each of the parties hereunder shall
thereupon terminate and be of no further force and effect with respect to each
party. For the avoidance of doubt, in the event of an Agreement Termination
Event, the Company shall immediately give notice for repayment of the $300,000
that Charys advanced to Billy V. Ray, Jr. pursuant to the BR Agreement (as
defined below).

    

    
      

    

    
      An "Agreement Termination
Event" shall mean any of the following events, upon which the Agreement
shall automatically terminate following the occurrence of such event, other than
with respect to items (i), (ii), (iv) and (vii), upon which the Agreement shall
terminate if such event remains uncured for ten (10) days after receipt of
written notice from the Required Participating Holders following the occurrence
of such event:

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    
       

    

    
      i.          The
Company shall have breached any material provision of this Agreement,
including but not limited to, ceasing to take any steps that are reasonably
necessary to obtain approval of the Disclosure Statement and/or confirmation of
the Reorganization Plan, as applicable;

    

    
      

    

    
      ii.          Any
representation or warranty made by the Company to any Participating Holder in
this Agreement shall have been untrue in any material respect when made or any
breach of any covenant or material provision hereof by the Company shall have
occurred;

    

    
      

    

    
      iii.         The
Company takes formal action (including, without limitation, the filing of a
pleading in the Chapter 11 Case), or announces an intention to take or pursue
action, inconsistent with (i) the Term Sheet or (ii) any of the Chapter 11
Documents, or selects the treatment of any claim or class from the contemplated
alternatives set forth in the Term Sheet without the consent and approval of the
Participating Holders;

    

    
      

    

    
      iv.         If
Billy V. Ray, Jr. becomes an officer or board member of the Company, other than
as set forth in the Summary of Principal Terms of Agreement, set forth as
Exhibit A to the Term Sheet (the "BR
Agreement");

    

    
      

    

    
      v.          The
Chapter 11 Documents, including, without limitation, the Reorganization Plan,
contain any term or condition (a) not set forth in the Term Sheet or (b)
inconsistent with the Term Sheet, and such term or condition is not reasonably
acceptable to the Participating Holders;

    

    
      

    

    
      vi.         There
shall have been issued or remain in force any order, decree, or ruling by any
court or governmental body having jurisdiction restraining or enjoining the
consummation of or rendering illegal the transactions contemplated by this
Agreement or the Reorganization Plan;

    

    
      

    

    
      vii.        The
Company shall propose, consent to, support, acquiesce or participate in the
formulation of any out-of-court restructuring, any chapter 7 or chapter 11 plan
of reorganization or liquidation or any other such similar reorganization or
liquidation (whether foreign or domestic) other than the Restructuring as set
forth on the Term Sheet and other than as agreed to by the Participating
Holders;

    

    
      

    

    
      viii.       The
Company shall pay any sum on account of (i) the preferred stock of Charys (the
"Preferred
Stock") or other equity interest in the Company or (ii) any judgment,
settlement, or compromise in respect of the Preferred Stock, in each case
without the prior written consent of the Participating
Holders;

    

    
      

    

    
      ix.          An
involuntary bankruptcy case or similar proceeding or any other action enforcing
remedies not brought, supported, proposed, consented to, or participated in by
the Participating Holders, is initiated against the Company or any of its
subsidiaries that guaranteed the Notes unless, within twenty-five (25) days
after such case or proceeding has been initiated, the Company consents to the
entry for an order for relief or files such subsidiary or subsidiaries for
chapter 11 protection, and then files the Chapter 11 Documents, and seeks to
implement the Restructuring by filing the Disclosure Statement and
Reorganization Plan;

    

    
      

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

       

    

    
      x.            The
occurrence of a Material Adverse Effect;

    

    
      

    

    
      xi.           Upon
the written consent of the Company and the Required Participating
Holders;

    

    
      

    

    
      xii.         
If any of the final forms of the documents prepared in connection with or
related to the Restructuring (including, without limitation, any stockholders'
agreement, any certificate of incorporation, any bylaws, any document concerning
the corporate governance of the Company upon the consummation of the
Reorganization Plan or any document concerning the rights of Company
shareholders or debtholders upon the consummation of the Reorganization Plan)
necessary for the implementation of the Restructuring are not reasonably
acceptable to the Participating Holders, including being inconsistent with any
provisions of the Term Sheet; provided, however, that this
Agreement shall not terminate pursuant to this section 9(xii) if the reason such
documents are not reasonably acceptable to the Participating Holders is due to
the Required Participating Holders' failure to agree on the form of such
documents;

    

    
      

    

    
      xiii.         If
the Participating Holders do not consent to the selection of any successor to
Michael Oyster (or any successor, if any, selected prior to the Effective Date)
as CEO for the Company;

    

    
      

    

    
      xiv.        If
the Petitions are not filed on or before 6:00 p.m. (NY Time) on February 14,
2008;

    

    
      

    

    
      xv.         The
Company shall fail to deliver a draft of the Reorganization Plan and a
Disclosure Statement related thereto to counsel for the Participating Holders on
or before March 15, 2008 and the Reorganization Plan and a Disclosure Statement
related thereto shall not have been filed on or before March 31,
2008;

    

    
      

    

    
      xvi.        The
exclusive periods (as provided for in section 1121 of the Bankruptcy Code) to
(a) file a plan of reorganization or (b) solicit acceptances thereof are
terminated or expire;

    

    
      

    

    
      xvii.       The
Disclosure Statement is not approved by the Bankruptcy Court as containing
adequate information (as that term is used in section 1125 of the Bankruptcy
Code) on or before forty-five (45) days following the filing of the Disclosure
Statement;

    

    
      

    

    
      xviii.      The
Reorganization Plan shall not have been confirmed by order (the "Confirmation Order")
entered by the Bankruptcy Court on or before 120 days following the date that
the Chapter 11 Cases have been commenced (the "Petition
Date"):

    

    
      

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

      

       

    

    
      xix.         The
effective date of the Reorganization Plan (the "Effective Date") shall not have
occurred on or before the 15th day
following entry of the Confirmation Order;

    

    
      

    

    
      xx.          A
trustee or examiner with enlarged powers shall have been appointed under section
1104 or 105 of the Bankruptcy Code for service in the Chapter 11
Cases;

    

    
      

    

    
      xxi.         Any
of the Chapter 11 Cases shall have been converted to a case under chapter 7 of
the Bankruptcy Code; and

    

    
      

    

    
      xxii.        The
Confirmation Order is not in form and substance reasonably acceptable to counsel
for the Participating Holders.

    

    
       

      A
Participating Holder may rescind its vote on the Reorganization Plan (which vote
shall be null and void and have no further force and effect) by giving written
notice thereof to the other Participating Holders and the Company if: (a) the
Reorganization Plan is modified to provide any term that is inconsistent with
the Term Sheet, (b) after filing the Reorganization Plan, the Company (i)
submits a second or amended plan of reorganization that changes, modifies, or
deletes any provision of the Term Sheet in any respect, or (ii) moves to
withdraw the Reorganization Plan, or (c) the Company rails to satisfy any term
or condition set forth in this Agreement. After giving notice pursuant to this
Section and no cure having occurred within five (5) days after the Company's
receipt of such notice, this Agreement shall be of no force and effect with
respect to and as between the terminating Participating Holder and the
Company.

    

    
      

    

    
      In
addition, the Company shall have the right to terminate (a "Company Termination Event")
this Agreement, by the giving often (10) days written notice thereof to each of
the Participating Holders, of a material breach of this Agreement by
Participating Holders holding a majority in amount of the Notes owned by all of
the Participating Holders.

    

    
      

    

    
      10.             Representations and Warranties. Each party represents and warrants to
the other parties that (i) to the extent applicable, it is duly organized,
validly existing, and in good standing under the laws of the jurisdiction of its
formation, (ii) its execution, delivery, and performance of this Agreement are
within the power and authority of such party and have been duly authorized by
such party and that no other approval or authorization is required, (iii) this
Agreement has been duly executed and delivered by it and constitutes its legal,
valid, and binding obligation, enforceable in accordance with the terms hereof,
subject to bankruptcy, insolvency, fraudulent conveyance, and similar laws
affecting the rights or remedies of creditors generally, and (iv) none of the
execution and delivery of this Agreement or compliance with the terms and
provisions hereof will violate, conflict with, or result in a breach of, its
certificate of incorporation or bylaws or other constitutive document, any
applicable law or regulation, any order, writ, injunction, or decree of any
court or governmental authority or agency, or any agreement or instrument to
which it is a party or by which it is bound or to which it is subject. Each
Participating Holder further represents and warrants that it is either the
beneficial owner, or investment manager or advisor acting on behalf of a
beneficial owner, of the principal amount of the Notes set forth in the
signature pages hereof.

    

    
      

        
          
             

          

          
            8

            
              

            

          

          
             

          

        

      

       

    

    
      11.          Except
as set forth on Schedule 11 hereto, the Company represents and warrants, to its
knowledge, that there are no actions, suits, claims, proceedings or
investigations pending or, to its knowledge, threatened against the Company or
any of its current or former directors or officers that would give rise to a
material claim for indemnification against the Company by any of such directors
or officers under applicable law or the certificate of incorporation and/or
by-laws of the Company.

    

    
      

    

    
      12.          Public Disclosures. Prior to
the issuance of any public disclosures regarding the Restructuring (including
this Agreement), the Company shall consult with the Participating Holders as to
the form and substance of such public disclosures related to the Restructuring
(including this Agreement) or the transactions contemplated hereby. Without
limiting the generality of the foregoing, unless required by lawful subpoena
issued by a court of competent jurisdiction or otherwise required by law, the
Company shall not disclose (i) any Participating Holder's identity or (ii) the
amount of such Participating Holder's holdings of Notes, without the prior
written consent of such Participating Holder in each case; and, if such
announcement or disclosure is so required, the Company shall, to the extent
practicable, afford the Participating Holders a reasonable opportunity to seek
appropriate protective measures and to review and comment upon any such
announcement or disclosure prior to the applicable announcement or disclosure.
In all circumstances, unless required by lawful subpoena issued by a court of
competent jurisdiction or otherwise required by law and only after (a) the
provision of notice to the Participating Holders and (b) to the extent
practicable, a reasonable opportunity by the Participating Holders to seek
appropriate protective measures, the amount of any individual Participating
Holder's holdings shall be omitted from any public filing or disclosure; provided, however,
that nothing in this Agreement shall prohibit the Company from disclosing the
total aggregate principal amount of all Participating Holders'
Notes.

    

    
      

    

    
      13.          Covenants.

       

    

    
      (a)  Each
Participating Holder covenants that from the date hereof until termination of
this Agreement, it shall not sell, pledge, hypothecate, loan or otherwise
transfer its Notes except to a purchaser or other entity who agrees to be bound
by the terms of this Agreement with respect to the Notes being transferred. This
Agreement shall in no way be construed to preclude any party from acquiring
additional Notes;

    

    
      

    

    
      (b)  Each
Participating Holder, Charys and the Subsidiary agree to use commercially
reasonable efforts to (i) support and complete the Restructuring and (ii) do all
things reasonably necessary and appropriate in furtherance
thereof.

    

    
      

    

    
      (c)  Each
party hereby further covenants and agrees to negotiate the definitive documents
relating to the Restructuring in good faith. The Company shall keep the
Participating Holders apprised of any discussions, negotiations or meetings with
any other creditor constituency.

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
       

    

    
      14.          Impact of Appointment to Creditors'
Committee. Notwithstanding anything herein to the contrary, if any
Participating Holder is appointed to and serves on an official committee of
creditors in the Chapter 11 Cases, the terms of this Agreement shall not be
construed so as to limit such Participating Holder's exercise (in its sole
discretion) of its fiduciary duties, if any, to any person arising from its
service on such committee, and any such exercise of such fiduciary duties shall
not be deemed to constitute a breach of the terms of this
Agreement.

    

    
      

    

    
      15.          Approval, Acceptance, Waiver, or
Consent by Participating Holders. Where this Agreement provides that the
Participating Holders may agree, waive, accept, consent, or approve any action
or document, including, but not limited to, the Participating Holder's approval
of documents in "form and substance reasonably acceptable" to the Participating
Holders, then approval by Participating Holders owning at least 80% in principal
amount of the Notes owned by all of the Participating Holders ("Required Participating
Holders") will constitute such agreement, waiver, acceptance,
consent, or approval, as applicable. The Participating Holders agree that they
will respond to any waiver, approval, request for acceptance, or consent sought
by the Company within three (3) business days.

    

    
      

    

    
      16.          Governing Law; Jurisdiction.
This Agreement shall be governed by and construed in accordance with the
internal laws of the state of New York, without regard to any conflicts of law
provisions which would require the application of the law of any other
jurisdiction. By its execution and delivery of this agreement, each of the
parties hereby irrevocably and unconditionally agrees for itself that any legal
action, suit, or proceeding against it with respect to any matter under or
arising out of or in connection with this Agreement or for recognition or
enforcement of any judgment rendered in any such action, suit, or proceeding,
shall be brought in the United States District Court for the District of
Delaware or in any Delaware state court, and, by execution and delivery of this
Agreement, each of the parties hereby irrevocably accepts and submits itself to
the exclusive jurisdiction of such court, generally and unconditionally, with
respect to any such action, suit, or proceeding and agrees that service of
process in connection therewith shall be effective if made by first class mail
and shall not contest the form of manner of such service. Notwithstanding the
foregoing consent to Delaware jurisdiction, upon the commencement of the Chapter
11 Cases, the parties agree that the Bankruptcy Court shall have exclusive
jurisdiction of all matters arising out of or in connection with the
Participatmg Holders' obligations under this Agreement and that the parties
shall not seek to enforce this Agreement in any other court.

    

    
      

    

    
      17.          Specific Performance. It is
understood and agreed by the parties to this Agreement that money damages would
not be a sufficient remedy for any breach of this Agreement by any party, and
each non-breaching party shall be entitled to seek specific performance and
injunctive or other equitable relief as a remedy of any such breach, including,
without limitation, an order of the Bankruptcy Court requiring any party to
comply promptly with any of its obligations hereunder.

    

    
      

    

    
      18.           Reservation of Rights. This
Agreement and the Reorganization Plan are part of a proposed settlement of
disputes among the parties hereto. Except as expressly provided in this
Agreement, nothing herein is intended to, or does, in any manner waive, limit,
impair or restrict the ability of the Company and each of the Participating
Holders to protect and preserve its rights, remedies and interests, including
without limitation, with respect to each Participating Holder its claims against
the Company or its full participation in any bankruptcy case filed by the
Company. If the transactions contemplated herein or in the Reorganization Plan
are not consummated, or if this Agreement is terminated, the parties hereto
fully reserve any and all of their rights. Pursuant to Rule 408 of the Federal
Rules of Evidence and any applicable state rules of evidence, this Agreement
shall not be admitted into evidence in any proceeding other than a proceeding to
enforce its terms.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
       

    

    
      19.          Headings. The headings of the
Sections and Subsections of this Agreement are inserted for convenience only and
shall not affect the interpretation hereof.

    

    
      

    

    
      20.          Successors and Assigns. This
Agreement is intended to bind and inure to the benefit of the parties and their
respective successors, assigns, heirs, executors, administrators and
representatives. The agreements, representations and obligations of the
Participating Holders under this Agreement are, in all respects, several and not
joint.

    

    
      

    

    
      21.        
Notice. Notices
given under this agreement shall be to:

    

    
      

    

    
      If to the
Company:

    

    
      

    

    
      Charys
Holding Company, Inc.

    

    
      1117
Perimeter Center West

    

    
      Suite
N415

    

    
      Atlanta,
Georgia 30338

    

    
      Attn:
Michael Oyster, Chief Executive Officer

    

    
       

      -and-

    

    
      

    

    
      Weil,
Gotshal & Manges LLP

      767 Fifth
Avenue

      New York,
New York 10153

      Attn:  
Harvey R. Miller, Esq. 

      Stephen
Karotkin, Esq.

    

    
      

    

    
      If to Any
Participating Holder or the Participating Holders:

    

    
      

    

    
      At the
address set forth on the signature pages hereto

    

    
      

    

    
      -and-

    

    
      

    

    
      Milbank,
Tweed, Hadley & McCloy LLP

      1 Chase
Manhattan Plaza

      New York,
New York 10005

      Attn:  
Dennis F. Dunne, Esq.

      Matthew
S. Barr, Esq.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
      

    

    
      22.          Prior Negotiations. This
Agreement and Exhibit A supersede all prior negotiations with respect to the
subject matter hereof, except that any confidentiality or retention and
compensation agreements heretofore executed between the Company and each
Participating Holder and/or Milbank, Tweed, Hadley & McCloy LLP shall
continue in full force and effect subject to the terms thereof and
hereof.

    

    
      

    

    
      23.          Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed an
original and all of which shall constitute one and the same Agreement. This
Agreement may be executed and delivered by hand, facsimile, or by electronic
mail in portable document format.

    

    
      

    

    
      24.          Amendments and Waivers. This
Agreement may not be modified, amended, or supplemented except in writing signed
by the signatories to this Agreement.

    

    
      

    

    
      25.          No Third Party Beneficiaries.
Unless expressly stated herein, this Agreement shall be solely for the
benefit of the parties hereto and no other person or entity.

    

    
      

    

    
      26.          No Solicitation. This
Agreement is not and shall not be deemed to be a solicitation for votes in favor
of the Reorganization Plan in the Chapter 11 Cases. Each of the Participating
Holders' votes with respect to the Reorganization Plan will not be solicited
until such Participating Holder has received the Reorganization Plan and
Disclosure Statement. Each party hereto acknowledges that it has been
represented by counsel in connection with this Agreement and the transactions
contemplated hereby. The provisions of this Agreement shall be interpreted in a
reasonable manner to effectuate the intent of the parties
hereto.

    

    
      

    

    
      27.          Consideration. It is hereby
acknowledged by the parties hereto that no consideration shall be due or paid to
the Participating Holders for their agreement to vote to accept the
Reorganization Plan in accordance with the terms and conditions of this
Agreement other than the Company's agreement to commence the Chapter 11 Cases
and, if applicable, to use its best efforts to take all steps necessary to
obtain approval of the Disclosure Statement and to seek to confirm, consummate
and implement the Reorganization Plan in accordance with the terms and
conditions of the transaction contemplated by the Restructuring and this
Agreement.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
       

    

    
      IN WITNESS WHEREOF, each of
the parties hereto has caused this Agreement to be executed and delivered by its
duly authorized officer as of the date first above written.

    

    
      

    

    
      	 
      	
              CHARYS
      HOLDING COMPANY, INC.

            
	 
      	By:	/s/
      Michael Oyster
	 
      	 
      	
              Name:

            	
              Michael
      Oyster

            
	 
      	 
      	
              Title:

            	
              CEO
      and President

            

    

    

    
      	 	CROCHET
      & BOREL SERVICES, INC.
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Michael Oyster

            
	 
      	 
      	
              Name:

            	
              Michael
      Oyster

            
	 
      	 
      	
              Title:

            	
              CEO

            

    

    
      

        
          
             

          

          
            13

            
              

            

          

          
             

          

        

      

       

    

    IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed and delivered by its duly authorized officer as of the date first above
written.

    

    
      	 	
              PARTICIPATING
      HOLDERS:*

            

    

    
       

      _______________________

    

    
      * This
information is being provided on a confidential basis and is subject to Section
12 of the Restructuring Agreement.

    

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    
       

      Schedule
11 to Restructuring Agreement

    

    
      

    

    
      1.          Acosta v. Charys Holding Company,
Inc. and Billy Ray et. al, Civil Action File No. 2005CV 108667 Superior Court of
Fulton County, State of Georgia.

       

    

    
      2.          Acosta
v. Ray, et al. C.A. No. 1:06-CV-0572-CC United States District Court for the
Northern District of Georgia

       

    

    
      3.          Holcomb v. Charys Holding Company
Inc. C.A. No 2005 CV105803 in the Superior Court of Fulton County
Georgia

       

    

    
      4.          Holcomb v. Ray, et al., C.A. No. 2006CV112509,
in the Superior Court of Fulton County.

       

    

    
      5.          LVI Facility Services, Inc., LVI
Environmental Services of New Orleans, Inc., LVI Environmental Services, Inc. (an
Oklahoma Corporation) vs. Charys Holding Company, Inc., Billy V. Ray, Jr.,
Raymond J. Smith and Troy Crochet in the Superior Court of Dekalb County, State
of Georgia, Civil Action, 07CV7841-7.

    

    
       

      6.          Harpos
Funding LLC vs. Troy Crochet and Billy Ray Jr. Case No 07
23362-CIV-Huck/Simonton, United States District Court Southern District of
Florida Miami Division.

    

     

    
      7.          Mel Harris vs. Troy Crochet and
Billy Ray Jr. Case No 0-23361-CIV-Moore/Garber, United States District
Court Southern District of Florida Miami Division.

    

    
       

      8.          Sean Posner Troy Crochet and Billy
Ray Jr. Case No 07-23360-CIV-Hoeveler/Brown, United States
District Court Southern District of Florida Miami
Division.

    

    
       

      9.          Steven Posner vs. Troy Crochet and
Billy Ray Jr. Case No. 07-23359-CIV-Moreno/Simonton. United States
District Court Southern District of Florida Miami
Division.

    

    
       

      10.         Morris Manning and Martin, LLP vs.
William Victor Ray, Jr. State Court of Fulton County, Civil Division, Filed
November 14, 2007, 07VS1L637OE

    

    
      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

    

    
      EXHIBIT
A

    

    
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      2/14/2008

    

    
      CHARYS
HOLDING COMPANY, INC., et al. NON-BINDING TERM SHEET FOR PROPOSED
RESTRUCTURING

       

    

    
      The
following is an outline of the principal terms and conditions of a proposed
restructuring (the
"Restructuring")
submitted by certain individual holders of or managers of accounts that hold
(each as listed on the attached Schedule 1, the "Noteholders") 8.75%
Senior Convertible Notes Due 2012 (the "Senior Convertible
Notes") issued by Charys Holding Company, Inc. ("CHC," and together with its
subsidiaries and affiliates, the "Company"). This term sheet
("Term
Sheet") is subject to, among other things,
definitive documentation and is for discussion purposes only. This Term Sheet
and the proposals contained herein are subject to, among other conditions, the
completion of legal, financial and other due diligence by the Noteholders and
their advisors and does not, and shall not be construed to, indicate the
agreement by any parties, including the Noteholders, to support the
Restructuring contemplated hereby until mutually agreeable, definitive
documentation is executed and delivered. This Term Sheet does not contain all of
the terms of any proposed restructuring and shall not be construed as (i) an
offer capable of acceptance, (ii) a binding agreement of any kind, (iii) a
commitment to enter into, or offer to enter into, any agreement or (iv) an
agreement to file any plan of reorganization or disclosure statement or
consummate any transaction or to vote for or otherwise support any plan of
reorganization or any restructuring. Nothing in this Term Sheet shall affect in
any way, nor be deemed a waiver of, any of the rights of any Noteholder under
the indenture for the Senior Convertible Notes or any other document or under
applicable law.

    

    
      

    

    
      This Term
Sheet is not a solicitation of acceptances or rejections with respect to any
restructuring or plan of reorganization. Any such solicitation will be conducted
in accordance with the Bankruptcy Code and/or applicable securities
laws.

    

    
      

    

    
      This Term
Sheet and all related communications are for discussion and settlement purposes
only and shall be deemed to be settlement negotiations and subject to Rule 408
of the Federal Rules of Evidence and any other applicable state or federal law
or rule.

       

    

    
      I.
TREATMENT OF CLAIMS
AND INTERESTS UNDER PLAN.

    

    
      

    

    
      The
Restructuring shall be implemented through consummation of a confirmed chapter
11 plan of reorganization of CHC satisfactory to the Noteholders (the "Plan"); provided, however,
that in the event that the parties jointly determine that it is in the best
interests of the Company or necessary to implement the restructuring or its
intended purpose, chapter 11 cases shall be commenced for any subsidiary or
affiliate of CHC for which the parties so determine. Any plan for such
subsidiary or affiliate or other disposition of such subsidiary's or affiliate's
assets shall be satisfactory to the Noteholders and shall be consummated no
later than at consummation of the Plan. The Plan shall classify and provide
treatment for claims and interests as described below. Except as specified
below, claims and interests shall be satisfied in full by the delivery of the
applicable consideration on or, with respect to any class other than the Senior
Convertible Note class, as soon as practicable after the effective date of the
Plan (the "Effective
Date").

    

    
      

    

    

    
      	
              
                Administrative
      Expense Claims

              

            	
              
                Each
      holder of an allowed Administrative Expense Claim shall, in full and final
      satisfaction of such allowed Administrative Expense Claim, be paid either
      (i) in cash, in full on the later of (x) the Effective Date and (y) the
      date such claim becomes due and payable in the ordinary course of business
      or (ii) on such other terms and conditions as may be agreed between the
      holder of such claim, on the one hand, and CHC and the Noteholders, on the
      other hand.

              

            

    

    
      

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

2/14/2008

    

    
      	
              
                Priority
      Non-Tax Claims

              

            	
              
                Each
      holder of an allowed Priority Non-Tax Claim shall, in full and final
      satisfaction of such Priority Non-Tax Claim, be paid in full in cash on
      the Effective Date.

              

            
	
              
                Priority
      Tax Claims

              

            	
              
                Each
      holder of an allowed Priority Tax Claim shall, in full and final
      satisfaction of such allowed Priority Tax Claim, be paid in full through
      deferred cash payments in an aggregate principal amount equal to the
      amount of the allowed claim plus interest on the unpaid portion at the
      rate of 4% per annum from the Effective Date through the date of payment
      thereof (which may be as long as six years from the date of
      assessment).

              

            
	
              
                Secured
      Working Capital Facilities

              

              
                 

              

              
                (which
      may include the Cotton Revolving Facility, CTSI Revolving Facility, Ayin
      Tower Management Revolving Facility, Digital Communication Services, Inc.
      Revolver)

              

              
                 

              

              
                (Approximately
      $15 million in total)1

              

            	
              
                Each
      allowed Secured Working Capital Facility Claim shall be
      unimpaired.

              

              
                 

              

              
                Each
      holder of an allowed Secured Working Capital Facility Claim shall receive,
      in full and final satisfaction of such allowed Secured Working Capital
      Facility Claim, unless previously satisfied in accordance with the
      immediately following paragraph: (i) cash on the Effective Date equal to
      the allowed amount of such Secured Working Capital Facility Claim; (ii)
      treatment that leaves unaltered the legal, equitable, and contractual
      rights to which such allowed Secured Working Capital Facility Claim
      entitles the holder of such claim; (iii) reinstatement of the allowed
      portion of such Secured Working Capital Facility Claim; or (iv) such other
      treatment as may be agreed upon with the holder of such allowed Secured
      Working Capital Facility Claim, on the one hand, and CHC and the
      Noteholders on the other hand. CHC and the Noteholders shall jointly
      select the appropriate treatment from the five options set forth
      above.

              

              
                 

              

              
                CHC
      may, with the consent of the Noteholders, satisfy all or a portion of
      these facilities with proceeds of a debtor in possession working capital
      financing facility (the "DIP
      Credit Facility"). Any determination as to whether to leave the
      Secured Working Capital Facilities outstanding or secure a DIP Credit
      Facility shall be with the consent of the Noteholders. The form of any DIP
      Credit Facility and all terms and conditions thereof shall be subject to
      reasonable approval of the
Noteholders.

              

            

    

    
      

    

    
       

      ____________________

    

    
      1 Pending discussions among
parties regarding the (i) claims in each bucket and (b) amount of claims in each
bucket, each of which shall be reasonably acceptable to the
Noteholders.

    

    
      

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

      

    

    
       

      2/14/2008

    

     

    
      	
              
                Other
      Secured Debt

              

              
                 

              

              
                (which
      may include the 12% Imperium Master Fund Secured Note, 10% Imperium Master
      Fund, C&B Term Loan)

              

              
                 

              

              
                (Approximately
      $9 million in total)

              

               

            	
              
                Each
      allowed Other Secured Debt Claim shall be unimpaired.

              

              
                 

              

              
                Each
      holder of an allowed Other Secured Debt Claim shall receive, in full and
      final satisfaction of such allowed Other Secured Debt Claim: (i) cash on
      the Effective Date equal to the allowed amount of such Other Secured Debt
      Claim; (ii) treatment that leaves unaltered the legal, equitable, and
      contractual rights to which such allowed Other Secured Debt Claim entitles
      the holder of such claim; (iii) reinstatement of the allowed portion of
      such Other Secured Debt Claim; or (iv) such other treatment as may be
      agreed upon with the holder of such allowed Other Secured Debt Claim on
      the one hand and CHC and the Noteholders on the other
      hand.

              

              
                 

              

              
                CHC
      and the Noteholders shall jointly select the appropriate treatment from
      the four options set forth above.

              

            
	
              
                Seller
      Note/Earn-Out Claims

              

              
                 

              

              
                (Including
      (i) any and all fixed payments or make-whole payments or obligations with
      respect to: 8.75% CTSI/MSAI Senior Convertible Notes (M. Mitchell), 8.75%
      CTSI/MSAI Senior Convertible Notes (L. Mitchell), 8.75% CTSI/MSAI Senior
      Convertible Notes (C. Castille), 4.74% C&B Note (T. Crochet), 9%
      Cotton Promissory Note (Cotton Sellers), 9% MSAI Promissory Note (M.
      Mitchell), 9% CTSI Promissory Note (L. Mitchell) (collectively, the "Seller Notes") (approximately $70 million in
      total)

              

              
                 

              

              
                and

              

              
                 

              

              
                (ii)
      any and all amounts payable pursuant to "earn-out," milestone, incentive,
      contingent or similar provisions in the Seller Notes, whether pursuant to
      employment agreements, sale agreements or other agreements

                 

              

            	
              
                In
      full satisfaction and discharge of all Seller Note/Earn-Out Claims, each
      holder of an allowed Seller Note/Earn-Out Claim shall:

              

              
                 

              

              
                (A) (i)
      waive in writing its Seller Note/Earn-Out Note Claim
      (and

              

              
                receive
      no distribution of property or assets on account of
such

              

              
                Seller
      Note/Earn-Out Note Claim); and

              

              
                 

              

              
                (ii)
      receive a release of all claims arising under chapter 5 of the Bankruptcy
      Code relating to such Seller Note/Earn-Out Claim; OR

              

              
                 

              

              
                (B) receive
      such other treatment as may be agreed upon with the holder
      of such Seller Note/Earn-Out Claims on the one hand and CHC
      and the Noteholders on the other hand.

              

              
                 

              

              
                Future
      incentive bonuses/payments shall be negotiated with certain holders of
      Seller Note/Earn-Out Note Claims and/or managers, on the one hand, and CHC
      and the Noteholders, on the other hand.

              

              
                 

              

              For
      the avoidance of doubt, in the event that any holder of a Seller
      Note/Earn-Out Note Claim fails to reach an acceptable agreement with CHC
      and the Noteholders, then such holder shall not receive a release from any
      chapter 5 claim and shall be subject to any applicable litigation related
      thereto.

            
	
              
                8.75%
      Senior Convertible

              

               

            	
              Each
      holder of an allowed Senior Convertible Notes Claim shall receive, in full
      and final satisfaction of such allowed
Senior

            

    

    
      

      
        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

       

      
        2/14/2008

      

      

    

    
      	
              
                Notes

              

              
                 

              

              
                (Approximately
      $210 million in total)

              

            	
              
                Convertible
      Notes Claim:

              

              
                 

              

              
                (i)
      its pro-rata share of new series 10% Senior Secured Notes (the "New Secured Notes") due March
      31, 2012 issued by CHC in a principal amount of $40 million, secured by
      liens on all assets of CHC and each of its subsidiaries, junior only to
      (a) any Secured Working Capital Facilities and Other Secured Debt that
      survive the chapter 11 case in accordance with the terms of this Term
      Sheet or (b) any new working capital facility agreed upon by the
      Noteholders, on terms and conditions reasonably acceptable to the
      Noteholders. Interest under the New Secured Notes shall accrue quarterly
      and be paid in cash; and

              

              
                 

              

              
                (ii)
      its pro-rata share of 93% of the common stock of reorganized CHC (the
      "New Equity"). subject
      only to dilution by any new management incentive plan and any distribution
      of New Equity to holders of Other General Unsecured Claims and Other Note
      Unsecured Claims.

              

              
                 

              

              
                The
      Plan shall allow the Senior Convertible Note Claims in the amount of
      outstanding principal and accrued and unpaid interest as of the petition
      date in the approximate amount of $210 million (plus any other amounts due
      under the indenture and allowable under the bankruptcy code). The plan
      filed by CHC shall provide for the payment in full of the fees and
      expenses of Bank of New York, as indenture trustee under the indenture
      governing the Notes. The plan filed by CHC shall provide for the payment
      in full in cash of the fees and expenses of the Noteholders' advisors
      (including attorneys) incurred during the chapter 11 case (and any
      prepetition fees and expenses outstanding as of the petition
      date).

              

            
	
              
                Unsecured
      Trade Claims

              

            	
              
                Each
      holder of an allowed Unsecured Trade Claim shall, in full and final
      satisfaction of such allowed Unsecured Trade Claim, be paid either (i) in
      cash, in full on the later of (x) the Effective Date and (y) the date such
      claim becomes due and payable in the ordinary course of business or (ii)
      on such other terms and conditions as may be agreed between the holder of
      such claim, on the one hand, and CHC and the Noteholders, on the other
      hand. CHC and the Noteholders shall jointly select the appropriate
      treatment from the two options set forth above.

              

            
	
              
                Other
      General Unsecured Claims

              

              
                 

              

              
                (including
      rejection damage claims, etc.)

              

            	
              
                Subject
      to completion of diligence of Other General Unsecured Claims such claims
      shall, at the option of the Noteholders, receive either (a) New Equity in
      a proportionate amount to be determined or (b) payment in full similar to
      allowed Unsecured Trade
Claims.

              

            

    

    
      

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

      

       

    

    
      2/14/2008

    

    
       

    

    
      	
              
                Other
      Note Unsecured Claims

              

              
                 

              

              
                (which
      may include the Vision Note, Harris Note, Sean Posner Note, Steven Posner
      Note, HarPos Note)

              

              
                 

              

              
                (Approximately
      $2.5 million in total)

              

            	
              
                Each
      holder of an allowed Other Note Unsecured Claim shall receive New Equity
      in a proportionate amount to be determined.

              

            
	
              
                Subordinated
      Debt Claims

              

              
                 

              

              
                (Including
      Castlerigg Note, Gottbetter Capital Note, UBS
      O'ConnerNote)

              

              
                 

              

              
                (Approximately
      $13.5 million in total)

              

            	
              
                Holders
      of Subordinated Debt Claims shall neither retain nor receive any
      distribution of property or assets on account of their
      claims.

              

            
	
              
                McMahan
      Securities Co. L.P. Claims

              

            	
              
                McMahan
      Securities Co. L.P. or any of its affiliates shall neither retain nor
      receive any distribution of property or assets on account of any claims it
      has against the Company. All claims that the Company may have against
      McMahan Securities Co. L.P. shall be preserved for prosecution by
      reorganized CHC.

              

            
	
              
                Billy
      Ray, Jr. Claims

              

            	
              
                Billy
      Ray, Jr. shall be afforded the treatment set forth on Exhibit A hereto in
      full and complete satisfaction of any claims against the
      Company.

              

            
	
              
                Common
      and Preferred Equity in CHC (the "Old
    Equity")

              

            	
              
                All
      common and preferred equity interests of any kind in CHC, including any
      options, warrants, and other agreements to acquire the same (including any
      arising under or in connection with any purchase or employment agreement),
      shall be cancelled and holders thereof shall neither retain nor receive
      any distribution of property or assets on account of their
      interests.

              

            
	
              
                Intercompany
      Claims

              

            	
              
                No
      distributions shall be made under the Plan on account of intercompany
      claims among CHC or any of its affiliates or subsidiaries, and any and all
      liability on account of such intercompany claims shall be deemed
      discharged.

              

            

    

    
       

      II.
GOVERNANCE AND
MISCELLANEOUS ISSUES.

    

    
       

    

    
      	
              
                Board
      of Directors

              

            	
              
                The
      initial Board of Directors of reorganized CHC shall be determined by the
      Noteholders and designated by CHC with the consent of the
      Noteholders.

              

            
	
              
                Management
      Team

              

            	
              
                The
      management team of reorganized CHC and its subsidiaries shall be selected
      by and report to the New Board.

              

            
	
              
                Management
      Incentive Plan

              

            	
              
                TBD.

              

            

    

    
      

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

      

    

    
       

      2/14/2008

    

    
       

    

    
      	
              
                Private
      Company Status

              

            	
              
                CHC
      shall take all appropriate steps and make all appropriate filings to
      ensure that it is not subject to any public reporting requirements under
      any applicable securities law after the Effective
    Date.

              

            
	
              
                Change
      of Control

              

            	
              
                Any
      acceleration, vesting or similar change of control rights under
      employment, benefit or other arrangements triggered by the consummation of
      the Plan shall be waived or otherwise cancelled under the
      Plan.

              

            
	
              
                Conditions

              

            	
              
                The
      Restructuring contemplated by the Term Sheet is subject to the approval of
      CHC's Board of Directors prior to the filing of the chapter 11
      cases.

              

              
                 

              

              
                The
      Agreement set forth in the Term Sheet shall be null and void and of no
      further force and effect (i) if CHC does not commence a chapter 11 case by
      6:00 p.m. (New York time) on February 14, 2008 and (ii) if CHC and the
      Noteholders have not entered into an acceptable restructuring agreement by
      February 14, 2008.

              

            
	
              
                Revesting
      of Property

              

            	
              
                Except
      as expressly set forth herein, all property of CHC and its bankruptcy
      estate and any and all claims or causes of action of CHC and its
      bankruptcy estate shall be retained by CHC and shall revest in reorganized
      CHC upon the consummation of the Plan.

              

            
	
              
                NOLs

              

            	
              
                The
      Company shall take all reasonable and appropriate steps to preserve "net
      operating losses" (NOLs) and to structure any transactions contemplated
      herein in a manner to preserve NOLs.

              

            
	
              
                CHC
      Employees

              

            	
              
                CHC
      employees previously identified by the Company (and set forth on a
      schedule previously agreed upon by the parties) shall receive three months
      severance if not asked to remain with the Company. CHC to immediately
      provide schedule of all payments made to such employees in calendar years
      2006 and 2007.

              

            
	
              
                Fees
      and Expenses

              

            	
              
                CHC
      shall, in advance of any chapter 11 filing, pay all accrued and unpaid
      fees and expenses of professionals currently retained by the Noteholders,
      through the date immediately preceding the anticipated filing
      date.

              

            
	
              
                Other
      Plan Terms and Conditions

              

            	
              
                TBD.

              

            
	
              
                Documentation

              

            	
              
                All
      documentation prepared in connection with this Term Sheet, the
      Restructuring and any documents, including motions, pleadings or orders
      prepared or filed in connection with the chapter 11 cases (including,
      without limitation, all "first day" pleadings filed in connection with the
      commencement of the chapter 11 cases and any documents referenced therein)
      shall be in form and substance reasonably satisfactory to the Noteholders.
      Any plan of reorganization and related disclosure statement and related
      documentation shall be in form and substance reasonably satisfactory to
      the Noteholders.

              

            

    

    
      

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

       

    

    
      SCHEDULE
1

    

     

    Confidential
Treatment Requested

    
 

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      2/14/2008

    

    
      EXHIBIT
A2

       

    

    
      Summary
of Principal Terms of Agreement With Billy Ray, Jr.

    

    
      

    

    
      _________________________

       

    

    
      
        	
                2

              	
                This
      Exhibit A is an integral component of the Charys Holding Company, Inc., et
      al. Non-Binding Term Sheet For Proposed Restructuring (the "Term
      Sheet") to which
      it is attached.

              

      

    

    
      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

    

    
      EXECUTION
COPY

    

    
      

    

    
      Summary of Principal Terms
of Agreement

    

    
      

    

    
      

    

    
      	
              
                Purpose
      of Term Sheet

              

               

            	
              Subject
      to the conditions set forth below, this Term Sheet seta forth the terms of
      the agreement by and between certain, individual holders of or managers of
      accounts that hold (the "Noteholders'') the 8.75%
      Senior Convertible Notes Due 2012 (the "Notes") issued by Charys
      Holding Company, Inc. ("CHC," and
      together with its subsidiaries, the "Company"), Billy V. Ray,
      Jr. ("BR")) and the
      Company, which shall be incorporated into that certain Charys Holding
      Company, Inc., et al. Non-Binding Term Sheet For Proposed Restructuring,
      dated [     , 2008] (together with all Exhibits
      and Schedules thereto, the "Restrucutring Term
      Sheets"). Unless otherwise
      defined herein, each term used herein that is defined in the Restructuring
      Term Sheet shall have fee meaning assigned to such term the Restructuring
      Term Sheet. The treatment set forth in this Restructuring Term Sheet shall
      be in full and complete satisfaction of any claims or interests that BR
      has Against or in the Company.

            
	
              
                Conditions
      Precedent

              

               

            	
              It
      shall be a condition precedent to the obligations of the parties set forth
      in the Restrcuturing Term Sheet that (i) Jeff Devers ("Devers") shall have
      executed an agreement in form and Substance satisfactory to the parties,
      whereby Deyers agrees to forbear from exercising any rights and/or
      remedies he may have with respect to any loan to BR and/or collateral
      securing such loan, including any equity in-CHC pledged to Devers (the
      "Devers Forbearance")
      until the earlier of February 1, 2009 and the Effective Date of the Plan,
      (ii) meetings between the Noteholders, management of CHC and ' management
      of certain of CHC's subsidiaries selected by the Noteholders, shall be
      held no later than February 8, 2008, and (Hi) definitive documentation as
      necessary to effectuate any part of this Term Sheet shall be in form -and
      substance satisfactory to the parties.

            
	
              Conditions

            	
              
                The
      agreements set forth in the Restructuring Term Sheet shall be null and
      void and of no further force arid-effect (i) if the
      Company

              

              if
      the Company and the Noteholders have not entered into an acceptable
      restructuring agreement (the "Restructuring Agreement")
      by February 13, 2008.

            
	
              
                Payments

              

            	
              CHC
      shall pay BR-

               

              
                (A)
      $1 million in cash as follows: (i) $300,000 as a cash advance issued to BR
      from CHC issued upon execution of this Term Sheet, completion of
      appropriate documentation and the receipt of the Devers Forbearance (the
      "Advance"), and (ii) the
      balance paid upon the Effective Date;
and

              

            

    

    
      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

    

    
      	 
      	
              (B)
      $1 million payable over 3 years (semi-annually) commencing on the first
      anniversary of the Effective Date. No interest shall be paid and (his
      obligation shall be contractually subordinated to the equity of
      reorganized CHC in the event of any subsequent bankruptcy case of
      CHC.

               

              The
      Advance shall be repaid as a credit against the amounts payable to BR from
      CHC on the Effective Date (i.e., BR shall only receive
      $700,000 on the Effective Date). If the Effective Date does not occur, the
      Advance shall be due and payable 60 days following written demand by
      CHC.

               

              Any
      payments made to BR from CHC or any of its affiliates in 2006 and 2007 not
      set forth on the schedule provided by CHC to counsel for the Noteholders
      on January 30, 2008 shall be credited against the $1 million payable on
      the Effective Date.

            
	
              
                Equity

              

            	
              7%
      of common equity of reorganized CHC shall be issued to BR on Effective
      Date. Shares will have minority shareholder protections in the form of tag
      along and drag along rights, and there shall be a right to receive
      periodic financial information, including an annual financial
      statement.

            
	
              
                Resign
      as CEO and Chair

              

               

            	
              Immediately
      upon receipt by BR of the Advance, BR shall resign as a director and
      officer of CHC and any affiliate, relinquish his positions of CEO and
      Chairman of CHC or any affiliate, but shall remain as an observer at Board
      meetings until the Effective Date and shall be entitled to attend all
      Board meetings until the Effective Date. From the date hereof until the
      date of such resignation, BR will not impede access of the Noteholders to
      .other employees at the Company or to the Company's financial ad-visors,
      and shall cooperate with and assist the Company in the implementation of
      the transactions contemplated in the Restructuring Term
    Sheet

            
	
              
                Payment
      of Salary

              

               

            	
              
                Until
      the Effective Date, BR shall continue to receive all salary and benefits
      pursuant to his employment contract, including the existing housing and
      automobile reasonable, actual and documented expenses; provided, however, that BR shall not be entitled to receive any bonus payments or
      any perquisites not previously disclosed to the Noteholders; provided, further that the incurrence of
      any expense shall be preapproved by the CEO, in consultation with
      AlixPartners, financial advisor to the Company. Subsequent to his
      resignation as provided above, BR will not be provided with an office or
      secretary, however, reasonable secretarial assistance from an existing CHC
      employee will be made available. A computer and reasonably necessary
      related equipment will be provided to him for use in the apartment in
      Atlanta that will remain
      available to him through the Effective
  Date.

              

            

    

    
      

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

      

       

    

    
      	
              
                Harris/Posner/Posner
      Notes

              

            	
              
                The
      Plan shall provide that BR shall, be relieved of all liability on
      guaranteed notes relating to Harris/Posner/Posner (approximately $1.8
      million).

              

            
	
              
                Consulting
      Agreement

              

            	
              
                Subsequent
      to the Effective Date, BR will be paid $150,000 in semi­monthly
      payments in the one-year period following the Effective Date, plus normal
      benefits and reimbursement of reasonable, actual and documented expenses
      for such one-year period pursuant to a consulting agreement with CHC for a
      one-year term (the "Consulting
      Agreement"). During this period, BR shall assist and cooperate as
      requested in connection with, among other things, any litigation related
      matters. The existing housing and "automobile allowances will terminate on
      the Effective Date.

              

            
	
              
                Assistance

              

            	
              
                BR
      shall assist and cooperate as requested in connection with, among other
      filings, any litigation related matters. Subsequent to the termination of
      the Consulting Agreement, BR shall be compensated for such requested
      assistance and cooperation at a reasonable hourly rate to be agreed upon,
      plus reimbursement of reasonable, actual and documented expenses. CHC
      will, pay reasonable attorneys' fees that may be incurred by BR in
      connection with his assistance and cooperation to the extent that CHC's
      counsel is rat-ethically able to render such legal services to BR and such
      counsel is reasonably acceptable to CHC.

              

            
	
              
                Restriction
      on Equity Rights

              

            	
              
                BR
      shall not exercise any rights/remedies or vote any equity interests in the
      Company in any manner that could cause a result inconsistent with the
      Restructuring Term Sheet.

              

            
	
              
                Release

              

            	
              
                Upon
      the Effective Date, BR shall receive a general release (other than for
      fraud, willful misconduct or gross negligence) from the voting
      Noteholders, CHC and affiliates pursuant-to the
  Plan.

              

            
	
              
                Immediate Access

              

            	The
      Noteholders shall have immediate access to the members of the senior
      management of CMC with
      or be involved or participate in such access.
	
              
                Governing
      Law

              

            	
              
                The
      agreements contained in the Restructuring Term Sheet shall be governed,
      construed and interpreted in accordance with the laws of the State of New
      York,

              

            
	
              
                Counterparts

              

            	
              
                This
      Term Sheet may be executed in any number of counterparts, each of which
      may be delivered by e-mail or facsimile and which all. so executed and
      delivered shall be deemed an
original.

              

            

    

    
      

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

      

       

    

    
      Dated:
February [_], 2008

       

    

    
      Accepted
and Agreed:

       

    

    /s/
Billy V Ray, Jr.

    Billy V
Ray, Jr.

    
      

    

    
      CHARYS
HOLDING COMPANY, INC.

    

    
      On
Behalf of itself and all direct and indirect subsidiaries

    

    
      

    

    

    
      	By: 	
              /s/
      Michael F. Oyster

            	2/8/2008
	 	
              Name:
      Michael F. Oyster

            	 
	 	
              Title:  
      EVP

            	 

    

     

    
      
        
          
            PARTICIPATING
HOLDERS*

          

          _______________________

        

        
          * This
information is being provided on a confidential basis and is subject to Section
12 of the Restructuring Agreement.

           

           

          4

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