Document:

EXHIBIT 10.1

AMENDMENT NUMBER THREE TO LETTER AGREEMENT OF OCTOBER 27th, 2006

December 14, 2006

Complete Tower Sources, Inc.

715 Vatican Road

Carencro, LA 
70520

Attn:  Lori H. Mitchell

Mitchell Site Acq., Inc.

119 Veterinarian Road

Lafayette, LA 
70507

Attn:  Matthew B. Mitchell

Re:                               Stock Purchase Agreement (the “CTSI Stock
Purchase Agreement”), dated June 20, 2006, by and among Ayin Holding Company
Inc. ({Purchaser”), Complete Tower Sources, Inc. (“CTSI”) and Lori H. Mitchell,
sole shareholder of CTSI, as amended by that certain Letter Agreement, dated
June 20, 2006, by and among Purchaser, Sellers (as such term is defined below),
CTSI and Mitchell Site Acq., Inc. (“MSAI”) (the “First Letter Agreement”) and
that certain Closing Letter Agreement, dated August 15, 2006, by and among
Purchaser, Sellers, CTSI, and MSAI (the “Closing Letter Agreement”);

Stock
Purchase Agreement (the “MSAI stock Purchase Agreement”), dated June 20, 2006,
by and among Purchaser, MSAI and Matthew B. Mitchell, sole shareholder of MSAI,
as amended by the First Letter Agreement and the Closing Letter Agreement,

Stock
Purchase Agreement Promissory Note, dated August 15, 2006, between Purchaser
and Lori H. Mitchell in the amount of $28,400,000 (the “CTSI Earnout Note”)

Stock
Purchase Agreement Promissory Note, dated August 15, 2006, between Purchaser
and Matthew B. Mitchell in the amount of $5,400.000 (the “MSAI Stock Purchase
Agreement Note”), the Goodwill Purchase Agreement between Purchaser and Matthew
B. Mitchell, dated August 15, 2006 (the “Goodwill Purchase Agreement”), and the
Goodwill Purchase Agreement Promissory Note, dated August 15, 2006, between
Purchaser and Matthew B. Mitchell in the amount of $5,400,000 (the “MSAI
Goodwill Note and, together with the MSAI Stock Purchase Agreement Note, the “MSAI
Earnout Notes”);

Closing
Promissory Note, dated August 15, 2006, by and among Charys Holding Company,
Inc. (“Parent”), Purchaser and Lori H. Mitchell in the amount of $23,755,852
(the “CTSI Closing Note”);

Closing
Promissory Note, dated August 15, 2006, by and among Parent, Purchaser and
Matthew B. Mitchell in the amount of $13,412,500 (the “MSAI closing Note”); and

The
Promissory Note dated October 20, 2006 made payable to Lori H. Mitchell in the
amount of $42,955,852.

The
Promissory Note dated October 20, 2006 made payable to Lori H. Mitchell in the
amount of $14,200,000.

 

The
Promissory Note dated October 20, 2006 made payable to Matthew B. Mitchell in
the amount of $20,812,500.

The
Promissory Note dated October 20, 2006 made payable to Matthew B. Mitchell in
the amount of $2,700,000.

The
Goodwill Purchase Agreement Promissory Note dated October 20, 2006 made payable
to Matthew B. Mitchell in the amount of $2,700,000.

Letter
Agreement, dated October 27, 2006, by and among Purchaser, Parent CTSI, MSAI
and Sellers, as amended by Amendment Number One to Letter Agreement of October
27, 2006, dated November 24, 2006, and further amended by Amendment Number Two
to Letter Agreement of October 27, 2006, dated December 1, 2006, by and among Purchaser,
Parent, CTSI, MSAI, the Sellers and Whitney National Bank (the October 27th Letter Amendment)

The
foregoing agreements are herein referred to collectively as the “Purchase
Agreements”.

Lori
H. Mitchell and Matthew B. Mitchell are herein referred to collectively as the “Sellers”.

The
Escrow Agreement, dated November 11, 2006, between Purchaser, CTSI and Parent
and Whitney National Bank, and the Escrow Agreement, dated November 11, 2006,
between Purchaser, MSAI and Parent and Whitney National Bank, each pertaining
to the foregoing, and each as amended by Amendment Number One (Amendment Number
One) to Letter Agreement of October 27, 2006, dated November 24, 2006, and
further amended by Amendment Number Two to Letter Agreement of October 27,
2006, dated December 1, 2006 (Amendment Number Two) that certain Letter
Agreement dated November 24, 2006, by and among Purchaser, CTSI, MSAI, the
Sellers and Whitney National Bank, are hereby referred to collectively as the “Escrow
Agreements”.

Ladies and Gentlemen:

This
letter agreement (this “Letter Agreement”) is being delivered in connection
with the Purchase Agreements and sets forth the agreement of the parties on
certain matters related to the Purchase Agreements.  Unless specifically amended by (i) this Letter
Agreement, (ii) the First Letter Agreement, (iii) the Closing Letter Agreement
or (iv) the October 27th Letter
Amendment as amended, the Purchase Agreements and the Escrow Agreements remain
unchanged and in full force and effect.

Accordingly,
Purchaser, Parent, CTSI, MSAI and Sellers, each intending to be legally bound,
agree as follows:

That
the Letter Agreement of October 27, 2006, as amended by Amendment Number One to
the Letter Agreement of October 27, 2006, dated November 24, 2006 (Amendment
Number One) and as further amended by Amendment Number Two to the Letter
Agreement of October 27, 2006 (dated December 1, 2006) is hereby amended as
follows:

a.             That
the payment date as set out in paragraph I (1) is extended to February 15,
2007.

b.             That
the date for Ayin Holding Company, Inc. to

 2
 

 

(1)          Pay off the CTSI loan
obligations to the Whitney National Bank up to the amount of $2,400,000 and to
cancel all personal guarantees on the said Whitney National Bank loans; and

(2)          To cancel all personal
guarantees on the credit card obligations and Letters of Credit to the Whitney
National Bank by CTSI

is hereby extended
until February 15, 2007.

c.                                       In
the event that the obligations referred to in this Letter are accomplished by
February 15, 2007, it will be necessary for Complete Tower Sources, Inc. and
for Mitchell Site Acq., Inc. to file income tax returns for the portion of the
year 2006 (ending on August 15, 2006). 
It is agreed by the Parties hereto that the Purchasers will be liable
for and will pay any penalties, interests, or charges associated with the late
filing of these tax returns.

d.                                      That
the Escrow Agreement dated November 9, 2006 between Ayin Holding Company, Inc.,
Complete Tower Sources, Inc. and Charys Holding Company, Inc. with the Whitney
National Bank as Escrow Agent and the Escrow Agreement dated November 9, 2006
between Ayin Holding Company, Inc., Mitchell Site Acq., Inc., Charys Holding
Company, Inc. with the Whitney National Bank as Escrow Agent, as those Escrow
Agreements have been amended by Amendment Number One and Amendment Number Two
referred to above, is hereby amended to extend the date for the completion of
the obligations of Ayin Holding Company, Inc., as set forth in paragraph no. 2
(Distribution of The Subject Matter of The Escrow) until February 15, 2007.

This
Letter Agreement may be executed in counterparts, each of which will be deemed
an original, but all of which will constitute one and the same instrument.  Additionally, this Letter Agreement may be
executed and delivered by facsimile transmission.

Signatures
on Next Page

 3
 

 

 

 

	
  

  	
  Sincerely,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AYIN HOLDING COMPANY, INC.

  
	
   

  	
  as Purchaser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jimmy Taylor

  
	
   

  	
   

  	
  Jimmy Taylor,
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHARYS HOLDING COMPANY, INC.

  
	
   

  	
  as Parent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Billy V.
  Ray, Jr.

  
	
   

  	
   

  	
  Billy V. Ray,
  Jr., Chief Executive Officer

  
				

 

Agreed
and Accepted this 14th day of
December, 2006:

	
  COMPLETE TOWER SOURCES, INC.

  	
   

  	
  CTSI SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
         /s/ Lori
  H. Mitchell

  	
   

  	
   

  	
   

  
	
  Name:

  	
     Lori H. Mitchell

  	
   

  	
   

  	
  /s/ Lori H. Mitchell

  
	
  Title:

  	
       President

  	
   

  	
   

  	
  Lori H. Mitchell

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MITCHELL SITE ACQ., INC.

  	
   

  	
  MSAI SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
         /s/
  Matthew B. Mitchell

  	
   

  	
   

  	
   

  
	
  Name:

  	
     Matthew B. Mitchell

  	
   

  	
   

  	
  /s/ Matthew B. Mitchell

  
	
  Title:

  	
       President

  	
   

  	
   

  	
  Matthew B. Mitchell

  
	
   

  	
   

  	
   

  
								

 

Whitney National Bank,
Escrow Agent under each of the Escrow Agreements, hereby acknowledges receipt
of a copy of this Letter Agreement and hereby accepts the terms and conditions
set out herein.

Dated this 14th day of December, 2006.

	
  

  	
  WHITNEY NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ Timothy C.
  Brennan

  	
   

  
	
   

  	
   

  	
         Authorized
  Officer

  

 

 4Exhibit
10.1

[date]

[name]

[address]

Re:          Your Outstanding Stock Options under
the Company’s Equity Plans

Dear [name]:

As
you know, the Company is engaged in an external review of all of our stock
options awarded, including the period from 2000 through 2006.  Because you are a Section 16 executive
officer of the Company, it is necessary that the Company and you agree to an
amendment to certain of your stock options no later than December 31, 2006.

Background.   It is possible that the external
investigation of our stock option awards will determine that certain of the
stock options awarded to you may have been awarded with an exercise price below
the fair market value of our stock on the effective date of the grant.  This was unintended.  All of our options should have been awarded
at an exercise price no less than the fair market value on the date of
grant.  The external investigation will
not be completed until 2007.  Therefore,
at this time, we do not know (i) whether any of your stock options were awarded
at a discount; or (ii) if, so, which stock option grants are affected.

Section
409A of the Internal Revenue Code.  Under new tax laws that apply this year, the
portion of a “discounted” stock option that vested after December 31, 2004 is
subject to an additional 20% excise tax imposed upon the holder of the
options.  Additional interest is also
charged on the tax.  This tax is
triggered as soon as the option is vested, not when it is exercised.

We
think it is in your best interest to agree to amend certain stock options, so
that the tax can be avoided.  The IRS
will permit officers to amend their options to avoid the tax only if a written agreement is
entered into no later than December 31, 2006.

After
consulting with our internal and outside legal counsel, we believe we have
arrived at a solution that will allow you to avoid the 20% penalty tax, and yet
will preserve to you the economic benefits of your stock options.

Proposed
Amendment.  If you agree, sign this letter and
return it to us before December 31, 2006.  By signing this letter you agree that any
portion of your stock options that were awarded at a discount, as determined by
the external investigator, at any time between 2000 and 2006 and that vested
after December 31, 2004 will be irrevocably amended, so that the exercise price
of the options is fixed at an amount equal to their fair market value at the applicable
date of grant as determined in accordance with Internal Revenue Service
guidelines (“Revised Exercise Price”). 
This will result in your exercise price for each option being increased.

 

Additional
Bonus Arrangement.  If
you execute this letter, the Company will agree that, upon each date when your
amended option vests, the Company will pay to you a cash bonus (subject to tax
withholding) in an amount equal to the original “discount” in the exercise
price of the option.  The amount of the
additional bonus will be calculated as follows: (i) number of options vesting
on said date times (ii) [Revised Exercise Price less the original exercise price].  Even if your amended options are vested on
December 31, 2006, no payment can be made to you any earlier than January 1,
2007.  Therefore, you will not receive
any payments until 2007, at the earliest, even if a vesting date for the
amended options occurs earlier.  We
anticipate that the payment date for options that are vested as of December 31,
2006 will occur in the first fiscal quarter of the year.  For purposes of this deferral arrangement, we
will agree that the additional bonus payment for any options that are vested on
December 31, 2006 will be made on January 15, 2007.

If you have any questions
or concerns regarding this matter and your personal tax situation, please
contact your tax accountant or attorney. 
The Company cannot provide you with legal or tax advice.

If
you agree to the proposed amendment, please sign and date this letter to
evidence that, in consideration of the Company’s agreement to pay you a bonus
in cash upon vesting of your amended stock options, you agree to the repricing
of your stock options to the amount that represents the fair market value of
the stock on the date of grant as determined in accordance with the terms of
this letter.   Please return the letter to me no
later than December 31, 2006.

This
amendment may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same amendment and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of
a  “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an original thereof.

Except
for the limited amendment described in this letter, all of the other terms of
your stock options remain unchanged.

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  Dean Carter

  
	
   

  	
  Vice President,
  Human Resources

  
	
   

  	
   

  
	
  Agreed and
  accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Date:

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