Document:

Exhibit
        10.2

       

THIS
      SECURITY AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE IN
      THE
      MANNER AND TO THE EXTENT SET FORTH IN SECTION 9 OF THIS DEBENTURE AND THE OTHER
      DEBENTURE INTERCREDITOR AGREEMENT (AS DEFINED BELOW) AND EACH HOLDER OF THIS
      SECURITY, BY ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS
      OF THE OTHER DEBENTURE INTERCREDITOR AGREEMENT AND SECTION 9
      HEREOF.

     

    NEITHER
      THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE
      BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
      COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
      THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
      MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
      STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
      OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
      EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
      SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY
      AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED
      IN
      CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH
      SECURITIES.

    

    Original
      Issue Date: November ___, 2008

    Original
      Conversion Price (subject to adjustment herein): $0.24

    

    $3,000,000.00

    

    SUBORDINATED
      UNSECURED CONVERTIBLE DEBENTURE

    DUE
      MAY ___, 2011

    

    THIS
      DEBENTURE is a duly authorized and validly issued Subordinated Unsecured
      Convertible Debenture of Capital Growth Systems, Inc., a Florida corporation,
      (the “Company”),
      having its principal place of business at 500 W. Madison Street, Suite 2060,
      Chicago, Illinois 60661, designated as its Subordinated Convertible Debenture
      due on the day immediately preceding the one year anniversary of the Original
      Issue Date (the “Termination
      Date”),
      provided that if the Final Closing Date (as that term is defined in the ILPA)
      occurs before such date, this Debenture will be due on the date thirty months
      from the Original Issue Date, which date may be extended on a month to month
      basis with the prior written consent of the Holder until the Debenture is paid
      in full (the “Extended
      Termination Date”).

    

    FOR
      VALUE
      RECEIVED, the Company promises to pay to Vanco plc or its registered assigns
      (the “Holder”),
      or
      shall have paid pursuant to the terms hereunder, the principal sum of
      $3,000,000.00, as may be increased in accordance with the terms hereof, on
      the
      later to occur of the Termination Date or the Extended Termination Date (the
      “Maturity
      Date”)
      or
      such earlier date as this Debenture is required or permitted to be repaid as
      provided hereunder; provided,
      however,
      that in
      no event shall payment be due under this Debenture until: (A) the Payment
      Conditions are satisfied and (B) payment to the Holder is permitted under the
      Other Debenture Intercreditor Agreement and Section 9 hereof. Prior to making
      any such payment, the Company’s Chief Financial Officer and Chief Executive
      Officer shall provide written certification to the holders of the Other
      Debentures that the Payment Conditions have been satisfied. This Debenture
      is
      subject to the following additional provisions: 

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    

    Section
      1. Definitions.
      For the
      purposes hereof, in addition to the terms defined elsewhere in this Debenture,
      the following terms shall have the following meanings:

    

    “Alternate
      Consideration”
shall
      have the meaning set forth in Section 5(b).

    

    “Authorized
      Share Approval”
      shall
      mean the date following the date hereof that the Company amends its articles
      of
      incorporation to authorize the issuance of not less than 600,000,000 shares
      of
      Common Stock (subject to adjustment to account for any forward or reverse
      split).

    

    “Archer
      Intercreditor Agreement”
      shall
      mean the intercreditor agreement among ACF, CGS, L.L.C., the holders of the
      Other Debentures, Holder and Company. 

    

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code (11 U.S.C. § 101 et seq.).

    

    “Bankruptcy
      Event”:
      (a)
      any insolvency or bankruptcy case or proceeding (including any case under the
      Bankruptcy Code), or any receivership, custodianship, liquidation,
      reorganization, administration, administrative receivership, arrangement or
      other similar case or proceeding, relative to the Company or any of its
      Subsidiaries, or to the assets of the Company or any of its Subsidiaries, (b)
      any liquidation, dissolution, reorganization or winding up of the Company or
      any
      of its Subsidiaries, whether voluntary or involuntary and whether or not
      involving solvency or bankruptcy, (c) any assignment for the benefit of
      creditors or any other marshalling of assets and liabilities of the Company
      or
      any of its Subsidiaries, (d) any sale, transfer or other disposition of all
      or
      substantially all of the assets of any Debtor in connection with any of the
      foregoing, or (e) any application, notice, resolution or order made, passed
      or
      given for or in connection with any of the foregoing or any event analogous
      to
      any of the foregoing.

    

    “Beneficial
      Ownership Limitation”
shall
      have the meaning set forth in Section 4(c). 

    

    “Business
      Day”
means
      any day except any Saturday, any Sunday, any day which shall be a federal legal
      holiday in the United States or any day on which banking institutions in the
      State of New York are authorized or required by law or other governmental action
      to close.

     

    
      
        
        

      

      
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        “Cash
          Balance”
means,
          at any time, unrestricted cash and cash equivalents in of the Company and
          its
          consolidated Subsidiaries in US Dollars on deposit with domestic and foreign
          commercial banks.

      

    

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or the Subsidiaries which would entitle the holder
      thereof to acquire at any time Common Stock, including, without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instrument that is
      at
      any time convertible into or exercisable or exchangeable for, or otherwise
      entitles the holder thereof to receive Common Stock.

    

    “Conversion”
shall
      have the meaning ascribed to such term in Section 4. 

    

    “Conversion
      Date”
shall
      have the meaning set forth in Section 4(a).

    

    “Conversion
      Price”
shall
      have the meaning set forth in Section 4(b).

    

    “Conversion
      Schedule”
means
      the Conversion Schedule in the form of Schedule
      1
      attached
      hereto.

    

    “Conversion
      Shares”
means,
      collectively, the shares of Common Stock issuable upon conversion of this
      Debenture in accordance with the terms hereof.

    

    “Debenture
      Register”
shall
      have the meaning set forth in Section 2(c).

    

    ‘Debentures”
      shall
      mean this Debenture and any successor debentures reissued as a result of the
      fractionalization of this Debenture.

    

    “EBITDA”
means
      for the applicable period, the net income (or net loss) of the Company and
      its
      consolidated Subsidiaries, determined in accordance with GAAP, consistently
      applied, plus (i) any provision for (or less any benefit from) income taxes,
      (ii) any deduction for interest expense, net of interest income, and (ii)
      depreciation and amortization expense.

     

    “Event
      of Default”
shall
      have the meaning set forth in Section 8(a).

    

    “Fundamental
      Transaction”
shall
      have the meaning set forth in Section 5(b).

    

    “ILPA”
      shall
      mean the Interest and Loan Purchase Agreement between the initial Holder of
      this
      Debenture and Capital Growth Acquisition, Inc.

     

    “Mandatory
      Default Amount”
means
      the outstanding principal amount of this Debenture.

    

    “March
      Debentures”
      means
      the amended and restated debentures issued by the Company in exchange or
      substitution for any of the debentures of the Company that were originally
      issued on March 11, 2008.

     

    
      
        
        

      

      
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    “New
      York Courts”
shall
      have the meaning set forth in Section 9(d).

    

    “Notice
      of Conversion”
shall
      have the meaning set forth in Section 4(a).

    

    “November
      Debentures”
      shall
      mean the original issue discount secured convertible debentures issued by the
      Company in November, 2008 and not comprising the March Debentures.

    

    “Other
      Debentures”
shall
      mean collectively, the March Debentures and the November
      Debentures.

    

    “Other
      Debenture Intercreditor Agreement”
      shall
      mean the intercreditor and subordination agreement among the holders of the
      Other Debentures and the initial holder of this Debenture.

    

    “Original
      Issue Date”
means
      the date of the first issuance of this Debenture, regardless of any transfers
      of
      this Debenture and regardless of the number of instruments which may be issued
      to evidence this Debentures in the event of fractualization of this
      Debenture.

    

    “Payment
      Conditions”
means,
      after the Extended Termination Date, at the time of payment (i) the Cash Balance
      of the Company and its Subsidiaries is at least $5,000,000 and (ii) for the
      12
      full calendar months immediately prior to the payment date, the ratio of the
      then outstanding principal amount of the Other Debentures to EBITDA for such
      12-month period to shall be 2:1 or less. By way of any example, in order to
      make
      payments on this Debenture, if the then outstanding principal amount of the
      Other Debentures is $20,000,000, the EBITDA for the 12-month period prior to
      such payment date must be $10,000,000 or greater.  

    

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Senior
      Creditor”
means
      ACF CGS, L.L.C., a Delaware limited liability company, as administrative agent
      for each of the lenders under the Senior Loan Agreement and any other holder
      of
      Senior Obligations (as such term is defined in the Archer Intercreditor
      Agreement) from time to time.

    

    “Senior
      Loan Agreement”
means
      that certain Loan and Security Agreement dated as of November ___, 2008 by
      and
      among the Company and its Subsidiaries, as borrowers, ACF CGS, L.L.C and the
      other lenders named therein, and ACF CGS, L.L.C, as agent for such
      lenders.

    

    “Senior
      Loan Documents”
means
      all current and future documents relating to the Senior Obligations, including
      without limitation the Senior Loan Agreement and any guaranty, security
      agreement, pledge agreement, control agreement, mortgage, or deed of trust,
      and
      any documents evidencing or relating to any Senior Obligations (as hereafter
      defined), as the same may be amended, modified or restated.

     

    
      
        
        

      

      
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    “Senior
      Obligations”
means
      (a) all liabilities of the Company together with any of its subsidiaries (each
      a
“Borrower”
and
      collectively, the “Borrowers”)
      to
      Senior Creditor from time to time outstanding pursuant to or in connection
      with
      the Senior Loan Documents, whether
      such amounts are due or not due, direct or indirect, absolute or contingent,
      including,
      without limitation, all principal, interest, fees, reimbursement obligations
      with respect to letters of credit, indemnities, costs and expenses, and further
      including (i) all interest arising under or with respect to the Senior Loan
      Documents, including, in the event of a Bankruptcy Event, any and all
      post-petition interest and costs from and after the date of filing of a petition
      by or against any Borrower or its bankruptcy estate, whether or not such amounts
      are allowed as a claim against any Borrower in any Bankruptcy Event, (ii) all
      costs and expenses incurred by Senior Creditor in connection with its
      enforcement of any rights or remedies under the Senior Loan Documents, the
      collection of any of the Senior Obligations, or the protection of, or
      realization upon, any collateral, including, by way of example, court costs,
      appraisal and consulting fees, reasonable attorneys’ fees, auctioneers’ fees,
      rent, storage, insurance premiums and like items, and whether or not such
      amounts are allowed as a claim against any Borrower in connection with any
      Bankruptcy Event, (iii) all fees, charges, and indemnities owing by any Borrower
      to Senior Creditor under or in connection with the Senior Loan Documents, (iv)
      all principal, interest, fees, costs and expenses in connection with any
      debtor-in-possession financing provided by Senior Creditor to one or more
      Borrowers in connection with a Bankruptcy Event; and (b) all indebtedness and
      obligations of Borrowers with respect to each Other Debenture, including,
      without limitation, all Senior Claims (as such term is defined in the Other
      Debenture Intercreditor Agreement).

    

    “Subordinated
      Obligations” means
      all
      indebtedness, fees, expenses, obligations and liabilities of Company to the
      Holder, whether now existing or hereafter incurred or created, under or with
      respect to this Debenture, in each case, whether such amounts are due or not
      due, direct or indirect, absolute or contingent.

     

    “Share
      Delivery Date”
shall
      have the meaning set forth in Section 4(d)(ii).

    

    “Subordinated
      Obligations” means
      all
      indebtedness, fees, expenses, obligations and liabilities of Company to the
      Holder, whether now existing or hereafter incurred or created, under or with
      respect to the Subordinated Debenture Documents, in each case, whether such
      amounts are due or not due, direct or indirect, absolute or
      contingent.

    

    “Subsidiary”
shall
      have the meaning set forth in the Purchase Agreement.

    

    “Trading
      Day”
means
      a
      day on which the New York Stock Exchange is open for business.

     

    
      
        
        

      

      
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    Section
      2. Adjustment
      to Principal Amount of this Debenture.
      Vanco
      Direct USA, LLC (“VDUL”)
      has
      entered into a sublease dated March 22, 2006 (“Sublease”)
      with
      Orbitz, LLC for the occupancy of space at 200 S. Wacker, 16th Floor, Chicago,
      Illinois (the “Premises”).
      Any
      amounts collected by VDUL from Vanco US, LLC with respect to VDUL's sublease
      of
      the Premises during the term of the Sublease to Vanco US, LLC, of which ____
      months are remaining on such Sublease, or any amounts otherwise paid by Vanco
      US, LLC directly to or for the benefit of Orbitz, LLC regarding the Premises
      from the date of this Debenture through the end of the Sublease is hereinafter
      referred to as the “Vanco
      US Payments.”
      Notwithstanding anything to the contrary contained in this Debenture, (i) the
      principal amount of this Debenture shall be increased on a dollar for dollar
      basis in an amount equal to the Vanco US Payments paid through the Maturity
      Date, subject to a maximum increase of $1,000,000, and (ii) on the date on
      which
      Vanco US, LLC takes assignment of the Sublease from VDUL and such assignment
      is
      consented to by Orbitz, LLC (the “Assignment
      Date”),
      the
      principal amount of this Debenture shall be increased by an amount equal to
      the
      difference of (x) $1,000,000 less
      (y) the
      aggregate amount of Vanco US Payments paid through the Assignment Date (the
      “Balloon
      Amount”).
      Further, in the event that this Debenture is converted in whole into shares
      of
      Common Stock in accordance with Section 4 below from time to time prior to
      the
      earlier of (A) the date on which all of the Vanco US Payments equal $1,000,000
      and (B) the Assignment Date, this Debenture shall remain outstanding and all
      further Vanco US Payments and the Balloon Amount (as applicable) shall
      thereafter increase the amount of this Debenture on a dollar for dollar basis.
      For purposes of clarity, subject to the terms and conditions herein, the Holder
      shall be entitled to convert all Vanco US Payments immediately following each
      increase of the Debenture described in this Section 2.  

     

    Section
      3.  Registration
      of Transfers and Exchanges.
      

     

    a) Different
      Denominations.
      This
      Debenture is exchangeable for an equal aggregate principal amount of Debentures
      of different authorized denominations, as requested by the Holder surrendering
      the same. No service charge will be payable for such registration of transfer
      or
      exchange.

     

    b) Investment
      Representations.
      Holder
      understands that this Debenture and the shares of Common Stock into which this
      Debenture is convertible (collectively, “Securities”)
      are
“restricted securities” and have not been registered under the Securities Act or
      any applicable state securities law and is acquiring the Securities as principal
      for its own account and not with a view to or for distributing or reselling
      such
      Securities or any part thereof in violation of the Securities Act or any
      applicable state securities law, has no present intention of distributing any
      of
      such Securities in violation of the Securities Act or any applicable state
      securities law and has no direct or indirect arrangement or understandings
      with
      any other persons to distribute or regarding the distribution of such Securities
      in violation of the Securities Act or any applicable state securities law.
      At
      the time Holder was offered the Securities, Holder was, and as of the date
      hereof Holder is, either: (i) an “accredited investor” as defined in Rule
      501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii)
      a
“qualified institutional buyer” as defined in Rule 144A(a) under the Securities
      Act. Holder is not required to be registered as a broker-dealer under Section
      15
      of the Exchange Act.

     

    
      
        
        

      

      
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    c) Reliance
      on Debenture Register.
      Prior
      to due presentment for transfer to the Company of this Debenture, the Company
      and any agent of the Company may treat the Person in whose name this Debenture
      is duly registered on the Debenture Register as the owner hereof for the purpose
      of receiving payment as herein provided and for all other purposes, whether
      or
      not this Debenture is overdue, and neither the Company nor any such agent shall
      be affected by notice to the contrary.

    

    Section
      4.  Conversion.

     

    a) Voluntary
      Conversion.
      Notwithstanding anything herein to the contrary, any time after the Authorized
      Share Approval until this Debenture is no longer outstanding, this Debenture
      shall be convertible, in whole or in part, into shares of Common Stock at the
      option of the Holder, at any time and from time to time. The Holder shall effect
      conversions by delivering to the Company a Notice of Conversion, the form of
      which is attached hereto as Annex
      A
      (each, a
“Notice
      of Conversion”),
      specifying therein the principal amount of this Debenture to be converted and
      the date on which such conversion shall be effected (such date, the
“Conversion
      Date”).
      If no
      Conversion Date is specified in a Notice of Conversion, the Conversion Date
      shall be the date that such Notice of Conversion is deemed delivered hereunder.
      To effect conversions hereunder, the Holder shall not be required to physically
      surrender this Debenture to the Company. Conversions hereunder shall have the
      effect of lowering the outstanding principal amount of this Debenture in an
      amount equal to the applicable conversion. The Holder and the Company shall
      maintain records showing the principal amount(s) converted and the date of
      such
      conversion(s). The Company may deliver an objection to any Notice of Conversion
      within 2 Business Days of delivery of such Notice of Conversion. In the event
      of
      any dispute or discrepancy, the records of the Holder shall be controlling
      and
      determinative in the absence of manifest error. The
      Holder, and any assignee by acceptance of this Debenture, acknowledge and agree
      that, by reason of the provisions of this paragraph, following conversion of
      a
      portion of this Debenture, the unpaid and unconverted principal amount of this
      Debenture may be less than the amount stated on the face
      hereof.

     

    b) Conversion
      Price.
      The
      conversion price in effect on any Conversion Date shall be equal to $0.24,
      subject
      to adjustment herein (the “Conversion
      Price”).

     

    
      
        
        

      

      
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    c) Conversion
      Limitations.
      Notwithstanding anything to the contrary contained in this Section 4(c), the
      Holder may unilaterally waive the terms of this Section 4(c). The Company shall
      not effect any conversion of this Debenture, and a Holder shall not have the
      right to convert any portion of this Debenture, to the extent that after giving
      effect to the conversion set forth on the applicable Notice of Conversion,
      the
      Holder (together with the Holder’s Affiliates, and any other person or entity
      acting as a group together with the Holder or any of the Holder’s Affiliates)
      would beneficially own in excess of the Beneficial Ownership Limitation (as
      defined below).  For purposes of the foregoing sentence, the number of
      shares of Common Stock beneficially owned by the Holder and its Affiliates
      shall
      include the number of shares of Common Stock issuable upon conversion of this
      Debenture with respect to which such determination is being made, but shall
      exclude the number of shares of Common Stock which are issuable upon (A)
      conversion of the remaining, unconverted principal amount of this Debenture
      beneficially owned by the Holder or any of its Affiliates and (B) exercise
      or
      conversion of the unexercised or unconverted portion of any other securities
      of
      the Company subject to a limitation on conversion or exercise analogous to
      the
      limitation contained herein (including, without limitation, any other Common
      Stock Equivalents beneficially owned by the Holder or any of its
      Affiliates.  Except as set forth in the preceding sentence, for purposes of
      this Section 4(c), beneficial ownership shall be calculated in accordance with
      Section 13(d) of the Exchange Act and the rules and regulations promulgated
      thereunder. To the extent that the limitation contained in this Section 4(c)
      applies, the determination of whether this Debenture is convertible (in relation
      to other securities owned by the Holder together with any Affiliates) and of
      which principal amount of this Debenture is convertible shall be in the sole
      discretion of the Holder, and the submission of a Notice of Conversion shall
      be
      deemed to be the Holder’s determination of whether this Debenture may be
      converted (in relation to other securities owned by the Holder together with
      any
      Affiliates) and which principal amount of this Debenture is convertible, in
      each
      case subject to the Beneficial Ownership Limitation. To ensure compliance with
      this restriction, the Holder will be deemed to represent to the Company each
      time it delivers a Notice of Conversion that such Notice of Conversion has
      not
      violated the restrictions set forth in this paragraph and the Company shall
      have
      no obligation to verify or confirm the accuracy of such determination.
In
      addition, a determination as to any group status as contemplated above shall
      be
      determined in accordance with Section 13(d) of the Exchange Act and
      the
      rules and regulations promulgated thereunder. For
      purposes of this Section 4(c), in determining the number of outstanding shares
      of Common Stock, the Holder may rely on the number of outstanding shares of
      Common Stock as stated in the most recent of the following: (A) the Company’s
      most recent periodic or annual report, as the case may be; (B) a more recent
      public announcement by the Company; or (C) a more recent notice by the Company
      or the Company’s transfer agent setting forth the number of shares of Common
      Stock outstanding.  Upon the written or oral request of a Holder, the
      Company shall within two Trading Days confirm orally and in writing to the
      Holder the number of shares of Common Stock then outstanding.  In any case,
      the number of outstanding shares of Common Stock shall be determined after
      giving effect to the conversion or exercise of securities of the Company,
      including this Debenture, by the Holder or its Affiliates since the date as
      of
      which such number of outstanding shares of Common Stock was reported. The
“Beneficial
      Ownership Limitation”
shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      conversion of this Debenture held by the Holder. The Holder, upon not less
      than
      61 days’ prior notice to the Company, may increase or decrease the Beneficial
      Ownership Limitation provisions of this Section 4(c), provided that the
      Beneficial Ownership Limitation in no event exceeds 9.99% of the number of
      shares of the Common Stock outstanding immediately after giving effect to the
      issuance of shares of Common Stock upon conversion of this Debenture held by
      the
      Holder and the Beneficial Ownership Limitation provisions of this Section 4(c)
      shall continue to apply. Any such increase or decrease will not be effective
      until the 61st
      day
      after such notice is delivered to the Company. The Beneficial Ownership
      Limitation provisions of this paragraph shall be construed and implemented
      in a
      manner otherwise than in strict conformity with the terms of this Section 4(c)
      to correct this paragraph (or any portion hereof) which may be defective or
      inconsistent with the intended Beneficial Ownership Limitation contained herein
      or to make changes or supplements necessary or desirable to properly give effect
      to such limitation.
      The
      limitations contained in this paragraph shall apply to a successor holder of
      this
      Debenture.

     

    
      
        
        

      

      
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    d) Mechanics
      of Conversion.

     

    i. Conversion
      Shares Issuable Upon Conversion of Principal Amount.
      The
      number of Conversion Shares issuable upon a conversion hereunder shall be
      determined by the quotient obtained by dividing (x) the outstanding principal
      amount of this Debenture to be converted by (y) the Conversion
      Price.

    

    ii. Delivery
      of Certificate Upon Conversion.
      Not
      later than three Trading Days after each Conversion Date (the “Share
      Delivery Date”),
      the
      Company shall deliver, or cause to be delivered, to the Holder a certificate
      or
      certificates representing the Conversion Shares which, on or after the twelve
      month anniversary of the Original Issue Date, shall be free of restrictive
      legends and trading restrictions (other than those which may then be required
      by
      the Purchase Agreement) representing the number of Conversion Shares being
      acquired upon the conversion of this Debenture. On the twelve month anniversary
      of the Original Issue Date, the Company shall use its best efforts to deliver
      any certificate or certificates required to be delivered by the Company under
      this Section 4(d) electronically through the Depository Trust Company or another
      established clearing corporation performing similar functions. 

    

    iii. Failure
      to Deliver Certificates.
      If in
      the case of any Notice of Conversion such certificate or certificates are not
      delivered to or as directed by the applicable Holder by the third Trading Day
      after the Conversion Date, the Holder shall be entitled to elect by written
      notice to the Company at any time on or before its receipt of such certificate
      or certificates, to rescind such Conversion, in which event the Company shall
      promptly return to the Holder any original Debenture delivered to the Company
      and the Holder shall promptly return to the Company the Common Stock
      certificates representing the principal amount of this Debenture unsuccessfully
      tendered for conversion to the Company. 

     

    iv. Obligation
      Absolute.
      The
      Company’s obligations to issue and deliver the Conversion Shares upon conversion
      of this Debenture in accordance with the terms hereof are absolute and
      unconditional, irrespective of any action or inaction by the Holder to enforce
      the same, any waiver or consent with respect to any provision hereof, the
      recovery of any judgment against any Person or any action to enforce the same,
      or any setoff, counterclaim, recoupment, limitation or termination, or any
      breach or alleged breach by the Holder or any other Person of any obligation
      to
      the Company or any violation or alleged violation of law by the Holder or any
      other Person, and irrespective of any other circumstance which might otherwise
      limit such obligation of the Company to the Holder in connection with the
      issuance of such Conversion Shares; provided,
      however,
      that
      such delivery shall not operate as a waiver by the Company of any such action
      the Company may have against the Holder. In the event the Holder of this
      Debenture shall elect to convert any or all of the outstanding principal amount
      hereof, the Company may not refuse conversion based on any claim that the Holder
      or anyone associated or affiliated with the Holder has been engaged in any
      violation of law, agreement or for any other reason, unless an injunction from
      a
      court, on notice to Holder, restraining and or enjoining conversion of all
      or
      part of this Debenture shall have been sought and obtained. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    v. Reservation
      of Shares Issuable Upon Conversion.
      After
      the Authorized Share Approval, the Company covenants that it will at all times
      reserve and keep available out of its authorized and unissued shares of Common
      Stock for the sole purpose of issuance upon conversion of this Debenture, free
      from preemptive rights or any other actual contingent purchase rights of Persons
      other than the Holder (and the other holders of the Debentures), not less than
      such aggregate number of shares of the Common Stock as shall (subject to the
      terms and conditions set forth in the Purchase Agreement) be issuable (taking
      into account the adjustments and restrictions of Section 5) upon the conversion
      of the outstanding principal amount of this Debenture. The Company covenants
      that all shares of Common Stock that shall be so issuable shall, upon issue,
      be
      duly authorized, validly issued, fully paid and nonassessable.

    

    vi. Fractional
      Shares.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the conversion of this Debenture. As to any fraction of a share which Holder
      would otherwise be entitled to purchase upon such conversion, the Company shall
      at its election, either pay a cash adjustment in respect of such final fraction
      in an amount equal to such fraction multiplied by the Conversion Price or round
      up to the next whole share.

    

    vii. Transfer
      Taxes.
      The
      issuance of certificates for shares of the Common Stock on conversion of this
      Debenture shall be made without charge to the Holder hereof for any documentary
      stamp or similar taxes that may be payable in respect of the issue or delivery
      of such certificates, provided that, the Company shall not be required to pay
      any tax that may be payable in respect of any transfer involved in the issuance
      and delivery of any such certificate upon conversion in a name other than that
      of the Holder of this Debenture so converted and the Company shall not be
      required to issue or deliver such certificates unless or until the person or
      persons requesting the issuance thereof shall have paid to the Company the
      amount of such tax or shall have established to the satisfaction of the Company
      that such tax has been paid.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Section
      5. Certain
      Adjustments.

     

    a) Stock
      Dividends and Stock Splits.
      If the
      Company, at any time while this Debenture is outstanding: (i) pays a stock
      dividend or otherwise makes a distribution or distributions payable in shares
      of
      Common Stock on shares of Common Stock or any Common Stock Equivalents (which,
      for avoidance of doubt, shall not include any shares of Common Stock issued
      by
      the Company upon conversion of the Debentures), (ii) subdivides outstanding
      shares of Common Stock into a larger number of shares, (iii) combines (including
      by way of a reverse stock split) outstanding shares of Common Stock into a
      smaller number of shares or (iv) issues, in the event of a reclassification
      of
      shares of the Common Stock, any shares of capital stock of the Company, then
      the
      Conversion Price shall be multiplied by a fraction of which the numerator shall
      be the number of shares of Common Stock (excluding any treasury shares of the
      Company) outstanding immediately before such event and of which the denominator
      shall be the number of shares of Common Stock outstanding immediately after
      such
      event. Any adjustment made pursuant to this Section shall become effective
      immediately after the record date for the determination of stockholders entitled
      to receive such dividend or distribution and shall become effective immediately
      after the effective date in the case of a subdivision, combination or
      re-classification.

     

    b) Fundamental
      Transaction.
      If, at
      any time while this Debenture is outstanding, (i) the Company effects any merger
      or consolidation of the Company with or into another Person, (ii) the Company
      effects any sale of all or substantially all of its assets in one transaction
      or
      a series of related transactions, (iii) any tender offer or exchange offer
      (whether by the Company or another Person) is completed pursuant to which
      holders of Common Stock are permitted to tender or exchange their shares for
      other securities, cash or property, or (iv) the Company effects any
      reclassification of the Common Stock or any compulsory share exchange pursuant
      to which the Common Stock is effectively converted into or exchanged for other
      securities, cash or property (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent conversion of this Debenture, the Holder shall have the
      right to receive, for each Conversion Share that would have been issuable upon
      such conversion immediately prior to the occurrence of such Fundamental
      Transaction, the same kind and amount of securities, cash or property as it
      would have been entitled to receive upon the occurrence of such Fundamental
      Transaction if it had been, immediately prior to such Fundamental Transaction,
      the holder of 1 share of Common Stock (the “Alternate
      Consideration”).
      For
      purposes of any such conversion, the determination of the Conversion Price
      shall
      be appropriately adjusted to apply to such Alternate Consideration based on
      the
      amount of Alternate Consideration issuable in respect of 1 share of Common
      Stock
      in such Fundamental Transaction, and the Company shall apportion the Conversion
      Price among the Alternate Consideration in a reasonable manner reflecting the
      relative value of any different components of the Alternate Consideration.
      If
      holders of Common Stock are given any choice as to the securities, cash or
      property to be received in a Fundamental Transaction, then the Holder shall
      be
      given the same choice as to the Alternate Consideration it receives upon any
      conversion of this Debenture following such Fundamental Transaction. To the
      extent necessary to effectuate the foregoing provisions, any successor to the
      Company or surviving entity in such Fundamental Transaction shall issue to
      the
      Holder a new debenture consistent with the foregoing provisions and evidencing
      the Holder’s right to convert such debenture into Alternate Consideration. The
      terms of any agreement pursuant to which a Fundamental Transaction is effected
      shall include terms requiring any such successor or surviving entity to comply
      with the provisions of this Section 5(b) and insuring that this Debenture (or
      any such replacement security) will be similarly adjusted upon any subsequent
      transaction analogous to a Fundamental Transaction.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    c) Calculations.
      All
      calculations under this Section 5 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      5,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      any treasury shares of the Company) issued and outstanding.

    

    d) Notice
      to the Holder.

    

    i. Adjustment
      to Conversion Price.
      Whenever the Conversion Price is adjusted pursuant to any provision of this
      Section 5, the Company shall promptly deliver to each Holder a notice setting
      forth the Conversion Price after such adjustment and setting forth a brief
      statement of the facts requiring such adjustment. 

     

    ii. Notice
      to Allow Conversion by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution in whatever
      form) on the Common Stock, (B) the Company shall declare a special nonrecurring
      cash dividend on or a redemption of the Common Stock, (C) the Company shall
      authorize the granting to all holders of the Common Stock of rights or warrants
      to subscribe for or purchase any shares of capital stock of any class or of
      any
      rights, (D) the approval of any stockholders of the Company shall be required
      in
      connection with any reclassification of the Common Stock, any consolidation
      or
      merger to which the Company is a party, any sale or transfer of all or
      substantially all of the assets of the Company, of any compulsory share exchange
      whereby the Common Stock is converted into other securities, cash or property
      or
      (E) the Company shall authorize the voluntary or involuntary dissolution,
      liquidation or winding up of the affairs of the Company, then, in each case,
      the
      Company shall cause to be filed at each office or agency maintained for the
      purpose of conversion of this Debenture, and shall cause to be delivered
      to the Holder at its last address as it shall appear upon the Debenture
      Register, at least twenty (20) calendar days prior to the applicable record
      or
      effective date hereinafter specified, a notice stating (x) the date on which
      a
      record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distributions, redemption, rights or warrants are to be determined
      or
      (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and the
      date as of which it is expected that holders of the Common Stock of record
      shall
      be entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange, provided that the failure to deliver such
      notice or any defect therein or in the delivery thereof shall not affect the
      validity of the corporate action required to be specified in such notice. The
      Holder is entitled to convert this Debenture during the 20-day period commencing
      on the date of such notice through the effective date of the event triggering
      such notice. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    Section
      6. (Intentionally
      Omitted).

    

    Section
      7. (Intentionally
      Omitted).

     

    Section
      8. Events
      of Default.
      

    

    a) “Event
      of Default”
means,
      wherever used herein, any of the following events (whatever the reason for
      such
      event and whether such event shall be voluntary or involuntary or effected
      by
      operation of law or pursuant to any judgment, decree or order of any court,
      or
      any order, rule or regulation of any administrative or governmental body,
      provided however if any of the following events would constitute a breach with
      respect to either the Archer Intercreditor Agreement or the Other Debenture
      Intercreditor Agreement, then the existence of such event shall not constitute
      an Event of Default hereunder until such point in time as the indebtedness
      with
      respect to any of the Other Debentures is accelerated): any
      default in the payment of the principal amount of this Debenture when due and
      permitted to be paid hereunder and under the Other Debenture Intercreditor
      Agreement.

     

    b) Remedies
      Upon Event of Default.
      Subject
      to the provisions of Section 9 hereof and the provisions of the Other Debenture
      Intercreditor Agreement, commencing 5 days after the occurrence of any Event
      of
      Default that results in the eventual acceleration of this Debenture, upon the
      payment in full of the Mandatory Default Amount, the Holder shall promptly
      surrender this Debenture to or as directed by the Company. In connection with
      such acceleration described herein, the Holder need not provide, and the Company
      hereby waives, any presentment, demand, protest or other notice of any kind,
      and
      the Holder may immediately and without expiration of any grace period enforce
      any and all of its rights and remedies hereunder and all other remedies
      available to it under applicable law. Such acceleration may be rescinded and
      annulled by Holder at any time prior to payment hereunder and the Holder shall
      have all rights as a holder of the Debenture until such time, if any, as the
      Holder receives full payment pursuant to this Section 8(b). No such rescission
      or annulment shall affect any subsequent Event of Default or impair any right
      consequent thereon.

    

    Section
      9. Subordination.

    

    a) The
      Holder of this Debenture, by its acceptance of this Debenture, agrees that
      the
      Subordinated Obligations are subordinated in right of payment, to the extent
      and
      in the manner provided in this Section 9, to the prior payment in full in cash
      of all Senior Obligations (whether outstanding on the date hereof or hereafter
      created, incurred, assumed or guaranteed), and that this subordination is for
      the benefit of the holders of Senior Obligations. Each holder of Senior
      Obligations, whether now outstanding or hereafter incurred, shall be deemed
      to
      have acquired such Senior Obligations in reliance upon the terms and provisions
      of this Section 9.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    b) The
      Holder, by its acceptance of this Debenture, agrees that no payment in respect
      of the Subordinated Obligations, whether as principal, interest or otherwise,
      and whether in cash, securities or other property, shall be made by or on behalf
      of Company, or received, accepted or demanded, directly or indirectly, by or
      on
      behalf of any holder of Subordinated Obligations, at any time prior to payment
      in full in cash of the Senior Obligations.

     

    c) Each
      holder of Subordinated Obligations agrees not to ask, demand, sue for or take
      or
      receive from the Company in cash, securities or other property or by setoff,
      purchase or redemption (including, without limitation, from or by way of
      collateral), payment of all or any part of the Subordinated Obligations. In
      the
      event that any payment by the Company of any kind or character, whether in
      cash,
      securities or other property, and whether directly, by purchase, redemption,
      exercise of any right of setoff or otherwise, shall be received by or on behalf
      of Holder or any affiliate thereof at a time when such payment is prohibited
      under this Section 9, such payment or distribution shall be held by such Holder
      or affiliate in trust (segregated from other property of such Holder or
      affiliate) for the benefit of, and shall forthwith be paid over to, the holders
      of Senior Obligations to be applied to the balance of the Senior Obligations,
      until paid in full.

     

    d) Company
      shall not give, or permit to be given, and no holder of Subordinated Obligations
      shall receive, accept or demand, (i) any security of any nature whatsoever
      for
      any Subordinated Obligations on any property or assets, whether now existing
      or
      hereafter acquired, of the Company, any of its subsidiaries or any other
      obligor, or (ii) any guarantee of any Subordinated Obligations, of any nature
      whatsoever, by the Company, any subsidiary of the Company, or any other
      person.

     

    e) The
      holders of the Senior Obligations have made or will make loans and extend credit
      to Company in reliance on this Section 9 and the other terms of this Debenture
      and the documents executed in connection with this Debenture and are entitled
      to
      the benefits of the provisions hereof and thereof. Accordingly, the holders
      of
      the Senior Obligations shall be entitled to enforce any such provision against
      the Holder or the Company and its subsidiaries.

     

    f) The
      Holder agrees that it will not contest the validity, perfection, priority or
      enforceability of the liens upon any collateral securing the Senior Obligations,
      and that, as between the holders of Senior Obligations and the Holder, the
      terms
      of this Section 9 shall govern even if part or all of the Senior Obligations
      or
      the liens securing payment and performance thereof are not perfected or are
      avoided, disallowed, set aside or otherwise invalidated in any judicial
      proceeding or otherwise.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    Section
      10. Miscellaneous.
      

     

    a) Notices.
      Any and
      all notices or other communications or deliveries to be provided by the Holder
      hereunder, including, without limitation, any Notice of Conversion, shall be
      in
      writing and delivered personally, by facsimile, or sent by a nationally
      recognized overnight courier service, addressed to the Company, at the address
      set forth above, or such other facsimile number or address as the Company may
      specify for such purpose by notice to the Holder delivered in accordance with
      this Section 9(a). Any and all notices or other communications or deliveries
      to
      be provided by the Company hereunder shall be in writing and delivered
      personally, by facsimile, or sent by a nationally recognized overnight courier
      service addressed to each Holder at the facsimile number or address of the
      Holder appearing on the books of the Company, or if no such facsimile number
      or
      address appears, at the principal place of business of the Holder. Any notice
      or
      other communication or deliveries hereunder shall be deemed given and effective
      on the earliest of (i) the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified on the signature
      page prior to 5:30 p.m. (New York City time), (ii) the date immediately
      following the date of transmission, if such notice or communication is delivered
      via facsimile at the facsimile number specified on the signature page between
      5:30 p.m. (New York City time) and 11:59 p.m. (New York City time) on any date,
      (iii) the second Business Day following the date of mailing, if sent by
      nationally recognized overnight courier service or (iv) upon actual receipt
      by
      the party to whom such notice is required to be given.

     

    b) Absolute
      Obligation.
      Except
      as expressly provided herein, no provision of this Debenture shall alter or
      impair the obligation of the Company, which is absolute and unconditional,
      to
      pay the principal of, liquidated damages and accrued default interest, as
      applicable, on this Debenture at the time, place, and rate, and in the coin
      or
      currency, herein prescribed. This Debenture is a direct debt obligation of
      the
      Company.   

     

    c) Lost
      or Mutilated Debenture.
      If this
      Debenture shall be mutilated, lost, stolen or destroyed, the Company shall
      execute and deliver, in exchange and substitution for and upon cancellation
      of a
      mutilated Debenture, or in lieu of or in substitution for a lost, stolen or
      destroyed Debenture, a new Debenture for the principal amount of this Debenture
      so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
      of
      such loss, theft or destruction of such Debenture, and of the ownership hereof,
      reasonably satisfactory to the Company.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    d) Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Debenture shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflict of laws thereof. Each party agrees that all legal
      proceedings concerning the interpretation, enforcement and defense of the
      transactions contemplated by this Debenture (whether brought against a party
      hereto or its respective Affiliates, directors, officers, shareholders,
      employees or agents) shall be commenced in the state and federal courts sitting
      in the City of New York, Borough of Manhattan (the “New
      York Courts”).
      Each
      party hereto hereby irrevocably submits to the exclusive jurisdiction of the
      New
      York Courts for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein
      (including with respect to the enforcement of any term of this Debenture),
      and
      hereby irrevocably waives, and agrees not to assert in any suit, action or
      proceeding, any claim that it is not personally subject to the jurisdiction
      of
      such New York Courts, or such New York Courts are improper or inconvenient
      venue
      for such proceeding. Each party hereby irrevocably waives personal service
      of
      process and consents to process being served in any such suit, action or
      proceeding by mailing a copy thereof via registered or certified mail or
      overnight delivery (with evidence of delivery) to such party at the address
      in
      effect for notices to it under this Debenture and agrees that such service
      shall
      constitute good and sufficient service of process and notice thereof. Nothing
      contained herein shall be deemed to limit in any way any right to serve process
      in any other manner permitted by applicable law. Each party hereto hereby
      irrevocably waives, to the fullest extent permitted by applicable law, any
      and
      all right to trial by jury in any legal proceeding arising out of or relating
      to
      this Debenture or the transactions contemplated hereby. If either party shall
      commence an action or proceeding to enforce any provisions of this Debenture,
      then the prevailing party in such action or proceeding shall be reimbursed
      by
      the other party for its attorneys fees and other costs and expenses incurred
      in
      the investigation, preparation and prosecution of such action or
      proceeding.

     

    e) Waiver.
      Any
      waiver by the Company or the Holder of a breach of any provision of this
      Debenture shall not operate as or be construed to be a waiver of any other
      breach of such provision or of any breach of any other provision of this
      Debenture. The failure of the Company or the Holder to insist upon strict
      adherence to any term of this Debenture on one or more occasions shall not
      be
      considered a waiver or deprive that party of the right thereafter to insist
      upon
      strict adherence to that term or any other term of this Debenture. Any waiver
      by
      the Company or the Holder must be in writing.

     

    f) Severability.
      If any
      provision of this Debenture is invalid, illegal or unenforceable, the balance
      of
      this Debenture shall remain in effect, and if any provision is inapplicable
      to
      any Person or circumstance, it shall nevertheless remain applicable to all
      other
      Persons and circumstances. If it shall be found that any default interest or
      other amount deemed interest due hereunder violates the applicable law governing
      usury, the applicable rate of interest due hereunder shall automatically be
      lowered to equal the maximum rate of interest permitted under applicable law.
      The Company covenants (to the extent that it may lawfully do so) that it shall
      not at any time insist upon, plead, or in any manner whatsoever claim or take
      the benefit or advantage of, any stay, extension or usury law or other law
      which
      would prohibit or forgive the Company from paying all or any portion of the
      principal of or default interest on this Debenture as contemplated herein,
      wherever enacted, now or at any time hereafter in force, or which may affect
      the
      covenants or the performance of this indenture, and the Company (to the extent
      it may lawfully do so) hereby expressly waives all benefits or advantage of
      any
      such law, and covenants that it will not, by resort to any such law, hinder,
      delay or impede the execution of any power herein granted to the Holder, but
      will suffer and permit the execution of every such as though no such law has
      been enacted.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    g) Next
      Business Day.
      Whenever any payment or other obligation hereunder shall be due on a day other
      than a Business Day, such payment shall be made on the next succeeding Business
      Day.

    

    h) Headings.
      The
      headings contained herein are for convenience only, do not constitute a part
      of
      this Debenture and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    i) Assumption. 
      Any successor to the Company or any surviving entity in a Fundamental
      Transaction shall (i) assume, prior to such Fundamental Transaction, all of
      the
      obligations of the Company under this Debenture pursuant to written agreements
      in form and substance satisfactory to the Holder (such approval not to be
      unreasonably withheld or delayed) and (ii) issue to the Holder a new debenture
      of such successor entity evidenced by a written instrument substantially similar
      in form and substance to this Debenture, including, without limitation, having
      a
      principal amount equal to the principal amount of this Debenture and having
      similar ranking to this Debenture, which shall be satisfactory to the Holder
      (any such approval not to be unreasonably withheld or delayed).  The
      provisions of this Section 9(i) shall apply similarly and equally to successive
      Fundamental Transactions and shall be applied without regard to any limitations
      of this Debenture.

    

    *********************

     

    [SIGNATURE
      PAGES FOLLOW]

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Debenture to be duly executed
      by a
      duly authorized officer as of the date first above indicated.

    

      
        	
                CAPITAL
                  GROWTH SYSTEMS, INC.

              
	 	 	 
	
                By:

              	   

	 	
                Name:

              	   

	 	
                Title:

              	   

	
                Facsimile
                  No. for delivery of
                  Notices:___________________

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

    ANNEX
      A

    

    NOTICE
      OF CONVERSION

    

    The
      undersigned hereby elects to convert principal under the Subordinated
      Convertible Debenture of Capital Growth Systems, Inc., a Florida corporation
      (the “Company”),
      into
      shares of common stock (the “Common
      Stock”),
      of
      the Company according to the conditions hereof, as of the date written below.
      If
      shares of Common Stock are to be issued in the name of a person other than
      the
      undersigned, the undersigned will pay all transfer taxes payable with respect
      thereto and is delivering herewith such certificates and opinions as reasonably
      requested by the Company in accordance therewith. No fee will be charged to
      the
      holder for any conversion, except for such transfer taxes, if any.

    

    By
      the
      delivery of this Notice of Conversion the undersigned represents and warrants
      to
      the Company that its ownership of the Common Stock does not exceed the amounts
      specified under Section 4 of this Debenture, as determined in accordance with
      Section 13(d) of the Exchange Act.

    

    The
      undersigned agrees to comply with the prospectus delivery requirements under
      the
      applicable securities laws in connection with any transfer of the aforesaid
      shares of Common Stock. 

    

    Conversion
      calculations:   

    Date
      to
      Effect Conversion:

    

    Principal
      Amount of Debenture to be Converted:

    

    Number
      of
      shares of Common Stock to be issued:

     

    Signature:

     

    Name:

     

    Address
      for Delivery of Common Stock Certificates:

    

    Or

    

    DWAC
      Instructions:

    

    Broker
      No:   

    Account
      No:   

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    Schedule
      1

    

    CONVERSION
      SCHEDULE

    

    The
      Subordinated Convertible Debenture in the original principal amount of
      $____________ is issued by Capital Growth Systems, Inc., a Florida corporation.
      This Conversion Schedule reflects conversions made under Section 4 of the above
      referenced Debenture.

    

    Dated:
      

    

    
      	
              Date of Conversion

              (or for first entry,

              Original Issue Date)

            	 	
              Amount of

              Conversion

            	 	
              Aggregate

              Principal

              Amount

              Remaining

              Subsequent to

              Conversion

              (or original

              Principal

              Amount)

            	 	
              Company Attest

            	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

    

     

    
      
        
        

      

      
        20Unassociated Document

         

    
      Exhibit
        10.3

       

 

    
      MANAGEMENT
        SERVICES AGREEMENT

       

      This
        Management Services Agreement (the “Agreement”) is entered into
        this ___ day of November, 2008, by and among Vanco plc (in administration),
        a
        company incorporated under the laws of England and Wales with registered
        number
        3470117 (“Vanco”), Simon John Granger and Chad Griffin, each an insolvency
        practitioner of FTI Consulting Limited, a company with its principal offices
        at
        Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB, in their respective
        capacities as joint administrators of Vanco (together the “Administrators,”
which term shall include their successors in office), and Capital Growth
        Acquisition, Inc., a corporation organized under the laws of Delaware
        (“Manager”). Individually, each of Manager, the Administrator, and Vanco is a
“Party” and collectively they are the “Parties.”

       

      WHEREAS,
Administrators
        were appointed to act as
        joint administrators of Vanco on May 25, 2008 by Lloyds TSB Bank plc in
        accordance with paragraph 14 to Schedule B1 to the (English) Insolvency Act
        1986;

       

      WHEREAS,
        Vanco has inter alia one U.S.
        subsidiary, Vanco Direct USA LLC (“VDUL”), a Delaware limited liability company
        which holds domestic and international Section 214 authorizations from the
        U.S.
        Federal Communications Commission (“FCC”) and certificates of public convenience
        and necessity or the equivalent from various state telecommunications regulatory
        commissions (the “State Commissions” and, collectively with the FCC, the
“Commissions”) (such authorizations and certificates collectively referred to as
        the “Licenses”);

       

      WHEREAS,
        Manager has made a bid to purchase the
        limited liability company interests of VDUL from Vanco, which bid has been
        approved by the Administrators;

       

      WHEREAS,
Vanco
        has entered into an Interest Purchase
        Agreement with Manager of even date herewith for the sale of the limited
        liability company interests in VDUL (the “Purchase Agreement”), pursuant to
        which Manager will acquire VDUL in a manner consistent with applicable
        law;

       

      WHEREAS,
        the Parties acknowledge and agree that
        certain Regulatory Approvals must be obtained before control of VDUL can
        be
        transferred to Manager; the effective date of the closing of the Purchase
        Agreement pursuant to which the limited liability company interests of VDUL
        shall be conveyed to Manager is the “Closing Date.”

       

      WHEREAS,
        Vanco has retained de facto and
de jure control of VDUL pending receipt of all Regulatory
        Approvals;

       

      WHEREAS,
        in order to ensure uninterrupted service to
        customers of the VDUL Systems pending issuance of the approvals, and to avoid
        associated potential disruption to customers, the Parties desire to enter
        into
        an arrangement for Manager to manage VDUL and VDUL’s network and operations in
        the United States that is the subject of the Licenses (the “VDUL Systems”), at
        all times subject to the oversight, review, supervision and control of Vanco;
        

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      WHEREAS,
        the parties hereto believe it to be in
        their mutual best interests for Manager to provide certain services as described
        below to VDUL until the requisite Regulatory Approvals can be obtained and
        the
        proposed transaction can be completed; 

       

      WHEREAS,
        Vanco and Manager desire that Manager
        provide management services to VDUL in conformity with the rules and policies
        of
        the FCC, the State Commissions, and the terms and conditions of the Purchase
        Agreement and this Agreement; and 

       

      WHEREAS,
        Manager desires to serve as the manager of
        VDUL and the VDUL Systems pursuant to the terms set forth in this
        Agreement;

       

      NOW
        THEREFORE, in consideration of the mutual
        promises contained herein, the sufficiency of which is acknowledged, the
        Parties, intending to be legally bound, hereby agree as follows: 

       

      ARTICLE
I

      DEFINITIONS

       

      Section
        1.1 Definitions. Each term capitalized herein and
        not otherwise defined shall have the meaning assigned to it in the Purchase
        Agreement.

       

      “Communications
        Licenses” means those licenses, registrations,
        authorizations or other authorities which permit VDUL to provide regulated
        interstate, intrastate and local regulated telecommunications services.

       

      “Confidential
        Materials” means any information or materials, whether
        written or oral, tangible or intangible; (i) concerning Vanco, its subsidiaries,
        businesses, markets, products, prospects, finances and member(s), and (ii)
        which
        Manager develops, or with respect to which Manager gains access or knowledge,
        as
        a direct result of Vanco’s, Administrators' or VDUL’s provision to Manager of
        information and/or materials. Notwithstanding the foregoing, the Confidential
        Material shall not include (A) information that was known to, and material
        that
        was in the possession of, Manager prior to the commencement of any negotiations
        with Vanco and Administrators, (B) information that is or becomes generally
        known to, and materials possessed by, the public at large or entities involved
        in the business of VDUL (other than as a result of a breach of this agreement
        by
        Manager or by disclosure of any other party which Manager knows, or has reason
        to know, is under an obligation of confidentiality to Vanco and Administrators),
        (C) information or material acquired by Manager independently from a third
        party
        (other than a third party that Manager knows, or has reason to know, is under
        an
        obligation of confidentiality to Vanco and Administrators), and (D) information
        or material independently developed by Manager and not as a result of the
        disclosure of information or provision of materials by Vanco or Administrators.
        The Confidential Materials may include, but are not necessarily limited to,
        concepts; techniques; data; documentation; research and development; customer
        lists; advertising plans; distribution networks; new product concepts; designs;
        patterns; sketches; planned introduction dates; processes; marketing procedures;
        "know-how"; marketing techniques and materials; development plans; names
        and
        other information related to strategic partners, suppliers, or vendors; pricing
        policies and strategic, business or financial information, including business
        plans and financial pro formas.

       

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
II

      APPOINTMENT
        OF MANAGER

       

      
        
          Section
            2.1 Appointment, Authority, Obligations of
            Manager.

        

      

      

      (a) Manager
        hereby agrees, subject to the terms, conditions, and
        limitations set forth in this Agreement, to provide supervision and management
        services to VDUL so as to meet any and all ongoing obligations associated
        with
        the VDUL Systems and the services provided using the VDUL Systems (the “VDUL
        Services,” and together with the VDUL Systems, the “VDUL Business”), including
        without limitation obligations of VDUL to provide service to the customers
        pursuant to existing contractual relationships and to any new customers that
        may
        from time to time during the Term of this Agreement purchase such services.
        The
        duties of Manager under this Agreement shall include doing all things
        commercially reasonable and necessary to carry out the supervision, operation
        and management of the VDUL Business in a manner, and at a level of service
        quality, substantially consistent with past practices and the manner and
        level
        of service quality in which the VDUL Business has been operated and services
        have been provided by VDUL prior to the Effective Date of this Agreement.

       

      (b) Manager
        hereby accepts such appointment and agrees to
        perform its obligations and responsibilities hereunder and agrees to devote
        such
        time and resources as are necessary to ensure proper and efficient operation
        of
        VDUL and the VDUL Business, and shall make available to Vanco the full range
        of
        its expertise and experience.

       

      (c) Vanco
        hereby grants to Manager as much access as Vanco and
        VDUL has to all facilities, equipment, personnel, books, records and operational
        assets as is necessary to permit Manager to perform its obligations
        hereunder.

       

      

      ARTICLE
        III

      MANAGEMENT
        OF THE VDUL BUSINESS

      

      
        	 	
                Section
                  3.l

              	
                Management
                  of the VDUL
                  Business.

              

      

      

      (a) During
        the Term, the Manager shall have the duty to manage
        the VDUL Business authorized under the Communications Licenses on behalf
        of
        Vanco consistent with the provisions of this Agreement and subject to Vanco’s
        continued ownership, control and reasonable supervision and direction. Upon
        reasonable request, Manager hereby agrees to report to Vanco’s Administrators
        the status of the operations of the VDUL Business.

       

      (b) Vanco
        and Manager desire that this Agreement and the
        performance of Vanco’s and Manager’s obligations hereunder be in full compliance
        with (i) the terms and conditions of the Communications Licenses; (ii) the
        Communications Act of 1934, as amended (the “Act”); (iii) all applicable
        rules, regulations and policies of the Commissions; and (iv) any other
        applicable federal, state and local law or regulation. It is expressly
        understood by Vanco and Manager that nothing in this Agreement is intended
        to
        give Manager any right which would be deemed to constitute a transfer of
        control
        (as is defined in the Act and/or any applicable FCC or state rules, regulations
        or case law) by Vanco of any of the Communications Licenses from Vanco to
        Manager to the extent prohibited by the applicable federal and state law,
        or the
        rules or regulations of any Commission.

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

       

      (c) Manager
        acknowledges and agrees that Vanco has certain
        rights and obligations pursuant to the Communications Licenses with respect
        to
        activities authorized thereunder, which include compliance with the Act,
        and the
        rules, regulations, and policies of the Commissions. The services provided
        by
        Manager hereunder are not intended to diminish or restrict Vanco’s compliance
        with its obligations under applicable law or before the Commissions, and
        this
        Agreement shall not be construed to diminish or interfere with the obligations
        of Vanco or its ability to comply with the rules, regulations or directives
        of
        any governmental or jurisdictional authority with respect to the Communications
        Licenses or the VDUL Business.

       

      (d) Vanco
        shall have unfettered access and authority to inspect
        the books and records, equipment and related hardware that is required to
        transmit and/or receive telecommunications, including but not limited to
        network
        facilities, switching equipment, customer premises equipment and testing
        equipment, for any reason and at any time, including but not limited to access
        for purposes of determining whether, under the Manager’s supervision and
        management, the VDUL Business is operating in a manner that violates the
        terms
        of this Agreement, the Act or the Commissions’ rules, regulations, or policies,
        or is otherwise operating in a harmful or unlawful manner.

       

      (e) Manager
        shall be responsible for providing the management
        services in compliance with VDUL’s existing tariffs and service contracts, and
        all applicable laws, including, without limitation, tariffs in effect from
        time
        to time. Manager shall perform the management services in a professional
        manner
        and in accordance with all applicable professional or industry standards.

       

      ARTICLE
        IV

      PAYMENT
        OF COSTS AND MANAGER’S COMPENSATION

       

      Section
        4.1 Payment of Costs. As of the Effective Date,
        Manager shall be responsible for payment by VDUL of all costs and expenses
        (the
“Costs”) incurred or due with respect to the maintenance and operation of VDUL,
        the VDUL Systems, the compensation of VDUL’s employees, and the provision of the
        VDUL Services, and shall be given full access and signatory authority to
        all
        VDUL financial accounts (the “Accounts”), including VDUL funds as of the
        Effective Date and all revenues collected by VDUL (or on behalf of VDUL by
        Manager) during the Term of this Agreement in connection with the operation
        of
        the VDUL Business (the “Revenue” and together with the Accounts, the “VDUL
        Funds”). VDUL hereby authorizes Manager to use the VDUL Funds to pay its Costs
        and the Monthly Management Fee (as defined below). 

      

      Section
        4.2 Monthly Management Fee. As consideration for
        Manager providing the management services described herein, Vanco agrees
        that
        Manager shall be paid out of the VDUL Funds a monthly fee
        (“Monthly Management Fee”) equal to 30% of the Revenues received each month;
provided that, in any month during the Term in which the
        Monthly Management Fee would otherwise exceed VDUL’s Revenues less its Costs
        (the “Net Revenue”), the Monthly Management Fee shall be no greater than the Net
        Revenue, if any, and VDUL shall not have any obligation to pay Manager any
        greater amount. The Monthly Management Fee shall be paid solely from the
        VDUL
        Funds on the last business day of each month, with the final Monthly Management
        Fee being paid at the end of the Term (as defined below).

       

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

       

      Section
        4.3 Status Reports. At Vanco’s request, Manager
        shall provide Vanco with updates on the status of the operation of the VDUL
        Business and the overall financial condition of VDUL.

      

      Section
        4.4 Books and Records. Manager shall create and
        maintain complete and accurate records of all financial and other material
        transactions relating to performance of this Agreement in a manner consistent
        with records prepared and maintained by Manager in the ordinary course of
        business and with U.S. generally accepted accounting principles. At its
        discretion and expense, Vanco may conduct periodic audits of Vanco’s records
        relating to performance of this Agreement and its operation and management
        of
        the VDUL Business.

       

      ARTICLE
        V

      COMPLIANCE
        WITH APPLICABLE LAWS

       

      Section
        5.1 Compliance with Applicable Laws and
        Regulations.

       

      (a) Manager
        agrees that, in connection with providing the
        management services hereunder, it shall comply in all material respects with
        all
        applicable laws, ordinances, rules, regulations, and restrictions, including
        but
        not limited to the Act, the FCC and State Commission rules, regulations,
        and
        policies, and local ordinances, and shall respond promptly to all regulatory
        correspondence or inquiries and any and all adversarial pleadings of whatever
        nature filed with the Commissions or any other governmental authority and
        will
        promptly notify Vanco of the receipt thereof.

       

      (b) Vanco
        and Manager agree that they shall not take any action
        that would violate any Communications License or that could reasonably be
        expected to cause the cancellation, revocation, or adverse modification of
        any
        Communications License or that could be expected to otherwise impair the
        good
        standing or renewal of any License.

       

      (c) Manager
        acknowledges and agrees that Vanco has certain
        rights and obligations pursuant to the Communications Licenses with respect
        to
        activities authorized thereunder, which include compliance with the Act and
        similar state statutes, and the rules, regulations, and policies of the
        Commissions. The services provided by Manager hereunder are not intended
        to
        diminish or restrict Vanco’s compliance with its respective obligations under
        applicable law or before the Commissions, and this Agreement shall not be
        construed to diminish or interfere with any Vanco’s obligation or ability to
        comply with the rules, regulations or directives of any governmental or
        jurisdictional authority with respect to the Communications Licenses. On
        behalf
        of Vanco, Manager shall take or cause to be taken all reasonable and appropriate
        steps necessary to keep the Communications Licenses in full force and effect
        and
        in good standing. 

       

      (d) Manager
        and Vanco recognize that VDUL, and ultimately Vanco,
        remain responsible for compliance with the terms of the Communications Licenses.
        In that regard, the Manager shall not, without the prior consent of Vanco’s
        Administrators, such consent not to be unreasonably withheld if consistent
        with
        past practice of operations by VDUL, take the following actions:

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (i)

              	
                enter
                  into, modify, intentionally breach or terminate any
                  material agreement relating to the assets managed by Manager, other
                  than
                  in the ordinary course of business;

              

      

       

      
        	 	
                (ii)

              	
                sell,
                  assign, lease, transfer or otherwise dispose of any
                  material asset or purchase or otherwise acquire any assets for
                  VDUL except
                  for non-material assets acquired in the ordinary course of
                  business;

              

      

       

      
        	 	
                (iii)

              	
                initiate,
                  settle or terminate any material litigation relating
                  to the regulated aspects of the VDUL Business or waive any material
                  rights
                  of VDUL or Vanco; 

              

      

       

      
        	 	
                (iv)

              	
                demote
                  or terminate any employee of VDUL other than with
                  respect to headcount reduction amounts previously disclosed to
                  Manager;
                  

              

      

       

      
        	 	
                (v)

              	
                hire
                  any employee for VDUL; or 

              

      

       

      
        	 	
                (vi)

              	
                cause
                  VDUL to take any action or neglect to take any action
                  which would constitute a default under this Agreement or the Purchase
                  Agreement.

              

      

       

      (e) 
 The
        parties hereby agree that Manager shall request
        Vanco’s consent to the actions referenced in Section 5.1(d) above in writing to
        Vanco’s Administrators.  For purposes of this Section 5, notice and consent
        by any party can be achieved by electronic mail. Unless Vanco refuses in
        writing
        to grant consent within two (2) business days of receipt of a request for
        consent by Manager, Vanco’s consent will be deemed granted.

       

      (f) Vanco
        shall be responsible for the filing of all
        applications, reports, correspondence and other documentation with the
        Commissions relating to the VDUL Business; provided, however, that
        Manager shall assist Vanco by preparing such filings for Vanco’s review; and
provided, further, that Manager shall reimburse Vanco out of the VDUL
        Funds for all of its reasonable out-of-pocket legal fees and other expenses
        incurred in connection with such applications, correspondence and other related
        matters, to the extent that any such review results in material changes to
        any
        of the materials prepared by Manager. Manager shall provide upon Vanco’s
        reasonable request any information which will enable it to review and complete
        any records and reports required by the Commissions and other federal, state
        or
        local government authorities. 

       

      
        
          
          

        

        
          -6-

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        VI

      TERM

       

      Section
        6.1 Term. The term (“Term”) of this Agreement
        shall commence upon the “Initial Closing” as that term is defined in the IPA
        (the “MSA Effective Date”) and automatically end on the earlier of (i) the
        Closing Date; or (ii) termination of the Purchase Agreement pursuant to Section
        8.13 thereof. 

      

      Section
        6.2 Automatic Termination. This Agreement shall
        automatically terminate if any Commission issues a formal written order,
        which
        is final and non-appealable, that Manager is precluded from performing its
        duties hereunder and any period of time provided by such Commission to Manager
        to remedy such situation has expired.

      

      Section
        6.3 Performance After Termination. After receipt
        of written notice of termination, but prior to the effective date of such
        termination, Manager shall continue to perform under this Agreement unless
        specifically instructed to discontinue such performance.

       

      Section
        6.4 Termination Transition. On the effective date
        of any termination, or before such date if so instructed, Manager shall
        relinquish to Vanco, or its designee, possession of all property of VDUL,
        including but not limited to the VDUL Systems, The VDUL Funds, and all
        documents, data and records pertaining to the VDUL Business, including without
        limitation complete records of all financial and other material transactions
        relating to Manager’s performance of this Agreement. Notwithstanding anything to
        the contrary contained herein, in the event of a successful closing of the
        Purchase Agreement on the Closing Date, then VDUL shall retain all property
        of
        VDUL, however Vanco shall be entitled to inspect and copy all records pertaining
        to VDUL necessary for Vanco to complete its tax returns, to monitor compliance
        of Manager with respect to its obligations hereunder and to enable Vanco
        to
        address any regulatory issues that may arise as a result of its ownership
        of
        VDUL through the Closing Date.

      

      ARTICLE
        VII

      MISCELLANEOUS

       

      Section
        7.1 Amendment and Modification; Obligation to
        Renegotiate. This Agreement may be amended, modified or supplemented only by
        written agreement of Vanco and Manager. In the event that a governmental
        entity
        with jurisdiction over any or all of the Parties or over this Agreement
        determines that one or more provisions of this Agreement are unlawful, contrary
        to public policy, or otherwise unenforceable, the Parties will negotiate
        in good
        faith to amend the Agreement in order to comply with any such applicable
        regulatory requirements or policies while preserving the business objectives
        of
        all Parties.

       

      Section
        7.2 Waiver of Compliance; Consents. Except as
        otherwise provided in this Agreement, any failure of any of the parties to
        comply with any obligation, covenant or condition herein may be waived by
        the
        Party entitled to the benefits thereof only by a written instrument signed
        by
        the Party granting such waiver, but such waiver or failure to insist upon
        strict
        compliance with such obligation, covenant, or condition shall not operate
        as a
        waiver of or estoppel with respect to any subsequent or other failure.

       

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

       

      Section
        7.3 Notices. All notices under this Agreement
        shall be sufficiently given for all purposes if made in writing and delivered
        personally, sent by documented overnight delivery service or, to the extent
        receipt is confirmed, facsimile or other electronic transmission, to following
        addresses and numbers: 

       

      
        	
                Notices
                  to Seller shall be addressed to:

              
	 
	 	
                Vanco
                  plc (in administration)

                Holborn
                  Gate

                26
                  Southampton Buildings 

                London
                  WC2A 1PB 

                Fax: +44-203-077-0599

                E-Mail:
                  simon.granger@fticonsulting.com

                Attn: The
                  Administrators

              
	 
	
                Notices
                  to Administrators shall be addressed to:

              
	 
	 	
                The
                  Administrators

                Holborn
                  Gate

                26
                  Southampton Buildings 

                London
                  WC2A 1PB 

                Fax: +44-203-077-0599

                E-Mail:
                  simon.granger@fticonsulting.com

                Attn: Simon
                  Granger

              
	 
	
                Each
                  with a copy to:

              
	 
	 	
                Bingham
                  McCutchen LLP

                2020
                  K Street, N.W., Suite 1100

                Washington,
                  DC 20006

                Fax: (202)
                  373-6001

                E-Mail:
                  jean.kiddoo@bingham.com

                Attn: Jean
                  L. Kiddoo, Esq.

              

      

      

      or
        at such other address and to the attention to such other person as
        Seller and/or Administrators may designate by written notice to Manager.

      

      
        	
                Notices
                  to Manager shall be addressed to:

              
	 
	 	
                Capital
                  Growth Acquisition, Inc.

                500
                  W. Madison, Suite 2060

                Chicago,
                  Illinois 60661

                Fax:
                  312-673-2422

                E-Mail:
                  pshutt@globalcapacity.com;

                Attn.:
                  Patrick Shutt, CEO

              
	 

      

       

      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

       

      
        	
                With
                  a copy to:

              
	 
	 	
                Shefsky
&
Froelich
                  Ltd.

                111
                  E. Wacker, Suite 2800

                Chicago,
                  Illinois 60601

                Fax:
                  312-527-3194

                E-Mail:
                  mgoldsmith@shefskylaw.com;

                Attn.:
                  Mitchell D. Goldsmith,
                  Esq.

              

      

      

      or
        at such other address and to the attention of such other person as
        Manager may designate by written notice to Seller and Administrators.

       

      Section
        7.4 Assignment. This Agreement and all of the
        provisions hereof shall be binding upon and inure to the benefit of the parties
        hereto and their respective successors and permitted assigns but neither
        this
        Agreement nor any of the rights, interests or obligations hereunder shall
        be
        assigned by any party hereto, including by operation of law, without the
        prior
        written consent of the other party; provided however, that Vanco’s consent to a
        request by Manager to assign this Agreement to a special purpose acquisition
        company shall not be unreasonably withheld so long as Manager provides assurance
        that such special purpose vehicle is financially qualified to undertake
        Manager’s responsibilities under this Agreement, which assurance may include, at
        Vanco’s request, a guarantee by the parent company of the special purpose
        vehicle. Any assignment of this Agreement or any of the rights, interests
        or
        obligations hereunder in contravention of this Section 7.4 shall be null
        and
        void ab initio.

       

      Section
        7.5 No Third-Party Beneficiaries; Limitation of
        Liability. Nothing in this Agreement shall be construed as giving any person
        other than the Parties hereto any legal or equitable right, remedy or claim
        under or with respect to this Agreement.

       

      Section
        7.6 Invalidity. If any term or other provision of
        this Agreement is invalid, illegal or incapable of being enforced by any
        rule of
        law or public policy all other terms, the conditions and provisions of this
        Agreement shall nevertheless remain in full force and effect so long as the
        economic or legal substance of the transactions contemplated hereby is not
        affected in any manner materially adverse to any Party. 

       

      Section
        7.7 Governing Law and Binding Effect. This
        Agreement shall be governed by and construed and enforced in accordance with
        the
        internal laws of the State of Delaware applicable to contracts made and to
        be
        performed entirely therein without giving effect to the conflicts of laws
        principles thereof.  This Agreement shall also be governed
        by and construed and enforced in accordance with applicable federal law.
         This Agreement shall bind and inure to the benefit of
        each of the Parties and their permitted successors and assigns.

       

      Section
        7.8 Counterparts. This Agreement may be executed
        in counterparts each of which shall be deemed an original and all of which
        together shall constitute one and the same instrument; and, in pleading or
        proving any provision of this Agreement, it shall not be necessary to produce
        more than one counterpart. Delivery of an executed counterpart of a signature
        page to this Agreement by telecopy shall be as effective as delivery of a
        manually executed counterpart of this Agreement. In proving this Agreement,
        it
        shall not be necessary to produce or account for more than one such counterpart
        signed by the party against whom enforcement is sought.

       

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

       

      Section
        7.9 Entire Agreement; Amendments and Waivers.
        This Agreement, together with the Purchase Agreement (including the schedules
        and exhibits thereto) constitute the entire agreement between the parties
        pertaining to the subject matter hereof and supersede all prior agreements,
        understandings, negotiations, and discussions, whether oral or written, of
        the
        Parties. No supplement, modification or waiver of this Agreement shall be
        binding unless the same is executed in writing by all parties. No waiver
        of any
        of the provisions of this Agreement shall be deemed or shall constitute a
        waiver
        of any other provision hereof (whether or not similar), and no such waiver
        shall
        constitute a continuing waiver unless otherwise expressly provided. 

       

      Section
        7.11 Headings. The headings of the Articles and
        Sections herein are inserted for convenience of reference only and are not
        intended to be a part of, or to affect the meaning or interpretation of,
        this
        Agreement. Whenever used herein the singular number shall include the plural,
        the plural shall include the singular, and the use of any gender shall include
        all genders.

       

      Section
        7.12 Remedies. Vanco and Manager hereby
        acknowledge and agree that money damages may not be an adequate remedy for
        any
        breach or threatened breach of any of the provisions of this Agreement and
        that,
        in such event, Vanco or its successors or assigns, or Manager or its successors
        or assigns, as the case may be, may, in addition to any other rights and
        remedies existing in their favor, apply to the courts for specific performance,
        injunctive and/or other relief, without the necessity of posting bond, in
        order
        to enforce or prevent any violations of this Agreement.

       

      Section
        7.13 No Partnership or Joint Venture Created.
        Each Party shall be an independent contractor of the other Parties and nothing
        herein shall be construed as creating any other relationship among the Parties.
        The relationship established by this Agreement will not be construed to create
        a
        partnership, joint venture, or any other form of legal entity, nor establish
        any
        fiduciary relationship among the Parties or any affiliate of any Party. The
        provision of the services described in this Agreement does not establish
        any
        joint undertaking, joint venture, pooling arrangement, partnership, fiduciary
        relationship or formal business organization of any kind. Except as provided
        in
        this Agreement, no Party shall act as or hold itself out as agent for any
        other
        Party or create or attempt to create liabilities for any other Party.

       

      Section
        7.14 Confidentiality. Administrators, Vanco and
        Manager, and their respective officers, directors, partners and affiliates,
        agree to keep the terms and conditions of this Agreement and the transactions
        contemplated hereby confidential, and each agree not to disclose to any party
        not a party to this Agreement any of the terms hereof, except where such
        disclosure is: (i) to its professional advisers; (ii) current and
        prospective financing sources and their advisors; or (iii) is required by
        applicable law or the rules or standards of the United States Securities
&
Exchange Commission, the London Stock Exchange or the Listing Rules of the
        UK
        Listing Authority, or the rules and requirements of any other competent
        regulatory body, which determination may be made in the good faith opinion
        of
        counsel to the Party that is subject to the regulatory body in question.
        Manager
        expressly acknowledges that it has received, and will receive in the future,
        Confidential Materials (as hereinafter defined), and that disclosure of such
        Confidential Materials to parties not a party to this Agreement or otherwise
        permitted hereunder would cause irreparable harm to Vanco or
        Administrators. Except with the prior written consent of Vanco or Administrators
        or as required by law (including as set forth in clause (iii) immediately
        above), neither Manager nor its officers, directors, partners or affiliates,
        shall (i) disclose any Confidential Materials to any party not a party to
        this
        Agreement, or (ii) use any Confidential Materials for any purpose except
        in
        connection with their efforts on behalf of Vanco or Administrators. Manager
        and
        its officers, directors, partners and affiliates shall use their reasonable
        best
        efforts to preserve the confidentiality of all Confidential Materials. In
        the
        event that a party concludes that it is legally obligated to disclose any
        provision of this Agreement or any Confidential Materials, such party shall
        provide the other party with prompt written notice, and shall seek to limit
        the
        dissemination of such Confidential Materials subject to the requirement for
        dissemination as may be required in the good faith opinion of its counsel
        as it
        relates to disclosure to meet regulatory body approval. In the case of legal
        proceedings in which such disclosure is required, the parties shall cooperate
        to
        obtain an appropriate protective order limiting the disclosure of such material.
        The parties acknowledge that they may be required to disclose certain terms
        of
        this Agreement, or the entirety hereof, to the FCC or certain State Commissions
        in connection with applying for the Regulatory Approvals or in filings with
        the
        SEC. Notwithstanding the foregoing, Administrators may disclose details of
        this
        Agreement to their appointors, advisers and any liquidator of Vanco and also
        for
        the purpose of enforcing its terms, or if required to do so by any court.
        They
        may also include appropriate details in their administration records, accounts
        and returns.

       

      
        
          
          

        

        
          -10-

          
            

          

        

        
          
          

        

      

       

      Notwithstanding
        the foregoing, Vanco or Administrators may disclose
        the amount of the Purchase Price to any third party if, in the sole and absolute
        discretion of Seller or Administrators, such disclosure is necessary to enable
        Vanco and/or Administrators to fulfill its/their obligations under the terms
        of
        any contract or arrangement with such third party.

       

      7.15 Events
        of Default, Remedies. 

       

      (a)
 Manager
        shall be in default under this Agreement upon the
        occurrence of any of the following events (regardless whether any such event
        is
        voluntary or involuntary or occurs by operation of law or pursuant to any
        judgment, decree, order, rule or regulation of any court or administrative
        or
        governmental body):

       

      
        	 	
                i.

              	
                the
                  failure of Manager to perform its obligations hereunder or
                  to observe in any material respect any covenant or agreement to
                  be
                  performed or observed by it hereunder and the continuation of such
                  failure
                  for a period of thirty days after Manager receives written notice
                  thereof;
                  

              

      

      

      
        	 	
                ii.

              	
                Manager
                  loses the requisite authority to perform its
                  obligations hereunder if (1) the loss is not
                  remedied within sixty (60) days of the loss thereof and
                  (2) the loss has a material adverse effect upon
                  Vanco, VDUL or Administrators; or

              

      

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      
        	 	
                iii.

              	
                any
                  of the representations or warranties of Manager contained
                  herein shall cease to be true in any material
                  respect.

              

      

      

      (b) Upon
        the occurrence and during the continuance of any event
        of default and expiration of any related cure period, Vanco and/or the
        Administrators may, at their option, terminate this Agreement by written
        notice,
        which shall be effective immediately (subject to the obligation to provide
        prior
        notice of default if the default was the type that was susceptible of a cure).
        This remedy is not intended to be exclusive, and all remedies shall be
        cumulative and may be exercised concurrently with any other remedy available
        to
        a Party at law or in equity. 

      

      7.16 Indemnification;
        Limitation of Liability. 

      

      (a) Manager
        hereby agrees to defend, indemnify and hold harmless
        Vanco, Administrators and their respective officers, directors, managers,
        members, employees, agents, attorneys and affiliates, as well as the managers
        and officers of VDUL, from and against, and to promptly pay, all damages
        asserted against or incurred by reason of or resulting from any action,
        proceeding, claim or demand of any kind (actual or contingent) that may be
        brought or made against Vanco, the Administrators and/or the managers or
        officers of VDUL, and any loss, damage, award, cost, charge, penalty or expense
        incurred by Vanco, the Administrators and/or the managers or officers of
        VDUL as
        a result of Manager’s management of VDUL and the VDUL Systems hereunder. IN NO
        EVENT SHALL VANCO BE LIABLE, WHETHER IN CONTRACT, TORT (INCLUDING BUT NOT
        LIMITED TO LIABILITY FOR NEGLIGENCE), MISREPRESENTATION, WARRANTY OR ANY
        OTHER
        LEGAL OR EQUITABLE GROUNDS, FOR SPECIAL, CONSEQUENTIAL, EXEMPLARY OR PUNITIVE
        DAMAGES AS A RESULT OF THE PERFORMANCE OR NON-PERFORMANCE OF ITS OBLIGATIONS
        UNDER THIS AGREEMENT.

      

      (b) For
        purposes of the indemnifications, defense, hold harmless
        and other limitations of liability set forth in this section, the officers,
        managers, members, employees, agents, attorneys and affiliates of VDUL as
        of the
        MSA Effective Date shall be considered third party beneficiaries of this
        Agreement. 

      

      7.17 Force
        Majeure. No Party shall be liable to another
        Party for any failure of performance under this Agreement due to causes beyond
        its control, including fire, flood or other catastrophes; any law, order,
        regulation, direction, action, or request of the United States Government,
        or of
        any other government, including state and local governments having or claiming
        jurisdiction over such party, or of any department, agency, commission, bureau,
        corporation or other instrumentality of any one or more of these federal,
        state
        or local governments, or of any civil or military authority; national
        emergencies; unavailability of materials or rights-of-way; insurrections;
        riots;
        wars; or strikes, lock-outs, significant work stoppages or other significant
        labor difficulties. In the event of any delay resulting from such causes,
        upon
        notice to the other parties promptly following the occurrence of the event
        giving rise to the delay, the time for performance hereunder shall be extended
        for a period of time reasonably necessary to overcome the effects of such
        delay.

       

      
        
          
          

        

        
          -12-

          
            

          

        

        
          
          

        

         

      

      7.18 Disclaimers.
        THERE ARE NO AGREEMENTS, WARRANTIES OR
        REPRESENTATIONS, EXPRESS OR IMPLIED EITHER IN FACT OR BY OPERATION OF LAW,
        STATUTORY OR OTHERWISE, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS
        FOR
        A PARTICULAR PURPOSE OR USE, EXCEPT THOSE EXPRESSLY SET FORTH HEREIN AND
        ALL
        OTHER WARRANTIES ARE DISCLAIMED TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
        LAW.

      

      7.19 Severability.
        If any term or other provision of this
        Agreement is invalid, illegal or incapable of being enforced by any rule
        of law
        or public policy, all other conditions and provisions of this Agreement shall
        nevertheless remain in full force and effect so long as the economic or legal
        substance of the transactions contemplated hereby is not affected in any
        manner
        adverse to any Party. Upon such determination that any term or other provision
        is invalid, illegal or incapable of being enforced, the Parties hereto shall
        negotiate in good faith to modify this Agreement so as to effect the original
        intent of the Parties as closely as possible in an acceptable manner to the
        end
        that transactions contemplated hereby are fulfilled to the greatest extent
        possible.

      

      7.20 Further
        Assurances. Each Party agrees to execute all
        such further instruments and documents and to take all such further actions
        as
        any other Party may reasonably request in order to effectuate the terms and
        purposes of this Agreement; provided preparation of any such instruments
        and
        documents and any such further actions shall be at Manager’s expense.

      

      7.21 Manager’s
        Risk. Failure to obtain any requisite
        license, consent, permit, registration, right or Regulatory Approval shall
        not
        prejudice this Agreement, the Purchase Agreement or, in particular, the Purchase
        Price payable under the Purchase Agreement. Manager shall solely and exclusively
        bear all risks associated with not obtaining any or all of the Regulatory
        Approvals.

      

      7.22 Exclusion
        of Liability. 

      

      (a) All
        conditions, representations (including pre-contractual
        negligent and innocent misrepresentations) and warranties express or implied,
        and whether statutory or otherwise, relating to VDUL are expressly excluded.
        In
        particular, but without limitation, all representations and warranties as
        to
        title, quiet possession, enjoyment, quality, condition, state or description
        of
        VDUL or their fitness or suitability for any purpose whatsoever or whether
        the
        Regulatory Approvals or any of them will be forthcoming are expressly
        excluded.

       

      
        
          
          

        

        
          -13-

          
            

          

        

        
          
          

        

      

       

      (b) Any
        claim of Manager, or of any person claiming through it,
        against Vanco or the Administrators shall take effect as an unsecured claim
        and
        not as an administration expense.

      

      (c) The
        exclusions of liability in this Agreement shall:

      

      
        	 	
                (i)

              	
                arise
                  and continue notwithstanding the termination of
                  Administrators' agency before or after the signing of this Agreement
                  and
                  shall operate as waivers of any claims in tort as well as under
                  the law of
                  contract;

              

      

      

      
        	 	
                (ii)

              	
                be
                  in addition to and not in substitution for and
                  notwithstanding any right of indemnity or relief otherwise
                  available;

              

      

      

      
        	 	
                (iii)

              	
                continue
                  after termination
                  hereof.

              

      

      

      (d) Nothing
        in this Agreement shall operate to restrict or
        affect in any way any right of Administrators to be indemnified, or to exercise
        a lien howsoever.

      

      (e) In
        the absence of an express provision to the contrary,
        nothing in this Agreement shall require Vanco or Administrators to carry
        out or
        continue to carry out any arrangement or contract, whether single or of
        continuing effect, with third parties and whether in relation to VDUL or
        otherwise.

      

      (f) Any
        claim against Vanco and/or against Administrators (or
        their firm, partners, employees, agents, advisers or representatives) related
        to
        this Agreement shall in any event and in addition to the exclusions of liability
        contained in this Agreement, be irrevocably waived by Manager unless made
        in
        writing by notice to Administrators within 30 days after the Closing Date.

      

      (g) The
        exclusions and limitations contained in this Agreement
        shall not apply in the case of any fraudulent misrepresentation made by Seller
        or Administrators or their respective agents or insofar as any action against
        any of them is based upon the fraud of Seller or Administrators or their
        respective agents.

      

      (h) Administrators
        are party to this Agreement solely to obtain
        the benefit of the exclusions and limitations on liability and undertakings
        in
        their favor.

      

      7.23 Exclusion
        of Personal Liability.

      

      (a) Administrators
        are agents of Seller and have been acting in
        that capacity in the negotiation, preparation and implementation of this
        Agreement.

       

      (b) Neither
        Administrators nor their firm, staff, employees,
        advisers and agents shall incur personal liability under this Agreement or
        any
        other deed, instrument or document entered into pursuant to it and any liability
        to which Administrators or their staff, employees, advisers and agents would
        otherwise be subject (whether in contract, tort or otherwise) is expressly
        excluded.

       

      
        
          
          

        

        
          -14-

          
            

          

        

        
          
          

        

      

       

      (c) Any
        right under this Agreement which is for the benefit of
        Administrators (and in particular, without prejudice to the generality of
        the
        foregoing, any right to be indemnified by Manager and the rights granted
        hereunder and all rights to receive any payment from Manager) shall also
        be for
        the benefit of, and shall be exercisable by, any subsequent administrator,
        liquidator or other insolvency practitioner (a "Subsequent Appointee") appointed
        in respect of Seller and so that, as regards such Subsequent Appointee, the
        relevant clause shall apply mutatis mutandis so that references to
        Administrators shall be treated as references to such Subsequent
        Appointee.

       

      [SIGNATURES
        APPEAR ON THE FOLLOWING PAGE]

      
        
          
          

        

        
          -15-

          
            

          

        

        
          
          

        

      

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

      

      
        	
                “Vanco”

              	 
	 	 
	
                Vanco
                  plc (in administration) represented by one of its
                  Administrators 

                (acting
                  as agent for and on behalf of Vanco without personal
                  liability)

              	 
	 	 
	
                By:

              	
                ____________________________________

              	 
	 	 
	
                Name:

              	
                Simon
                  Granger

              	 
	 	 
	
                Title:

              	
                Administrator

              	 
	 	 
	
                “Administrators”

              	 
	 	 
	
                On
                  behalf of the Administrators (without personal
                  liability)

              	 
	 	 
	
                By:

              	
                ____________________________________

              	 
	 	 
	
                Name:

              	
                Simon
                  Granger

              	 
	 	 
	
                Title:

              	
                Administrator

              	 
	 	 
	
                “Manager”

              	 
	 	 
	
                Capital
                  Growth Acquisition, Inc.

              	 
	 	 
	
                By:

              	
                ____________________________________

              	 
	 	 	 
	
                Name:

              	
                Patrick
                  C. Shutt

              	 
	 	 	 
	
                Title:

              	
                CEO

              	 

      

       

    

    
      
        
        

      

      
        -16-

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