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                               GUARANTY AGREEMENT
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     THIS  GUARANTY  AGREEMENT  ("Guaranty") is made as of the 28th day of July,
                                  --------
2005,  by  Guarantor  (as  hereinafter  defined)  for  the benefit of Lender (as
hereinafter  defined).

     1.   Definitions.  As used in this Guaranty, the following terms shall have
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the  meanings  indicated  below:

     (a)  The  term  "Lender"  shall  mean  THE  FROST NATIONAL BANK, a national
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banking  association,  whose  address  for  notice  purposes  is  the following:

                     P.O. Box 1600, San Antonio, Texas 78296
                               Attn:   Phil Dudley

     (b)  The  term  "Borrower"  (whether one or more) shall mean the following:
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               Charys Holding Company, Inc., a Delaware corporation

     (c)  The  term  "Guarantor"  shall mean Michael J. Novak, whose address for
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notice  purposes  is  the  following:

               c/o Contemporary Constructors, Inc.
               19240 Red Land Road
               San Antonio, Bexar County, Texas 78257

     (d)  The  term  "Guaranteed  Indebtedness"  shall  mean  (i)  all principal
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indebtedness owing by Borrower to Lender now existing or hereafter arising under
or  evidenced  by  that  one certain Promissory Note dated July 28, 2005, in the
original  principal  amount  of $300,000.00, executed by Borrower and payable to
the  order  of  Lender  and,  (ii) all accrued but unpaid interest on any of the
indebtedness described in (i) above, (iii) all obligations of Borrower to Lender
under  any documents evidencing, securing, governing and/or pertaining to all or
any  part of the indebtedness described in (i) and (ii) above (collectively, the
"Loan  Documents"), (iv) all costs and expenses incurred by Lender in connection
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with  the  collection  and administration of all or any part of the indebtedness
and  obligations  described  in  (i),  (ii) and (iii) above or the protection or
preservation of, or realization upon, the collateral securing all or any part of
such  indebtedness  and obligations, including without limitation all reasonable
attorneys'  fees,  and  (v)  all  renewals,  extensions,  modifications  and
rearrangements of the indebtedness and obligations described in (i), (ii), (iii)
and  (iv)  above.

     2.   Obligations.  As  an  inducement  to  Lender  to extend or continue to
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extend  credit  and  other  financial accommodations to Borrower, Guarantor, for
value  received, does hereby unconditionally and absolutely guarantee the prompt
and  full  payment  and  performance  of the Guaranteed Indebtedness when due or
declared  to  be  due  and  at  all  times  thereafter.

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     3.   Character  of  Obligations.
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     (a)  This  is an absolute, continuing and unconditional guaranty of payment
and  not  of  collection  and  if  at  any time or from time to time there is no
outstanding  Guaranteed  Indebtedness, the obligations of Guarantor with respect
to  any  and  all  Guaranteed  Indebtedness  incurred  thereafter  shall  not be
affected.  This  Guaranty  and  the  Guarantor's  obligations  hereunder  are
irrevocable  and,  in  the  event  of  Guarantor's  death, shall be binding upon
Guarantor's  estate.  All  of  the Guaranteed Indebtedness shall be conclusively
presumed to have been made or acquired in acceptance hereof.  Guarantor shall be
liable,  jointly  and severally, with Borrower and any other guarantor of all or
any  part  of  the  Guaranteed  Indebtedness.

     (b)  Lender  may,  at  its sole discretion and without impairing its rights
hereunder,  (i)  apply  any  payments on the Guaranteed Indebtedness that Lender
receives  from Borrower or any other source other than Guarantor to that portion
of the Guaranteed Indebtedness, if any, not guaranteed hereunder, and (ii) apply
any  proceeds it receives as a result of the foreclosure or other realization on
any  collateral  for the Guaranteed Indebtedness to that portion, if any, of the
Guaranteed  Indebtedness  not  guaranteed hereunder or to any other indebtedness
secured  by  such  collateral.

     (c)  Guarantor agrees that its obligations hereunder shall not be released,
diminished, impaired, reduced or affected by the existence of any other guaranty
or  the  payment  by  any  other  guarantor of all or any part of the Guaranteed
Indebtedness  and,  in  the event Paragraph 2 above partially limits Guarantor's
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obligations  under  this  Guaranty,  Guarantor's  obligations  hereunder  shall
continue  until  Lender  has  received  payment  in  full  of  the  Guaranteed
Indebtedness.

     (d)  Guarantor's  obligations  hereunder shall not be released, diminished,
impaired,  reduced  or  affected by, nor shall any provision contained herein be
deemed  to be a limitation upon, the amount of credit which Lender may extend to
Borrower,  the  number  of transactions between Lender and Borrower, payments by
Borrower  to  Lender  or  Lender's  allocation  of  payments  by  Borrower.

     (e)  Without  further authorization from or notice to Guarantor, Lender may
compromise, accelerate, or otherwise alter the time or manner for the payment of
the Guaranteed Indebtedness, increase or reduce the rate of interest thereon, or
release or add any one or more guarantors or endorsers, or allow substitution of
or  withdrawal  of collateral or other security and release collateral and other
security  or  subordinate  the  same.

     4.   Representations  and  Warranties.  Guarantor  hereby  represents  and
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warrants  the  following  to  Lender:

     (a)  This  Guaranty  may  reasonably  be  expected  to benefit, directly or
indirectly,  Guarantor,  and  (i)  if  Guarantor  is a corporation, the Board of
Directors  of  Guarantor  has  determined  that  this Guaranty may reasonably be
expected  to benefit, directly or indirectly, Guarantor, or (ii) if Guarantor is
a  partnership,  the  requisite  number  of  its  partners  have

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determined that this Guaranty may reasonably be expected to benefit, directly or
indirectly,  Guarantor;  and

     (b)  Guarantor  is  familiar with, and has independently reviewed the books
and  records regarding, the financial condition of Borrower and is familiar with
the  value  of any and all collateral intended to be security for the payment of
all  or any part of the Guaranteed Indebtedness; provided, however, Guarantor is
not  relying on such financial condition or collateral as an inducement to enter
into  this  Guaranty;  and

     (c)  Guarantor  has  adequate means to obtain from Borrower on a continuing
basis  information  concerning the financial condition of Borrower and Guarantor
is  not relying on Lender to provide such information to Guarantor either now or
in  the  future;  and

     (d)  Guarantor  has the power and authority to execute, deliver and perform
this  Guaranty  and any other agreements executed by Guarantor contemporaneously
herewith,  and  the execution, delivery and performance of this Guaranty and any
other  agreements  executed  by  Guarantor contemporaneously herewith do not and
will  not violate (i) any agreement or instrument to which Guarantor is a party,
(ii)  any  law, rule, regulation or order of any governmental authority to which
Guarantor  is  subject, or (iii) its articles or certificate of incorporation or
bylaws,  if  Guarantor  is  a  corporation,  or  its  partnership  agreement, if
Guarantor  is  a  partnership;  and

     (e)  Neither  Lender  nor  any  other  party  has  made any representation,
warranty  or statement to Guarantor in order to induce Guarantor to execute this
Guaranty;  and

     (f)  The  financial  statements  and  other financial information regarding
Guarantor heretofore and hereafter delivered to Lender are and shall be true and
correct  in  all  material respects and fairly present the financial position of
Guarantor  as  of the dates thereof, and no material adverse change has occurred
in  the  financial  condition of Guarantor reflected in the financial statements
and  other  financial  information  regarding  Guarantor heretofore delivered to
Lender  since  the  date  of  the  last  statement  thereof;  and

     (g)  As  of  the  date hereof, and after giving effect to this Guaranty and
the obligations evidenced hereby, (i) Guarantor is and will be solvent, (ii) the
fair  saleable  value  of Guarantor's assets exceeds and will continue to exceed
its  liabilities  (both  fixed  and  contingent),  (iii)  Guarantor  is and will
continue  to  be  able to pay its debts as they mature, and (iv) if Guarantor is
not an individual, Guarantor has and will continue to have sufficient capital to
carry  on  its  business  and  all  businesses  in  which it is about to engage.

     5.   Covenants.  Guarantor  hereby  covenants  and  agrees  with  Lender as
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follows:

     (a)  Guarantor  shall  not,  so long as its obligations under this Guaranty
continue,  transfer  or  pledge any material portion of its assets for less than
full  and  adequate  consideration;  and

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     (b)  Guarantor  shall  promptly furnish to Lender at any time and from time
to  time  such financial statements and other financial information of Guarantor
as  the  Lender  may  require, in form and substance satisfactory to Lender; and

     (c)  Guarantor  shall  comply  with  all  terms  and provisions of the Loan
Documents  that  apply  to  Guarantor;  and

     (d)  Guarantor  shall  promptly  inform  Lender  of  (i)  any litigation or
governmental  investigation  against Guarantor or affecting any security for all
or any part of the Guaranteed Indebtedness or this Guaranty which, if determined
adversely,  might have a material adverse effect upon the financial condition of
Guarantor  or  upon such security or might cause a default under any of the Loan
Documents,  (ii) any claim or controversy which might become the subject of such
litigation  or governmental investigation, and (iii) any material adverse change
in  the  financial  condition  of  Guarantor.

     6.   Consent  and  Waiver.
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     (a)  Guarantor waives (i) promptness, diligence and notice of acceptance of
this  Guaranty  and  notice  of the incurring of any obligation, indebtedness or
liability to which this Guaranty applies or may apply and waives presentment for
payment,  notice  of  nonpayment,  protest, demand, notice of protest, notice of
intent  to  accelerate, notice of acceleration, notice of dishonor, diligence in
enforcement  and  indulgences  of  every  kind, and (ii) the taking of any other
action  by  Lender, including without limitation giving any notice of default or
any  other  notice to, or making any demand on, Borrower, any other guarantor of
all  or  any  part  of  the  Guaranteed  Indebtedness  or  any  other  party.

     (b)  Guarantor  waives  any rights Guarantor has under, or any requirements
imposed  by, Chapter 34 of the Texas Business and Commerce Code, as in effect on
the  date  of  this  Guaranty  or  as  it  may  be  amended  from  time to time.

     (c)  Lender may at any time, without the consent of or notice to Guarantor,
without  incurring responsibility to Guarantor and without impairing, releasing,
reducing  or  affecting  the obligations of Guarantor hereunder:  (i) change the
manner,  place  or  terms  of  payment  of  all  or  any  part of the Guaranteed
Indebtedness,  or  renew,  extend, modify, rearrange or alter all or any part of
the  Guaranteed  Indebtedness;  (ii) change the interest rate accruing on any of
the  Guaranteed Indebtedness (including, without limitation, any periodic change
in  such  interest rate that occurs because such Guaranteed Indebtedness accrues
interest  at a variable rate which may fluctuate from time to time); (iii) sell,
exchange,  release,  surrender, subordinate, realize upon or otherwise deal with
in  any  manner  and  in  any  order  any  collateral for all or any part of the
Guaranteed  Indebtedness  or  this Guaranty or setoff against all or any part of
the  Guaranteed  Indebtedness; (iv) neglect, delay, omit, fail or refuse to take
or  prosecute  any  action  for  the

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<PAGE>
collection of all or any part of the Guaranteed Indebtedness or this Guaranty or
to  take  or  prosecute any action in connection with any of the Loan Documents;
(v)  exercise  or refrain from exercising any rights against Borrower or others,
or  otherwise  act  or refrain from acting; (vi) settle or compromise all or any
part  of  the  Guaranteed Indebtedness and subordinate the payment of all or any
part  of  the  Guaranteed  Indebtedness  to  the  payment  of  any  obligations,
indebtedness  or liabilities which may be due or become due to Lender or others;
(vii)  apply  any deposit balance, fund, payment, collections through process of
law  or  otherwise  or  other  collateral  of  Borrower  to the satisfaction and
liquidation  of  the  indebtedness  or  obligations  of  Borrower  to Lender not
guaranteed  under  this  Guaranty;  and  (viii) apply any sums paid to Lender by
Guarantor,  Borrower  or others to the Guaranteed Indebtedness in such order and
manner  as  Lender,  in  its  sole  discretion,  may  determine.

     (d)  Should  Lender  seek to enforce the obligations of Guarantor hereunder
by  action  in  any  court  or  otherwise,  Guarantor  waives  any  requirement,
substantive  or procedural, that (i) Lender first enforce any rights or remedies
against  Borrower  or any other person or entity liable to Lender for all or any
part  of  the  Guaranteed  Indebtedness,  including  without  limitation  that a
judgment  first  be  rendered against Borrower or any other person or entity, or
that  Borrower  or any other person or entity should be joined in such cause, or
(ii)  Lender  first  enforce rights against any collateral which shall ever have
been  given  to  secure  all  or any part of the Guaranteed Indebtedness or this
Guaranty.  Such  waiver  shall  be  without  prejudice to Lender's right, at its
option,  to  proceed  against Borrower or any other person or entity, whether by
separate  action  or  by  joinder.

     (e)  In  addition  to  any  other  waivers,  agreements  and  covenants  of
Guarantor  set  forth  herein,  Guarantor hereby further waives and releases all
claims,  causes  of  action,  defenses  and  offsets  for any act or omission of
Lender,  its  directors,  officers,  employees,  representatives  or  agents  in
connection  with  Lender's administration of the Guaranteed Indebtedness, except
for  Lender's  willful  misconduct  and  gross  negligence.

     (f)  Guarantor  grants  to  Lender  a contractual security interest in, and
hereby  assigns,  conveys,  delivers,  pledges  and  transfers  to  Lender  all
Guarantor's right, title and interest in and to Guarantor's accounts with Lender
(whether  checking, savings or some other account), including without limitation
all  accounts held jointly with someone else and all accounts Guarantor may open
in  the  future,  excluding  however  all  IRA and Keogh accounts, and all trust
accounts  for which the grant of a security interest would be prohibited by law.
Guarantor  authorizes  Lender,  to  the  extent  permitted by applicable law, to
charge  or  setoff all sums owing on the Guaranteed Indebtedness against any and
all  such  accounts.

     7.   Obligations  Not  Impaired.
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     (a)  Guarantor agrees that its obligations hereunder shall not be released,
diminished,  impaired,  reduced or affected by the occurrence of any one or more
of  the  following events:  (i) the death, disability or lack of corporate power
of  Borrower, Guarantor (except as provided in Paragraph 10 herein) or any other
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guarantor  of  all  or  any  part  of  the  Guaranteed  Indebtedness,  (ii)

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any  receivership,  insolvency,  bankruptcy  or  other  proceedings  affecting
Borrower,  Guarantor or any other guarantor of all or any part of the Guaranteed
Indebtedness,  or  any  of their respective property; (iii) the partial or total
release  or  discharge  of Borrower or any other guarantor of all or any part of
the  Guaranteed Indebtedness, or any other person or entity from the performance
of any obligation contained in any instrument or agreement evidencing, governing
or securing all or any part of the Guaranteed Indebtedness, whether occurring by
reason  of  law or otherwise; (iv) the taking or accepting of any collateral for
all  or any part of the Guaranteed Indebtedness or this Guaranty; (v) the taking
or  accepting  of  any  other  guaranty  for  all  or any part of the Guaranteed
Indebtedness;  (vi)  any  failure  by Lender to acquire, perfect or continue any
lien  or  security  interest  on  collateral  securing  all  or  any part of the
Guaranteed Indebtedness or this Guaranty; (vii) the impairment of any collateral
securing all or any part of the Guaranteed Indebtedness or this Guaranty; (viii)
any  failure  by  Lender  to sell any collateral securing all or any part of the
Guaranteed  Indebtedness or this Guaranty in a commercially reasonable manner or
as  otherwise  required  by  law;  (ix) any invalidity or unenforceability of or
defect or deficiency in any of the Loan Documents; or (x) any other circumstance
which  might  otherwise  constitute  a  defense  available  to, or discharge of,
Borrower  or  any  other  guarantor  of  all  or  any  part  of  the  Guaranteed
Indebtedness.

     (b)  This  Guaranty shall continue to be effective or be reinstated, as the
case  may  be,  if  at any time any payment of all or any part of the Guaranteed
Indebtedness  is  rescinded  or  must  otherwise  be returned by Lender upon the
insolvency,  bankruptcy  or  reorganization  of  Borrower,  Guarantor, any other
guarantor  of  all or any part of the Guaranteed Indebtedness, or otherwise, all
as  though  such  payment  had  not  been  made.

     (c)  In  the  event  Borrower  is a corporation, joint stock association or
partnership,  or  is  hereafter incorporated, none of the following shall affect
Guarantor's  liability hereunder: (i) the unenforceability of all or any part of
the  Guaranteed  Indebtedness  against  Borrower  by reason of the fact that the
Guaranteed  Indebtedness  exceeds  the  amount permitted by law; (ii) the act of
creating all or any part of the Guaranteed Indebtedness is ultra vires; or (iii)
the officers or partners creating all or any part of the Guaranteed Indebtedness
acted  in  excess  of  their  authority.  Guarantor  hereby  acknowledges  that
withdrawal  from,  or  termination of, any ownership interest in Borrower now or
hereafter owned or held by Guarantor shall not alter, affect or in any way limit
the  obligations  of  Guarantor  hereunder.

     8.   Actions  Against  Guarantor.  In the event of a default in the payment
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or  performance  of  all  or  any  part of the Guaranteed Indebtedness when such
Guaranteed  Indebtedness  becomes due, whether  by its terms, by acceleration or
otherwise,  Guarantor  shall,  without notice or demand, promptly pay the amount
due thereon to Lender, in lawful money of the United States, at Lender's address
set  forth  in  Subparagraph  1(a)  above.  One or more successive or concurrent
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actions  may  be  brought  against Guarantor, either in the same action in which
Borrower  is  sued  or  in separate actions, as often as Lender deems advisable.
The  exercise  by Lender of any right or remedy under this Guaranty or under any
other  agreement  or  instrument,  at  law,  in  equity  or otherwise, shall not
preclude  concurrent  or  subsequent exercise of any other right or remedy.  The
books  and  records  of  Lender shall be admissible as evidence in any action or

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proceeding  involving  this  Guaranty  and  shall be prima facie evidence of the
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payments  made  on, and the outstanding balance of, the Guaranteed Indebtedness.

     9.   Payment by Guarantor.  Whenever Guarantor pays any sum which is or may
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become  due  under  this  Guaranty,  written  notice must be delivered to Lender
contemporaneously  with  such  payment.  Such  notice  shall  be  effective  for
purposes  of  this  paragraph  when  contemporaneously  with such payment Lender
receives  such  notice  either  by:  (a)  personal  delivery  to the address and
designated  department  of  Lender identified in Subparagraph 1(a) above, or (b)
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United  States  mail, certified or registered, return receipt requested, postage
prepaid,  addressed  to  Lender at the address shown in Subparagraph 1(a) above.
                                                        -----------------
In  the  absence  of  such  notice to Lender by Guarantor in compliance with the
provisions  hereof,  any  sum  received  by  Lender on account of the Guaranteed
Indebtedness  shall  be  conclusively  deemed  paid  by  Borrower.

     10.  Death  of  Guarantor.  In  the  event  of  the death of Guarantor, the
          --------------------
obligations  of  the deceased Guarantor under this Guaranty shall continue as an
obligation  against his estate as to (a) all of the Guaranteed Indebtedness that
is  outstanding on the date of Guarantor's death, and any renewals or extensions
thereof,  and  (b) all loans, advances and other extensions of credit made to or
for  the  account of Borrower on or after the date of Guarantor's death pursuant
to  an  obligation  of  Lender  under  a  commitment  or  agreement described in
Subparagraph  1(d)  above  and  made  to  or  with Borrower prior to the date of
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Guarantor's death.  The terms and conditions of this Guaranty, including without
limitation  the  consents  and  waivers  set  forth in Paragraph 6 hereof, shall
                                                       -----------
remain  in  effect  with respect to the Guaranteed Indebtedness described in the
preceding  sentence  in  the  same  manner  as  if  Guarantor  had  not  died.

     11.  Notice  of  Sale.  In  the event that Guarantor is entitled to receive
          ----------------
any  notice  under  the  Uniform  Commercial  Code,  as  it  exists in the state
governing  any  such  notice, of the sale or other disposition of any collateral
securing  all  or  any  part  of  the  Guaranteed Indebtedness or this Guaranty,
reasonable  notice  shall  be  deemed given when such notice is deposited in the
United  States  mail, postage prepaid, at the address for Guarantor set forth in
Subparagraph  1(c)  above,  ten  (10) days prior to the date any public sale, or
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after  which  any  private sale, of any such collateral is to be held; provided,
                                                                       --------
however,  that  notice  given  in  any  other  reasonable manner or at any other
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reasonable  time  shall  be  sufficient.

     12.  Waiver  by  Lender.  No  delay on the part of Lender in exercising any
          ------------------
right  hereunder  or  failure  to exercise the same shall operate as a waiver of
such  right.  In no event shall any waiver of the provisions of this Guaranty be
effective  unless the same be in writing and signed by an officer of Lender, and
then  only  in  the  specific  instance  and  for  the  purpose  given.

     13.  Successors  and  Assigns.  This Guaranty is for the benefit of Lender,
          ------------------------
its  successors  and  assigns.  This  Guaranty  is  binding  upon  Guarantor and
Guarantor's  heirs,  executors,  administrators,  personal  representatives  and
successors,  including  without  limitation  any  person  or entity obligated by
operation  of law upon the reorganization, merger, consolidation or other change
in  the  organizational  structure  of  Guarantor.

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<PAGE>

     14.  Costs and Expenses.  Guarantor shall pay on demand by Lender all costs
          ------------------
and  expenses,  including  without  limitation  all  reasonable attorneys' fees,
incurred  by  Lender  in  connection  with  the  preparation,  administration,
enforcement and/or collection of this Guaranty.  This covenant shall survive the
payment  of  the  Guaranteed  Indebtedness.

     15.  Severability.  If any provision of this Guaranty is held by a court of
          ------------
competent  jurisdiction to be illegal, invalid or unenforceable under present or
future  laws,  such  provision  shall  be  fully  severable, shall not impair or
invalidate  the  remainder  of  this  Guaranty  and  the effect thereof shall be
confined  to  the  provision  held  to  be  illegal,  invalid  or unenforceable.

     16.  No  Obligation.  Nothing  contained  herein  shall  be construed as an
          --------------
obligation  on  the  part  of  Lender  to extend or continue to extend credit to
Borrower.

     17.  Amendment.  No  modification  or  amendment  of  any provision of this
          ---------
Guaranty,  nor  consent  to  any  departure  by  Guarantor  therefrom,  shall be
effective  unless  the  same  shall  be  in  writing and signed by an officer of
Lender,  and  then  shall be effective only in the specific instance and for the
purpose  for  which  given.

     18.  Cumulative  Rights.  All  rights  and remedies of Lender hereunder are
          ------------------
cumulative  of  each  other  and of every other right or remedy which Lender may
otherwise have at law or in equity or under any instrument or agreement, and the
exercise of one or more of such rights or remedies shall not prejudice or impair
the  concurrent  or  subsequent  exercise  of  any  other  rights  or  remedies.

     19.  Governing Law, Venue. This Guaranty is intended to be performed in the
          --------------------
State  of  Texas.  Except  to  the extent that the laws of the United States may
apply  to  the  terms  hereof,  the substantive laws of the State of Texas shall
govern  the  validity,  construction,  enforcement  and  interpretation  of this
Guaranty.  In  the  event  of  a  dispute  involving  this Guaranty or any other
instruments  executed in connection herewith, the undersigned irrevocably agrees
that  venue for such dispute shall lie in any court of competent jurisdiction in
Bexar  County,  Texas.

     20.  Compliance  with  Applicable  Usury  Laws.  Notwithstanding  any other
          -----------------------------------------
provision  of  this  Guaranty  or  of  any  instrument  or agreement evidencing,
governing  or securing all or any part of the Guaranteed Indebtedness, Guarantor
and Lender by its acceptance hereof agree that Guarantor shall never be required
or obligated to pay interest in excess of the maximum non-usurious interest rate
as  may  be  authorized  by  applicable  law  for  the  written  contracts which
constitute  the  Guaranteed  Indebtedness.  It is the intention of Guarantor and
Lender  to  conform  strictly to the applicable laws which limit interest rates,
and any of the aforesaid contracts for interest, if and to the extent payable by
Guarantor,  shall be held to be subject to reduction to the maximum non-usurious
interest  rate  allowed  under  said  law.

     21.  Gender.  Within  this  Guaranty, words of any gender shall be held and
          ------
construed  to  include  the  other  gender.

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<PAGE>

     22.  Captions.  The  headings in this Guaranty are for convenience only and
          --------
shall  not  define  or  limit  the  provisions  hereof.

     EXECUTED as of the date first above written.

                                        GUARANTOR:
                                        ----------

                                        ----------------------------------------
                                        Michael J. Novak

                                        9
<PAGE>CAPCO
                                    FINANCIAL

                                CONTRACT OF SALE
                               SECURITY AGREEMENT
                                  (LOC Form 5)

This Contract of Sale and Security Agreement dated for purposes of reference
July 18, 2005; is between the undersigned, CCI TELECOM, INC., hereinafter called
"CLIENT", and CAPCO FINANCIAL COMPANY- A DIVISION OF GREATER BAY BANK N.A.
hereinafter called "CAPCO ", agree as follows:
PURPOSE OF AGREEMENT:
---------------------
1.   CLIENT desires to obtain short-term financing by selling, to CAPCO ALL
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     Accounts receivable. CAPCO agrees to Purchase CLIENT's Accounts from time
     to time at a discount below face value, utilizing an advance formula for
     the purchase of ALL Accounts based upon advances against
     Acceptable/Eligible Accounts. It is clearly understood by both parties that
     ALL Accounts of CLIENT are to be sold to CAPCO.
DEFINITIONS:
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2.   "Account" means any right of payment for goods sold, or leased, and
     delivered, or services rendered, any specific transaction, or any right of
     payment.
3.   "Advance Formula" means the maximum amount available to CLIENT from CAPCO
     for the purchase of All Accounts will not exceed 85% of Acceptable/Eligible
     Accounts.
4.   "Acceptable/Eligible Account" means an Account conforming to the Warranties
     and terms set forth herein that has not been outstanding for more than 90
     DAYS from the date of invoice, has been underwritten and approved by CAPCO,
     and has not been reduced from the original amount billed by, credit memo,
     offset, adjustment of any kind, or partial payment subsequent to invoice
     date.
5.   "Customer" means CLIENT'S Customer or the Account debtor.
6.   "CLIENT" means the seller of All Accounts.
7.   "Collateral" means the intangible or tangible property given as security to
     CAPCO by CLIENT for any obligations and liabilities of CLIENT to CAPCO
     under the Agreement.
8.   "Warrant" means to guarantee, as a material element of this Agreement.
9.   "Credit Problem" means Customer is unable to pay his debts because of
     problems or insolvency.
10.  "Customer Dispute" means any claim by Customer against CLIENT, of any kind
     whatsoever, valid or invalid, that reduces the amount collectible from
     Customer by CAPCO.
CLIENT COVENANTS:
-----------------
11.  CLIENT agrees to sell to CAPCO ALL ACCOUNTS RECEIVABLE, (Accounts)
                                    -----------------------
     mechanic's lien(s), and rights to payment under any stop notice(s), or
     bonded stop notice(s) securing payment of those Accounts created by CLIENT
     in the course of its business, existing as of the date of this agreement or
     thereafter created during the term of this agreement, subject to approval
     and verification by CAPCO. CAPCO is not obligated to advance funds for the
     purchase of All Accounts from CLIENT. When CLIENT notifies CAPCO of it's
     Accounts, CLIENT shall provide a copy of the original Assigned Account
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     (Invoice) a copy of the bill of lading contract, purchase order, purchase
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     order number, and/or any other requisite supporting documentation
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     corresponding to said Accounts and appropriate to the business of CLIENT,
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     as requested by CAPCO.
12.  CLIENT shall prepare and give to CAPCO proper written assignments of
     Accounts, mechanic's lien(s) on forms provided by CAPCO. The execution of
     said assignments shall transfer to CAPCO all of CLIENT's right, title and
     ownership to ALL Accounts. CLIENT or CAPCO by this agreement will properly
     mark Accounts, as assigned and sold to CAPCO, and CAPCO is authorized to
     notify Customer of said sale and assignment.
13.  CLIENT represents and Warrants to CAPCO that:
     a.   CLIENT is sole and absolute owner of any and all Accounts and
     mechanic's liens and rights to payment under any stop notices, or bonded
     stop notices, sold and assigned hereunder, and CLIENT has full legal right
     to make said sale, assignment, and/or transfer.
     b.   All Accounts sold to CAPCO are an accurate statement of a bonafide
     sale, delivery and acceptance of merchandise, or performance of service by
     CLIENT to / for Account-debtor. Accounts are not contingent upon

Form Date 6/97                       Page 1                        Initial  RB
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<PAGE>
     the fulfillment by CLIENT and each Account-debtor's business is believed to
     be solvent. The terms for payment of said Accounts are 30 days or as
                                                            -------------
     expressly set forth on the face of said sold and assigned Accounts, and the
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     payment of said Accounts are not contingent upon the fulfillment by CLIENT
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     of any further performance of any nature whatsoever. CLIENT shall accept no
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     returns and shall grant no allowances or credits to any sold and Assigned
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     Account of any Account-debtor without the prior written approval of CAPCO.
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     c.   There are no known setoffs, Customer Disputes, adverse claims,
     defenses, and/or liens whatsoever against the payment of Accounts, and
     Account's mechanic's liens have not been previously assigned or encumbered
     by CLIENT in any manner whatsoever. CLIENT will, immediately upon sale of
     Accounts to CAPCO make proper entries on its books and records disclosing
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     the absolute sale of Accounts to CAPCO and CLIENT will post no payment
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     unless it is reflected in a payment report from CAPCO.
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     d.   CLIENT will promptly notify CAPCO in writing of any proposed change in
     CLIENT'S place of business, name, legal entity, corporate structure,
     record-keeping location, and/or as to any additional place of business, or
     expiration of any special license(s), or transfer of assets, or technology,
     to a third party, or proposed change in ownership in excess of twenty five
     percent, (25%), of outstanding shares;
     e.   CLIENT does not own, control, manage, participate in management, or
     have any involvement and/or association whatsoever with the business of any
     Account-debtor related to any Accounts sold and assigned hereunder;
     f.   There are no financing statements now on file in any public office
     governing, any Account, Inventory or work in process of CLIENT in which
     CLIENT is named in or has signed as the debtor, except the financing
     statement or statements filed or to be filed in respect to this Agreement,
     or those statements now on file that have been disclosed in writing by
     CLIENT to CAPCO. CLIENT will not execute any financing statements pledging
     Accounts receivables, inventory or work in process, in favor of any other
     person or entity, excepting CAPCO, for the term of this Agreement;
     g.   CLIENT'S taxes are not delinquent nor has CLIENT been subject to a tax
     levy by any governmental entity nor are there now on file in any public
     office tax liens affecting CLIENT other than those delinquencies, levies
     and/or liens which have been disclosed by CLIENT to CAPCO;
     h.   All records, statements, books, or other documents shown to CAPCO by
     CLIENT at any time, either before, or after the signing of the Agreement
     are true and accurate;
     i.   CLIENT has served or caused to be served any and all preliminary
     10-day notices required by law to perfect or enforce any mechanic's lien
     for All Accounts to insure perfection of ownership for CAPCO and the
     information contained on those preliminary 10-day notices is true, correct,
     and properly recorded, to Seller's knowledge and belief;
     j.   Waivers and releases for all labor, services, equipment, or material
     of CLIENT and others will be submitted on CAPCO's form concurrent with
     Accounts.
14.  CLIENT and CAPCO agree that CAPCO will have FULL RECOURSE against CLIENT
     and CLIENT shall be liable to repay to CAPCO any amount paid by CAPCO to
     CLIENT in consideration for the sale, transfer, and assignment of Accounts.
15.  All Accounts shall be the sole property of CAPCO, but if for any reason a
     payment owing on said Accounts shall be paid to CLIENT; CLIENT shall
     promptly notify CAPCO of such payment, shall hold any check, draft or money
                                            ------------------------------------
     so received in trust and for the benefit of CAPCO, and shall pay over such
     -------------------------------------------------
     check or draft in-kind, or money, to CAPCO promptly and without delay. All
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     of CLIENT'S invoices shall bear the address of a LOCK BOX ACCEPTABLE TO
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     CAPCO; as the "REMIT TO" address, and CLIENT agrees that ALL remittances
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     for payment on ALL Accounts shall be made to the LOCK BOX or other
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     repository authorized in writing by CAPCO.
16.  CLIENT will furnish CAPCO periodic statements, accounts receivable agings,
     journals, bank records, and other information as requested by CAPCO from
     time to time.
17.  CLIENT will not pledge the credit of CAPCO to any other person, or business
     for any purpose whatsoever.
18.  CLIENT is properly licensed and authorized to operate the business of CCI
     Telecom, Inc., under the trade name none, and CLIENT'S trade name has been
     properly filed and published as required by the laws of the State of
     Nevada.
19.  CLIENT'S business is solvent.
20.  CLIENT will not sell Accounts, or pledge Accounts to any party, except to
     CAPCO for the period of this Agreement unless specific Accounts are
     subordinated and released by CAPCO in writing.
21.  CLIENT will not transfer, pledge, or give a security interest of the Assets
     sold or Collateral granted to CAPCO to any other party.

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22.  CLIENT will not change, or modify the terms of the original sold and
     assigned Account with Customer unless CAPCO first consents to such change
     in writing. CAPCO agrees to provide a prompt response to CLIENT request for
     modification or change with respect to an Assigned Account. For example,
     CLIENT may not extend credit to a Customer BEYOND 30 DAYS OR THE TIME SET
                                                ------------------------------
     FORTH ON THE FACE OF THE SOLD AND ASSIGNED ACCOUNT WITHOUT PRIOR WRITTEN
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     CONSENT FROM CAPCO.
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23.  NOTICE OF DISPUTE: CLIENT must immediately notify CAPCO of Customer
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     Disputes greater than $400.00 in total for any one Customer.
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24.  POWER OF ATTORNEY: In order to carry out this Agreement and avoid
     unnecessary notification of Customers. CLIENT irrevocably appoints CAPCO,
     or any person designated by CAPCO, as its special attorney in fact, or
     agent, with power to:
     a.   strike out CLIENT'S address on all Accounts mailed to Customers and
     put on CAPCO's address.
     b.   receive, direct and forward, open, and dispose of all mail addressed
     to CLIENT, or to CLIENT'S fictitious trade name via CAPCO'S address.
     c.   endorse the name of CLIENT, OR CLIENT'S fictitious trade name on any
     checks or other evidences of payment that may come into the possession of
     CAPCO on Accounts purchased by CAPCO and on any other documents relating to
     any of the Accounts or to assigned Collateral.
     d.   in CLIENT'S name, or otherwise, demand, sue for, collect, and give
     release for any and all monies due, or to become due on Accounts sold and
     assigned hereunder.
     e.   do any and all things necessary and proper to carry out the purpose
     intended by this Agreement.
     f.   execute any documents necessary to perfect or to continue any Security
     Interest and without further authorization from CLIENT file a carbon,
     photograph, facsimile, or other reproduction of any financing statement for
     use as a financing statement
     The authority granted CAPCO shall remain in full force and effect until all
     Accounts are paid in full and any indebtedness of CLIENT TO CAPCO is
     discharged.
CAPCO COVENANTS:
----------------
25.  CAPCO reserves the sum of ($5,000,000.00) FIVE MILLION AND 00/100 for the
     purchase of ALL of CLIENT's Accounts. These funds are available daily at
     CLIENT'S option, subject to restriction as governed by the Advance Formula.
     Daily availability will be communicated to CLIENT via CAPCO'S Availability
     / Advance Request.
26.  This Agreement shall have an initial term ending with the first full (12)
     TWELVE calendar months and unless terminated by either party giving not
     less than thirty (30) days prior written notice.
27.  STATEMENT OF Acceptable/Eligible Accounts: CAPCO shall identify in writing
     all Acceptable/Eligible Accounts and provide to CLIENT, upon request, a
     written statement thereof (Weekly Aging Report).
ACCOUNTING & FEES:
------------------
28.  Funds advanced by CAPCO to CLIENT are subject to DAILY FEE OF GREATER BAY
     BANK N.A. PRIME RATE + 6.000% /360 (EQUIVALENT TO A MONTHLY DISCOUNT FEE OF
     GREATER BAY BANK N.A. PRIME RATE + 6.000% /12) PERCENT calculated on the
     daily balance (as reported on the CLIENT Liability Detail Report) owing to
     -------------
     CAPCO. This period will usually be 1 calendar day except for weekends and
     or weeks where holidays or other non-operating days prevent the fee from
     being taken on a daily basis.
29.  CAPCO will provide to the CLIENT daily, via fax, an advance and
     availability request. This report must be acknowledged and returned, via
     fax, to CAPCO no later than 11:30AM if a deposit or wire transfer is to be
     made the same date as the request form was issued to the CLIENT by CAPCO.
30.  PAYMENT PROCESSING: All payments received by CAPCO will be applied to
     CLIENT's Outstanding Balance daily following a 2 (TWO) business day hold to
     allow for the application of collected funds.
31.  DISPUTED ACCOUNT: CLIENT will immediately notify CAPCO of any Account
     subject to a Customer Dispute (See Paragraph 10 for definition) of any kind
     whatsoever and said Account shall be removed as an Acceptable/Eligible
     Account.
32.  INVOICING ERRORS: Mistaken, incorrect and/or erroneous invoicing, submitted
     by CLIENT to CAPCO may at CAPCO's discretion be deemed a Customer Disputed
     sold and Assigned Account and shall be removed as an Acceptable/Eligible
     Account.
COLLATERAL:
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33.  As Collateral for the payment of any indebtedness now owing, or in the
     future owing, by CLIENT to CAPCO, CLIENT hereby grants to CAPCO a security
     interest in the following property:

Form Date 6/97                       Page 3                        Initial  RB
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<PAGE>
          a. SEE EXHIBIT A ATTACHED.
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34.  CLIENT will maintain such insurance covering CLIENT's business and/or the
     property of CLIENT's Customers as is customary for businesses similar to
     the business of CLIENT.
35.  CLIENT shall complete any and all documents required to provide CAPCO a
     perfected security interest/lien in the Collateral pledged to CAPCO.

DEFAULT:
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36.  Any one or more of the following shall constitute an event of default:
     a.   If CLIENT shall fail to pay any amount of indebtedness to CAPCO when
     owing;
     b.   If CLIENT shall be in breach of any term, provision, Warranty, or
     representation under this Agreement, or any other agreement related hereto;
     c.   If bankruptcy or insolvency proceedings shall be instituted by or
     against CLIENT.
     d.   If the Collateral shall be attached, levied upon, seized in any legal
     proceeding, and not released within 5 working days thereof;
     e.   If CLIENT shall cease doing business and there shall exist any
     indebtedness or commitments by CLIENT to CAPCO;
     f.   Any Accounts, documents, statements, or other writings submitted by
     CLIENT to CAPCO prove false or inaccurate in any material respect;
     g.   If CLIENT has contributed to, or aggravated Account debtor's problem,
     insolvency, and/or said Account debtor's ability and/or willingness to pay
     any Accounts;
     h.   If any unpaid judgment or tax lien exists against CLIENT;
     i.   If CAPCO with reasonable cause and in good faith determines that it's
     purchased asset or collateral is impaired for any reason whatsoever;
     j.   Terminating prior to end of initial term;
     k.   Any change in CLIENT'S place of business, name, legal entity,
     corporate structure, record-keeping location, and/or as to any additional
     place of business, or expiration of any special license(s), or transfer of
     assets, or technology, to a third party, or proposed change in ownership in
     excess of twenty five percent, (25%), of outstanding shares.
REMEDIES AFTER DEFAULT:
-----------------------
37.  In the event of any default CAPCO may do any one or more of the following:
     a.   Declare any indebtedness secured hereby immediately due and payable;
     b.   increase the DAILY FEE by FIVE PERCENT / 360 (EQUIVALENT TO AN
     INCREASE IN THE MONTHLY DISCOUNT FEE OF 5.000% / 12).
     c.   Notify any and all Customers and take possession of the Accounts and
     Collateral and collect any receivables or funds paid to CLIENT all without
     judicial process;
     d.   Require CLIENT to assemble the Collateral and the records pertaining
     to receivables or other assets pledged as collateral, and make them
     available to CAPCO, at a place designated by CAPCO;
     e.   Enter the premises of CLIENT and take possession of the Collateral and
     of the records pertaining to the receivables and any other Collateral;
     f.   Grant extensions, compromise claims and settle receivables for less
     than face value, all without prior notice to CLIENT;
     g.   Use, in connection with any assembly or disposition of the Collateral,
     any trademark, trade name, trade style, copyright, patent right or
     technical process used or utilized by CLIENT;
     h.   Return any surplus realized to CLIENT after deduction of reasonable
     expenses, attorney's fees, attorney's fees on appeal, collection costs,
     independent third party auditors, incurred by CAPCO in resolving said
     default;
     i.   Hold CLIENT liable for any deficiency.
     j.   Establish a reserve from the collection of Accounts to meet reasonable
     legal expenses associated with a future defense resulting from an action
     brought against CAPCO by CLIENT, CLIENT's customer, or other third party,
     as a result of an action of default.
     k.   Injunction against CLIENT taking any action with regard to the
     Accounts or Collateral.
     l.   CAPCO is authorized by CLIENT to receive, direct and forward, open,
     and dispose of all mail addressed to CLIENT at any address used by CLIENT
     to receive mail.

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<PAGE>
GENERAL:
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38.  After termination CLIENT remains fully responsible to CAPCO for any
     indebtedness existing, or which may yet arise in connection with Accounts
     that remain unpaid.
39.  If during the term hereof CLIENT fails to make any payment required, CAPCO
     may at its discretion pay the same and charge CLIENT therefore.
40.  CLIENT will not, under any circumstances, or in any manner whatsoever,
     interfere with any of CAPCO's rights under this Agreement.
41.  TAX COMPLIANCE: CLIENT will furnish CAPCO upon request satisfactory proof
     of payment and/or compliance with all Federal, State and/or Local tax
     requirements.
42.  NOTICE OF LEVY: CLIENT will promptly notify CAPCO of any attachment or any
     other legal process levied against CLIENT.
43.  LEGAL FEES: The losing party will pay any and all legal expenses and
     reasonable attorney's fees, paralegal fees, staff overtime expense, travel
     costs, costs on appeal, or other reasonable collection costs, that the
     prevailing party may incur as a result of either CLIENT or CAPCO enforcing
     this Agreement one against the other.
44.  HOLD HARMLESS: CLIENT shall hold CAPCO harmless against any liability,
     damages, loss, attorneys' fees and costs of any type due to any action by a
     Customer arising from CAPCO'S collecting or attempting to collect any
     Accounts so long as these collections are performed in a commercially
     reasonable manner and in compliance with all applicable laws, rules and
     regulations. CLIENT maintains the primary responsibility for collections
                  -----------------------------------------------------------
     efforts, until the occurrence of an event of default.
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45.  BINDING ON FUTURE PARTIES: This Agreement inures to the benefit of and is
     binding upon the heirs, executors, administrators, successors and assigns
     of the parties thereto.
46.  CUMULATIVE RIGHTS: All rights, remedies and powers granted to CAPCO in this
     Agreement, or in any note, or other agreement given by CLIENT to CAPCO, are
     cumulative and may be exercised singularly or concurrently with such other
     rights as CAPCO may have. These rights may be exercised from time to time
     as to all or any part of the pledged Collateral as CAPCO in its discretion
     may determine.
47.  WRITTEN WAIVER: CAPCO may not waive its rights and remedies unless the
     waiver is in writing and signed by CAPCO. A waiver by CAPCO of a right, or
     remedy under this Agreement on one occasion is not a waiver of the right,
     or remedy on any subsequent occasion.
48.  WASHINGTON LAW: This Agreement shall be governed by and construed in
     accordance with the laws of the State of WASHINGTON. CLIENT hereby consents
     to the exclusive jurisdiction of the State of Washington in any dispute
     arising hereunder or related hereto. Venue for any actions shall be in KING
     Co. WASHINGTON.
49.  INVALID PROVISIONS: If any provision of this Agreement shall be declared
     illegal or contrary to law, it is agreed that such provision shall be
     disregarded and this Agreement shall continue in force as though such
     provision had not been incorporated herein.
50.  ENTIRE AGREEMENT: This instrument contains the entire Agreement between the
     parties. Any addendum or modification hereto will be signed by both parties
     and attached hereto.
51.  EFFECTIVE: This Agreement becomes effective when it is accepted and
     executed by the authorized officers of CAPCO.
52.  Execution of this document may contain multiple signature pages; each shall
     be considered, when combined, as one signed and executed document.

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<PAGE>
Executed the 18th day of July, 2005 at San Antonio, Texas.

CCI TELECOM, INC.

By: /s/ Ray J. Ber
    ------------------------------------

Title: VP & CFO
       ---------------------------------

By:
    ------------------------------------

Title:
       ---------------------------------

CAPCO FINANCIAL COMPANY- A DIVISION OF GREATER BAY BANK N.A.

Accepted this 28th day of July 2005 at Bellevue, Washington
              ----        ----    -

By: /s/ [Illegible]
    ------------------------------------

Title: AVP
       ---------------------------------

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<PAGE>
                                CONTRACT OF SALE
                               SECURITY AGREEMENT
                                CCI TELECOM, INC.
                                   EXHIBIT "A"

All personal property, now owned or hereafter acquired, including without
limitation accounts, contract rights, chattel paper, documents, instruments,
deposit accounts, investment property, letters of credit, commercial tort
claims, general intangibles, inventory, raw materials, work in progress,
finished goods, equipment, accessions, substitutions and accessions, and
proceeds (cash and non-cash) including, without limitation, insurance proceeds,
thereof.

Form Date 6/97                       Page 7                        Initial  RB
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<PAGE>

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