Document:

Exhibit
      4.2

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED BY THE HOLDER HEREOF FOR ITS
      OWN ACCOUNT FOR INVESTMENT WITH NO INTENTION OF MAKING OR CAUSING TO BE MADE
      A
      PUBLIC DISTRIBUTION OF ALL OR ANY PORTION THEREOF. SUCH SECURITIES HAVE NOT
      BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND
      MAY
      NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, EXCEPT PURSUANT TO
      AN
      EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN
      EXEMPTION FROM REGISTRATION UNDER SUCH ACT.

     

    
      	
              No.

            	 	 	
              ____________,
                200_

            
	 	
              Chicago,
                Illinois

            

    

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    FORM
      OF WARRANT TO PURCHASE

    SERIES
      AA
      PREFERRED STOCK AT $1,444.43 PER PREFERRED
      SHARE, OR
      $0.65

    
      PER
        COMMON SHARE ON AS CONVERTED BASIS

       

    

    Void
      after December 31, 2009, Unless Extended

     

    Capital
      Growth Systems, Inc., a Florida corporation (the “Company”), hereby certifies
      that, for value received, _______________________________________ (including
      any
      successors and assigns, “Holder”), is entitled, subject to the terms set forth
      below, to purchase from the Company at any time or from time to time before
      5:00
      PM Central time, on December 31, 2009 (the “Expiration Date”), which date is
      subject to extension as set forth in Section
      7
      fully
      paid and nonassessable shares of the Company’s Series AA Preferred Stock (the
“Warrant Shares”) under the terms set forth herein. Holder acknowledges that
      effective upon the filing of an amendment to the Articles of Incorporation
      of
      the Company increasing its authorized Common Stock to not less than 200,000,000
      shares (the “Amendment”), each share of Series AA Preferred Stock shall
      automatically be converted into 2,222.2 shares of $0.0001 par value Company
      common stock (“Common Stock”) and for purposes of this Warrant, effective as of
      the filing of the Amendment, all references hereto to Warrant Shares shall
      be
      automatically amended to refer to the corresponding number of shares of Common
      Stock into which the shares of Series AA Preferred Stock have been
      converted.

     

    1. Number
      of Warrant Shares; Exercise Price.
      This
      Warrant shall evidence the right of the Holder to purchase up to __________
      Warrant Shares (which number of Warrant Shares will remain fixed and is not
      subject to any adjustment except as provided in Section
      6
      below)
      at an initial exercise price per Warrant Share of $1,444.43 per share of Series
      AA Preferred Stock (i.e. $0.65 per share of Common Stock following the
      Amendment) (the “Exercise Price”), subject to adjustment as provided in
Sections
      6 and  7
      below.

     

    2. Definitions.
      As used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

      (a) The
        term
“Common Stock” shall mean the common stock, par value $0.0001 of the
        Company.

       

    

    (b) The
      term
“Company” shall mean Capital Growth Systems, Inc. and shall include any company
      which shall succeed to or assume the obligations of the Company
      hereunder.

     

    (c) The
      term
“Corporate Transaction” shall mean (i) a sale, lease transfer or conveyance of
      all or substantially all of the assets of the Company; (ii) a consolidation
      of
      the Company with, or merger of the Company with or into, another corporation
      or
      other business entity in which the stockholders of the Company immediately
      prior
      to such consolidation or merger own less than 50% of the voting power of the
      surviving entity immediately after such consolidation or merger; or (iii) any
      transaction or series of related transactions to which the Company is a party
      in
      which in excess of 50% of the Company’s voting power is transferred, excluding
      any consolidation or merger effected exclusively to change the domicile of
      the
      Company and/or an effective change of the number of issued and outstanding
      shares of the Company (i.e. reverse or forward split), and further including
      any
      of the issuances of capital stock with respect to any of the transactions
      contemplated in the Memorandum. 

     

    (d) The
      term
“Memorandum” shall mean the private placement memorandum pursuant to which this
      Warrant was issued as part of “Units” comprised of Series AA Preferred Stock and
      Offering Warrants.

     

    (e) The
      term
“Offering Warrants” shall mean this Warrant and each other warrant issued to
      purchasers of Units pursuant to the offering set forth in the Memorandum.

     

    3. Exercise
      Date; Expiration.
      Subject
      to the terms hereof, this Warrant may be exercised by the Holder at any time
      or
      from time to time before the Expiration Date (the “Exercise
      Period”).

     

    4. Exercise
      of Warrant; Partial Exercise.
      This
      Warrant may be exercised in full by the Holder by surrender of this Warrant,
      together with the Holder’s duly executed form of subscription attached hereto as
Exhibit A,
      to the
      Company at its principal office, accompanied by payment, in cash or by certified
      or official bank check payable to the order of the Company, of the aggregate
      exercise price (as determined above) of the number of Warrant Shares to be
      purchased hereunder. The exercise of this Warrant pursuant to this Section 4
      shall be
      deemed to have been effected immediately prior to the close of business on
      the
      business day on which this Warrant is surrendered to the Company as provided
      in
      this Section 4,
      and at
      such time the person in whose name any certificate for Warrant Shares shall
      be
      issuable upon such exercise shall be deemed to be the record holder of such
      Warrant Shares for all purposes. As soon as practicable after the exercise
      of
      this Warrant, the Company at its expense will cause to be issued in the name
      of
      and delivered to the Holder, or as the Holder may direct, a certificate or
      certificates for the number of fully paid and nonassessable full shares of
      Warrant Shares to which the Holder shall be entitled on such exercise, together
      with cash, in lieu of any fraction of a share, equal to such fraction of the
      current fair market value of one full Warrant Share as determined in good faith
      by the Board of Directors and as set forth in Section
      7,
      and, if
      applicable, a new warrant evidencing the balance of the shares remaining subject
      to the Warrant.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5. Weighted
      Average Anti-Dilution Price Protection.
      The
      purchase price of Warrant Shares (or any shares of stock or other securities
      which may be) issuable upon the exercise of this Warrant shall be subject to
      adjustment from time to time, as follows:

     

    (a) “New
      Securities” shall mean any Common Stock or preferred stock of Company issued
      during the term of this Warrant, whether now authorized or not, and rights,
      options or warrants to purchase said Common Stock or preferred stock, and
      securities of any type whatsoever that are, or may become, convertible into
      said
      Common Stock or preferred stock (including but not limited to convertible debt
      or any other instrument exercisable for or convertible into Common Stock);
      provided, however, that “New Securities” does not include (i) any securities
      issued or issuable pursuant to any of the notes, options, warrants or other
      securities outstanding as of the date of the closing of the offering pursuant
      to
      the Memorandum, including all Offering Warrants; (ii) up to 5,000,000 shares
      of
      Common Stock issued pursuant to the stock option plan contemplated in the
      Memorandum; any stock option plan maintained by Company; or (iii) shares of
      Company's Common Stock issued in connection with any stock split, stock
      dividend, or recapitalization by Company.

     

    (b) In
      the
      event that Company issues New Securities for a consideration of less than $0.65
      per share of Common Stock (on an as converted to Common Stock basis, as adjusted
      per this Section
      5
      hereof)
      (the “Original Purchase Price”), or if the Original Purchase Price shall have
      been adjusted hereunder, and the Company issues New Securities for a purchase
      price below the adjusted Purchase Price, then the then-current Purchase Price
      shall be adjusted downward to a price determined by dividing

     

    (i) the
      sum
      of (w) the Purchase Price in effect before the issuance of such New Securities
      multiplied by the number of shares of the Company’s Common Stock then issued and
      outstanding plus the number of shares of Company preferred stock then issued
      as
      converted into shares of Common Stock (including shares of common stock reserved
      pursuant to the issued Offering Warrants) immediately prior to the issuance
      of
      such New Securities and (x) the consideration, if any, received by or deemed
      to
      have been received by the Company on the issue of such New Securities
      by:

     

    (ii) the
      sum
      of (y) the number of shares of the Company’s Common Stock then issued and
      outstanding plus the number of shares of the Company’s preferred stock then
      issued as converted into shares of Common Stock (including shares of Common
      Stock reserved pursuant to the issued Offering Warrants) immediately prior
      to
      the issuance of such New Securities and (z) the number of Additional Shares
      of
      Common Stock issued or deemed to have been issued in the issuance of such New
      Securities.

     

    (c) In
      the
      case of the issuance of Common Stock for cash, the consideration shall be deemed
      to be the amount of cash paid.

     

    
      
        
        

      

      
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    (d) In
      the
      case of the issuance of Common Stock for a consideration in whole or in part
      other than cash, the consideration other than cash shall be deemed to be the
      fair value thereof as reasonably determined by the Company’s board of directors
      consistent with its fiduciary duties irrespective of any accounting
      treatment.

     

    (e) The
      Company will not by reorganization, transfer of assets, consolidation, merger,
      dissolution, or otherwise, avoid or seek to avoid observance or performance
      of
      any of the terms of this Section
      5,
      but
      will at all times in good faith assist in the carrying out and performance
      of
      all provisions of this Section
      5
      in order
      to protect the rights of the Holder against impairment.

     

    6. Adjustments
      to Number of Warrants and Conversion Price.
      The
      number and kind of Warrant Shares (or any shares of stock or other securities
      which may be) issuable upon the exercise of this Warrant and the exercise price
      hereunder shall be subject to adjustment from time to time upon the happening
      of
      certain events, as follows:

     

    (a) Splits
      and Subdivisions.
      In the
      event the Company should at any time or from time to time fix a record date
      for
      the effectuation of a split or subdivision of the outstanding shares of Series
      AA Preferred Stock (or following the Amendment, of the Common Stock) or the
      determination of the holders of Series AA Preferred Stock (or following the
      Amendment, of the Common Stock) entitled to receive a dividend or other
      distribution payable in additional shares of Series AA Preferred Stock (or
      following the Amendment, of the Common Stock) or other securities or rights
      convertible into, or entitling the holder thereof to receive directly or
      indirectly, additional shares of Series AA Preferred Stock (hereinafter referred
      to as the “Series AA Preferred Stock Equivalents”) (or following the Amendment,
      of the Common Stock, with the entitlement for the holder thereof to receive
      directly or indirectly, additional shares of Common Stock, hereinafter referred
      to as the “Common Stock Equivalents”) without payment of any consideration by
      such holder for the additional shares of Series AA Preferred Stock (or following
      the Amendment, of the Common Stock) or Series AA Preferred Stock Equivalents,
      (or following the Amendment, of the Common Stock Equivalents), then, as of
      such
      record date (or the date of such distribution, split or subdivision if no record
      date is fixed), the Exercise Price shall be appropriately decreased and the
      number of Warrant Shares for which this Warrant is exercisable shall be
      appropriately increased in proportion to such increase of outstanding
      shares.

     

    (b) Combination
      of Shares.
      If the
      number of shares of Series AA Preferred Stock (or following the Amendment,
      of
      the number of shares of Common Stock) outstanding at any time after the date
      hereof is decreased by a combination of the outstanding shares of Series AA
      Preferred Stock (or following the Amendment, of the number of shares of Common
      Stock), the Exercise Price shall be appropriately increased and the number
      of
      Warrant Shares for which this Warrant is exercisable shall be appropriately
      decreased in proportion to such decrease in outstanding shares.

     

    (c) Reclassification
      or Reorganization.
      If the
      Warrant Shares issuable upon the exercise of this Warrant shall be changed
      into
      the same or different number of shares of any class or classes of stock, whether
      by capital reorganization, reclassification or otherwise (other than a split,
      subdivision or stock dividend provided for in Section 6(a)
      above or
      a combination of shares provided for in Section 6(b)
      above,
      or a reorganization, merger or consolidation provided for in Section 6(d)
      below,
      then and in each such event the Holder shall be entitled to receive upon the
      exercise of this Warrant the kind and amount of shares of stock and other
      securities and property receivable upon such reorganization, reclassification
      or
      other change, to which a holder of the number of Warrant Shares issuable upon
      the exercise of this Warrant would have received if this Warrant had been
      exercised immediately prior to such reorganization, reclassification or other
      change, all subject to further adjustment as provided herein.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (d) Merger
      or Consolidation.
      If at
      any time or from time to time there shall be a capital reclassification or
      reorganization of the Warrant Shares or a Corporate Transaction (other than
      a
      subdivision, combination, reclassification or exchange of shares provided for
      elsewhere in this Section 6)
      of the
      Company, then as a part of such reorganization or Corporate Transaction,
      adequate provision shall be made so that the Holder shall thereafter be entitled
      to receive upon the exercise of this Warrant, the number of shares of stock
      or
      other securities or property of the Company, resulting from such reorganization,
      recapitalization or Corporate Transaction to which a holder of the number of
      Warrant Shares issuable upon the exercise of this Warrant would have received
      if
      this Warrant had been exercised immediately prior to such reorganization or
      Corporate Transaction. In any such case, the Company will make appropriate
      provision to insure that the provisions of this Section 6(d)
      hereof
      will thereafter be applicable as nearly as may be in relation to any shares
      of
      stock or securities thereafter deliverable upon the exercise of this Warrant.
      The Company shall not effect any such Corporate Transaction unless prior to
      or
      simultaneously with the consummation thereof the successor corporation (if
      other
      than the Company) resulting from such Corporate Transaction or the corporation
      purchasing or acquiring such assets or other appropriate corporation or entity
      shall assume the obligation to deliver to the Holder, at the last address of
      the
      Holder appearing on the books of the Company, such shares of stock, securities
      or assets as, in accordance with the foregoing provisions, the Holder may be
      entitled to purchase, and the other obligations under this Warrant. The
      provisions of this paragraph 7(d) shall similarly apply to successive
      reorganizations, reclassifications, or Corporate Transactions. Notwithstanding
      anything to the contrary contained herein, in the event at least 30 days prior
      to the closing of the reorganization or Corporate Transaction the Company
      receives the written consent from holders of Offering Warrants outstanding
      which
      represent the right to purchase eighty-five percent (85%) of the shares of
      Common Stock purchasable under the Offering Warrants (the “Offering Warrant
      Majority”) that all Offering Warrants shall be cancelled effective as of the
      closing of the reorganization or Corporate Transaction, then provided the
      Company provides notice to the Holder of this Warrant at least 20 days prior
      to
      the closing of such reorganization or Corporate Transaction of such approval,
      then effective upon the closing of such reorganization or Corporate Transaction,
      this Warrant shall be cancelled.

     

    (e) Notice
      of Record Dates; Adjustments.
      In the
      event of a Corporate Transaction, the Company shall provide to the Holder twenty
      (20) days advance written Notice of such Corporate Transaction. The Company
      shall promptly notify the Holder in writing of each adjustment or readjustment
      of the Exercise Price hereunder and the number of Warrant Shares issuable upon
      the exercise of this Warrant. Such Notice shall state the adjustment or
      readjustment and show in reasonable detail the facts on which that adjustment
      or
      readjustment is based, as well as whether this Warrant will be cancelable as
      specified above.

     

    
      
        
        

      

      
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    7. Registration
      Rights.
      The
      Company hereby agrees that the Holder shall be entitled, with respect to all
      shares of Common Stock issuable upon exercise of this Warrant or conversion
      of
      the Warrant Shares issued upon the exercise of this Warrant, to the registration
      rights set forth in the Registration Rights Agreement, in the form included
      in
      the Memorandum, as may be amended or supplemented from time to time, the terms
      of which are hereby incorporated by this reference, with the same force and
      effect as if specifically set forth herein. In addition, in the event that
      the
      Company has failed or expects to fail to register the shares of Common Stock
      underlying this Warrant by the Expiration Date, then the Expiration Date shall
      be automatically extended until delivery by the Company to the Warrant holder
      of
      a Notice of Warrant Extension, which notice may be delivered at any time on
      or
      after December 31, 2008, indicating the Company’s election to extend the
      Expiration Date until: (a) 365 days following the date of such Notice of Warrant
      Extension, if at the date of such notice an effective registration statement
      covering the resale of shares of Common Stock issuable upon exercise of this
      Warrant is in effect; or (b) until 365 days following the date of such Notice
      of
      Warrant Extension, if the Company states in the notice that it has elected
      to
      add the following cashless exercise provision to the Warrant, irrespective
      of
      whether the shares of Common Stock issuable upon exercise of the Warrant are
      registered or are anticipated to be registered: 

     

    Upon
      execution of the cashless exercise of the shares subject to this Warrant (the
      “Converted Warrant Shares”), the Company shall deliver to the Holder (without
      payment by the Holder of any exercise price or any cash or other consideration)
      that number of fully paid and nonassessable Warrant Shares computed using the
      following formula:

     

    
      	
                              
                X =

            	
              Y
                (A - B)

            
	 	
                  
                A

            

    

    

    
      	
                           
                Where:

            	
              X
                =

            	
              the
                number of shares of Warrant Shares to be delivered to the
                Holder;

            
	 	
              Y
                =

            	
              the
                number of Converted Warrant Shares;

            
	 	
              A
                =

            	
              the
                fair market value of one Warrant Share on the Conversion Date (as
                defined
                below); and

            
	 	
              B
                =

            	
              the
                Exercise Price (as adjusted to the Conversion
                Date).

            

    

    

    No
      fractional shares shall be issuable upon cashless exercise of the Warrant,
      and
      if the number of shares to be issued determined in accordance with the foregoing
      formula is other than a whole number, the Company shall pay to the Holder an
      amount in cash equal to the fair market value of the resulting fractional share
      on the Conversion Date (as defined below). 

     

    
      
        
        

      

      
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    (i) Method
      of Exercise.
      The
      Holder may execute the cashless exercise by the surrender of this Warrant at
      the
      principal office of the Company together with a written statement specifying
      that the Holder thereby intends to execute a cashless exercise and indicating
      the total number of shares under this Warrant that the Holder is exercising
      through the cashless exercise. Such conversion shall be effective upon receipt
      by the Company of this Warrant together with the aforesaid written statement,
      or
      on such later date as is specified therein (the “Conversion Date”). Certificates
      for the shares issuable upon execution of the cashless exercise shall be
      delivered to the Holder within three business days following the Conversion
      Date.

     

    (ii) Determination
      of Fair Market Value.
      For
      purposes of this Section 7,
      fair
      market value of a Warrant Share on the Conversion Date shall be determined
      as
      follows:

     

    (1) If
      the
      Common Stock is traded on a stock exchange or the Nasdaq Stock Market (or a
      similar national quotation system), the fair market value of a Warrant Share
      shall be deemed to be the average of the closing selling prices of the Common
      Stock on the stock exchange or system determined by the Board to be the primary
      market for the Common Stock over the ten (10) trading day period ending on
      the
      date prior to the Conversion Date, as such prices are officially quoted in
      the
      composite tape of transactions on such exchange or system;

     

    (2) If
      the
      Common Stock is traded over-the-counter, the fair market value of a Warrant
      Share shall be deemed to be the average of the closing bid prices (or, if such
      information is available, the closing selling prices) of the Common Stock over
      the ten (10) trading day period ending on the date prior to the Conversion
      Date,
      as such prices are reported by the National Association of Securities Dealers
      through its NASDAQ system or any successor system; and

     

    (3) If
      there
      is no public market for the Common Stock, then the fair market value of a
      Warrant Share shall be determined by the Board of Directors of the Company
      in
      good faith, and, upon request of the Holder, the Board (or a representative
      thereof) shall, as promptly as reasonably practicable but in any event not
      later
      than 15 days after such request, notify the Holder of the Fair Market Value
      per
      share of Common Stock.

     

    8. Replacement
      of Warrants.
      On
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Warrant and, in the case of
      any
      such loss, theft or destruction of this Warrant, on delivery of an indemnity
      agreement reasonably satisfactory in form and amount to the Company or, in
      the
      case of any such mutilation, on surrender and cancellation of such Warrant,
      the
      Company at its expense will execute and deliver to the Holder, in lieu thereof,
      a new Warrant of like tenor.

     

    
      
        
        

      

      
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    9. No
      Rights or Liability as a Stockholder.
      This
      Warrant does not entitle the Holder hereof to any voting rights or other rights
      as a stockholder of the Company. No provisions hereof, in the absence of
      affirmative action by the Holder to purchase Warrant Shares, and no enumeration
      herein of the rights or privileges of the Holder, shall give rise to any
      liability of the Holder as a stockholder of the Company.

     

    10. No
      Impairment.
      The
      Company will not, by amendment of its charter or through reorganization,
      consolidation, merger, dissolution, sale of assets or any other voluntary
      action, avoid or seek to avoid the observance or performance of any of the
      terms
      of this Warrant but will at all times carry out all such terms and take all
      such
      action as may be reasonably necessary or appropriate in order to protect the
      rights of the holder of this Warrant against impairment, subject to any
      amendment or waiver as permitted pursuant to Section
      11(e).
      

     

    11. Miscellaneous.

     

    (a) Transfer
      of Warrant.
      The
      Holder agrees not to make any disposition of this Warrant, the Warrant Shares
      or
      any rights hereunder without the prior written consent of the Company. Any
      such
      permitted transfer must be made by the Holder in person or by duly authorized
      attorney, upon delivery of this Warrant and the form of assignment attached
      hereto as Exhibit B
      to any
      such permitted transferee. As a condition precedent to such transfer, the
      transferee shall sign an investment letter in form and substance satisfactory
      to
      the Company. Subject to the foregoing, the provisions of this Warrant shall
      inure to the benefit of and be binding upon any successor to the Company and
      shall extend to any holder hereof. 

     

    (b) Titles
      and Subtitles.
      The
      titles and subtitles used in this Warrant are for convenience only and are
      not
      to be considered in construing or interpreting this Warrant.

     

    (c) Notices.
      Any
      notice required or permitted to be given to a party pursuant to the provisions
      of this Warrant shall be in writing and shall be effective and deemed delivered
      to such party under this Warrant on the earliest of the following: (a) the
      date
      of personal delivery; (b) two (2) business days after transmission by facsimile,
      addressed to the other party at its facsimile number, with confirmation of
      transmission; (c) four (4) business days after deposit with a return receipt
      express courier for United States deliveries; or (d) five (5) business days
      after deposit in the United States mail by registered or certified mail (return
      receipt requested) for United States deliveries. All notices not delivered
      personally or by facsimile will be sent with postage and/or other charges
      prepaid and properly addressed to such party at the address set forth on the
      signature page hereto, or at such other address as such party may designate
      by
      ten (10) days advance written notice to the other party hereto. Notices to
      the
      Company will be marked “Attention: Chief Financial Officer.”

     

    (d) Attorneys’
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Warrant, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and disbursements in addition to any other relief to which such
      party may be entitled.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (e) Amendments
      and Waivers.
      Any
      term of this Warrant may be amended and the observance of any term of this
      Warrant may be waived (either generally or in a particular instance and either
      retroactively or prospectively) with the written consent of either: (i) the
      Holder and the Company; or (ii) the Offering Warrant Majority and the Company.
      Any amendment or waiver effected in accordance with this Section 11(e)
      shall be
      binding upon the Holder of this Warrant (and of any securities into which this
      Warrant is convertible), each future holder of all such securities, and the
      Company.

     

    (f) Severability.
      If one
      or more provisions of this Warrant are held to be unenforceable under applicable
      law, such provision shall be excluded from this Warrant and the balance of
      the
      Warrant shall be interpreted as if such provision were so excluded and shall
      be
      enforceable in accordance with its terms.

     

    (g) Governing
      Law.
      This
      Warrant shall be governed by and construed and enforced in accordance with
      the
      laws of the State of Florida, without giving effect to its conflicts of laws
      principles.

     

    (h) Counterparts.
      This
      Warrant may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

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    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      duly
      authorized officer as of the date first written above.

     

    
      	 	 	
              CAPITAL
                GROWTH SYSTEMS, INC.

            
	 	 	 
	 	 	 
	 	 	
              By:

            	 
	 	 	
              Name:

            	 
	 	 	
              Title:

            	 
	 	 	
               

              HOLDER
                NAME: 

            
	 	 	
              
                

              

              Address:

            
	 	 	
              
                

              

               

              
                
 

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION OF $0.65 WARRANT

     

    (To
      be signed only on exercise of Warrant)

     

    
      	
              To:

            	
              COMPANY
                NAME.

            

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant,
      hereby irrevocably elects to purchase _____ shares of the Series AA Preferred
      Stock covered by such Warrant and herewith makes payment of $ _________,
      representing the full purchase price for such shares at the price per share
      provided for in such Warrant. 

     

    Please
      issue a certificate or certificates representing ________ shares in the name
      of
      the undersigned or in such other name or names as are specified
      below:

     

    
      	 	 	 
	 	
              (Name)

            	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
              (Address)

            	 

    

    

    The
      undersigned represents that the aforesaid shares are being acquired for the
      account of the undersigned for investment and not with a view to, or for resale
      in connection with, the distribution thereof and that the undersigned has no
      present intention of distributing or reselling such shares, all except as in
      compliance with applicable securities laws.

     

    
      	
              Dated:

            	 	 	 
	 	 	
              (Signature
                must conform in all respects to name of the Holder as specified on
                the
                face of the Warrant)

            
	 	 	 
	 	 	 
	 	 	
              (Print
                Name)

            
	 	 	 
	 	 	 
	 	 	
              Address:

            
	 	 	
              
                

              

               

                

              

            

    

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF ASSIGNMENT OF $0.65 WARRANT

     

    (To
      assign the foregoing Warrant, execute this form and supply

    required
      information. Do not use this form to purchase shares.)

     

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to:

     

    
      	
              Name:

            	 
	 	
              (Please
                Print)

            
	 
	
              Address:

            	 
	 	
              (Street)

            
	 	 
	 	
              (City)

            	
              (State)

            	
              (Zip
                Code)

            
	 
	
              Date:

            	 
	 
	 
	
              Holder’s
                Signature:

            	 
	 
	
              Holder’s
                Address:

            	 
	 	
              (Street)

            
	 	 
	 	
              (City)

            	
              (State)

            	
              (Zip
                Code)

            

    

    

    NOTE:
      The
      signature to this Form of Assignment must correspond with the name as it appears
      on the face of the Warrant, without alteration or enlargement or any change
      whatever. Officers of corporations and those acting in a fiduciary or other
      representative capacity should file proper evidence of authority to assign
      the
      foregoing Warrant.

     

    
      
        
        

      

      
        C-1Exhibit
      4.3

    [EXECUTION
      COPY]

     

    
      

      

    

    CREDIT
      AGREEMENT 

    

    $12,000,000

    

    among

    

    20/20
      TECHNOLOGIES, INC.

    20/20
      TECHNOLOGIES I, LLC

    CENTREPATH,
      INC.

    FRONTRUNNER
      NETWORK SYSTEMS, CORP.

    GLOBAL
      CAPACITY GROUP, INC.

    and

    NEXVU
      TECHNOLOGIES, LLC

    as
      Borrowers

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    and

    MAGENTA
      NETLOGIC LIMITED

    as
      Guarantors

    

    and

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    as
      Funds Administrator

    

    from

    

    HILCO
      FINANCIAL, LLC,

    as
      Lender

     

    Dated
      as of January 19, 2007

    

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    

      
        	
                ARTICLE
                  1
                  DEFINITIONS

              	
                1

              
	
                1.1

              	
                General
                  Definitions

              	
                1

              
	
                1.2

              	
                Accounting
                  Terms and Determinations

              	
                20

              
	
                1.3

              	
                Other
                  Interpretive Provisions

              	
                20

              
	 	 
	
                ARTICLE
                  2
                  LOANS

              	
                21

              
	
                2.1

              	
                Commitment;
                  Delivery of Note.

              	
                21

              
	
                2.2

              	
                Borrowing
                  Mechanics.

              	
                21

              
	
                2.3

              	
                Voluntary
                  and Mandatory Payment of Loans; Termination of
                  Commitment

              	
                22

              
	
                2.4

              	
                Payments
                  and Computations

              	
                23

              
	
                2.5

              	
                Maintenance
                  of Account

              	
                24

              
	
                2.6

              	
                Statement
                  of Account

              	
                24

              
	
                2.7

              	
                Withholding
                  and Other Taxes

              	
                24

              
	
                2.8

              	
                Letters
                  of Credit.

              	
                26

              
	 	 
	
                ARTICLE
                  3
                  INTEREST, FEES AND EXPENSES

              	
                28

              
	
                3.1

              	
                Interest
                  on Loans

              	
                28

              
	
                3.2

              	
                Interest
                  After Event of Default

              	
                28

              
	
                3.3

              	
                Fees

              	
                28

              
	
                3.4

              	
                Reimbursement
                  of Expenses

              	
                29

              
	
                3.5

              	
                Letter
                  of Credit Fee.

              	
                29

              
	
                3.6

              	
                Authorization
                  to Charge Borrowers’ Account

              	
                29

              
	
                3.7

              	
                Indemnification
                  in Certain Events

              	
                29

              
	
                3.8

              	
                Calculations
                  and Determinations

              	
                29

              
	 	 
	
                ARTICLE
                  4
                  CONDITIONS PRECEDENT

              	
                30

              
	
                4.1

              	
                Conditions
                  to Initial Credit Event

              	
                30

              
	
                4.2

              	
                Conditions
                  to Each Credit Event

              	
                31

              
	 	 
	
                ARTICLE
                  5
                  REPRESENTATIONS AND WARRANTIES

              	
                31

              
	
                5.1

              	
                Organization
                  and Qualification

              	
                31

              
	
                5.2

              	
                Solvency

              	
                32

              
	
                5.3

              	
                Rights
                  in Collateral; Priority of Liens

              	
                32

              
	
                5.4

              	
                No
                  Conflict

              	
                32

              
	
                5.5

              	
                Enforceability

              	
                32

              
	
                5.6

              	
                Consents

              	
                32

              
	
                5.7

              	
                Financial
                  Data

              	
                33

              
	
                5.8

              	
                Locations
                  of Officers, Records and Inventory

              	
                33

              
	
                5.9

              	
                Fictitious
                  Business Names

              	
                33

              
	
                5.10

              	
                Subsidiaries

              	
                33

              
	
                5.11

              	
                No
                  Judgments or Litigation

              	
                34

              
	
                5.12

              	
                No
                  Defaults

              	
                34

              
	
                5.13

              	
                Labor
                  Matters

              	
                34

              
	
                5.14

              	
                Compliance
                  with Law

              	
                34

              
	
                5.15

              	
                ERISA

              	
                35

              
	
                5.16

              	
                Intellectual
                  Property

              	
                35

              
	
                5.17

              	
                Licenses
                  and Permits

              	
                35

              
	
                5.18

              	
                Title
                  to Property

              	
                35

              
	
                5.19

              	
                Investment
                  Company

              	
                35

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                5.20

              	
                Taxes
                  and Tax Returns

              	
                35

              
	
                5.21

              	
                Status
                  of Accounts

              	
                36

              
	
                5.22

              	
                Material
                  Contracts

              	
                36

              
	
                5.23

              	
                Affiliate
                  Transactions

              	
                37

              
	
                5.24

              	
                Accuracy
                  and Completeness of Information

              	
                37

              
	
                5.25

              	
                Recording
                  Taxes

              	
                37

              
	
                5.26

              	
                No
                  Adverse Change or Event

              	
                37

              
	
                5.27

              	
                Additional
                  Adverse Facts

              	
                37

              
	
                5.28

              	
                Foreign
                  Assets Control Regulations and Anti-Money Laundering.
                  OFAC.

              	
                37

              
	
                5.29

              	
                Patriot
                  Act

              	
                38

              
	 	 
	
                ARTICLE
                  6 AFFIRMATIVE
                  COVENANTS

              	
                38

              
	
                6.1

              	
                Financial
                  Information

              	
                38

              
	
                6.2

              	
                Inventory

              	
                40

              
	
                6.3

              	
                Corporate
                  Existence

              	
                40

              
	
                6.4

              	
                ERISA

              	
                40

              
	
                6.5

              	
                Books
                  and Records

              	
                41

              
	
                6.6

              	
                Collateral
                  Records

              	
                41

              
	
                6.7

              	
                Security
                  Interests

              	
                41

              
	
                6.8

              	
                Insurance;
                  Casualty Loss.

              	
                42

              
	
                6.9

              	
                Credit
                  Party Taxes

              	
                43

              
	
                6.10

              	
                Compliance
                  With Laws

              	
                43

              
	
                6.11

              	
                Use
                  of Proceeds

              	
                44

              
	
                6.12

              	
                Fiscal
                  Year

              	
                44

              
	
                6.13

              	
                Notification
                  of Certain Events

              	
                44

              
	
                6.14

              	
                Intellectual
                  Property

              	
                45

              
	
                6.15

              	
                Maintenance
                  of Property

              	
                45

              
	
                6.16

              	
                Further
                  Assurances

              	
                45

              
	 	 
	
                ARTICLE
                  7
                  NEGATIVE COVENANTS

              	
                45

              
	
                7.1

              	
                Financial
                  Covenants.

              	
                45

              
	
                7.2

              	
                No
                  Additional Indebtedness

              	
                45

              
	
                7.3

              	
                No
                  Liens; Judgments

              	
                46

              
	
                7.4

              	
                No
                  Sale of Assets

              	
                47

              
	
                7.5

              	
                No
                  Corporate Changes

              	
                47

              
	
                7.6

              	
                No
                  Guaranties

              	
                47

              
	
                7.7

              	
                No
                  Restricted Payments

              	
                48

              
	
                7.8

              	
                No
                  Investments

              	
                48

              
	
                7.9

              	
                No
                  Affiliate Transactions

              	
                48

              
	
                7.10

              	
                Limitation
                  on Transactions Under ERISA

              	
                49

              
	
                7.11

              	
                No
                  Additional Bank Accounts

              	
                49

              
	
                7.12

              	
                Material
                  Amendments of Material Contracts

              	
                49

              
	
                7.13

              	
                Additional
                  Restrictive Covenants

              	
                49

              
	
                7.14

              	
                No
                  Additional Subsidiaries

              	
                49

              
	
                7.15

              	
                Limitation
                  on Derivative Transactions

              	
                50

              
	
                7.16

              	
                Related
                  Documents.

              	
                50

              
	
                7.17

              	
                OFAC

              	
                50

              
	 	 
	
                ARTICLE
                  8 EVENTS
                  OF DEFAULT AND REMEDIES

              	
                50

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                8.1

              	
                Events
                  of Default

              	
                50

              
	
                8.2

              	
                Acceleration
                  and Cash Collateralization

              	
                52

              
	
                8.3

              	
                Remedies

              	
                52

              
	 	 
	
                ARTICLE
                  9
                  MISCELLANEOUS

              	
                53

              
	
                9.1

              	
                SUBMISSION
                  TO JURISDICTION; WAIVERS

              	
                53

              
	
                9.2

              	
                JURY
                  TRIAL

              	
                54

              
	
                9.3

              	
                GOVERNING
                  LAW

              	
                54

              
	
                9.4

              	
                Delays;
                  Partial Exercise of Remedies

              	
                54

              
	
                9.5

              	
                Notices

              	
                54

              
	
                9.6

              	
                Assignability
                  by Lender

              	
                55

              
	
                9.7

              	
                Confidentiality

              	
                56

              
	
                9.8

              	
                Indemnification;
                  Expenses

              	
                56

              
	
                9.9

              	
                Entire
                  Agreement

              	
                57

              
	
                9.10

              	
                Amendments,
                  Etc

              	
                57

              
	
                9.11

              	
                Non-liability
                  of Lender

              	
                57

              
	
                9.12

              	
                Counterparts

              	
                57

              
	
                9.13

              	
                Effectiveness;
                  Successors and Assigns

              	
                57

              
	
                9.14

              	
                Severability

              	
                57

              
	
                9.15

              	
                Headings
                  Descriptive

              	
                58

              
	
                9.16

              	
                Maximum
                  Rate

              	
                58

              
	
                9.17

              	
                Right
                  of Setoff

              	
                58

              
	
                9.18

              	
                Rights
                  Cumulative

              	
                58

              
	
                9.19

              	
                Patriot
                  Act Notice

              	
                59

              
	
                9.20

              	
                Joint
                  and Several Liability of Borrowers.

              	
                59

              
	
                9.21

              	
                Funds
                  Administrator.

              	
                59

              
	 	 
	
                ARTICLE
                  10
                  GUARANTY

              	
                60

              
	
                10.1

              	
                Guaranty.

              	
                60

              
	
                10.2

              	
                Guaranty
                  Absolute.

              	
                61

              
	
                10.3

              	
                Waiver.

              	
                62

              
	
                10.4

              	
                Continuing
                  Guaranty.

              	
                62

              
	
                10.5

              	
                Maximum
                  Liability.

              	
                62

              
	
                10.6

              	
                Subordination.

              	
                62

              
	
                10.7

              	
                Subrogation.

              	
                63

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

    

    ANNEXES

    

      
        	
                ANNEX
                  I

              	
                Closing
                  Document List

              
	 	 
	 	 
	
                EXHIBITS

              
	 	 
	
                EXHIBIT
                  A

              	
                Form
                  of Note

              
	
                EXHIBIT
                  B

              	
                Form
                  of Notice of Borrowing

              
	
                EXHIBIT
                  C

              	
                Form
                  of Compliance Certificate

              

      

       

      
        	
                SCHEDULES

              
	 	 
	
                SCHEDULE
                  1.1(A)

              	
                Rollover
                  Subordinated Notes

              
	
                SCHEDULE
                  1.1(B)

              	
                Rollover
                  Warrants

              
	
                SCHEDULE
                  5.1

              	
                Jurisdictions
                  Qualified to Do Business

              
	
                SCHEDULE
                  5.8

              	
                Principal
                  Places of Business; Chief Executive Offices; Locations of Books
                  and
                  Records; Other Locations of Collateral

              
	
                SCHEDULE
                  5.9

              	
                Prior
                  Names; Fictitious Business Names

              
	
                SCHEDULE
                  5.10

              	
                Subsidiaries

              
	
                SCHEDULE
                  5.11

              	
                Outstanding
                  Judgments; Orders; Waivers

              
	
                SCHEDULE
                  5.12

              	
                Certain
                  Defaults and Disputes

              
	
                SCHEDULE
                  5.14

              	
                Violations
                  and Failures to Comply with Requirements of Law; Environmental
                  Matters

              
	
                SCHEDULE
                  5.15

              	
                ERISA
                  Matters

              
	
                SCHEDULE
                  5.17

              	
                Licenses
                  and Permits

              
	
                SCHEDULE
                  5.18

              	
                Real
                  Estate

              
	
                SCHEDULE
                  5.20

              	
                Tax
                  Matters

              
	
                SCHEDULE
                  5.22

              	
                Material
                  Contracts

              
	
                SCHEDULE
                  5.23

              	
                Affiliate
                  Transactions

              
	
                SCHEDULE
                  5.27

              	
                Additional
                  Adverse Facts

              
	
                SCHEDULE
                  7.2

              	
                Existing
                  Indebtedness

              
	
                SCHEDULE
                  7.3

              	
                Existing
                  Lien

              
	
                SCHEDULE
                  7.8

              	
                Existing
                  Investments

              
	
                SCHEDULE
                  7.11

              	
                Bank
                  Accounts

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    CREDIT
      AGREEMENT

    

    Dated
      as of January 18, 2007

    

    Borrowers,
      Guarantors, Funds Administrator and Lender agree as follows (with certain terms
      used herein being defined in Article
      1):

    

    ARTICLE
      1

    

    DEFINITIONS

    

    1.1 General
      Definitions.
      As used herein, the following terms have the meanings herein specified:

    

    “20/20
      Inc.” means
      20/20 Technologies, Inc., a Delaware corporation

    

    “20/20
      LLC” means
      20/20 Technologies I, LLC, a Delaware limited liability company.

    

    “20/20
      Inc. Pledge Agreement” means
      the
      Stock Pledge Agreement of even date herewith, executed by 20/20 Inc. in favor
      of
      Lender, evidencing the pledge by 20/20 Inc. to Lender of one hundred percent
      (100%) of the issued and outstanding Capital Securities of 20/20
      LLC.

    

    “Accounts”
      has the
      meaning ascribed to that term in the Security Agreement.

    

    “Accumulated
      Funding Deficiency”
      has the
      meaning ascribed to that term in Section 302 of ERISA.

    

    “Additional
      Subordinated Note Documents” means
      any
      Additional Subordinated Notes and all other agreements, documents and
      instruments executed and/or delivered in connection therewith (all of which
      agreements, documents and instruments shall be in form and substance
      satisfactory to Lender in its sole discretion), in each case as the same may
      be
      amended, restated, amended and restated, supplemented or otherwise modified
      and
      in effect from time to time, to the extent permitted hereunder.

    

    “Additional
      Subordinated Noteholders” means
      holders from time to time of Additional Subordinated Notes or any Indebtedness
      evidenced thereby.

    

    “Additional
      Subordinated Notes” means
      subordinated promissory notes in form and substance satisfactory to Lender
      in
      its sole discretion, in each case as the same may be amended, restated, amended
      and restated, supplemented or otherwise modified and in effect from time to
      time, to the extent permitted hereunder, and including any notes and other
      instruments issued in exchange or substitution therefor or replacement thereof,
      in each case to the extent permitted hereunder. . 

    

    “Additional
      Note Subordination Agreement” means
      a
      Subordination Agreement among Lender and the Additional Subordinated Noteholders
      in substantially the form of the Rollover Subordination Agreement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    “Affiliate”
      means,
      with respect to any other Person, any Person which directly or indirectly
      through one or more intermediaries Controls, is Controlled by, or is under
      common Control with, such Person, or any Person who is a director or officer
      of
      such Person or any Subsidiary of such Person. 

    

    “Auditors”
      means a
      nationally-recognized firm of independent certified public accountants selected
      by the applicable Credit Party and satisfactory to Lender in its sole
      discretion. For purposes of this Credit Agreement, Plante Moran shall be deemed
      to be Auditors satisfactory to Lender as of the Closing Date.

    

    “Base
      Rate”
      means,
      for any day, a rate of interest equal to the greater of (a) the rate of interest
      which is identified as the “Prime Rate” and normally published in the Money
      Rates section of The Wall Street Journal (or, if such rate ceases to be so
      published, as quoted from such other generally available and recognizable source
      as Lender may select) or (b) the sum of the Federal Funds Rate plus
      one half
      of one percent (0.50%). Any change in the Base Rate due to a change in the
      “Prime Rate” or the Federal Funds Rate shall be effective on the effective date
      of such change in the “Prime Rate” or the Federal Funds Rate.

    

    “Bankruptcy
      Code”
      means
      the United
      States Bankruptcy Code
      (11
      U.S.C. § 101, et
      seq.),
      as
      amended, and any successor statute.

    

    “Benefit
      Plan”
      means an
      employee pension benefit plan as defined in Section 3(2) of ERISA (other than
      a
      Multiemployer Plan) for which the funding requirements under Section 412 of
      the
      Code or Section 302 of ERISA is, or within the immediately preceding six (6)
      years was, in whole or in part, the responsibility of any Credit Party or any
      Subsidiary of any Credit Party or any ERISA Affiliate.

    

    “Borrowers”
      means
      20/20 Inc., 20/20 LLC, CentrePath, Frontrunner, Global and Nexvu. 

    

    “Borrower’s
      Account”
      has the
      meaning ascribed to that term in Section
      2.5.

    

    “Borrowing
      Base”
      means:

    

    (a) Subject
      to clause
      (b)
      below,
      at any time, the amount equal at such time to:

    

    (i) eighty-five
      percent (85%) of the Eligible Accounts Receivable, plus

    

    (ii) the
      Designated Sublimit, minus

    

    (iii) the
      amount of any reserves established by Lender pursuant to clause
      (b)
      below.

    

    (b) Lender
      at
      any time in the exercise of its Permitted Discretion shall be entitled to
(i)
      establish and increase or decrease reserves against Eligible Accounts Receivable
      and the Designated Sublimit, (ii)
      reduce
      the advance rate under clause
      (a)(i)
      above or
      (following any such reduction) restore such advance rate to any level equal
      to
      or below the advance rate stated in clauses
      (a)(i)
      above,
(iii)
      impose
      additional restrictions (or eliminate the same) to the standards of eligibility
      set forth in the definition of “Eligible Accounts Receivable,” and (iv)
      establish and increase or decrease a reserve in the amount of interest payable
      by Borrowers hereunder, including interest on Loans.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    “Borrowing
      Base Certificate”
      has the
      meaning ascribed to that term in subsection
      6.1(e).

    

    “Business
      Day”
      means
      any day other than a Saturday, Sunday or legal holiday on which commercial
      banks
      in Chicago, Illinois are generally closed.

    

    “Capital
      Expenditures”
      means,
      of any Person for any period, the sum of (a)
      all
      expenditures capitalized by such Person for financial statement purposes in
      accordance with GAAP plus,
      without
      duplication, (b)
      the
      entire principal amount of any debt (including obligations under capitalized
      leases) assumed or incurred by such Person in connection with any such
      expenditures, provided,
      that,
      Capital Expenditures of any Person shall in any event include the purchase
      price
      paid by such Person in connection with the acquisition of any other Person
      (including through the purchase of a majority of the Capital Securities or
      other
      ownership interests of such other Person or through merger or consolidation)
      to
      the extent allocable to property, plant or equipment.

    

    “CGS”
      means
      Capital Growth Systems, Inc., a Florida corporation.

    

    “CGS
      Pledge Agreement”
      means
      the Stock Pledge Agreement of even date herewith, executed by CGS in favor
      of
      Lender, evidencing the pledge by CGS to Lender of one hundred percent (100%)
      of
      the issued and outstanding Capital Securities of each Borrower (other than
      20/20
      LLC).

    

    “Capital
      Security” means,
      with respect to any Person, (a)
      any
      share of capital stock of, or membership, partnership or other unit of ownership
      interest of any kind in, such Person and (b)
      any
      security convertible into, or any option, warrant or other right to acquire,
      any
      share of capital stock of or other unit of ownership interest of any kind in
      such Person.

    

    “Cash
      Equivalents”
      means
(a)
      securities issued, guarantied or insured by the United States or any of its
      agencies with maturities of not more than one year from the date acquired,
      (b)
      certificates of deposit with maturities of not more than one year from the
      date
      acquired issued by a U.S. federal or state chartered commercial bank of
      recognized standing, which has capital and unimpaired surplus in excess of
      $200,000,000 and which bank or its holding company has a short-term commercial
      paper rating of at least A-1 or the equivalent by Standard & Poor’s
      Corporation and at least P-1 or the equivalent by Moody’s Investors Services,
      Inc., (c)
      reverse
      repurchase agreements with terms of not more than seven days from the date
      acquired, for securities of the type described in clause
      (a)
      above
      and entered into only with commercial banks having the qualifications described
      in clause
      (b)
      above,
(d)
      commercial
      paper, other than commercial paper issued by any Credit Party or any Affiliate
      of any Credit Party, issued by any Person incorporated under the laws of the
      United States or any state thereof and rated at least A-1 or the equivalent
      thereof by Standard & Poor’s Corporation or at least P-1 or the equivalent
      thereof by Moody’s Investors Services, Inc., in each case with maturities of not
      more than one year from the date acquired, and (e)
      investments in money market funds which have net assets of at least $200,000,000
      and at least eighty five percent (85%) of whose assets consist of securities
      and
      other obligations of the type described in clauses
      (a)
      through (d)
      above.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    “Casualty
      Loss”
      has the
      meaning ascribed to that term in Section
      6.8.

    

    “CentrePath”
      means
      CentrePath, Inc., a Delaware corporation.

    

    “CentrePath
      Acquisition Agreement” mean
      that
      certain Agreement and Plan of Merger dated as of November 22, 2006, among CGS,
      CentrePath and CGS Mergerco, Inc., a Delaware corporation and predecessor by
      merger to CentrePath, as the same may be amended, restated, amended and
      restated, supplemented or otherwise modified from time to time, to the extent
      permitted hereunder.

    

    “CentrePath
      Acquisition Documents”
      shall
      mean, collectively, the CentrePath Acquisition Agreement and all other material
      agreements, instruments and documents executed and/or delivered pursuant thereto
      on in connection therewith, in each case as the same may be amended, restated,
      amended and restated, supplemented or otherwise modified and in effect from
      time
      to time, to the extent permitted hereunder. 

    

    “Change
      of Control” means
      the
      occurrence of one or more of the following events:

    

    (a) less
      than
      a majority of the members of the Board of Directors of CGS shall be persons
      who
      either (i) were serving as directors on the Closing Date or (ii) were nominated
      as directors and approved by the vote of the majority of the directors who
      are
      directors referred to in clause
      (i)
      above or
      this clause
      (ii);
      or

     

    (b) a
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
      shall, as a result of a tender or exchange offer, open market purchases,
      privately negotiated purchases or otherwise, have become the direct or indirect
      beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act)
      of
      Capital Securities of CGS representing more than thirty percent (30%) of the
      combined ordinary voting power of the Capital Securities of CGS for the election
      of directors or shall have the right to elect a majority of the Board of
      Directors of CGS; or 

     

    (c) CGS
      ceases to beneficially and of record own and control, directly or indirectly,
      free and clear of all Liens (other than Liens in favor of Lender), one hundred
      percent (100%) of the issued and outstanding Capital Securities of each of
      the
      Borrowers (other than 20/20 LLC); or 

     

    (d) 20/20
      Inc. ceases to beneficially and of record own and control, directly or
      indirectly, free and clear of all Liens (other than Liens in favor of Lender),
      one hundred percent (100%) of the issued and outstanding Capital Securities
      of
      20/20 LCC; or

    

    (e) 20/20
      LLC
      ceases to beneficially and of record own and control, directly or indirectly,
      free and clear of all Liens (other than Liens in favor of Lender), one hundred
      percent (100%) of the issued and outstanding Capital Securities of Magenta;
      or

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (f) the
      holders of Capital Securities of any Credit Party or any Subsidiary of any
      Credit Party approve any plan or proposal for the liquidation or dissolution
      of
      such Credit Party or Subsidiary, as the case may be.

    

    “Closing
      Date”
      means
      the date on which the initial Credit Event occurs.

    

    “Closing
      Date Cash Equity Investment” means the
      funding contemplated to occur on or about the date hereof of the proceeds of
      the
      equity offering of Capital Securities of CGS contemplated by the
      PPM.

    

    “Closing
      Date Cash Equity Investment Documents” means the
      PPM
      and all other material agreements, documents and instruments executed in
      connection with the Closing Date Equity Investment, in each case as the same
      may
      be amended, restated, amended and restated, supplemented or otherwise modified
      and in effect from time to time, to the extent permitted hereunder.

    

    “Closing
      Document List”
      means
      the Closing Document List attached hereto as Annex I.

    

    “Closing
      Fee”
      has the
      meaning ascribed to that term in Section
      3.3.

    

    “Code”
      means
      the Internal
      Revenue Code of 1986,
      as
      amended.

    

    “Collateral”
      means
      any and all assets and rights and interests in or to property of any Borrower,
      any other Credit Party and other Person, whether real or personal, tangible
      or
      intangible or mixed, in each case on which a Lien is granted or purported to
      be
      granted to Lender pursuant to the Collateral Documents.

    

    “Collateral
      Access Agreements”
      means
      any landlord waivers, mortgagee waivers, bailee letters and any similar
      acknowledgment agreements of any Person, such as a warehouseman or processor,
      in
      possession of Inventory of any Credit Party, in each case in form and substance
      satisfactory to Lender.

    

    “Collateral
      Documents”
      means
      the Security Agreement, the CGS Pledge Agreement, the 20/20 Inc. Pledge
      Agreement, the UK Collateral Documents and all other agreements, documents
      and
      instruments now or hereafter executed and delivered pursuant to and/or in
      connection with this Credit Agreement, pursuant to which Liens are granted
      or
      are purported to be granted to Lender on any Collateral.

    

    “Collateral
      Management Fee”
      has the
      meaning ascribed to that term in Section
      3.3.

    

    “Commitment”
      means
      Lender’s commitment to make Loans on the terms and subject to the conditions set
      forth herein in an aggregate outstanding principal amount not to exceed
      $12,000,000.

    

    “Consolidated
      EBITDA”
means,
      for any fiscal period of the Consolidated Entity determined on a consolidated
      basis in accordance with GAAP, the consolidated net income (excluding
      extraordinary items) of the Consolidated Entity for such period, plus
      (a) all
      Interest Expense, income tax expense, depreciation and amortization (including
      amortization of any goodwill or other intangibles) for such period,
      minus
      or
plus
      (without
      double counting) (b) gains and losses attributable to any fixed asset sales,
      minus
      or plus (c)
      any
      other non-cash gains or charges that have been added or subtracted in
      calculating such consolidated net income, in each case. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    “Consolidated
      Entity” means
      CGS
      and each of its Subsidiaries that are such by virtue of clause
      (a)
      of the
      definition thereof, but shall mean and include, in any event, each of the Credit
      Parties.

    

    “Consolidated
      Interest Expense”
      means,
      for any fiscal period of the Consolidated Entity, the aggregate consolidated
      interest expense (net of interest income) of the Consolidated Entity in respect
      of Indebtedness determined on a consolidated basis in accordance with GAAP,
      including amortization of original issue discount on any Indebtedness and of
      all
      fees payable in connection with the incurrence of such Indebtedness (to the
      extent included in interest expense), the interest portion of any deferred
      payment obligation and the interest component of any Capital Lease
      Obligations.

    

    “Control”
      means,
      with respect to any Person, the possession, directly or indirectly, of the
      power
      to (a)
      vote ten
      percent (10%) or more of the securities having ordinary voting power for the
      election of directors of such Person or (b)
      direct
      or cause the direction of management and policies of such Person, whether
      through the ownership of voting securities, by contract or otherwise either
      alone or in conjunction with others or any group. The words “Controlling”
      and
“Controlled”
      have
      correlative meanings.

    

    “Covered
      Taxes”
      has the
      meaning ascribed to that term in subsection
      2.7(a).

    

    “Credit
      Agreement”
      means
      this credit agreement, dated as of the date hereof, as the same may be amended,
      restated, amended and restated, supplemented or otherwise modified and in effect
      from time to time.

    

    “Credit
      Documents”
      means,
      collectively, this Credit Agreement, the Notes, the Hilco Warrants, each of
      the
      Collateral Documents, each Subordination Agreement and all other agreements,
      documents, instruments, opinions and certificates now or hereafter executed
      and
      delivered in connection herewith or therewith, as the same may be amended,
      restated, amended and restated, supplemented or otherwise modified and in effect
      from time to time.

    

    “Credit
      Event”
      means
      the making of a Loan or the issuance of a Letter of Credit.

    

    “Credit
      Party”
      means
      each Borrower, each Guarantor, the Funds Administrator and each other Person
      (other than Lender) that is a party to any of the Credit Documents.

    

    “Credit
      Party Taxes” has
      the
      meaning ascribed to that term in subsection
      5.20(a).

    

    “Default”
      means an
      event, condition or default which with the giving of notice, the passage of
      time
      or both would be an Event of Default.

    

    “Depositary
      Account”
      has the
      meaning ascribed to that term in subsection
      2.4(b)(i).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    “Depositary
      Account Agreement”
      has the
      meaning ascribed to that term in subsection
      2.4(b)(i).

    

    “Depositary
      Account Bank”
      has the
      meaning ascribed to that term in subsection
      2.4(b)(ii).

    

    “Derivative
      Contract”
      means an
      agreement, whether or not in writing and including any master agreement,
      documenting, evidencing or relating to any Derivative Transaction between any
      Credit Party and any Subsidiary of any Credit Party and another
      Person.

    

    “Derivative
      Transaction”
      means
(a)
      an
      interest rate transaction, including an interest-rate swap, basis swap, forward
      rate agreement, interest rate option (including a cap, collar, and floor),
      and
      any other instrument linked to interest rates that gives rise to similar credit
      risks (including when-issued securities and forward deposits accepted),
(b)
      an
      exchange-rate transaction, including a cross-currency interest-rate swap, a
      forward foreign-exchange contract, a currency option, and any other instrument
      linked to exchange rates that gives rise to similar credit risks, (c)
      an
      equity derivative transaction, including an equity-linked swap, an equity-linked
      option, a forward equity-linked contract, and any other instrument linked to
      equities that gives rise to similar credit risk and (d)
      a
      commodity (including precious metal) derivative transaction, including a
      commodity-linked swap, a commodity-linked option, a forward commodity-linked
      contract, and any other instrument linked to commodities that gives rise to
      similar credit risks.

    

    “Designated
      Sublimit” means
      an
      amount equal to $6,500,000.

    

    “Disbursement
      Account”
      means
      the operating account of the Funds Administrator maintained with the
      Disbursement Account Bank.

    

    “Disbursement
      Account Bank”
      means
      any bank selected from time to time by Lender and reasonably acceptable to
      the
      Funds Administrator.

    

    “DOL”
      means
      the United States Department of Labor and any successor department or
      agency.

    

    “Dollars”
      and the
      sign “$”
      shall
      each mean freely transferable lawful money of the United States of
      America.

    

    “Eligible
      Accounts Receivable”
      means
      Accounts of a Borrower payable in Dollars and deemed by Lender in its Permitted
      Discretion to be eligible for inclusion in the calculation of the Borrowing
      Base. In determining the amount to be so included, the face amount of such
      Accounts shall be reduced by the amount of all returns, discounts, claims,
      credits, charges, or other allowances and by the aggregate amount of all
      reserves, limits and deductions provided for in this definition and elsewhere
      in
      this Credit Agreement, including any reserves established by Lender pursuant
      to
      the definition of the term “Borrowing Base” set forth herein, and there shall be
      excluded any such Accounts that Lender determines to be ineligible pursuant
      to
      the definition of the term “Borrowing Base” set forth herein. Unless otherwise
      approved in writing by Lender, no Account of a Borrower shall be deemed to
      be an
      Eligible Account Receivable if:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    (a) it
      arises
      out of a sale made by such Person to an Affiliate of such Person;
      or

    

    (b) (i)
      the
      payment terms with respect to such Account are more than ninety (90) days after
      the original invoice date with respect thereto or (ii)
      such
      Account remains unpaid more than sixty (60) days after the original payment
      due
      date with respect thereto; or

    

    (c) it
      is
      from the same account debtor (or any Affiliate thereof) and fifty percent (50%)
      or more, in face amount, of all Accounts from such account debtor (or any
      Affiliate thereof) are ineligible pursuant to clauses
      (b)
      above;
      or 

    

    (d) the
      Account, when aggregated with all other Accounts of such account debtor, exceeds
      thirty-three percent (33%) in face value of all Accounts of the Borrowers
      combined then outstanding, to the extent of such excess; 

    

    (e) (i)
      the
      account debtor is also a creditor of such Borrower, (ii)
      the
      account debtor has disputed its liability on, or the account debtor has made
      any
      claim with respect to, such Account or any other Account due from such account
      debtor to such Borrower, which has not been resolved or (iii)
      the
      Account otherwise is or may become subject to any right of setoff by the account
      debtor; provided,
      that,
      any Account deemed ineligible pursuant to this clause
      (e)
      shall
      only be ineligible to the extent of the amount owed by such Borrower to such
      account debtor, the amount of such dispute or claim, or the amount of such
      setoff, as applicable; or

    

    (f) the
      account debtor has commenced a voluntary case under the federal bankruptcy
      laws,
      as now constituted or hereafter amended, or made an assignment for the benefit
      of creditors, or if a decree or order for relief has been entered by a court
      having jurisdiction over the account debtor in an involuntary case under the
      federal bankruptcy laws, as now constituted or hereafter amended, or if any
      other petition or other application for relief under the federal bankruptcy
      laws
      has been filed by or against the account debtor, or if the account debtor has
      filed a certificate of dissolution under applicable state law or shall be
      liquidated, dissolved or wound-up, or shall authorize or commence any action
      or
      proceeding for dissolution, winding-up or liquidation, or if the account debtor
      has failed, suspended business, declared itself to be insolvent, is generally
      not paying its debts as they become due or has consented to or suffered a
      receiver, trustee, liquidator or custodian to be appointed for it or for all
      or
      a significant portion of its assets or affairs (any such act or event an
“Act
      of
      Bankruptcy”), unless
      the payment of Accounts from such account debtor is secured by assets of, or
      guaranteed by, in either case in a manner satisfactory to Lender, a Person
      with
      respect to which an Act of Bankruptcy has not occurred and that is acceptable
      to
      Lender or, if the Account from such account debtor arises subsequent to a decree
      or order for relief with respect to such account debtor under the federal
      bankruptcy laws, as now or hereafter in effect, Lender shall have determined
      that the timely payment and collection of such Account will not be impaired;
      or

    

    (g) the
      sale
      is to an account debtor outside of the continental United States, unless the
      chief executive office or principal place of business, or residence, as the
      case
      may be, of such account debtor is a member country in the Organization for
      Economic Cooperation and Development; or

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    (h) the
      sale
      to the account debtor is on a bill-and-hold, guarantied sale, sale-and-return,
      sale on approval or consignment basis or made pursuant to any other written
      agreement providing for repurchase or return; or

    

    (i) Lender
      determines in its Permitted Discretion that collection of such Account is
      insecure or that such Account may not be paid by reason of the account debtor’s
      financial inability to pay; or

    

    (j) the
      account debtor is the United States of America or any department, agency or
      instrumentality thereof, unless such Person duly assigns its rights to payment
      of such Account to Lender pursuant to the Assignment
      of Claims Act of 1940
      (31
      U.S.C. § 3727 et
      seq.);
      or

    

    (k) the
      goods
      giving rise to such Account have not been shipped and delivered to and accepted
      by the account debtor or the services giving rise to such Account have not
      been
      performed by such Borrower and accepted by the account debtor or the Account
      otherwise does not represent a final sale; or

    

    (l) the
      Account does not comply with all applicable legal requirements, including,
      where
      applicable, the Federal
      Consumer Credit Protection Act,
      the
Federal
      Truth in Lending Act
      and
Regulation
      Z of the Board of Governors of the Federal Reserve System;
      or

    

    (m) Lender
      does not have a valid and perfected first priority security interest in such
      Account or the Account does not otherwise conform to the representations and
      warranties contained in the Credit Agreement, the Security Agreement or any
      of
      the other Collateral Documents; provided, that, any such Accounts of Magenta
      shall not be deemed ineligible solely by reason of this clause (m) for thirty
      (30) days after the Closing Date; or

    

    (n) the
      Account is subject to any adverse security deposit, progress payment or other
      similar advance made by or for the benefit of the applicable account
      debtor.

    

    “Equipment”
      has the
      meaning ascribed to that term in the Security Agreement.

    

    “ERISA”
      means
      the Employee
      Retirement Income Security Act of 1974,
      and all
      final or temporary regulations promulgated thereunder and published, generally
      applicable rulings entitled to precedential effect.

    

    “ERISA
      Affiliate”
      means
      any Person required at any relevant time to be aggregated with any Credit Party
      or any Subsidiary of any Credit Party under Sections 414(b), (c), (m) or (o)
      of
      the Code.

    

    “Event(s)
      of Default”
      has the
      meaning ascribed to that term in Article
      8
      of this
      Credit Agreement.

    

    “Exchange
      Act” means
      the
      Securities Exchange Act of 1934, and all final or temporary regulations
      promulgated thereunder and published, generally applicable rulings entitled
      to
      precedential effect.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    “Excluded
      Deposit Accounts”
      means
      deposit accounts specially and exclusively used for payroll, payroll taxes
      and
      other employee wage and benefit payments to or for the benefit of a Credit
      Parties employees; provided,
      that
      the funds on deposit in such deposit accounts shall at no time exceed the actual
      payroll, payroll taxes and other employee wage and benefit payments then due
      and
      payable by such Credit Party.

    

    “Expenses”
      means
      all present and future expenses incurred by or on behalf of Lender in connection
      with this Credit Agreement, any other Credit Document or otherwise, whether
      incurred heretofore or hereafter, which expenses shall include, without being
      limited to, the cost of record searches, the reasonable fees and expenses of
      attorneys (including the allocated cost of internal counsel) and paralegals,
      all
      costs and expenses incurred by Lender in opening bank accounts and lockboxes,
      depositing checks, receiving and transferring funds, and any charges imposed
      on
      Lender due to insufficient funds of deposited checks and Lender’s standard fee
      relating thereto, collateral examination fees and expenses, fees and expenses
      of
      accountants, appraisers, field examiners or other consultants, experts or
      advisors employed or retained by Lender, fees and expenses incurred by Lender
      in
      connection with the assignments of or sales of participations in the Loans,
      title insurance premiums, real estate survey costs, fees and taxes relative
      to
      the filing of financing statements, costs of preparing and recording any
      Mortgages or any other Collateral Documents, all expenses and costs referred
      to
      in Article
      3
      of this
      Credit Agreement and all fees and expenses incurred in connection with releasing
      Collateral and the amendment or termination of any of the Credit
      Documents.

    

    “Expiration
      Date”
      means
      the earlier of (a)
      July 19,
      2008 and (b)
      the
      termination or reduction to zero ($0) of the Commitment in accordance with
      the
      terms of this Credit Agreement.

    

    “Federal
      Funds Rate”
      means,
      for any period, a fluctuating interest rate per
      annum equal,
      for each day during such period, to the weighted average of the rates on
      overnight Federal Funds transactions with members of the Federal Reserve System
      arranged by Federal Funds brokers, as published for such day (or, if such day
      is
      not a Business Day, for the next preceding Business Day) by the Federal Reserve
      Bank of New York, or, if such rate is not so published for any day that is
      a
      Business Day, the average of the quotations for such day on such transactions
      received by Lender from three (3) Federal Funds brokers of recognized standing
      selected by it.

    

    “Fees”
      means
      the Collateral Management Fee, the Closing Fee, the Unused Line Fee, the Make
      Whole Amount, the Letter of Credit Fee and, without duplication, all other
      fees
      payable by Borrowers hereunder or in connection herewith.

    

    “Financial
      Statements”
      means
      the consolidated and, unless otherwise specified, consolidating balance sheets,
      statements of operations, statements of cash flows and statements of changes
      in
      shareholder’s equity of the Consolidated Entity for the period
      specified.

    

    “Frontrunner”
      means
      Frontrunner Network Systems, Corp., a Delaware corporation.

    

    “Funding
      Institution”
      has the
      meaning ascribed to that term in Section
      3.7.

    

    “Funds
      Administrator”
      means
      CGS, acting in its capacity as funds administrator and borrowing agent for
      the
      Borrowers hereunder and under the other Credit Documents.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    “GAAP”
      means
      generally accepted accounting principles in the United States as in effect
      from
      time to time.

    

    “Global”
      means
      Global Capacity Group, Inc., a Texas corporation.

    

    “Global
      Acquisition Agreement” mean
      that
      certain Agreement and Plan of Merger dated as of October 6, 2006, among CGS,
      Global, Global Capacity Merger Sub, Inc., a Texas corporation and predecessor
      by
      merger to Global, as the same may be amended, restated, amended and restated,
      supplemented or otherwise modified from time to time, to the extent permitted
      hereunder.

    

    “Global
      Acquisition Documents”
      shall
      mean, collectively, the Global Acquisition Agreement, the Global Employment
      Agreements and all other material agreements, instruments and documents executed
      and/or delivered pursuant thereto on in connection therewith, in each case
      as
      the same may be amended, restated, amended and restated, supplemented or
      otherwise modified and in effect from time to time, to the extent permitted
      hereunder. 

    

    “Global
      Employment Agreements”
      means
(a)
      that
      certain Employment Agreement dated as of December 11, 2006, between CGS and
      David Walsh, an individual, and (b)
      that
      certain Employment Agreement dated as of December 11, 2006, between CGS and
      John
      Abraham, an individual. 

    

    “Governing
      Documents”
      means,
      as to any Person, the certificate or articles of incorporation and bylaws or
      other organizational or governing documents of such Person.

    

    “Governmental
      Authority”
      means
      any nation or government, any state or other political subdivision thereof
      and
      any entity exercising executive, legislative, judicial, regulatory or
      administrative functions of or pertaining to government.

    

    “Guaranteed
      Obligations”
      has the
      meaning ascribed to that term in Section
      10.1.

    

    “Guaranty”
      of any
      Person means any Liability, contingent or otherwise, of such Person (other
      than
      an endorsement for collection or deposit in the ordinary course of business)
      (a)
      to pay
      any Liability of any other Person or to otherwise protect, or having the
      practical effect of protecting, the holder of any such Liability against loss
      (whether such obligation arises by virtue of such Person being a partner of
      a
      partnership or participant in a joint venture or by agreement to pay, to keep
      well, to maintain solvency, assets, level of income or other financial
      condition, to purchase assets, goods, securities or services or to take or
      pay,
      or otherwise) or (b)
      incurred
      in connection with the issuance by a third Person of a Guaranty of any Liability
      of any other Person (whether such obligation arises by agreement to reimburse
      or
      indemnify such third Person or otherwise). The word “Guarantee”
      when
      used as a verb has the correlative meaning.

    

    “Hilco
      Warrants” means
      (i)
      that certain Capital Growth Systems, Inc. Warrant to Purchase Series AA
      Preferred Stock, No. Hilco-1, issued on the date hereof by CGS to Lender and
      (ii) that certain Capital Growth Systems, Inc. Warrant to Purchase Series AA
      Preferred Stock, No. Hilco-2, issued on the date hereof by CGS to
      Lender.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    “Highest
      Lawful Rate”
      means,
      at any time when any Obligations shall be outstanding hereunder, the maximum
      non-usurious interest rate, that then may be contracted for, taken, reserved,
      charged or received on the Obligations owing under this Credit Agreement or
      any
      of the other Credit Documents, under (a)
      the laws
      of the State of Illinois (or the law of any other jurisdiction whose laws may
      be
      mandatorily applicable notwithstanding other provisions of this Credit Agreement
      and the other Credit Documents) or (b)
      if
      higher, applicable federal laws, in any case after taking into account, to
      the
      extent permitted by applicable law, any and all relevant payments or charges
      under this Credit Agreement and any other Credit Documents executed in
      connection herewith, and any available exemptions, exceptions and exclusions.
      

    

    “Indebtedness”
      of any
      Person means (in each case, whether such obligation is with full or limited
      recourse) (a)
      any
      obligation of such Person for borrowed money, (b)
      any
      obligation of such Person evidenced by a bond, debenture, note or other similar
      instrument, (c)
      any
      obligation of such Person to pay the deferred purchase price of property or
      services, except a trade account payable that arises in the ordinary course
      of
      business but only if and so long as the same is payable on customary trade
      terms, (d)
      any
      obligation of such Person as lessee under a capital lease, (e)
      any
      Mandatorily Redeemable Obligation of such Person owned by any Person other
      than
      such Person or a Subsidiary of such Person (the amount of such Mandatorily
      Redeemable Obligation to be determined for this purpose as the higher of the
      liquidation preference of and the amount payable upon redemption of such
      Mandatorily Redeemable Obligation), (f)
      any
      obligation of such Person to purchase securities or other property that arises
      out of or in connection with the sale of the same or substantially similar
      securities or property, (g)
      any
      non-contingent obligation of such Person to reimburse any other Person in
      respect of amounts paid under a letter of credit or other Guaranty issued by
      such other Person to the extent that such reimbursement obligation remains
      outstanding after it becomes non-contingent, (h)
      any
      Derivative Contract or similar obligation obligating such Person to make
      payments, whether periodically or upon the happening of a contingency, except
      that if any agreement relating to such obligation provides for the netting
      of
      amounts payable by and to such Person thereunder or if any such agreement
      provides for the simultaneous payment of amounts by and to such Person, then
      in
      each such case, the amount of such obligation shall be the net amount thereof,
      (i)
      any
      Indebtedness of others secured by (or for which the holder of such Indebtedness
      has an existing right, contingent or otherwise, to be secured by) a Lien on
      any
      asset of such Person and (j)
      any
      Indebtedness of others Guaranteed by such Person.

    

    “Initial
      Projections” has
      the
      meaning ascribed to that term in subsection
      6.1(c).

    

    “Insolvency
      Proceeding” means
      any
      proceeding commenced by or against any Person under any provision of the
      Bankruptcy Code or under any other bankruptcy or insolvency law, assignments
      for
      the benefit of creditors, formal or informal moratoria, compositions, or
      extensions generally with creditors, or proceedings seeking reorganization,
      arrangement, or other similar relief. 

    

    “Internal
      Revenue Service”
      or
“IRS”
      means
      the United States Internal Revenue Service and any successor
      agency.

    

    “Inventory”
      has the
      meaning ascribed to that term in the Security Agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    “Investment”
      means,
      as applied to an Investment of or by any Person, all Guaranties by such Person
      of any Liabilities of another Person, all expenditures made and all Liabilities
      incurred (contingently or otherwise) for or in connection with the acquisition
      of stock or other ownership interests or Indebtedness of, or for loans,
      advances, capital contributions or transfers of property to, another Person.
      In
      determining the aggregate amount of Investments outstanding at any particular
      time, (a)
      the
      amount of any Investment represented by a Guaranty shall be taken at not less
      than the principal amount of the Liabilities to which such Guaranty is
      applicable and still outstanding; (b)
      there
      shall be deducted in respect of each such Investment any amount received as
      a
      return of capital (but only by sale, repurchase, redemption, retirement,
      repayment, liquidating dividend or liquidating distribution); (c)
      there
      shall not be deducted in respect of any Investment any amounts received as
      earnings on such Investment, whether as dividends, interest or otherwise; and
      (d)
      there
      shall not be deducted from the original amount of any Investment, and such
      Investment shall be deemed to continue to be “outstanding” in such original
      amount notwithstanding, any (i)
      decrease
      in the market value thereof or (ii)
      amount
      thereof that may have been forgiven, released, cancelled or otherwise nullified
      or held to be invalid.

    

    "L/C"
      has the
      meaning ascribed to that term in Section
      2.8.

    

    "L/C
      Disbursement"
      means a
      payment made by Lender pursuant to a Letter of Credit.

    

    "L/C
      Undertaking"
      has the
      meaning ascribed to that term in Section
      2.8.

    

    “Lender”
      means
      Hilco Financial, LLC, a Delaware limited liability company.

    

    “Lender’s
      Account”
      means
      the following:

    

    
      	
              Bank:

            	
              LaSalle
                Bank National Association

            
	 	
              135
                South LaSalle Street

            
	 	
              Chicago,
                Illinois 60603

            
	 	
              Tel.
                No.: (312) 904-2000

            

    

     

    
      	
              ABA#:

            	
              071-000-505

            
	
              Account
                No.:

            	
              5800442419

            
	
              Account
                Name:

            	
              Hilco
                Financial, LLC

            
	
              Reference:
                

            	
              Capital
                Growth Systems, Inc.

            

    

     

    “Letter
      of Credit”
      means an
      L/C or an L/C Undertaking, as the context requires.

     

    “Letter
      of Credit Fee”
      has the
      meaning ascribed to that term in Section
      3.5.

    

    “Letter
      of Credit Usage”
      means,
      as of any date of determination, the aggregate undrawn face amount of all
      outstanding Letters of Credit. 

     

    “Liability”
      of any
      Person means (in each case, whether with full or limited recourse) any
      indebtedness, liability, obligation, covenant or duty of or binding upon, or
      any
      term or condition to be observed by or binding upon, such Person or any of
      its
      assets, of any kind, nature or description, direct or indirect, absolute or
      contingent, due or not due, contractual or tortious, liquidated or unliquidated,
      whether arising under contract, Requirement of Law, or otherwise, whether now
      existing or hereafter arising, and whether for the payment of money or the
      performance or non-performance of any act.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    “Lien(s)”
      means
(a)
      any
      lien, claim, charge, pledge, security interest, deed of trust, mortgage, other
      encumbrance or other arrangement having the practical effect of the foregoing
      or
      other preferential arrangement of any other kind and shall include the interest
      of a vendor or lessor under any conditional sale agreement, capital lease or
      other title retention agreement and (b)
      in
      addition, in the case of any investment property, any contract or other
      arrangement, express or implied, under which any Person has the right to control
      such investment property.

    

    “Loans”
      has the
      meaning ascribed to that term in subsection
      2.1,
      but
      shall in any event include any other amounts advanced by Lender pursuant to
      any
      other provision of this Credit Agreement.

    

    “Lockbox”
      has the
      meaning ascribed to that term in subsection
      2.4(b)(i).

    

    “Magenta”
      means
      Magenta NetLogic Limited, a company organized under the laws of United
      Kingdom.

    

    “Make
      Whole Amount” means
      an
      amount equal to $250,000.

    

    “Mandatorily
      Redeemable Obligation”
      means a
      Liability of any Person, or a Liability of another Person Guaranteed by such
      Person, to the extent that, in either case, it is redeemable, payable or
      required to be purchased or otherwise retired or extinguished (a)
      at a
      fixed or determinable date, whether by operation of sinking fund or otherwise,
      (b)
      at the
      option of any other Person or (c)
      upon the
      occurrence of a condition not solely within the control of such Person as a
      redemption required to be made out of future earnings.

    

    “Material
      Adverse Effect”
      means a
      material adverse effect on (a)
      the
      business, prospects, operations, results of operations, assets, liabilities
      or
      condition (financial or otherwise) of the Credit Parties taken as a whole,
      (b)
      the
      value of Collateral or the amount which Lender would be likely to receive (after
      giving consideration to delays in payment and costs of enforcement) in the
      liquidation of such Collateral, (c)
      the
      ability of any Credit Party or any Subsidiary of any Credit Party to perform
      its
      obligations under the Credit Documents to which it is a party or
      (d)
      the
      rights and remedies of Lender under any Credit Document.

    

    “Material
      Contract”
      means
      any contract or other arrangement (other than the Credit Documents), whether
      written or oral, to which any Credit Party or any Subsidiary of any Credit
      Party
      is a party with respect to which breaches, non-performances, cancellations
      or
      failures to renew by any party thereto singly or in the aggregate could
      reasonably be expected to have a Material Adverse Effect.

    

    “Maximum
      Liability”
has
      the
      meaning ascribed to that term in Section
      10.5.

    

    “Mortgages”
      means
      each mortgage and deed of trust and each leasehold mortgage and leasehold deed
      of trust granted by any Credit Party in favor of Lender.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    “Multiemployer
      Plan”
      means a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA and (a)
      which
      is, or within the immediately preceding six (6) years was, contributed to by
      any
      Credit Party, any Subsidiary of any Credit Party or any ERISA Affiliate or
      (b)
      with
      respect to which any Credit Party or any Subsidiary of any Credit Party may
      incur any liability.

    

    “Nexvu”
      means
      Nexvu Technologies, LLC, a Delaware limited liability company.

    

    “Note”
      means a
      promissory note of Borrowers payable to the order of Lender, in the form of
      Exhibit
      A,
      evidencing the aggregate joint and several Indebtedness of Borrowers to Lender
      resulting from the Loans.

    

    “Notice
      of Borrowing”
      has the
      meaning ascribed to that term in subsection
      2.2(a).

    

    “Obligations”
      means
(a)
      the
      unpaid principal of and interest on the Loans and the Notes, (b)
      all
      reimbursement obligations of Borrowers with respect to Letters of Credit,
(c)
      the
      Expenses, and (d)
      all
      other Liabilities of Borrower to Lender, which may arise under, out of, or
      in
      connection with, the Credit Agreement, the Notes, the Warrant, any other Credit
      Document, any Letter of Credit or any other document made, delivered or given
      in
      connection herewith or therewith. As used herein in clause
      (a)
      and
      wherever else the determination of the amount of “interest” is relevant,
“interest” shall include interest accruing on or after the filing of, or what
      would have accrued but for the filing of, any petition in bankruptcy, or the
      commencement of any Insolvency Proceeding, relating to any Borrower, whether
      or
      not a claim for post-filing or post-petition interest is allowed in such
      proceeding.

    

    “Other
      Taxes”
      has the
      meaning ascribed to that term in subsection
      2.7(b).

    

    “Patriot
      Act”
      means
      the Uniting
      and Strengthening America by Providing Appropriate Tools Required to Intercept
      and Obstruct Terrorism Act of 2001,
      P.L.
      107-56, as amended.

    

    “Payment
      in Full”
      or
“Paid
      in Full”
      means
      the indefeasible payment in full in immediately available freely transferable
      Dollars of all Obligations (including interest accrued after the commencement
      of
      any Insolvency Proceeding irrespective of whether a claim for such interest
      is
      allowable in such Insolvency Proceeding) and the termination of the commitment
      of Lender or any other obligation of Lender to advance funds or otherwise make
      extensions of credit hereunder or under any of the other Credit
      Documents.

    

    “PBGC”
      means
      the Pension Benefit Guaranty Corporation and any Person succeeding to the
      functions thereof.

    

    “PPM”
      means
      CGS’s Private Placement Memorandum dated November 14, 2006, as supplemented
      pursuant to those certain December 20, 2006 First Supplement, January 3, 2007
      Second Supplement and January 12, 2007 Third Supplement.

    

    “Permitted
      Discretion”
      means
      Lender’s judgment exercised in good faith based upon its consideration of any
      factor which Lender believes in good faith: (a)
      will or
      could adversely affect the value of any Collateral, the enforceability or
      priority of Lender’s Liens thereon or the amount which Lender would be likely to
      receive (after giving consideration to delays in payment and costs of
      enforcement) in the liquidation of such Collateral; (b)
      suggests
      that any collateral report or financial information delivered to Lender by
      any
      Person on behalf of any Credit Party is incomplete, inaccurate or misleading
      in
      any material respect; (c)
      materially increases the likelihood of a bankruptcy, reorganization or other
      insolvency proceeding involving any Credit Party or any of the Collateral;
      or
(d)
      creates
      or reasonably could be expected to create a Default or Event of Default. In
      exercising such judgment, Lender may consider such factors already included
      in
      or tested by the definition of Eligible Accounts Receivable, as well as any
      of
      the following: (i)
      the
      changes in collection history and dilution with respect to the Accounts;
(ii)
      changes
      in demand for, and pricing of, Inventory; (iii)
      changes
      in any concentration of risk with respect to any Accounts and Inventory of
      any
      Credit Party; and (iv)
      any
      other factors that change the credit risk of lending to any Borrower on the
      security of the Accounts and Inventory of any Credit Party. The burden of
      establishing lack of good faith hereunder shall be on the
      Borrowers.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    “Permitted
      Liens”
      has the
      meaning ascribed to that term in Section
      7.3.

    

    “Permitted
      Restrictive Covenant”
      means
(a)
      any
      covenant or restriction contained in any Credit Document, (b)
      any
      covenant or restriction of the type contained in Section
      7.3
      that is
      contained in any contract evidencing or providing for the creation of or
      concerning Indebtedness secured by any Purchase Money Lien so long as such
      covenant or restriction is limited to the property purchased therewith, or
      (c)
      any
      covenant or restriction that (i)
      is not
      more burdensome than an existing Permitted Restrictive Covenant that is such
      by
      virtue of clause
      (b);
      (ii)
      is
      contained in a contract constituting a renewal, extension or replacement of
      the
      Contract in which such existing Permitted Restrictive Covenant is contained;
      and
(iii)
      is
      binding only on the Person or Persons bound by such existing Permitted
      Restrictive Covenant.

    

    “Person”
      means
      any individual, sole proprietorship, partnership, joint venture, trust, business
      trust, unincorporated organization, association, corporation, limited liability
      company, institution, entity, party or government (including any division,
      agency or department thereof), and, as applicable, the successors, heirs and
      assigns of each.

    

    “Plan”
      means
      any employee benefit plan, program or arrangement, whether oral or written,
      maintained or contributed to by any Credit Party or any Subsidiary of any Credit
      Party or any ERISA Affiliate, or with respect to which any Credit Party or
      any
      Subsidiary of any Credit Party or any ERISA Affiliate, may incur
      liability.

    

    “Prohibited
      Transaction”
      means
      any transaction that is prohibited under Code Section 4975 or ERISA Section
      406
      and not exempt under Code Section 4975 or ERISA Section 408.

    

    “Purchase
      Money Liens”
      means
      Liens on any item of Equipment of a Credit Party or any Subsidiary of any Credit
      Party acquired after the date of this Credit Agreement to secure the purchase
      price thereof; provided,
      that:
(a)
      each
      such Lien shall attach only to the property to be acquired; and (b)
      the
      Indebtedness incurred in connection with such acquisitions shall not exceed
      one
      hundred percent (100%) of the amount of the purchase price of such items of
      Equipment then being financed.

    

    “Real
      Estate”
      means
      all real property owned or leased by any Credit Party or any of Subsidiary
      of
      any Credit Party, together with all fixtures, improvements and other structures
      thereon.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    

    “Regulation
      D”
      means
      Regulation D of the Board of Governors of the Federal Reserve System as from
      time to time in effect and any successor thereto.

    

    “Related
      Transactions Documents”
shall
      mean, collectively, the Closing Date Cash Equity Investment Documents, the
      CentrePath Acquisition Documents, the Global Acquisition Documents, the Rollover
      Note Documents and any Additional Subordinated Note Documents.

    

    “Related
      Transactions”
shall
      mean, collectively, the transactions provided for in the respective Related
      Transactions Documents and the transactions otherwise contemplated
      thereby.

    

    “Reportable
      Event”
      means
      any of the events described in Section 4043 of ERISA and the regulations
      thereunder. 

    

    “Requirement
      of Law”
      means,
      as to any Person, the Governing Documents of such Person, and any law, treaty,
      rule, regulation, direction, ordinance, criterion or guideline or determination
      of a court or other Governmental Authority or determination of an arbitrator,
      in
      each case applicable to or binding upon such Person or any of its property
      or to
      which such Person or any of its property is subject.

    

    “Restricted
      Payment”
      means,
      (a) any dividend or other distribution, direct or indirect, on account of any
      Capital Securities of any Credit Party or any of its Subsidiaries, now or
      hereafter outstanding, (b) any repurchase, redemption, retirement, defeasance,
      sinking fund or similar payment, purchase or other acquisition for value, direct
      or indirect, of any Capital Securities of any Credit Party or any of its
      Subsidiaries, now or hereafter outstanding, (c) any payment to retire or to
      purchase, or to obtain the surrender of, any outstanding warrants, options
      or
      other rights for the purchase or acquisition of shares of any class of Capital
      Securities of any Credit Party or any of its Subsidiaries, now or hereafter
      outstanding, (d) any cash payment or prepayment of interest on, principal of,
      premium, if any, fees, redemption, conversion, exchange, purchase, retirement,
      defeasance, sinking fund or similar payment with respect to, any Indebtedness
      subordinated in right of payment to the Obligations, including, without
      limitation, any of the Subordinated Notes; or (e) payment of any management
      fees
      or any other fees or expenses (including the reimbursement thereof by such
      Credit Party or such Subsidiary) pursuant to any management, consulting or
      other
      services agreement to any of the shareholders or other equityholders holding
      two
      percent (2%) or more of the Capital Securities of any Credit Party or any of
      its
      Subsidiaries or other Affiliates, or to any other Subsidiary or Affiliate of
      any
      Credit Party. For the purposes of this definition, a “payment” shall include the
      transfer of any asset or the incurrence of any Indebtedness or other Liability
      (the amount of any such payment to be the fair market value of such asset or
      the
      amount of such obligation, respectively) but shall not include the issuance
      by
      such Person to the holders of a class or series of a class of its Capital
      Securities of the same class and, if applicable, series, other than, in the
      case
      of any Credit Party or any of its Subsidiaries, Mandatorily Redeemable
      Obligations.

    

    "Risk
      Participation Liability"
      means,
      as to each Letter of Credit, all reimbursement obligations of Borrowers to
      Lender with respect to an L/C Undertaking, consisting of (a) the
      amount available to be drawn or which may become available to be drawn,
(b) all
      amounts that have been paid by Lender to the Underlying Issuer to the extent
      not
      reimbursed by a Borrower, whether by the making of a Loan or otherwise, and
      (c) all
      accrued and unpaid interest, fees, and expenses payable with respect
      thereto.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    “Rollover
      Note Purchase Agreement” means
      that certain CGSI 2-Year Term Note Purchase Agreement dated as of January __,
      2007, among each of the Credit Parties and each holder of a Rollover
      Subordinated Note, as the same may be amended, restated, amended and restated,
      supplemented or otherwise modified and in effect from time to time, to the
      extent permitted hereunder. 

    

    “Rollover
      Servicer Agreement” means
      that certain CGSI 2-Year Term Note Administration and Security Agreement dated
      as of January __, 2007, among each of the Credit Parties, each holder of a
      Rollover Subordinated Note, and CGSI Term Note Servicer, Inc., a Delaware
      corporation, as the same may be amended, restated, amended and restated,
      supplemented or otherwise modified and in effect from time to time, to the
      extent permitted hereunder. 

    

    “Rollover
      Subordinated Note Documents” means
      the
      Rollover Subordinated Notes, the Rollover Warrants and the Rollover Note
      Purchase Agreement, Rollover Note Servicer Agreement, and all other agreements,
      documents and instruments executed and/or delivered in connection therewith,
      in
      each case as the same may be amended, restated, amended and restated,
      supplemented or otherwise modified and in effect from time to time, to the
      extent permitted hereunder. 

    

    “Rollover
      Subordinated Notes” means
      those certain CGSI 2-Year Promissory Notes dated January 19, 2007, issued
      pursuant to the Rollover Note Purchase Agreement to the respective payees and
      in
      the respective original principal amounts indicated on Schedule
      1.1(A),
      in each
      case as in effect on the Closing Date, as the same may be amended, restated,
      amended and restated, supplemented or otherwise modified and in effect from
      time
      to time, to the extent permitted hereunder, and including any notes and other
      instruments issued in exchange or substitution therefor or replacement thereof,
      in each case to the extent permitted hereunder. 

    

    “Rollover
      Warrants” means
      those certain Term Note Warrants to Purchase Capital Securities of CGSI, issued
      pursuant to the Rollover Note Purchase Agreement to the respective holders
      of
      the Rollover Subordinated Notes and set forth on Schedule
      1.1(B),
      in each
      case as in effect on the Closing Date, as the same may be amended, restated,
      amended and restated, supplemented or otherwise modified and in effect from
      time
      to time, to the extent permitted hereunder, and including any notes and other
      instruments issued in exchange or substitution therefor or replacement thereof,
      in each case to the extent permitted hereunder 

    

    “Rollover
      Subordination Agreement” means
      the
      Subordination Agreement of even date herewith among Lender and the Rollover
      Subordinated Noteholders.

    

    “Subordinated
      Note Documents” means
      the
      collective reference to the Rollover Subordinated Note Documents and any
      Additional Subordinated Note Documents, in each case as the same may be amended,
      restated, amended and restated, supplemented or otherwise modified and in effect
      from time to time, to the extent permitted hereunder. 

    

    “Subordinated
      Noteholders” means
      the
      collective reference to Rollover Subordinated Noteholders, any Additional
      Subordinated Noteholders and all other holders from time to time of Subordinated
      Notes.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    

    “Subordinated
      Notes” means
      the
      collective reference to the Rollover Subordinated Notes and any Additional
      Subordinated Notes, in each case as the same may be amended, restated, amended
      and restated, supplemented or otherwise modified and in effect from time to
      time, to the extent permitted hereunder, and including any notes and other
      instruments issued in exchange or substitution therefor or replacement thereof,
      in each case to the extent permitted hereunder. 

    

    “Subordination
      Agreements” means
      the
      collective reference to the Rollover Subordination Agreement and any Additional
      Note Subordination Agreement.

    

    “Security
      Agreement”
      means
      the General Security Agreement of even date herewith, between Lender and Credit
      Parties, as such Security Agreement may be amended, restated, amended and
      restated, supplemented or otherwise modified and in effect from time to
      time.

    

    “Subsidiary”
      means,
      with respect to any Person at any time (a)
      any
      other Person the accounts of which would be consolidated with those of such
      first Person in its consolidated financial statements as of such time, and
      (b)
      any
      other Person (i)
      that is,
      at such time, Controlled by, or (ii)
      securities of which having ordinary voting power to elect a majority of the
      board of directors (or other persons having similar functions), or other
      ownership interests of which ordinarily constituting a majority voting interest,
      are at such time, directly or indirectly, owned or Controlled by such first
      Person, or by one or more of its Subsidiaries, or by such first Person and
      one
      or more of its Subsidiaries.

    

    “Tax
      Transferee”
      has the
      meaning ascribed to that term in subsection
      2.7(a).

    

    “Taxes”
      has the
      meaning ascribed to that term in subsection
      2.7(a).

    

    “Termination
      Event”
      means
(a)
      a
      Reportable Event with respect to any Benefit Plan or Multiemployer Plan;
(b)
      the
      withdrawal of any Credit Party or any Subsidiary of any Credit Party or any
      ERISA Affiliate from a Benefit Plan during a plan year in which such entity
      was
      a “substantial employer” as defined in Section 4001(a) (2) of ERISA;
(c)
      the
      providing of notice of intent to terminate a Benefit Plan in a distress
      termination described in Section 4041(c) of ERISA or the treatment of any
      amendment as a termination under Section 4041(e) of ERISA; (d)
      the
      institution by the PBGC of proceedings to terminate a Benefit Plan or
      Multiemployer Plan; (e)
      any
      event or condition (i)
      that
      might constitute grounds under Section 4042 of ERISA for the termination of,
      or
      the appointment of a trustee to administer, any Benefit Plan or Multiemployer
      Plan, or (ii)
      that may
      result in termination of a Multiemployer Plan pursuant to Section 4041A of
      ERISA; or (f)
      the
      partial or complete withdrawal within the meaning of Sections 4203 and 4205
      of
      ERISA, of any Credit Party, any Subsidiary of any Credit Party or any ERISA
      Affiliate from a Multiemployer Plan.

    

    “UCC”
      means
      the Uniform Commercial Code as in effect from time to time in the State of
      Illinois; provided,
      that,
      if, with respect to any financing statement or by reason of any provisions
      of
      law, the perfection or the effect of perfection or non-perfection of the Liens
      granted to Lender pursuant to the applicable Credit Document is governed by
      the
      Uniform Commercial Code as in effect in a jurisdiction of the United States
      other than the State of Illinois, the term “UCC”
      means
      the
      Uniform Commercial Code as in effect from time to time in such other
      jurisdiction for purposes of the provisions of this Credit Agreement, each
      Credit Document and any financing statement relating to such perfection or
      effect of perfection or non-perfection.

     

    
      
        
        

      

      
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    “UK
      Collateral Documents”
      all
      agreements, documents and instruments now or hereafter executed and delivered
      pursuant to and/or in connection with this Credit Agreement, pursuant to which
      Liens are granted or are purported to be granted to Lender on any Capital
      Securities, or property or assets of, Magenta.

    

    "Underlying
      Issuer"
      means a
      third Person which is the beneficiary of an L/C Undertaking and which has issued
      a letter of credit at the request of Lender for the benefit of any
      Borrower.

    

    "Underlying
      Letter of Credit"
      means a
      letter of credit that has been issued by an Underlying Issuer.

    

    “Unused
      Line Fee”
      has the
      meaning ascribed to that term in Section
      3.3.

    

    “Wholly-Owned
      Subsidiary”
      shall
      mean any Subsidiary in which (other than directors’ qualifying shares issued
      pursuant to applicable Requirements of Law) one hundred percent (100%) of the
      Capital Securities, at the time as of which any determination is being made,
      is
      owned, beneficially and of record, by a Credit Party or by one or more of the
      other Wholly-Owned Subsidiaries of a Credit Party, or both.

    

    1.2 Accounting
      Terms and Determinations. Unless
      otherwise defined or specified herein, all accounting terms used herein has
      the
      meanings customarily given in accordance with GAAP, and all financial
      computations to be made under this Credit Agreement shall, unless otherwise
      specifically provided herein, be made in accordance with GAAP applied on a
      basis
      consistent in all material respects with the Financial Statements delivered
      to
      Lender on the Closing Date. All accounting determinations for purposes of
      determining compliance with Article
      7
      shall be
      made in accordance with GAAP as in effect on the Closing Date and applied on
      a
      basis consistent in all material respects with the Financial Statements
      delivered to Lender on the Closing Date. The Financial Statement required to
      be
      delivered hereunder from and after the Closing Date and all financial records
      shall be maintained in accordance with GAAP as in effect as of the date of
      the
      Financial Statements delivered to Lender on the Closing Date. If any Borrower
      or
      any Subsidiary of any Borrower shall change its method of inventory accounting
      from the first in first out method to any other method, all calculations
      necessary to determine compliance with the covenants contained herein shall
      be
      made as if such method of inventory accounting had not been so
      changed.

    

    1.3 Other
      Interpretive Provisions.
      Terms
      not
      otherwise defined herein which are defined in the UCC have the meanings given
      them in the UCC. The words “hereof,” “herein” and “hereunder” and words of
      similar import when used in this Credit Agreement shall refer to this Credit
      Agreement as a whole and not to any particular provision of this Credit
      Agreement, and references to Article, Section, Annex, Schedule, Exhibit and
      like
      references are references to this Credit Agreement unless otherwise specified.
      Any item or list of items set forth following the word “including,” “include” or
“includes” is set forth only for the purpose of indicating that, regardless of
      whatever other items are in the category in which such item or items are
“included,” such item or items are in such category, and shall not be construed
      as indicating that the items in the category are limited to such items or to
      items similar to such items. An Event of Default shall “continue” or be
“continuing” until such Event of Default has been waived in accordance with
Section
      8.1.
      Except
      as otherwise specified herein, all references herein (a) to any Person shall
      be
      deemed to include such Person’s successors and assigns, (b) to any Requirement
      of Law defined or referred to herein shall be deemed references to such
      Requirement of Law or any successor Requirement of Law as the same may have
      been
      or may be amended or supplemented from time to time and (c) to any Credit
      Document or Collateral Document defined or referred to herein shall be deemed
      references to such Credit Document or Collateral Document (and, in the case
      of
      any Note or any other instrument, any instrument issued in substitution
      therefor) as the terms thereof may have been or may be amended, supplemented,
      waived or otherwise modified from time to time. Whenever the context so
      requires, the neuter gender includes the masculine or feminine, the masculine
      gender includes the feminine, and the singular number includes the plural,
      and
      vice versa. Except as otherwise specified herein, all references to the time
      of
      day shall be deemed to be to Chicago, Illinois local time as then in
      effect.

     

    
      
        
        

      

      
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    ARTICLE
      2

    

    LOANS

    

    2.1 Commitment;
      Delivery of Note.

    

    (a) Subject
      to the terms and conditions set forth in this Credit Agreement, on and after
      the
      Closing Date and to but excluding the Expiration Date, Lender agrees to make
      from time to time loans and advances to Borrowers hereunder on a joint and
      several basis (each a “Loan”
and
      collectively the “Loans”);
      provided,
      that,
      no Loan shall be made if, after giving effect to the making of such Loan and
      the
      simultaneous application of the proceeds thereof, the aggregate outstanding
      principal balance of the Loans would exceed the lesser at such time of
(i)
      the
      Commitment less
      the
      Letter of Credit Usage and (ii)
      the
      Borrowing Base less
      the
      Letter of Credit Usage.

    

    (b) Borrowers
      hereby agree to execute and deliver to Lender a Note to evidence the
      Loans.

    

    2.2 Borrowing
      Mechanics. 

    

    (a) Funds
      Administrator shall give Lender prior telephonic notice (immediately confirmed
      in writing, in substantially the form of Exhibit
      B
      hereto
      (a “Notice
      of Borrowing”),
      not
      later than 10:00 a.m. on the date of borrowing of a Loan; provided,
      that,
      notwithstanding anything to the contrary set forth herein, except as otherwise
      previously agreed to by Lender, Funds Administrator shall not submit a Notice
      of
      Borrowing and Lender shall not be required to make any Loan more than once
      in
      any week. Each Notice of Borrowing shall be irrevocable and shall specify
(i)
      the
      principal amount of the proposed Loan, and (ii)
      the
      proposed borrowing date therefor, which must be a Business Day.

    

    (b) The
      Funds
      Administrator shall notify Lender in writing of the names of the officers of
      Funds Administrator authorized to request Loans on behalf of Borrowers and
      specifying which of those officers are also, or, if none are, the officers
      that
      are, authorized to direct the disbursement of Loans in a manner contrary to
      standing disbursement instructions, and shall provide Lender with a specimen
      signature of each such officer. In the absence of a specification of those
      officers who are authorized to vary standing disbursement instructions, Lender
      may assume that each officer authorized to request Loans also has such
      authority. Lender shall be entitled to rely conclusively on the authority of
      such officers of Funds Administrator to request Loans on behalf of Borrowers,
      or
      to vary standing disbursement instructions, until Lender receives written notice
      to the contrary. Lender shall have no duty to verify the authenticity of the
      signature appearing on any Notice of Borrowing or other writing delivered
      pursuant to this Section
      2.2
      and,
      with respect to an oral or electronic mail request for Loans, Lender shall
      have
      no duty to verify the identity of any individual representing himself as one
      of
      the officers of a Borrower authorized to make such request on behalf of such
      Borrower. Lender shall not incur any liability to any Credit Party as a result
      of (i)
      acting
      upon any telephonic or electronic mail notice referred to in this Section
      2.2
      if
      Lender believes in good faith such notice to have been given by a duly
      authorized officer of Funds Administrator or other individual authorized to
      request Loans on behalf of Borrowers or to direct the disbursement thereof
      in a
      manner contrary to standing disbursement instructions, or (ii)
      otherwise acting in good faith under this Section
      2.2
      and an
      advance made and disbursed pursuant to any such telephonic or electronic mail
      notice shall be deemed to be a Loan for all purposes of this Credit
      Agreement.

     

    
      
        
        

      

      
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    (c) In
      addition to being evidenced, as provided in Section
      2.5,
      by
      Borrowers’ Account, the Loans and Borrowers’ joint and several obligations to
      repay the Loans with interest in accordance with the terms of this Credit
      Agreement shall be evidenced by this Credit Agreement, the records of Lender
      and
      each Note. The records of Lender shall be prima
      facie
      evidence
      of the Loans and accrued interest thereon and of all payments made in respect
      thereof.

    

    (d) Notwithstanding
      the obligation of Funds Administrator to send written confirmation of a Notice
      of Borrowing made by telephone or electronic mail transmission if and when
      requested by Lender, in the event that Lender agrees to accept a Notice of
      Borrowing made by telephone or electronic mail transmission, such Notice of
      Borrowing shall be binding on Borrowers whether or not written confirmation
      is
      sent by Funds Administrator or requested by Lender. Lender may act prior to
      the
      receipt of any requested written confirmation, without any liability whatsoever,
      based upon telephonic or electronic mail notice believed by Lender in good
      faith
      to be from Funds Administrator or its agents. Lender’s records of the terms of
      any telephonic or electronic mail transmission Notices of Borrowing shall be
      conclusive on Borrowers in the absence of gross negligence or willful misconduct
      on the part of Lender in connection therewith.

    

    2.3 Voluntary
      and Mandatory
      Payment of Loans; Termination of Commitment.
      

    

    (a) The
      amount by which the aggregate outstanding principal balance of the Loans exceeds
      at any time the lesser at such time of (i)
      the
      Commitment less
      the
      Letter of Credit Usage and (ii)
      the
      Borrowing Base less
      the
      Letter of Credit Usage, shall be immediately due and payable without the
      necessity of any notice or demand. Repayments of such excess amounts shall
      be
      applied, first,
      to the
      repayment of the Loans, second,
      to the
      payment of all then unpaid drawings under any of Letters and Credit,
third,
      to the
      securing, with cash or Cash Equivalents as provided in the second paragraph
      of
Section
      8.2
      (but
      without the requirement of any demand provided for in such paragraph), of all
      other Risk Participation Liability with respect to outstanding Letters of
      Credit. 

    
      
        
        

      

      
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    (b) On
      the
      Expiration Date, Lender’s Commitment shall automatically reduce to zero ($0) and
      may not be reinstated. Borrowers may not reduce or terminate the Commitment
      at
      any time.

     

    (c) Subject
      to concurrent payment of the Make Whole Amount, if any, payable pursuant to
      Section
      3.3,
      Borrowers may terminate the Commitment in whole but not in part, at any
      time.

    

    2.4 Payments
      and Computations.
      

    

    (a) Borrowers
      shall make each payment under the Credit Documents and under the Notes not
      later
      than 12:00 noon on the day when due in Dollars to Lender at its address referred
      to in Section
      9.5
      in
      immediately available Dollars. The joint and several obligations of Borrowers
      to
      Lender with respect to such payments shall be discharged by making such payments
      to Lender pursuant to this Section
      2.4
      or by
      Lender, in its discretion, adding such payments to the principal amount of
      the
      Loans outstanding by charging such payments to Borrowers’ Account pursuant to
Section
      2.5.

    

    (b)    (i)
      Within
      thirty (30) days after the Closing Date, each Borrower shall have established
      and shall thereafter maintain in existence one or more lockboxes (each a
“Lockbox”)
      with
      one or more financial institutions selected by such Borrower and reasonably
      acceptable to Lender (each a “Depositary
      Account Bank”)
      and
      shall instruct all account debtors on the Accounts of such Borrower to remit
      all
      payments to a Lockbox. At all times following such establishment, all payments
      remitted by account debtors of a Borrower to any Lockbox, all other amounts
      received by a Borrower from any account debtor and all other cash received
      by a
      Borrower from any other source (including, without limitation, proceeds of
      dispositions permitted pursuant to Section
      7.4)
      shall
      in each case immediately upon receipt thereof be deposited into an account
      (each
      a “Depositary
      Account”)
      maintained by such Borrower with a Depositary Account Bank.

    

    (ii) Within
      thirty (30) days after the Closing Date, each Borrower, Lender and each
      Depositary Account Bank shall have entered into an agreement in form and
      substance satisfactory to Lender (each a “Depositary
      Account Agreement”),
      providing, among other things, that all available amounts held in each
      Depositary Account maintained at such Depositary Account Bank shall be wired
      on
      each Business Day into the Lender’s Account.

    

    (iii) The
      closing of any Lockbox or Depositary Account and the termination of any
      Depositary Account Agreement shall require in each case the prior written
      consent of Lender.

    

    (c) Commencing
      on the Closing Date and on each successive Business Day thereafter until such
      time as Borrowers shall have complied in Lender’s sole determination with all of
      the requirements set forth in the foregoing clauses
      (a)
      and
(b),
      respectively, (i)
      all
      available amounts held in any deposit account maintained by any Credit Party
      (other than Excluded Deposit Accounts) shall be wired on each Business Day
      into
      the Lender’s Account, and (ii)
      to the
      extent not deposited by the respective payors thereof directly into any such
      deposit account, all drafts, checks, money orders, collections and other similar
      forms of remittances received by any Credit Party shall be duly endorsed by
      such
      Credit Party to Lender and forwarded on the date received to Lender by overnight
      courier for deposit into the Lender’s Account; provided,
      that,
      notwithstanding the foregoing, Magenta may retain an aggregate balance of funds
      in deposit accounts of Magenta maintained in London, England, to the extent
      that
      the aggregate amount of all such funds retained in such deposit accounts (other
      than Excluded Deposit Accounts) does not exceed £50,000.

     

    
      
        
        

      

      
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    (d) All
      amounts received by Lender hereunder shall be applied in the following order:
      

    

    first,
      to the
      payment of any Fees and Expenses due and payable to Lender under any of the
      Credit Documents;

    

    second,
      to the
      payment of interest due on the Loans;

    

    third,
      to the
      payment of principal due on the Loans; and

    

    fourth,
      to the
      payment of other Obligations not specifically referred to in this subsection
      2.4(d)
      due and
      payable to Lender under the Credit Documents.

    

    2.5 Maintenance
      of Account.
      Lender
      shall maintain an account (“Borrowers’
      Account”)
      on its
      books in the name of Borrowers in which Borrowers will be charged with all
      loans
      and advances made by Lender to Borrowers or for Borrowers’ account, including
      the Loans, the Fees, the Expenses and any other Obligations. Borrowers will
      be
      credited, in accordance with Section
      2.4
      above,
      with all amounts received by Lender from Borrowers or from others for the
      account of any Borrower, including, as set forth above, all amounts received
      by
      Lender in payment of Accounts of Borrowers. In no event shall prior recourse
      to
      any Accounts or other Collateral be a prerequisite to Lender’s right to demand
      payment of any Obligation upon its maturity. Further, Lender shall have no
      obligation whatsoever to perform in any respect any of the contracts or
      obligations relating to the Accounts.

    

    2.6 Statement
      of Account.
      After
      the
      end of each month, Lender shall send Funds Administrator a statement accounting
      for the charges, loans, advances and other transactions occurring among and
      between Lender and Borrowers during that month. The monthly statements shall,
      absent manifest error, be an account stated, which is final, conclusive and
      binding on Borrowers.

    

    2.7 Withholding
      and Other Taxes.
      

    

    (a) Any
      and
      all payments by Borrowers hereunder or under the Notes shall be made, free
      and
      clear of and without deduction for any and all present or future taxes, levies,
      imposts, deductions, charges or withholdings and penalties, interests and all
      other liabilities with respect thereto (“Taxes”),
      excluding, (i)
      Taxes
      imposed on its net income (including any Taxes imposed on branch profits) and
      franchise taxes imposed on it by the jurisdiction under the laws of which Lender
      is organized or any political subdivision thereof, (ii)
      Taxes
      imposed on Lender’s net income (including any Taxes imposed on branch profits),
      and franchise Taxes imposed on it, by the jurisdiction of Lender’s office
      located at the address set forth in Section
      9.5
      or any
      political subdivision thereof, (iii)
      Taxes
      that are in effect and that would apply to a payment of Lender as of the Closing
      Date, and (iv)
      if any
      Person acquires any interest in this Credit Agreement, any Note or any Letter
      of
      Credit pursuant to the provisions hereof (any such Person being referred to
      as a
“Tax
      Transferee”),
      any
      Taxes to the extent that they are in effect and would apply to a payment to
      such
      Tax Transferee as of the date of the acquisition of such interest or changes
      in
      office, as the case may be (all such non-excluded Taxes being hereinafter
      referred to as “Covered
      Taxes”).
      If
      any Borrower shall be required by law to deduct any Covered Taxes from or in
      respect of any sum payable hereunder, under any Note or in respect of any Letter
      of Credit, to Lender or any Tax Transferee, (A)
      the sum
      payable shall be increased as may be necessary so that after making all required
      deductions of Covered Taxes (including deductions of Covered Taxes applicable
      to
      additional sums payable under this Section
      2.7)
      Lender
      or such Tax Transferee, as the case may be, receives an amount equal to the
      sum
      it would have received had no such deductions been made, (B)
      such
      Borrower shall make such deductions and (C)
      such
      Borrower shall pay the full amount so deducted to the relevant taxation
      authority or other authority in accordance with applicable law.

     

    
      
        
        

      

      
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    (b) In
      addition, Borrowers agree to pay any present or future stamp, documentary,
      excise, privilege, intangible or similar levies that arise at any time or from
      time to time (i)
      from any
      payment made under any and all Credit Documents, (ii)
      from the
      transfer of the rights of Lender under any Credit Documents to any transferee
      or
(iii)
      from the
      execution or delivery by any Borrower of, or from the filing or recording or
      maintenance of, or otherwise with respect to the exercise by Lender of their
      rights under, any and all Credit Documents (hereinafter referred to as
“Other
      Taxes”).

    

    (c) Borrowers
      will indemnify Lender and any Tax Transferee for the full amount of (i)
      Covered
      Taxes imposed on or with respect to amounts payable hereunder, under any Note
      or
      in respect of any Letter of Credit,
      (ii)
      Other
      Taxes and (iii)
      any
      Taxes other than Covered Taxes imposed by any jurisdiction on amounts payable
      under this Section
      2.7
      paid by
      Lender or such Tax Transferee, as the case may be, and any liability (including
      penalties, interest and expenses) arising solely therefrom or with respect
      thereto whether or not such Taxes were correctly or legally asserted by the
      relevant governmental taxing authority. Payment
      of this indemnification shall be made within thirty (30) days from the date
      of
      demand by Lender or such Tax Transferee certifying and setting forth in
      reasonable detail the calculation thereof as to the amount and type of such
      Taxes. Any such certificate submitted by Lender or such Tax Transferee in good
      faith to Borrowers shall, absent manifest error, be final, conclusive and
      binding on all parties.

    

    (d) Within
      thirty (30) days after having received a receipt for Covered Taxes or Other
      Taxes, Borrowers will furnish to Lender at its address referred to in
Section
      9.5,
      the
      original or a certified copy of a receipt evidencing payment
      thereof.

    

    (e) If
      a Tax
      Transferee that is organized under the laws of a jurisdiction outside of the
      United States acquires an interest in this Credit Agreement, any Note or any
      Letter of Credit, the transferor shall cause such Tax Transferee to agree that,
      on or prior to the effective date of such acquisition or change, as the case
      may
      be, it will deliver to Borrowers (i)
      two
      accurate, complete and signed copies of either (x) Internal Revenue Service
      Form
      W-8ECI or successor form, or (y) Internal Revenue Service Form W-8BEN or
      successor form, in each case, indicating that such Tax Transferee is on the
      date
      of delivery thereof entitled to receive payments of interest hereunder free
      from
      withholding of United States Federal income tax or (ii)
      in the
      case of such Tax Transferee that is entitled to claim exemption from withholding
      of United States Federal income tax under Section 871(h) or Section 881(c)
      of
      the Internal Revenue Code, (x) a certificate to the effect that Person is (A)
      not a "bank" within the meaning of Section 881(c)(3)(A) of the Internal Revenue
      Code, (B) not a 10 percent shareholder of the Parent within the meaning of
      Section 881(c)(3)(B) of the Internal Revenue Code and (C) not a controlled
      foreign corporation receiving interest from a related person for purposes of
      Section 881(c)(3)(C) of the Internal Revenue Code and (y) two accurate, complete
      and signed copies of Internal Revenue Service Form W-8BEN or successor
      form.

     

    
      
        
        

      

      
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    (f) If
      any
      Taxes for which Borrowers would be required to make payment under this
Section
      2.7
      are
      imposed, Lender shall use its best efforts to avoid or reduce such Taxes by
      taking any appropriate action (including assigning its rights hereunder to
      a
      related entity or a different office) which would not in the sole opinion of
      Lender be otherwise disadvantageous to Lender.

    

    (g) Without
      prejudice to the survival of any other agreement of Borrowers hereunder, the
      agreements and obligations of Borrowers contained in this Section
      2.7
      shall
      survive Payment in Full.

     

    2.8 Letters
      of Credit.

    

    (a) Subject
      to the terms and conditions of this Credit Agreement, Lender agrees to issue
      letters of credit for the account of Borrowers (each, an "L/C")
      or to
      purchase participations or execute indemnities or reimbursement obligations
      (each such undertaking, an "L/C
      Undertaking")
      with
      respect to letters of credit issued by an Underlying Issuer for the account
      of
      Borrowers. Each request for the issuance of a Letter of Credit, or the
      amendment, renewal, or extension of any outstanding Letter of Credit, shall
      be
      made in writing by any officer or employee of Funds Administrator and delivered
      to the Issuing Lender and Lender via hand delivery, facsimile, or other
      electronic method of transmission reasonably in advance of the requested date
      of
      issuance, amendment, renewal, or extension. Each such request shall be in form
      and substance satisfactory to Lender in its reasonable discretion and shall
      specify (i)
      the
      amount of such Letter of Credit, (ii)
      the date
      of issuance, amendment, renewal, or extension of such Letter of Credit,
(iii)
      the
      expiration date of such Letter of Credit, (iv)
      the name
      and address of the beneficiary thereof (or the beneficiary of the Underlying
      Letter of Credit, as applicable), and (v)
      such
      other information (including, in the case of an amendment, renewal, or
      extension, identification of the outstanding Letter of Credit to be so amended,
      renewed, or extended) as shall be necessary to prepare, amend, renew, or extend
      such Letter of Credit. If requested by Lender, each Borrower also shall be
      an
      applicant under the application with respect to any Underlying Letter of Credit
      that is to be the subject of an L/C Undertaking. Lender shall have no obligation
      to issue a Letter of Credit if any of the following would result after giving
      effect to the issuance of such requested Letter of Credit, (x)
      the
      Letter of Credit Usage would exceed $5,000,000 and (y)
      the sum
      of the aggregate outstanding principal balance of the Loans and the Letter
      of
      Credit Usage would exceed the lesser at such time of (I)
      the
      Commitment and (II)
      the
      Borrowing Base.

    

    (b) Each
      Letter of Credit (and corresponding Underlying Letter of Credit) shall be in
      form and substance acceptable to the Issuing Lender (in the exercise of its
      reasonable discretion), including the requirement that the amounts payable
      thereunder must be payable in Dollars. If Lender is obligated to advance funds
      under a Letter of Credit, Borrowers immediately shall reimburse such L/C
      Disbursement to Lender by paying to Lender an amount equal to such L/C
      Disbursement not later than 11:00 a.m. on the date that such L/C Disbursement
      is
      made, if Borrowers shall have received written or telephonic notice of such
      L/C
      Disbursement prior to 10:00 a.m. on such date, or, if such notice has not been
      received by Borrowers prior to such time on such date, then not later than
      11:00
      a.m. on the Business Day that Borrowers receive such notice, if such notice
      is
      received prior to 10:00 a.m. on the date of receipt, and, in the absence of
      such
      reimbursement, the L/C Disbursement immediately and automatically shall be
      deemed to be a Loan hereunder and, thereafter, shall bear interest at the rate
      then applicable to the Loans pursuant to Section
      3.1
      or
3.2,
      as
      applicable. To the extent an L/C Disbursement is deemed to be a Loan hereunder,
      Borrowers’ obligation to reimburse such L/C Disbursement shall be discharged and
      replaced by the resulting Loan.

     

    
      
        
        

      

      
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    (c) Borrowers
      hereby agree to indemnify, save, defend, and hold Lender harmless from any
      loss,
      cost, expense, or liability, and reasonable attorneys fees incurred by Lender
      arising out of or in connection with any Letter of Credit; provided,
      that
      Borrowers shall not be obligated hereunder to indemnify for any loss, cost,
      expense, or liability to the extent that it is caused by the gross negligence
      or
      willful misconduct of Lender. Each Borrower agrees to be bound by the Underlying
      Issuer's regulations and interpretations of any Underlying Letter of Credit
      or
      by Lender's interpretations of any L/C issued by Lender to or for any Borrower's
      account, even though this interpretation may be different from such Borrower's
      own, and each Borrower understands and agrees that Lender shall not be liable
      for any error, negligence, or mistake, whether of omission or commission, in
      following Borrower's instructions or those contained in the Letter of Credit
      or
      any modifications, amendments, or supplements thereto. Each Borrower understands
      that the L/C Undertakings may require Lender to indemnify the Underlying Issuer
      for certain costs or liabilities arising out of claims by a Borrower against
      the
      Underlying Issuer. Each Borrower hereby agrees to indemnify, save, defend,
      and
      hold Lender harmless with respect to any loss, cost, expense (including
      reasonable attorneys fees), or liability incurred by Lender under any L/C
      Undertaking as a result of Lender's indemnification of any Underlying Issuer;
      provided,
      , that
      no Borrower shall be obligated hereunder to indemnify for any loss, cost,
      expense, or liability to the extent that it is caused by the gross negligence
      or
      willful misconduct of Lender. Each Borrower hereby acknowledges and agrees
      that
      Lender shall not be responsible for delays, errors, or omissions resulting
      from
      the malfunction of equipment in connection with any Letter of
      Credit.

    

    (d) Each
      Borrower hereby authorizes and directs any Underlying Issuer to deliver to
      Lender all instruments, documents, and other writings and property received
      by
      such Underlying Issuer pursuant to such Underlying Letter of Credit and to
      accept and rely upon Lender's instructions with respect to all matters arising
      in connection with such Underlying Letter of Credit and the related
      application.

    

    (e) Any
      and
      all issuance charges, commissions, fees, and costs incurred by Lender relating
      to Underlying Letters of Credit shall be Expenses for purposes of this Credit
      Agreement and immediately shall be reimbursable by Borrower to Lender; it being
      acknowledged and agreed by each Borrower that such issuance charge may be
      changed from time to time, and that the Underlying Issuer also imposes a
      schedule of charges for amendments, extensions, drawings, and
      renewals.

     

    
      
        
        

      

      
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    ARTICLE
      3

    INTEREST,
      FEES AND EXPENSES

    

    3.1 Interest
      on Loans.
      Subject
      to the provisions of Section
      3.2,
      the
      Loans shall bear interest on the aggregate unpaid principal amount thereof
      at a
      rate per annum equal to the greater of (a) the Base Rate plus
      seven
      percent (7%), or (b)
      fifteen
      percent (15%). Such interest shall be payable on the first Business Day of
      each
      month and at maturity of the Loans and, after maturity of the Loans (whether
      by
      acceleration or otherwise), upon demand. Each determination by Lender of the
      interest rate hereunder shall be conclusive and binding for all purposes, absent
      manifest error.

    

    3.2  Interest
      After Event of Default.
      Interest
      on any amount of overdue interest on or overdue principal of the Loans, and
      interest on the amount of principal under the Loans outstanding as of the date
      an Event of Default occurs, and at all times thereafter until the earlier of
      the
      date upon which (a) Payment in Full or (b) such Event of Default shall not
      be
      continuing, shall be payable on demand at a rate per annum equal to the rate
      at
      which the Loans are bearing interest pursuant to Section
      3.1
      above,
plus
      eight
      percent (8.00%). In the event of any change in said applicable interest rate,
      the rate hereunder shall change, effective as of the day the applicable interest
      rate changes, so as to remain eight percent (8.00%)
      per
      annum above
      the
      then applicable interest rate.

    

    3.3 Fees.
      

    

    (a) Borrowers
      shall pay to Lender on the Closing Date and on the first day of each calendar
      month thereafter a collateral management fee (the “Collateral
      Management Fee”)
      equal
      to $3,000. The Collateral Management Fee shall be non-refundable for any reason
      and fully earned as of the Closing Date and each subsequent date of payment
      thereof.

    

    (b) Borrowers
      shall pay to Lender a closing fee (the “Closing
      Fee”)
      in the
      amount of $600,000. The Closing Fee shall be non-refundable for any reason,
      fully earned as of the Closing Date and payable (i) in the amount of $300,000
      on
      the Closing Date, and (ii) in the amount of $300,000 on July 19,
      2007.

    

    (c) If
      the
      Commitment is terminated for any reason (including, without limitation, by
      Lender pursuant to Section
      8.2)
      prior
      to the date that is fifteen (15) Business Days prior to the date set forth
      in
clause
      (a)
      of the
      definition of the term the Expiration Date, Borrowers shall pay to Lender the
      Make Whole Amount.

    

    (d) The
      Borrowers shall pay to Lender, a non-refundable fee (the “Unused
      Line Fee”)
      equal
      to one-half of one percent (0.50%) per annum of the unused portion of the
      Commitment (with any outstanding Letters of Credit constituting usage of the
      Commitment). The Unused Line Fee shall accrue daily from the Closing Date until
      the Expiration Date, and shall be due and payable quarterly in arrears, on
      the
      first Business Day of calendar month and on the Expiration Date.

     

    
      
        
        

      

      
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    3.4 Reimbursement
      of Expenses.
      From
      and
      after the Closing Date, Borrowers shall promptly reimburse Lender for all
      Expenses as the same are incurred by Lender.

    

    3.5 Letter
      of Credit Fee. In
      addition to the charges, commissions, fees, and costs set forth in subsection
      2.8(e),
      Lender
      shall be entitled to charge for the account of Borrowers, on the first Business
      Day of each calendar month, a fee in an amount equal to one and one-quarter
      percent (1.25%) per annum of the Stated Amount of all Letters of Credit
      outstanding during the immediately preceding calendar month (the foregoing
      fee
      hereinafter referred to as the “Letter
      of Credit Fee”).

    

    3.6 Authorization
      to Charge Borrowers’ Account.
      Each Borrower
      hereby authorizes Lender to charge Borrowers’ Account with the amount of all
      Fees, Expenses and other amounts to be paid hereunder and under the other Credit
      Documents as and when such payments become due. Borrower confirms that any
      charges which Lender may so make to Borrowers’ Account as herein provided will
      be made as an accommodation to Borrowers and solely at Lender’s
      discretion.

    

    3.7 Indemnification
      in Certain Events.
      If
      after
      the Closing Date, either (a)
      any
      change in or in the interpretation of any law or regulation is introduced,
      including with respect to reserve requirements, applicable to Lender or any
      Underlying Issuer or any other banking or financial institution from whom such
      Person borrows funds or obtains credit (a “Funding
      Institution”),
      or
(b)
      Lender,
      any Underlying Issuer or any Funding Institution complies with any future
      guideline or request from any central bank or other Governmental Authority
      or
(c)
      Lender,
      any Underlying Issuer or any Funding Institution determines that the adoption
      of
      any applicable law, rule or regulation regarding capital adequacy, or any change
      therein, or any change in the interpretation or administration thereof by any
      Governmental Authority, central bank or comparable agency charged with the
      interpretation or administration thereof has or would have the effect described
      below, or Lender, any Underlying Issuer or any Funding Institution complies
      with
      any request or directive regarding capital adequacy (whether of not having
      the
      force of law) of any such authority, central bank or comparable agency, and
      in
      the case of any event set forth in this clause
      (c),
      such
      adoption, change or compliance has or would have the direct or indirect effect
      of reducing the rate of return on the capital of Lender or such Underlying
      Issuer as a consequence of its obligations hereunder to a level below that
      which
      such Person could have achieved but for such adoption, change or compliance
      (taking into consideration such Person’s or such Funding Institution’s policies
      as the case may be with respect to capital adequacy) by an amount deemed by
      such
      Person to be material, or any of the foregoing events described in clauses
      (a),
      (b)
      or
(c)
      increases the cost to Lender of funding or maintaining the Commitment, then
      Borrowers shall upon demand by Lender, for the account of Lender or, as
      applicable, a Funding Institution, additional amounts sufficient to indemnify
      such Person against such increase in cost or reduction in amount receivable.
      A
      certificate as to the amount of such increased cost and setting forth in
      reasonable detail the calculation thereof shall, if requested by any Borrower,
      be submitted to such Borrower by the Person making such claim, and shall be
      conclusive absent manifest error.

    

    3.8 Calculations
      and Determinations.
      

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    (a) All
      calculations of (i)
      interest
      hereunder, and (ii)
      the
      Unused Line Fee, shall be made by Lender on the basis of a year of 360 days,
      or,
      if such computation would cause the interest chargeable hereunder to exceed
      the
      Highest Lawful Rate, 365/366 days, in each case to the extent applicable for
      the
      actual number of days elapsed (including the first day but excluding the last
      day) occurring in the period for which such interest is payable

    

    (b) In
      making
      the determinations contemplated by Article
      3,
      Lender
      may make such estimates, assumptions, allocations and the like that such Person
      in good faith determines to be appropriate. 

    

    (c) Each
      determination by Lender of an interest rate or payment hereunder shall be
      conclusive and binding for all purposes, absent manifest error.

    

    ARTICLE
      4

    CONDITIONS
      PRECEDENT

    

    4.1 Conditions
      to Initial Credit Event.
      The
      initial Credit Event is subject to the satisfaction or waiver, immediately
      prior
      thereto or concurrently therewith, of the following conditions
      precedent:

    

    (a) Closing
      Document List.
      Lender
      shall have received each of the agreements, opinions, reports, approvals,
      consents, certificates and other documents set forth on the Closing Document
      List attached hereto as Annex
      1.

    

    (b) Fees
      and Expenses.
      Lender
      shall have received payment in full of those Fees and Expenses referred to
      in
Article
      3
      payable
      to it on or before the initial Credit Event (or an irrevocable authorization
      to
      pay such Fees or Expenses out of the proceeds of the initial
      Loans).

     

    (c) Closing
      Date Cash Equity Investment.
      Lender
      shall have received evidence satisfactory to Lender that the Closing Date Cash
      Equity Investment has been consummated in accordance with the Closing Date
      Cash
      Equity Investment Documents and all applicable Requirements of Law and that
      CGS
      has received cash proceeds of the Closing Date Cash Equity Investment in an
      amount not less than $10,000,000.

    

    (e) Related
      Transaction Documents.
      There
      shall have been delivered to Lender true, correct and complete copies of the
      Related Transaction Documents, each of which shall be in form and substance
      satisfactory to Lender.

    

    (d) Material
      Adverse Effect.
      No
      Material Adverse Effect shall have occurred since September 30,
      2006.

    

    (e) Availability.
      Lender
      shall have received a completed Borrowing Base Certificate setting forth the
      Borrowing Base as of the Closing Date, and, after giving pro forma effect to
      the
      consummation of the Related Transactions, the funding of any Loans, or issuance
      of any Letters of Credit and payment of all costs and expenses in connection
      therewith, in each case on the Closing Date, the lesser of the (a) the
      Commitment and (b) the Borrower Base, shall exceed the aggregate outstanding
      principal balance of the Loans plus
      Letter
      of Credit Usage by at least $2,000,000. 

     

    
      
        
        

      

      
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    (f) Additional
      Documents.
      Borrowers shall have executed and delivered to Lender all documents which Lender
      determines are reasonably necessary to consummate the transactions contemplated
      hereby.

    

    4.2 Conditions
      to Each Credit Event.
      On
      the
      date of each Credit Event (including the initial Credit Event), both immediately
      before and immediately after giving effect thereto and to the application of
      the
      proceeds therefrom, the following statements shall be true to the satisfaction
      of Lender (and each request for a Credit Event, shall constitute a
      representation and warranty by each Borrower to Lender that on the date of
      such
      Credit Event, immediately before and immediately after giving effect thereto
      and
      to the application of the proceeds therefrom, such statements are
      true):

    

    (a) The
      representations and warranties contained in this Credit Agreement and in each
      other Credit Document are true and correct in all material respects on and
      as of
      the date of such Credit Event as though made on and as of such date, except
      (i)
      to the
      extent that such representations and warranties expressly relate solely to
      an
      earlier date (in which case such representations and warranties remain true
      and
      correct in all material respects on and as of such earlier date), and
(ii)
      for such
      representations and warranties that are subject to a Material Adverse Effect
      or
      other materiality qualifier (in which case such representations and warranties
      are true and correct in all respects);

     

    (b) Lender
      shall have received (i)
      a Notice
      of Borrowing pursuant to Section
      2.2
      and
(ii)
      a
      Borrowing Base Certificate pursuant to subsection
      6.1(e);
      and

    

    (c) No
      event
      has occurred and is continuing, or could reasonably be expected to result from
      such Credit Event or the application of the proceeds thereof, which would
      constitute a Default or an Event of Default.

    

    

    ARTICLE
      5

    REPRESENTATIONS
      AND WARRANTIES

    

    To
      induce
      Lender to enter into this Credit Agreement, each Credit Party hereby represents
      and warrants to Lender:

    

    5.1 Organization
      and Qualification.
      Except
      as
      set forth on Schedule
      5.1, Each Credit
      Party and each Subsidiary of each Credit Party: (a)
      is a
      corporation or limited liability company, as the case may be, duly organized,
      validly existing and in good standing under the laws of the state of its
      organization, (b)
      has the
      corporate or limited liability company, as the case may be, power and authority
      to own its properties and assets and to transact the businesses in which it
      presently is, or proposes to be, engaged and (c)
      is duly
      qualified and is authorized to do business and is in good standing in each
      jurisdiction where it presently is, or proposes to be, engaged in business.
      Schedule
      5.1
      lists
      all jurisdictions in which each Credit Party and each Subsidiary of each are
      qualified to do business as foreign corporations or limited liability
      companies.

     

    
      
        
        

      

      
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    5.2 Solvency.
      The
      fair
      saleable value of the assets of the Credit Parties taken as a whole on a going
      concern basis exceeds all probable liabilities of such Persons, including those
      to be incurred pursuant to this Credit Agreement and the other Credit Documents.
      No Credit Party (a) has unreasonably small capital in relation to the business
      in which it is, or proposes to be, engaged and (b) has incurred, and does not
      believe that it will incur after giving effect to the Related Transactions
      and
      the other transactions contemplated by this Credit Agreement and the other
      Credit Documents, debts beyond its ability to pay such debts as they become
      due.

    

    5.3 Rights
      in Collateral; Priority of Liens.
      Each
      Credit Party and each Subsidiary of each Credit Party owns the property granted
      by it as Collateral under the Credit Documents, free and clear of any and all
      Liens in favor of third parties, except for those listed on Schedule
      7.3.
      Upon
      the proper filing of the UCC financing statements, and the taking of the other
      actions specified, in each case in the Closing Document List, the Liens granted
      by any Credit Party (other than Magenta) pursuant to the Credit Documents will
      constitute the valid and enforceable first, prior and perfected Liens on the
      Collateral, except, in the case of priorities, for the Liens listed on
Schedule
      7.3.

    

    5.4 No
      Conflict.
      The
      execution, delivery and performance by each Credit Party and each Subsidiary
      of
      each Credit Party of each Credit Document and Related Transaction Document
      to
      which it is a party: (a) are within its corporate or, if applicable, limited
      liability company, power; (b) are duly authorized by all necessary corporate
      or,
      if applicable, limited liability company, action; (c) are not in contravention
      of any Requirement of Law or any indenture, contract, lease, agreement,
      instrument or other commitment to which it is a party or by which it or any
      of
      its properties are bound; (d) do not require the consent, registration or
      approval of any Governmental Authority or any other Person (except such as
      have
      been duly obtained, made or given, and are in full force and effect); and (e)
      will not, except as contemplated herein, result in the imposition of any Liens
      upon any of its properties.

    

    5.5 Enforceability.
      The
      Credit Agreement and all of the other Credit Documents to which any Credit
      Party
      or any Subsidiary of any Credit Party is a party are the legal, valid and
      binding obligations of such Credit Party and such Subsidiary, as the case may
      be, and are enforceable against each of them, as the case may be, in accordance
      with their terms, except as such enforceability may be limited by (a) the effect
      of any applicable bankruptcy, insolvency, reorganization, moratorium or similar
      laws affecting creditors’ rights generally and (b) general principles of
      equity.

    

    5.6 Consents.
      No
      consent or authorization of, filing with or other act by or in respect of,
      any
      Governmental Authority or any other Person is required in connection with any
      Credit Event hereunder, the grant of the Liens pursuant to the Credit Documents,
      the consummation of the Related Transactions, the continuing operations of
      any
      Credit Party or any Subsidiary of any Credit Party or with the execution,
      delivery, performance, validity or enforceability of this Credit Agreement,
      the
      Notes or the other Credit Documents, except for the filing of the UCC financing
      statements and consents or authorizations which have been obtained or filings
      which have been made and which, in each case, are in full force and
      effect.

     

    
      
        
        

      

      
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    5.7 Financial
      Data

    

    (a) The
      Credit Parties have furnished or caused to be furnished to Lender the following
      Financial Statements, which have been prepared in accordance with GAAP
      consistently applied throughout the periods involved: (a) balance sheets as
      of,
      and statements of operations, shareholder’s equity and cash flows for the fiscal
      year of CGS and its consolidated Subsidiaries ending December 31, 2005, audited
      by independent certified public accountants and accompanied by an unqualified
      opinion thereon; (b) an unaudited balance sheet as of, and unaudited statements
      of operations, shareholder’s equity and cash flows for the nine-month fiscal
      period of CGS and its consolidated Subsidiaries ending September 30, 2006,
      and
      (c) an unaudited balance sheet as of, and unaudited statements of operations,
      shareholder’s equity and cash flows for the nine-month fiscal period of each of
      CentrePath and Global and their respective consolidated Subsidiaries, if any,
      ending, September 30, 2006.

    

    (b) All
      financial performance projections delivered to Lender, including the Initial
      Projections, represent the Credit Parties’ best good faith estimate of future
      financial performance and are based on assumptions believed by the Credit
      Parties to be fair and reasonable in light of current market conditions, it
      being acknowledged and agreed by Lenders that projections as to future events
      are not to be viewed as facts and that the actual results during the period
      or
      periods covered by such projections may differ from the projected
      results.

    

    5.8 Locations
      of Officers, Records and Inventory.
      The
      address of the principal place of business and chief executive office of each
      Credit Party and each Subsidiary of each is set forth on Schedule
      5.8.
      The
      books and records of each Credit Party and each Subsidiary of each Credit Party,
      and all of their respective chattel paper and records of Accounts, are
      maintained exclusively at such locations. There is no location at which any
      Credit Party or any Subsidiary of any Credit Party has any Collateral (except
      for vehicles) other than those locations identified on Schedule
      5.8.
      Schedule
      5.8
      also
      contains a complete list of the legal names and addresses of each warehouse
      at
      which Inventory of any Credit Party or any Subsidiary or any Credit Party is
      stored. None of the receipts received by any Credit Party or any Subsidiary
      of
      any Credit Party from any warehouseman states that the goods covered thereby
      are
      to be delivered to bearer or to the order of a named person or to a named person
      and such named person’s assigns.

    

    5.9 Fictitious
      Business Names.
      Except
      as
      set forth on Schedule
      5.9,
      No Credit
      Party has
      used
      any corporate or fictitious name during the five (5) years preceding the date
      hereof, other than the corporate name under which it has executed this Credit
      Agreement.

    

    5.10 Subsidiaries.
      The
      only
      Subsidiaries of the respective Credit Parties are those listed on Schedule
      5.10
      and the
      record and beneficial owners of all of the issued and outstanding Capital
      Securities of each Subsidiary of each Credit Party are listed on Schedule
      5.10.
      In each
      case, except pursuant to the Credit Documents, there are no proxies, irrevocable
      or otherwise, with respect to such Capital Securities, and no Capital Securities
      of any Subsidiary of any Credit Party is or may become required to be issued
      by
      reason of any options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into or exchangeable for, Capital Securities of any Subsidiary
      of
      any Credit Party, and there are no contracts, commitments, understandings or
      arrangements by which any Subsidiary of any Credit Party is or may become bound
      to issue additional Capital Securities convertible into or exchangeable for
      such
      Capital Securities. All of such shares listed on Schedule
      5.10
      are
      owned by Person or Persons indicated free and clear of any Liens. Schedule
      5.10
      contains
      a true, correct and complete list, as to each Subsidiary of each Credit Party,
      of all jurisdictions in which such Subsidiary is qualified to do business as
      a
      foreign corporation.

     

    
      
        
        

      

      
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    5.11 No
      Judgments or Litigation.
      Except
      as
      set forth on Schedule
      5.11,
      no
      judgments, orders, writs or decrees are outstanding against any Credit Party
      or
      any Subsidiary of any Credit Party nor is there now pending or, to the best
      of
      any Credit Party’s knowledge after diligent inquiry, threatened any litigation,
      contested claim, investigation, arbitration, or governmental proceeding by
      or
      against any Credit Party or any Subsidiary of any Credit Party.

    

    5.12 No
      Defaults.
      Except
      as
      set forth on Schedule
      5.12,
      (a) no Credit
      Party nor
      any
      Subsidiary of any Credit Party is in default under any term of any indenture,
      contract, lease, agreement, instrument or other commitment to which any Credit
      Party or any Subsidiary of any is a party or by which any Credit Party or any
      Subsidiary of any Credit Party is bound, and (b)
      no
      Credit Party nor any Subsidiary of any Credit Party knows of any dispute
      regarding any such indenture, contract, lease, agreement, instrument or other
      commitment.

    

    5.13 Labor
      Matters.
      

    

    (a) There
      are
      no labor controversies pending or, to the best knowledge of any Credit Party
      or
      any Subsidiary of any Credit Party after diligent inquiry, threatened between
      any Credit Party or any Subsidiary of any Credit Party and any of their
      respective employees.

    

    (b) No
      Credit
      Party nor any Subsidiary of any Credit Party is engaged in any unfair labor
      practice. There is (i)
      no
      unfair labor practice complaint pending against any Credit Party or any
      Subsidiary of Credit Party or, to the best knowledge of any Credit Party or
      any
      Subsidiary of any Credit Party, threatened against any of them, before the
      National Labor Relations Board, and no grievance or significant arbitration
      proceeding arising out of or under collective bargaining agreements is so
      pending against any Credit Party or any Subsidiary of any Credit Party, to
      the
      best knowledge of any Credit Party or any Subsidiary of any Credit Party,
      threatened against any of them, (ii)
      no
      strike, labor dispute, slowdown or stoppage pending against any Credit Party
      or
      any Subsidiary of any Credit Party or, to the best knowledge of any Credit
      Party
      or any Subsidiary of any Credit Party, threatened against any of them and
(iii)
      no union
      representation question with respect to the employees of any Credit Party or
      any
      Subsidiary of any Credit Party and no union organizing activities.

    

    5.14 Compliance
      with Law.
      

    

    (a) Except
      as
      set forth on Schedule
      5.14,
      no
      Credit Party nor any Subsidiary of any Credit Party has (i)
      violated
      or failed to comply with any Requirement of Law or any requirement of any
      self-regulatory organization or (ii)
      any
      Liability of which any Credit Party or any Subsidiary of any Credit Party has
      knowledge or reasonably should have knowledge in connection with any release,
      generation, storage, use, transportation, disposal or other handling of any
      hazardous or toxic waste, substance or constituent, or other substance into
      the
      environment, or (iii)
      received
      any notice, letter or other indication of potential Liability arising from
      the
      release, generation, storage, use, transportation, disposal or other handling
      of
      any hazardous or toxic waste, substance or constituent or other substance into
      the environment.

     

    
      
        
        

      

      
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    (b) Except
      as
      set forth on Schedule
      5.14,
      none of
      the operations of any Credit Party or any Subsidiary of any Credit Party is
      the
      subject of any federal or state investigation evaluating whether such Credit
      Party or such Subsidiary disposed of any hazardous or toxic waste, substance
      or
      constituent or other substance at any site that may require remedial action,
      or
      any federal or state investigation evaluating whether any remedial action is
      needed to respond to a release of any hazardous or toxic waste, substance or
      constituent, or other substance into the environment.

    

    5.15 ERISA.
      No
      Credit
      Party nor any Subsidiary of any Credit Party nor any ERISA Affiliate maintains
      or contributes to any Plan other than those listed on Schedule
      5.15.

    

    5.16 Intellectual
      Property.
      Each Credit
      Party and each Subsidiary of each Credit Party possesses such assets, licenses,
      patents, patent applications, copyrights, service marks, trademarks and trade
      names as are necessary or advisable to continue to conduct its present and
      proposed business activities.

    

    5.17 Licenses
      and Permits.
      Except
      as
      set forth on Schedule
      5.17,
      (i) each
      Credit Party and each Subsidiary of each Credit Party has obtained and holds
      in
      full force and effect, all franchises, licenses, leases, permits, certificates,
      authorizations, qualifications, easements, rights of way and other rights and
      approvals which are necessary or advisable for the operation of its businesses
      as presently conducted and as proposed to be conducted, and (ii) no Credit
      Party
      nor any Subsidiary of any Credit Party is in violation of the terms of any
      such
      franchise, license, lease, permit, certificate, authorization, qualification,
      easement, right of way, right or approval.

    

    5.18 Title
      to Property.
      All
      Real
      Estate is identified on Schedule
      5.18.
      Each
      Credit Party and each Subsidiary of each Credit Party has good and marketable
      title in fee simple to, or a valid leasehold interest in, all its Real Estate,
      and good title to all its other property, and none of such property is subject
      to any Lien, except Permitted Liens.

    

    5.19 Investment
      Company.
      No
      Credit Party nor
      any
      Subsidiary of any Credit Party is (a) an investment company or a company
      controlled by an investment company within the meaning of the Investment
      Company Act of 1940,
      as
      amended, or (b) subject to any other law which purports to regulate or restrict
      its ability to borrow money or to consummate the transactions contemplated
      by
      this Credit Agreement or the other Credit Documents or to perform its
      obligations hereunder or thereunder.

    

    5.20 Taxes
      and Tax Returns.
      

    

    (a) Except
      as
      set forth on Schedule
      5.20,
      each
      Credit Party and each Subsidiary of each Credit Party (and any affiliated group
      of which any Credit Party or any Subsidiary of any Credit Party is now or have
      been members) have timely filed (inclusive of any permitted extensions) with
      the
      appropriate taxing authorities all returns (including information returns)
      in
      respect of Credit Party Taxes required to be filed through the date hereof
      and
      will timely file (inclusive of any permitted extensions) any such returns
      required to be filed on and after the date hereof. The information filed is
      complete and accurate in all material respects. All deductions taken by any
      Credit Party and its Subsidiaries as reflected in such income tax returns have
      been taken in accordance with applicable laws and regulations, except deductions
      that may have been disallowed but are being challenged in good faith and for
      which adequate reserves have been made in accordance with GAAP. Except as
      specified in Schedule
      5.20,
      no
      Credit Party, no Subsidiary of any Credit Party, nor any group of which any
      Credit Party or any Subsidiary of any Credit Party is now or were members,
      have
      requested any extension of time within which to file returns (including
      information returns) in respect of the Credit Party Taxes.

     

    
      
        
        

      

      
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    (b) Except
      for franchises taxes payable with respect to those matters described on
Schedule
      5.1,
      all
      taxes, assessments, fees and other governmental charges payable by each Credit
      Party and each Subsidiary of each Credit Party (and any affiliated group of
      which any Credit Party or any Subsidiary of any Credit Party is now or has
      been
      a member) in respect of their incomes, franchises, businesses, properties or
      otherwise (“Credit
      Party Taxes”)
      in
      respect of periods beginning prior to the date hereof, have been timely paid,
      or
      will be timely paid, or an adequate reserve has been established therefor,
      as
      set forth in Schedule
      5.20
      or in
      the Financial Statements, and no Credit Party nor any Subsidiary of any Credit
      Party has any liability for taxes in excess of the amounts so paid or reserves
      so established.

    

    (c) No
      deficiencies for Credit Party Taxes have been claimed, proposed or assessed
      by
      any taxing or other Governmental Authority against any Credit Party or any
      Subsidiary of any Credit Party and no Tax Liens have been filed. There are
      no
      pending or, to the best of the knowledge of any Credit Party or any Subsidiary
      of any Credit Party, threatened audits, investigations or claims for or relating
      to any liability in respect of Credit Party Taxes, and there are no matters
      under discussion with any governmental authorities with respect to Credit Party
      Taxes which are likely to result in a material additional liability for Credit
      Party Taxes. No extension of a statute of limitations relating to Credit Party
      Taxes is in effect with respect to any Credit Party or any Subsidiary of any
      Credit Party .

    

    (d) No
      Credit
      Party nor any Subsidiary of any Credit Party has any obligation under any
      agreement regarding payments in lieu of Credit Party Taxes.

    

    5.21 Status
      of Accounts.
      Each
      Account of each Borrower is based on an actual and bona
      fide
      sale and
      delivery of goods or rendition of services to customers, made by such Borrower
      in the ordinary course of its businesses; the goods and inventory being sold
      by
      each Borrower and the Accounts created thereby are the exclusive property of
      such Borrower and are not and shall not be subject to any Lien whatsoever other
      than those arising under the Security Agreement and the customer’s of each
      Borrower have accepted the goods or services, owe and are obligated to pay
      the
      full amounts stated in the invoices according to their terms, without any
      dispute, offset, defense, counterclaim or contra.

    

    5.22 Material
      Contracts.
      Schedule
      5.22
      contains
      a true, correct and complete list of all the Material Contracts currently in
      effect on the date hereof. None of the Material Contracts contains any
      burdensome restrictions on any Credit Party or any Subsidiary of any Credit
      Party or any of their respective properties. Except as set forth on Schedule
      5.22,
      all of
      the Material Contracts are in full force and effect, and no defaults by any
      Credit Party or, to the best of any Credit Party’s knowledge, any other party
      thereto, currently exist thereunder.

     

    
      
        
        

      

      
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    5.23 Affiliate
      Transactions.
      Except
      as
      set forth on Schedule
      5.23,
      or
      otherwise expressly permitted hereunder, no Credit Party nor any Subsidiary
      of
      any Credit Party is a party to or bound by any agreement or arrangement (whether
      oral or written) to which any Affiliate of any Credit Party or any Subsidiary
      of
      any Credit Party is a party except (a) in the ordinary course of and pursuant
      to
      the reasonable requirements of such Credit Party’s or such Subsidiary’s
      business, as the case may be, and (b) upon fair and reasonable terms no less
      favorable to such Credit Party or such Subsidiary, as the case may be, than
      it
      could obtain in a comparable arm’s-length transaction with an unaffiliated
      Person.

    

    5.24 Accuracy
      and Completeness of Information.
      All
      factual information furnished by or on behalf of any Credit Party or any
      Subsidiary of any Credit Party in writing to Lender or the Auditors for purposes
      of or in connection with this Credit Agreement or any of the other Credit
      Documents, any of the Related Transaction Documents or any other transaction
      contemplated hereby or thereby is or will be true and accurate in all material
      respects on the date as of which such information is dated or certified and
      not
      incomplete by omitting to state any material fact necessary to make such
      information not misleading at such time.

    

    5.25 Recording
      Taxes.
      All
      mortgage recording taxes, recording fees and other charges payable in connection
      with the filing and recording of the Credit Documents have either been paid
      in
      full by Credit Parties or arrangements for the payment of such amounts
      satisfactory to Lender shall have been made.

    

    5.26 No
      Adverse Change or Event.
      Since
      September 30, 2006, no change in the business, assets, Liabilities, financial
      condition, results of operations or business prospects of any Credit Party
      or
      any Subsidiary of any Credit Party has occurred, and no event has occurred
      or
      failed to occur, that has had or could reasonably be expected to have, either
      alone or in conjunction with all other such changes, events and failures, a
      Materially Adverse Effect. Such an adverse change may have occurred, and such
      an
      event may have occurred or failed to occur, at any particular time
      notwithstanding the fact that at such time no Default or Event of Default shall
      have occurred and be continuing.

    

    5.27 Additional
      Adverse Facts.
      Except
      for facts and circumstances disclosed on Schedule
      5.27,
      no fact
      or circumstance is known to any Credit Party or any Subsidiary of any Credit
      Party , as of the Closing Date, that, either alone or in conjunction with all
      other such facts and circumstances, has had or might have (so far as any Credit
      Party or any Subsidiary of any Credit Party can foresee) a Materially Adverse
      Effect. If a fact or circumstance disclosed on such Schedule should in the
      future have a Materially Adverse Effect, such Materially Adverse Effect shall
      be
      a change or event subject to Section
      5.26
      notwithstanding such disclosure.

    

    5.28 Foreign
      Assets Control Regulations and Anti-Money Laundering.
      OFAC.
      No
      Credit
      Party nor any Subsidiary of any Credit Party (i) is a person whose property
      or
      interest in property is blocked or subject to blocking pursuant to Section
      1 of
Executive
      Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
      With Persons Who Commit, Threaten to Commit, or Support
      Terrorism
      (66 Fed.
      Reg. 49079 (2001)), (ii) engages in any dealings or transactions prohibited
      by
      Section 2 of such executive order, or is otherwise associated with any such
      person in any manner violative of Section 2, or (iii) is a person on the list
      of
Specially
      Designated Nationals and Blocked Persons
      or
      subject to the limitations or prohibitions under any other U.S. Department
      of
      Treasury’s Office of Foreign Assets Control regulation or executive
      order.

     

    
      
        
        

      

      
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    5.29 Patriot
      Act.
      Each Credit
      Party and
      each
      Subsidiary of each Credit Party is in compliance, in all material respects,
      with
      the Patriot Act. No part of the proceeds of the Loans or Letters of Credit
      will
      be used, directly or indirectly, for any payments to any governmental official
      or employee, political party, official of a political party, candidate for
      political office, or anyone else acting in an official capacity, in order to
      obtain, retain or direct business or obtain any improper advantage, in violation
      of the United
      States Foreign Corrupt Practices Act of 1977,
      as
      amended.

    

    ARTICLE
      6

    AFFIRMATIVE
      COVENANTS

    

    Until
      the
      Expiration Date and payment and satisfaction of all Obligations:

    

    6.1 Financial
      Information.
      Each
      Credit Party shall furnish or cause to be furnished to Lender the following
      information within the following time periods: 

    

    (a) as
      soon
      as available and in any event within ninety (90) days after the end of each
      fiscal year of the Consolidated Entity, (i)
      audited
      Financial Statements as of the close of the fiscal year and for the fiscal
      year,
      together with comparisons to the Financial Statements for the prior year, in
      each case accompanied by (A)
      an
      unqualified opinion of the Auditors, which opinion shall be in scope and
      substance satisfactory to Lender in its sole discretion, (B)
      such
      Auditors’ “Management Letter” to CGS, (C)
      a
      written statement signed by the Auditors stating that in the course of the
      regular audit of the business of the Consolidated Entity, which audit was
      conducted by the Auditors in accordance with generally accepted auditing
      standards, the Auditors have not obtained any knowledge of the existence of
      any
      Default or Event of Default under any provision of this Credit Agreement, or,
      if
      such Auditors shall have obtained from such examination any such knowledge,
      they
      shall disclose in such written statement the existence of the Default or Event
      of Default and the nature thereof, it being understood that such Auditors shall
      have no liability, directly or indirectly, to anyone for failure to obtain
      knowledge of any such Default or Event of Default, (ii)
      a
      narrative discussion of the consolidated and consolidating financial condition
      and results of operations and the consolidated and consolidating liquidity
      and
      capital resources of the Consolidated Entity for such fiscal year prepared
      by
      the chief executive officer or chief financial officer of CGS, and (iii)
      a
      compliance certificate substantially in the form of Exhibit
      C;

    

    (b) as
      soon
      as available and in any event within thirty (30) days after the end of each
      month, (i)
      consolidated and consolidating balance sheets for the Consolidated Entity as
      at
      the end of such month and consolidated and consolidating statements of
      operations and cash flows for such month and for the fiscal year to date,
      together with a comparison to the consolidated and consolidating balance sheets,
      statements of operations and statements of cash flows for the same periods
      in
      the prior year, all in reasonable detail and duly certified (subject to year-end
      audit adjustments) by the chief executive officer or chief financial officer
      of
      CGS as having been prepared in accordance with GAAP, (ii)
      a
      compliance certificate substantially in the form of Exhibit
      C
      along
      with a schedule in form and substance satisfactory to Lender of the calculations
      used in determining, as of the end of such month, whether the Credit Parties
      were in compliance with the covenants set forth in Articles
      6
      and
7
      of this
      Credit Agreement for such month;

     

    
      
        
        

      

      
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    (c) (i)
      not
      later than forty-five (45) days after the Closing Date, monthly projections
      of
      the financial condition and results of operations of the Consolidated Entity
      for
      the fiscal years of the Consolidate Entity ending December 31, 2007 and December
      31, 2008, respectively, which projections shall be in form and substance
      satisfactory to Lender in its sole and absolute discretion (the “Initial
      Projections”),
      in
      each case, including, but not limited to, projected consolidating balance
      sheets, consolidated and consolidating statements of operations and consolidated
      and consolidating statements of cash flows and consolidated and consolidating
      statements of changes in shareholders’ equity for each of such fiscal years; and
(ii)
      not
      later than forty-five (45) days prior to the end of each fiscal year of the
      Consolidated Entity commencing with such fiscal year ending December 31, 2007,
      monthly projections of the financial condition and results of operations of
      the
      Consolidated Entity for the following two (2) fiscal years, including, but
      not
      limited to, projected consolidating balance sheets, consolidated and
      consolidating statements of operations and consolidated and consolidating
      statements of cash flows and consolidated and consolidating statements of
      changes in shareholders’ equity for such fiscal years;

    

    (d) a
      copy of
      the state and federal income tax returns of each Credit Party and each
      Subsidiary of such each Credit Party within thirty (30) days after they are
      filed with the appropriate taxing authorities, in each case if and when
      requested by Lender;

    

    (e) upon
      request by Lender at any time and in any event together with each Notice of
      Borrowing submitted to Lender pursuant to Section
      2.2,
      a
      borrowing base certificate (each a “Borrowing
      Base Certificate”)
      in
      form and substance satisfactory to Lender, duly completed, detailing each
      Borrower’s Eligible Accounts as of the date of submission thereof, and certified
      by and certified by the chief executive officer or chief financial officer
      of
      CGS. In addition, each Borrowing Base Certificate shall have attached to it
      such
      additional schedules and/or other information as Lender may reasonably request;
      

    

    (f) promptly
      and in any event within two (2) Business Days after becoming aware of the
      occurrence of a Default or Event of Default, a certificate of the chief
      executive officer or chief financial officer of CGS specifying the nature
      thereof and the proposed response thereto, each in reasonable
      detail;

    

    (g) within
      thirty (30) days after the end of each month, a comparison of the actual results
      of consolidated and consolidating operations, consolidated and consolidating
      cash flows and capital expenditures for the Consolidated Entity for such month
      and for the period from the beginning of the current fiscal year through the
      end
      of such month with actual results of operations, cash flow and capital
      expenditures for the Consolidated Entity for the same periods of the prior
      fiscal year;

     

    
      
        
        

      

      
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    (h) promptly
      upon the earlier of the mailing or filing thereof, copies of all 10-Ks, 10-Qs,
      8-Ks, proxy statements, annual reports, quarterly reports, registration
      statements and any other filings or other communications made by any Credit
      Party to holders of its publicly traded securities or the Securities Exchange
      Commission from time to time pursuant to the Exchange Act or the Securities
      Act
      of 1933, as amended;

    

    (i) from
      time
      to time, such further information regarding the Collateral, business affairs
      and
      prospects and financial condition of such Credit Party and each Subsidiary
      of
      such Credit Party as Lender may reasonably request.

    

    6.2 Inventory.
      Upon
      the
      request of Lender from time to time, each Credit Party shall provide to Lender
      written statements listing items of Inventory of such Credit Party in reasonable
      detail as requested by Lender.

    

    6.3 Corporate
      Existence.
      Each Credit
      Party shall,
      and shall cause each of its Subsidiaries to, (a) maintain its corporate
      existence and maintain in full force and effect all licenses, bonds, franchises,
      leases, trademarks and qualifications to do business, and all patents, contracts
      and other rights necessary or advisable to the profitable conduct of their
      businesses, (b) continue in, and limit their operations to, the same general
      lines of business as presently conducted by it and (c) comply with all
      Requirements of Law.

    

    6.4 ERISA.
      Each
      Credit Party shall deliver to Lender, at such Credit Party’s expense, the
      following information at the times specified below:

    

    (a) within
      thirty (30) days after the filing thereof with the DOL, Internal Revenue Service
      or PBGC, copies of each annual report (form 5500 series), including Schedule
      B
      thereto,
      filed with respect to each Benefit Plan;

    

    (b) within
      thirty (30) days after receipt by such Credit Party, any Subsidiary of such
      Credit Party or any ERISA Affiliate of each actuarial report for any Benefit
      Plan or Multiemployer Plan and each annual report for any Multiemployer Plan,
      copies of each such report;

    

    (c) within
      ten (10) days upon the occurrence thereof, notification of any increase in
      the
      benefits of any existing Plan or the establishment of any new Plan or the
      commencement of contributions to any Plan to which such Credit Party, any
      Subsidiary of such Credit Party or any ERISA Affiliate was not previously
      contributing; and 

    

    (d) within
      three (3) days upon the occurrence thereof, any event or condition referred
      to
      in clauses
      (i)
      through
(vii)
      of
subsection
      8.1(l),
      whether
      or not such event or condition shall constitute an Event of
      Default.

    

    Each
      Credit Party and each Subsidiary of each Credit Party shall establish, maintain
      and operate all Plans to comply in all material respects with the provisions
      of
      ERISA, the Code, and all other Requirements of Law, other than to the extent
      such Credit Party or any such Subsidiary (i)
      is
      in
      good faith contesting by appropriate proceedings the validity or application
      of
      any such provision, law, rule, regulation or interpretation and (ii)
      has made
      an adequate reserve or other appropriate provision therefor as required in
      order
      to be in conformity with GAAP.

     

    
      
        
        

      

      
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    6.5 Books
      and Records.
      Each Credit
      Party agrees
      to
      maintain, and to cause each of its Subsidiaries to maintain, books and records,
      including those pertaining to the Collateral, in such detail, form and scope
      as
      is consistent with good business practice, and agrees that such books and
      records will reflect Lender’s respective interests in its Accounts. Each Credit
      Party agrees that Lender or its agents may enter upon the premises of such
      Credit Party or any Subsidiary of such Credit Party at any time and from time
      to
      time, during normal business hours and upon reasonable notice under the
      circumstances, and at any time at all on and after the occurrence of a Default,
      and which has not otherwise been waived pursuant to Section
      9.10,
      for the
      purposes of (a)
      conducting field examinations and appraisals and inspecting, evaluating and
      verifying the Collateral, (b)
      inspecting and/or copying (at such Credit Party’s expense) any and all records
      pertaining thereto and (c) discussing the business affairs and prospects and
      financial condition of such Credit Party and each Subsidiary of such Credit
      Party with any officers, employees and directors of such Credit Party or such
      Subsidiary or with the Auditors. Each Credit Party shall give Lender thirty
      (30)
      days prior written notice of any change in the location of any Collateral or
      in
      the location of its chief executive office or place of business from the
      locations specified in Schedule
      5.8,
      and
      such Credit Party shall execute in advance of such change and cause to be filed
      and/or delivered to Lender any financing statements, Collateral Access
      Agreements or other documents required by Lender, all in form and substance
      satisfactory to Lender. Each Credit Party agrees to advise Lender promptly,
      in
      sufficient detail, of any substantial changes relating to the type, quantity
      or
      quality of the Collateral, or any event which singly or in the aggregate
      reasonably be expected to have a material adverse effect on the value of the
      Collateral or on the Liens granted for the benefit of Lender
      thereon.

    

    6.6 Collateral
      Records.
      Each Credit
      Party agrees
      to
      execute and deliver, and to cause each of its Subsidiaries to execute and
      deliver, to Lender, from time to time, solely for Lender’s convenience in
      maintaining a record of the Collateral, such written statements and schedules
      as
      Lender may reasonably require designating, identifying or describing the
      Collateral. The failure by any Credit Party or any Subsidiary of any Credit
      Party, however, to promptly give Lender such statements or schedules shall
      not
      affect, diminish, modify or otherwise limit the Liens on the Collateral granted
      pursuant to the Credit Documents.

    

    6.7 Security
      Interests.
      Each Credit
      Party shall,
      and shall cause each of its Subsidiaries to, defend the Collateral against
      all
      claims and demands of all Persons at any time claiming the same or any interest
      therein. Each Credit Party shall, and shall cause each of its Subsidiaries
      to,
      comply with the requirements of all state and federal laws in order to grant
      to
      Lender valid and perfected first priority security interests in the Collateral,
      with perfection, in the case of any investment property, being effected by
      giving Lender control of such investment property, rather than by the filing
      of
      a UCC financing statement with respect to such investment property. Lender
      is
      hereby authorized by each Credit Party to file any UCC financing statements
      covering the Collateral. Each Credit Party shall, and shall cause each of its
      Subsidiaries to, do whatever Lender may reasonably request, from time to time,
      to effect the purposes of this Credit Agreement and the other Credit Documents,
      including filing notices of liens, UCC financing statements, fixture filings
      and
      amendments, renewals and continuations thereof; cooperating with Lender’s
      representatives; keeping stock records; obtaining waivers from landlords and
      mortgagees and from warehousemen and their landlords and mortgagees; and, paying
      claims which might, if unpaid, become a Lien on the Collateral.

     

    
      
        
        

      

      
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    6.8 Insurance;
      Casualty Loss.

    

    (a) Each
      Credit Party agrees to maintain, and to cause each of its Subsidiaries to
      maintain, public liability insurance, third party property damage insurance
      and
      replacement value insurance on the Collateral under such policies of insurance,
      with such insurance companies, in such amounts and covering such risks as are
      at
      all times satisfactory to Lender in its commercially reasonable judgment. All
      policies covering the Collateral are to name Lender as an additional insured
      and
      the loss payee in case of loss, and are to contain such other provisions as
      Lender may reasonably require to fully protect the interest of Lender in the
      Collateral and to any payments to be made under such policies. Each Credit
      Party
      shall provide written notice to Lender of the occurrence of any of the following
      events within five (5) Business Days after the occurrence of such event: any
      asset or property owned or used by such Credit Party or any Subsidiary of such
      Credit Party is (i)
      damaged
      or destroyed, or suffers any other loss; or (ii)
      condemned, confiscated or otherwise taken, in whole or in part, or the use
      thereof is otherwise diminished so as to render impracticable or unreasonable
      the use of such asset or property for the purposes for which such asset or
      property was used immediately prior to such condemnation, confiscation or
      taking, by exercise of the powers of condemnation or eminent domain or otherwise
      (collectively, a “Casualty
      Loss”).
      Each
      Borrower shall diligently file and prosecute, or cause to be filed and
      prosecuted, all claims for any award or payment in connection with a Casualty
      Loss with respect to such Credit Party or any Subsidiary of such Credit Party.
      In the event of a Casualty Loss with respect to any Credit Party or any
      Subsidiary of such Credit Party, such Credit Party shall pay to Lender, promptly
      upon receipt thereof, any and all insurance proceeds and payments received
      by
      such Credit Party or such Subsidiary on account of damage, destruction, loss,
      condemnation or eminent domain proceedings. Lender may, at its election and
      in
      its sole discretion, (i)
      apply
      the proceeds realized from Casualty Losses to payment of accrued and unpaid
      interest or outstanding principal under Loans or any other Obligations then
      due
      and payable, (ii)
      hold
      such proceeds as additional Collateral to secure any other Obligations not
      then
      due and payable or (iii)
      pay such
      proceeds to the applicable Credit Party to be used to repair, replace or rebuild
      the asset or property or portion thereof that was the subject of the Casualty
      Loss. After the occurrence and during the continuance of an Event of Default,
      (A)
      no
      settlement on account of any such Casualty Loss with respect to any Credit
      Party
      or any Subsidiary of any Credit Party shall be made without the consent of
      Lender and (B)
      Lender
      may participate in any such proceedings and the applicable Credit Party shall
      deliver to Lender such documents as may be requested by Lender to permit such
      participation and shall consult with Lender, its attorneys and agents in the
      making and prosecution of such claim or claims. Each Credit Party hereby
      irrevocably authorizes and appoints Lender its attorney-in-fact, and agrees
      that, upon request, it will cause each Subsidiary of Credit Party to authorize
      and appoint Lender its attorney-in-fact, after the occurrence and during the
      continuance of an Event of Default, to collect and receive any such award or
      payment and to file and prosecute such claim or claims, which power of attorney
      shall be irrevocable and shall be deemed to be coupled with an interest with
      full power of substitution, and each Credit Party shall, upon demand of Lender,
      make, execute and deliver, and cause each of its Subsidiary to make, execute
      and
      deliver, any and all assignments and other instruments sufficient for the
      purpose of assigning any such award or payment to Lender free and clear of
      any
      encumbrances of any kind or nature whatsoever.

     

    
      
        
        

      

      
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    (b) UNLESS
      A CREDIT PARTY PROVIDES LENDER WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED
      BY THIS CREDIT AGREEMENT, LENDER MAY PURCHASE INSURANCE AT SUCH CREDIT PARTY’S
      EXPENSE TO PROTECT LENDER’S INTERESTS IN THE COLLATERAL. THIS INSURANCE MAY, BUT
      NEED NOT, PROTECT SUCH CREDIT PARTY’S INTERESTS. THE COVERAGE THAT LENDER
      PURCHASES MAY NOT PAY ANY CLAIM THAT SUCH CREDIT PARTY MAY MAKE OR ANY CLAIM
      THAT IS MADE AGAINST SUCH CREDIT PARTY IN CONNECTION WITH THE COLLATERAL. SUCH
      CREDIT PARTY MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER
      PROVIDING LENDER WITH EVIDENCE THAT SUCH CREDIT PARTY HAS OBTAINED INSURANCE
      AS
      REQUIRED BY THIS CREDIT AGREEMENT. IF LENDER PURCHASES INSURANCE FOR THE
      COLLATERAL, SUCH CREDIT PARTY WILL BE RESPONSIBLE FOR THE COSTS OF THAT
      INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE IMPOSED IN
      CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF
      THE
      CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY
      BE
      ADDED TO THE OBLIGATIONS. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST
      OF INSURANCE ANY CREDIT PARTY MAY BE ABLE TO OBTAIN ON ITS
      OWN.

    

    6.9 Credit
      Party Taxes.
      Each
      Credit Party agrees to pay, when due, and to cause each of its Subsidiaries
      to
      pay when due, all Credit Party Taxes lawfully levied or assessed against such
      Credit Party, any Subsidiary of such Credit Party or any of their properties,
      including any of the Collateral, before any penalty or interest accrues thereon;
      provided,
      unless
      the Credit Party Taxes have become a federal tax or ERISA Lien on any of the
      assets of such Credit Party or any such Subsidiary, no Credit Party Taxes need
      be paid if the same is being contested, in good faith, by appropriate
      proceedings promptly instituted and diligently conducted and if an adequate
      reserve or other appropriate provision shall have been made therefor as required
      in order to be in conformity with GAAP.

    

    6.10 Compliance
      With Laws.
      

    

    (a) Each
      Credit Party agrees to comply, and to cause each of its Subsidiaries to comply,
      in all material respects, with all Requirements of Law applicable to its
      business or its operations or to the Collateral or any part
      thereof.

     

    (b) Within
      fifteen (15) days after any Credit Party learns of the enactment or promulgation
      of any Requirement of Law which could reasonably be expected to have a Material
      Adverse Affect, such Credit Party shall provide Lender with notice
      thereof.

    

    (c) At
      the
      request of Lender from time to time, but in any event not more frequently than
      once in any twelve month period, and at the sole cost and expense of such Credit
      Party, each Credit Party shall retain an environmental consulting firm,
      satisfactory to Lender in its commercially reasonable judgment, to conduct
      an
      environmental review, audit or investigation of the specific items as requested
      by Lender relating to the properties of such Credit Party and its Subsidiaries
      and provide to Lender a copy of any reports delivered in connection therewith.
      At the request of Lender, each Credit Party shall provide Lender with any
      additional information relating to environmental matters and any potential
      related liability resulting therefrom as Lender may reasonably
      request.

     

    
      
        
        

      

      
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    6.11 Use
      of Proceeds.
      The
      proceeds of the Loans shall be used solely to (a)
      pay
      fees
      and expenses in connection with the Related Transactions, including Fees and
      Expenses due on the Closing Date pursuant to Article
      4,
      and
(b)
      effect
      the transactions contemplated by the Rollover Note Documents, (c)
      repay
      certain existing Indebtedness and other obligations of the Credit Parties,
      and
(d)
      fund
      working capital and, to the extent permitted hereunder, other general corporate
      purposes, of the respective Credit Parties. No Credit Party shall use any
      portion of the proceeds of any such Loans for the purpose of purchasing or
      carrying any “margin stock” (as defined in Regulation U of the Board of
      Governors of the Federal Reserve System) in any manner which violates the
      provisions of Regulation U or X of said Board of Governors or for any other
      purpose in violation of any applicable statute or regulation, or of the terms
      and conditions of this Credit Agreement.

    

    6.12 Fiscal
      Year.
      Each
      Credit Party agrees to maintain its fiscal year as a year ending December
      31st
      of each
      calendar year, unless otherwise required by law, in which case such Borrower
      will give Lender at least thirty (30) days prior written notice
      thereof.

    

    6.13 Notification
      of Certain Events.
      Each Credit
      Party agrees
      that it shall promptly (but, in the case of clause
      (g),
      in any
      event within two (2) Business Days after such Credit Party learns of any such
      proceeding, change, development or event) notify Lender of: 

    

    (a) any
      Material Contract of such Credit Party or any Subsidiary of such Credit Party
      that is terminated or amended or any new Material Contract that is entered
      into
      (in which event such Credit Party shall provide Lender with a copy of such
      Material Contract);

    

    (b) any
      material change or amendment of the material terms upon which suppliers of
      such
      Credit Party or any Subsidiary of such Credit Party do business with such Credit
      Party or such Subsidiary;

    

    (c) the
      entry
      of any order, judgment or decree in excess of $50,000
      against
      such Credit Party or any Subsidiary of such Credit Party or any of their
      respective properties or assets;

    

    (d) receipt
      by such Credit Party or any Subsidiary of such Credit Party of any notification
      of violation of any Requirement of Law from any Governmental
      Authority;

    

    (e) any
      actual or prospective change, development or event which has had or could
      reasonably be expected to have a Material Adverse Effect;

    

    (f) any
      proceedings being instituted or threatened to be instituted by or against such
      Credit Party or any Subsidiary of such Credit Party before any Governmental
      Authority or arbitrator;

    

    (g) any
      Event
      of Default or Default; and

     

    
      
        
        

      

      
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    (h) The
      occurrence of any event of default or unmatured event of default under or in
      respect of any of the Subordinated Notes.

    

    6.14 Intellectual
      Property.
      Each Credit
      Party shall,
      and shall cause each of its Subsidiaries to, do and cause to be done all things
      necessary to preserve and keep in full force and effect all registrations of
      patents, copyrights, trademarks, service marks and other marks, trade names
      or
      other trade rights.

    

    6.15 Maintenance
      of Property.
      Each
      Credit Party agrees to keep, and to cause each of its Subsidiaries to keep,
      all
      property useful and necessary to its respective businesses in good working
      order
      and condition (ordinary wear and tear and accidental casualty excepted) in
      accordance with their past operating practices and not to commit or suffer
      any
      waste with respect to any of its properties.

    

    6.16 Further
      Assurances.
      Each
      Credit Party shall take, and shall cause each of its Subsidiaries to take,
      all
      such further actions and execute all such further agreements, documents and
      instruments as Lender may at any time determine in its sole discretion to be
      necessary or desirable to further carry out and consummate the transactions
      contemplated by the Credit Documents, to cause the execution, delivery and
      performance of the Credit Documents to be duly authorized and to perfect or
      protect the Liens (and the priority status thereof) of Lender on the
      Collateral.

    

    ARTICLE
      7

    NEGATIVE
      COVENANTS

    

    Until
      the
      Expiration Date and Payment in Full, each of the Credit Parties agrees
      that:

    

    7.1 Financial
      Covenants. 

    

    (a) The
      Credit Parties shall not make or commit to make, or permit any of their
      respective Subsidiaries to make to commit to make, Capital Expenditures during
      any fiscal year of the Consolidated Entity that exceed in the aggregate for
      all
      Credit Parties and their respective Subsidiaries combined an amount equal to
      projected Capital Expenditures for such fiscal year set forth in the Initial
      Projections.

    

    (b) The
      Credit Parties shall not permit EBITDA for any fiscal quarter of the
      Consolidated Entity ending after the Closing Date to be more than twenty-five
      percent (25%) less than projected EBITDA for such fiscal quarter set forth
      in
      the Initial Projections.

    

    7.2 No
      Additional Indebtedness.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly, incur, create,
      assume or suffer to exist any Indebtedness other than:

    

    (a) Indebtedness
      secured by Purchase Money Liens not to exceed, in the aggregate for Credit
      Parties and their respective Subsidiaries combined, $500,000 outstanding at
      any
      one time, such Indebtedness to be from parties and to have terms and conditions
      satisfactory to Lender;

     

    
      
        
        

      

      
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    (b) Indebtedness
      arising under this Credit Agreement and the other Credit Documents

    

    (c) Indebtedness
      evidenced by Subordinated Notes; and

    

    (d) Indebtedness
      described (and in the respective principal amounts set forth) on Schedule
      7.2.
      

    

    7.3 No
      Liens; Judgments

    .
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly, mortgage,
      assign, pledge, transfer, create, incur, assume, suffer to exist or otherwise
      permit any Lien (whether as a result of a purchase money or title retention
      transaction, or other security interest, judgment or otherwise) to exist on
      any
      of its property, assets, revenues or goods, whether real, personal or mixed,
      whether now owned or hereafter acquired, except for the following (the
“Permitted
      Liens”):

    

    (a) Liens
      granted by any Credit Party or any Subsidiary of any Credit Party pursuant
      to
      any Credit Document;

    

    (b) Liens
      granted by any Credit Party or any Subsidiary of any Credit Party pursuant
      to
      any Subordinated Note Documents;

    

    (c) Liens
      described on Schedule
      7.3;

    

    (d) Purchase
      Money Liens securing Indebtedness permitted pursuant to subsection
      7.2(a);

    

    (e) Liens
      of
      warehousemen, mechanics, material men, workers, repairmen, common carriers
      and
      landlords arising by operation of law not waived in connection herewith, for
      amounts that are not yet due and payable;

    

    (f) Attachment
      and judgment Liens securing outstanding Liabilities of a Credit Party or a
      Subsidiary of a which individually or in the aggregate for all such Liens are
      not in excess of $50,000 for Credit Parties and their respective Subsidiaries
      combined;

    

    (g) Liens
      for
      Credit Party Taxes not yet due and payable or which are being diligently
      contested in good faith by a Credit Party by appropriate proceedings;
provided,
      that,
      in any such case an adequate reserve is being maintained by the applicable
      Credit Party for the payment of same;

    

    (h) Deposits
      or pledges of cash or Cash Equivalents to secure obligations arising in the
      ordinary course of business under workmen’s compensation, social security or
      similar laws, or under unemployment insurance;

    

    (i) Deposits
      or pledges of cash or cash Equivalents to secure bids, tenders, contracts (other
      than contracts for the payment of money), leases, statutory obligations, surety
      and appeal bonds and other obligations of like nature arising in the ordinary
      course of business not to exceed an aggregate of $1,000,000 outstanding at
      any
      one time for Credit Parties and their respective Subsidiaries combined;
      and

     

    
      
        
        

      

      
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    (j) Easements,
      rights-of-way, restrictions and other similar encumbrances arising or incurred
      in the ordinary course of business which, in the aggregate, are not substantial
      in amount and which do not detract in any material respect from the value of
      the
      property subject thereto or interfere in any material respect with the ordinary
      conduct of the business of any Credit Party or any Subsidiary of any Credit
      Party.

    

    For
      the
      purposes of subsection
      7.3(e),
      (g)
      and
(h),
      Liabilities and obligations referred to therein shall remain “outstanding”,
      notwithstanding the sale or other disposition of any property subject to a
      Lien
      permitted thereunder.

    

    7.4 No
      Sale of Assets.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to, directly or indirectly,
      sell, lease, assign, transfer or otherwise dispose of any assets other than
      (a)
      Inventory in the ordinary course of business, (b)
      obsolete
      or worn out property disposed of in the ordinary course of business and other
      dispositions of assets (other than Capital Securities); provided:
      (i)
      such dispositions described in the foregoing clause
      (b)
      are for
      fair value; (ii) one hundred percent (100%) of the consideration for each of
      such other dispositions is received by such Credit Party or such Subsidiary,
      as
      the case may be, in the form of cash; and (iii) the consideration for such
      other
      dispositions does not exceed, in the aggregate for Credit Parties and their
      Subsidiaries combined, for any fiscal year, $250,000. 

    

    7.5 No
      Corporate Changes.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly, merge,
      consolidate or otherwise alter or modify such Person’s Governing Documents,
      structure, status or existence, or enter into or engage in any operation or
      activity materially different from that currently being conducted by such Credit
      Party or such Subsidiary; provided,
      that,
      anything contained in this Credit Agreement or any other Credit Document to
      the
      contrary notwithstanding, CGS shall not (i) engage in, or commit to engage
      in,
      any business or other activities, or enter into, execute or perform any business
      transaction except as provided in the Credit Documents and activities incidental
      to being a holding company, (ii) own any material property or assets other
      than
      Capital Securities of other Credit Parties and general intangibles arising
      from
      the Credit Documents and the Related Transaction Documents, (iii) incur any
      Indebtedness (other than Indebtedness arising from the Credit Documents and
      the
      Related Transaction Documents to which it is a party, including, without
      limitation, Indebtedness evidenced by Subordinated Notes), or (iv) grant any
      Liens on any of its Property (other than Liens granted to Lender pursuant to
      the
      Credit Documents).

    

    7.6 No
      Guaranties.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to, directly or indirectly,
      issue or assume any Guaranty with respect to the Liabilities of any other
      Person, except (a)
      pursuant
      to the Credit Documents, (b)
      by the
      endorsement of negotiable instruments for deposit or collection or similar
      transactions in the ordinary course of business, and (c)
      Indebtedness permitted to be incurred pursuant to Section
      7.2.

     

    
      
        
        

      

      
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    7.7 No
      Restricted Payments.
      No
      Credit
      Party shall, or shall not permit any of its Subsidiaries to, directly or
      indirectly make any Restricted Payment; provided, that, notwithstanding the
      foregoing:

    

    (a) any
      Subsidiary of a Borrower may declare and pay dividends and other distributions
      to any Borrower;

    

    (b) any
      Credit Party may declare and pay dividends and other distributions to holders
      of
      its Capital Securities, payable solely in its common stock, to the extent that
      (except in the case of such dividends or other distributions made by CGS) such
      common stock is pledged to Lender as collateral security for the Obligations
      in
      accordance with the terms and provisions of the respective Collateral Documents;
      and

    

    (c) any
      other
      Credit Party may declare and pay dividends and other distributions to CGS,
      to
      permit CGS to pay (substantially contemporaneously with, and in the same amount
      of, such dividend or distribution), without duplication:

    

    (i) amounts
      solely sufficient to permit CGS to pay as and when due and payable franchise
      taxes and other similar ordinary course licensing expenses and other general
      and
      customary holding company costs and expenses incurred by CGS in the ordinary
      course of business and otherwise relating solely to activities in which CGS
      otherwise is permitted to engage under the Credit Documents, including, without
      limitation; and

    

    (ii) amounts
      set forth in the Initial Notice of Borrowing delivered to Lender
      hereunder.

    

    7.8 No
      Investments.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly, make any
      Investment in any Person other than:

    

    (a) Investments
      in existence on the Closing Date which are set forth on Schedule
      7.8;

    

    (b) Advances
      or loans made to employees in the ordinary course of business not to exceed
      $10,000 outstanding at any time to any one Person and $50,000 in the aggregate
      outstanding at any one time;

    

    (c) Cash
      Equivalents, to the extent Lender has a perfected, first priority Lien thereon
      securing all Obligations; and

    

    (d) Guaranties
      permitted under Section
      7.6.

    

    7.9 No
      Affiliate Transactions.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to, directly or indirectly,
      enter into any transaction with, including the purchase, sale or exchange of
      property or the rendering of any service to any Affiliate of any Credit Party
      or
      any Subsidiary of any Credit Party and whether or not such transaction would
      otherwise be permitted under any of the other provisions of the Credit
      Documents, except in the ordinary course of and pursuant to the reasonable
      requirements of such Person’s business and upon fair and reasonable terms no
      less favorable to such Person than could be obtained in a comparable arms-length
      transaction with an unaffiliated Person.

     

    
      
        
        

      

      
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    7.10 Limitation
      on Transactions Under ERISA.
      No
      Credit Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly:

    

    (f) amend,
      or
      permit any ERISA Affiliate to amend, a Benefit Plan resulting in an increase
      in
      current liability for the plan year such that such Credit Party , any Subsidiary
      of such Credit Party or any ERISA Affiliate is required to provide security
      to
      such a Benefit Plan under Section 401(a)(29) of the Code; or

    

    (g) allow
      the
      representation made in Section
      5.15
      to be
      untrue at any time. 

    

    7.11 No
      Additional Bank Accounts.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to, directly or indirectly,
      open, maintain or otherwise have any checking, savings or other accounts of
      any
      kind whatsoever at any bank or other financial institution, or any other account
      where money is or may be deposited or maintained with any Person, other than
      the
      depositary accounts set forth on Schedule
      7.11.

    

    7.12 Material
      Amendments of Material Contracts.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly or indirectly, amend, modify,
      cancel or terminate or permit the amendment, modification, cancellation or
      termination of, any of the Material Contracts, except, in the case of any
      Material Contract with a customer of an Credit Party, (i) to the extent that
      such amendment, modification, cancellation or termination occurs in the ordinary
      course of such Credit Party’s business or (ii) in the case of any such
      cancellation or modification, such cancellation or modification occurs at the
      request of any party thereto other than any Credit Party.

    

    7.13 Additional
      Restrictive Covenants.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, directly of indirectly, create or
      otherwise cause or suffer to exist or become effective (a)
      any
      consensual restriction limiting the ability (whether by covenant, event of
      default, subordination or otherwise and including any such the effect of which
      is to require the providing of equal and ratable security to any other Person
      in
      the event a Lien is granted to or for the benefit of Lender) to (i)
      pay
      dividends or make any other distributions on shares of its Capital Securities
      held by such Credit Party or any other Subsidiary of such Credit Party; (ii)
      pay
      any Liability owed to such Credit Party or any other Subsidiary of such Credit
      Party; (iii) make any loans or advances to other Investments in such Credit
      Party or in any other Subsidiary of such Credit Party; or (iv) create or permit
      to exist any Lien upon the assets of such Credit Party or any Subsidiary of
      such
      Credit Party, other than Liens permitted under Section
      7.3;
      or
(b)
      any
      contractual obligation which may restrict or inhibit Lender’s rights or ability
      to sell or otherwise dispose of the Collateral or any part thereof after the
      occurrence of an Event of Default; other than Permitted Restrictive
      Covenants.

    

    7.14 No
      Additional Subsidiaries.
      No Credit
      Party shall, or shall permit any of its Subsidiaries to, directly or indirectly,
      form or acquire any new Subsidiaries.

     

    
      
        
        

      

      
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    7.15 Limitation
      on Derivative Transactions.
      No Credit
      Party shall,
      or
      shall permit any of its Subsidiaries to, enter into any Derivative
      Transaction.

    

    7.16 Related
      Documents.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to, (a) amend, restate,
      supplement, waive or otherwise modify in any respect any of the terms or
      provisions of, and will not fail to enforce or diligently pursue its remedies
      under, any of the Related Document, as in effect on the Closing Date, or (b)
      take or fail to take any action under any Related Document that reasonably
      could
      be expected to have a Material Adverse Effect. 

     

    7.17 OFAC.
      No
      Credit
      Party shall, or shall permit any of its Subsidiaries to,
      (i)
      become a person whose property or interests in property are blocked or subject
      to blocking pursuant to Section 1 of Executive
      Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
      With Persons Who Commit, Threaten to Commit or Support
      Terrorism
      (66 Fed.
      Reg. 49079(2001), (ii) engage in any dealings or transactions prohibited by
      Section 2 of such executive order, or be otherwise associated with any such
      person in any manner violative of Section 2, or (iii) otherwise become a person
      on the list of Specially
      Designated Nationals and Blocked Persons
      or
      subject to the limitations or prohibitions under any other OFAC regulation
      or
      executive order.

     

    ARTICLE
      8

    EVENTS
      OF DEFAULT AND REMEDIES

    

    8.1 Events
      of Default.
      The
      occurrence of any of the following events shall constitute an “Event
      of Default”
      hereunder (whatever the reason for such event and whether it shall be voluntary
      or involuntary, or within or without the control of any Credit Party or any
      Subsidiary of any Credit Party, or be effected by operation of law or pursuant
      to any judgment or order of any court or any order, rule or regulation of any
      governmental or nongovernmental body):

    

    (a) failure
      of any Credit Party to pay any Obligations when due, whether at stated maturity,
      by acceleration, or otherwise.

    

    (b) failure
      of any Credit Party or any Subsidiary of any Credit Party to perform, comply
      with or observe any term, covenant or agreement applicable to it contained
      in
subsection
      2.3(a)
      or in
Articles
      6
      or
7;

    

    (c) any
      representation or warranty made by any Credit Party or any Subsidiary of any
      Credit Party under this Credit Agreement or under any other Credit Document
      shall prove to have been incorrect or misleading in any material respect when
      made or deemed made, except (i)
      to the
      extent that such representation or warranty expressly relates solely to an
      earlier date (in which case such representation or warranty shall prove to
      have
      been incorrect or misleading on or as of such earlier date), and (ii)
      for any
      such representation or warranty that is subject to a Material Adverse Effect
      or
      other materiality qualifier (in which case such representation or warranty
      shall
      prove to have been incorrect or misleading in any respect); or 

     

    
      
        
        

      

      
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    (d) any
      Credit Party or any Subsidiary of any Credit Party shall fail to comply with
      any
      covenant contained in this Credit Agreement (other than under a provision
      covered by subsections
      8.1(a)
      or
(b)
      above)
      or the other Credit Documents, which failure to comply is not cured within
      ten
      (10) Business Days of its occurrence;

    

    (e) dissolution,
      liquidation, winding up or cessation of the businesses of any Credit Party
      or
      any Subsidiary of any Credit Party, or the failure of any Credit Party or any
      Subsidiary of any Credit Party to meet its debts as they mature, or the calling
      of one or more meetings of the major creditors of any Credit Party or any
      Subsidiary of any Credit Party for purposes of obtaining a moratorium on payment
      or a compromise of such Person’s debts;

    

    (f) the
      insolvency (however defined) of any Credit Party or any Subsidiary of any Credit
      Party; or 

    

    (g) the
      commencement by or against of any bankruptcy, insolvency, arrangement,
      reorganization, receivership or similar proceedings under any federal or state
      law and, in the event any such proceeding is commenced against any Credit Party
      or any Subsidiary of any Credit Party, such proceeding is not dismissed within
      thirty (30) days;

    

    (h) the
      occurrence of a default or event of default (in each case which shall continue
      beyond the expiration of any applicable grace periods) which permits, or could
      permit, the acceleration of the maturity of, any note, agreement or instrument
      evidencing any other Indebtedness of any Credit Party or any Subsidiary of
      any
      Credit Party, and the aggregate principal amount of all such Indebtedness with
      respect to which a default or an event of default has occurred, or the maturity
      of which is permitted to be accelerated, exceeds $50,000;

    

    (i) any
      covenant, agreement or obligation of any party contained in or evidenced by
      any
      of the Credit Documents shall cease to be enforceable in accordance with its
      terms, or any party (other than Lender) to any Credit Document shall deny or
      disaffirm its obligations under any of the Credit Documents, or any Credit
      Document shall be cancelled, terminated, revoked or rescinded without the
      express prior written consent of Lender, or any action or proceeding shall
      have
      been commenced by any Person (other than Lender) seeking to cancel, revoke,
      rescind or disaffirm the obligations of any party to any Credit Document, or
      any
      court or other Governmental Authority shall issue a judgment, order, decree
      or
      ruling to the effect that any of the obligations of any party to any Credit
      Document are illegal, invalid or unenforceable; or

    

    (j) Thomas
      G.
      Hudson shall cease for any reason to occupy the office of Chief Executive Office
      of CGS or to perform the customary functions of such office on a full time
      basis, and (i) immediately upon such cessation, CGS shall have failed to employ
      the services of a replacement therefor from an outside employment agency, in
      each case acceptable to Lender, to perform such functions on an interim basis,
      or (ii) within sixty (60) days of such cessation, CGS shall have failed to
      employ a permanent replacement therefor
      acceptable to Lender to perform such functions on a permanent basis;
      or

    

    (k) the
      occurrence of a Change of Control; or 

     

    
      
        
        

      

      
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    (l) (i)
      any
      Termination Event shall occur with respect to any Benefit Plan of any Credit
      Party, any Subsidiary of any Credit Party or any ERISA Affiliate, (ii)
      any
      Accumulated Funding Deficiency, whether or not waived, shall exist with respect
      to any such Benefit Plan, (iii)
      any
      Person shall engage in any Prohibited Transaction involving any such Benefit
      Plan, (iv)
      any
      Credit Party, any Subsidiary of any Credit Party or any ERISA Affiliate shall
      be
      in “default” (as defined in ERISA Section 4219(c)(5)) with respect to payments
      owing to any such Benefit Plan that is a Multiemployer Plan as a result of
      such
      Person’s complete or partial withdrawal (as described in ERISA Section 4203 or
      4205) therefrom, (v)
      any
      Credit Party, any Subsidiary of any Credit Party or any ERISA Affiliate shall
      fail to pay when due an amount that is payable by it to the PBGC or to any
      such
      Benefit Plan under Title IV of ERISA, (vi)
      a
      proceeding shall be instituted by a fiduciary of any such Benefit Plan against
      any Credit Party, any Subsidiary of any Credit Party or any ERISA Affiliate
      to
      enforce ERISA Section 515 and such proceeding shall not have been dismissed
      within 30 days thereafter or (vii)
      any
      other event or condition shall occur or exist with respect to any such Benefit
      Plan, except that no event or condition referred to in clauses
      (i)
      through
(vii)
      shall
      constitute an Event of Default if it, together with all other such events or
      conditions at the time existing, has not subjected, and in the reasonable
      determination of Lender will not subject, any Credit Party or any Subsidiary
      of
      any Credit Party to any liability that, alone or in the aggregate with all
      such
      liabilities for all such Persons, exceeds $50,000.

    

    8.2 Acceleration
      and Cash Collateralization.
      Upon
      the
      occurrence of an Event of Default and which is continuing, Lender may take
      any
      or all of the following actions, without prejudice to the rights of Lender
      to
      enforce its claims against any or all of the Credit Parties: (a)
      declare
      all Obligations to be immediately due and payable (except with respect to any
      Event of Default set forth in subsection
      8.1(f),
      in
      which case all Obligations shall automatically become immediately due and
      payable without the necessity of any notice or other demand) without
      presentment, demand, protest or any other action or obligation of Lender; and
      (b)
      immediately terminate the Commitment hereunder.

    

    In
      addition, upon demand by Lender upon the occurrence of any Event of Default
      and
      which is continuing, Borrowers shall deposit with Lender cash or Cash
      Equivalents in an amount equal to 110% of the Risk Participation
      Liability.

    

    8.3 Remedies.
      From
      and
      after the occurrence of any Event of Default and which is continuing, Lender
      may: (a)
      remove
      from any premises where same may be located any and all documents, instruments,
      files and records (including the copying of any computer records), and any
      receptacles or cabinets containing same, relating to any or all of the
      Collateral, or Lender may use (at the expense of the Credit Parties) such of
      the
      supplies or space of any Credit Party at such Credit Party’s place of business
      or otherwise, as may be necessary to properly administer and control any or
      all
      of the Collateral or the handling of collections and realizations thereon;
      (b)
      bring
      suit, in the name of any Credit Party or Lender and generally shall have all
      other rights respecting any or all of the Collateral, including the right to:
      accelerate or extend the time of payment, settle, compromise, release in whole
      or in part any amounts owing on any or all of the Collateral and issue credits
      in the name of any Credit Party or Lender; and (c) foreclose the security
      interests created pursuant to the Credit Documents by any available judicial
      procedure, or to take possession of any or all of the Collateral without
      judicial process and enter any premises where any Collateral may be located
      for
      the purpose of taking possession of or removing same. Lender shall have the
      right, without notice or advertisement, to sell, lease, or otherwise dispose
      of
      all or any part of the Collateral, whether in its then condition or after
      further preparation or processing, in the name of any Credit Party or Lender,
      or
      in the name of such other party as Lender may designate, either at public or
      private sale or at any broker’s board, in lots or in bulk, for cash or for
      credit, with or without warranties or representations, and upon such other
      terms
      and conditions as Lender in its sole discretion may deem advisable, and Lender
      shall have the right to purchase at any such sale. If any Collateral shall
      require rebuilding, repairing, maintenance or preparation, Lender shall have
      the
      right, at its option, to do such of the aforesaid as is necessary, for the
      purpose of putting such Collateral in such saleable form as Lender shall deem
      appropriate. Each Credit Party agrees, at the request of Lender, to assemble
      the
      Collateral and to make it available to Lender at places which Lender shall
      select, whether at the premises of such Credit Party or elsewhere, and to make
      available to Lender the premises and facilities of such Credit Party for the
      purpose of Lender taking possession of, removing or putting the Collateral
      in
      saleable form. However, if notice of intended disposition of any Collateral
      is
      required by law, it is agreed that five (5) Business Days notice shall
      constitute reasonable notification. Unless expressly prohibited by the licensor
      thereof, if any, Lender is hereby granted a license to use all computer software
      programs, data bases, processes and materials used by each Credit Party in
      connection with its businesses or in connection with the Collateral. The net
      cash proceeds resulting from Lender’s exercise of any of the foregoing rights
      (after deducting all charges, costs and expenses, including reasonable
      attorneys’ fees) shall be applied by Lender to the payment of the Obligations,
      whether due or to become due, in such order as Lender may elect, and pending
      such payment shall be held as security for such payment. Credit Parties shall
      remain liable on a joint and several basis to Lender for any deficiencies.
      The
      enumeration of the foregoing rights is not intended to be exhaustive and the
      exercise of any right shall not preclude the exercise of any other rights,
      all
      of which shall be cumulative.

     

    
      
        
        

      

      
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    ARTICLE
      9

    MISCELLANEOUS

    

    9.1 -SUBMISSION
      TO JURISDICTION; WAIVERS.
      EACH CREDIT PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY:

    

    (a) SUBMITS
      FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
      CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS TO WHICH IT IS A PARTY, OR
      FOR
      RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE
      NONEXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS, THE
      COURTS OF THE UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS,
      IN
      EACH CASE LOCATED IN CHICAGO, ILLINOIS, AND APPELLATE COURTS FROM ANY
      THEREOF;

    

    (b) CONSENTS
      THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES
      ANY
      OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION
      OR
      PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT
      IN AN
      INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE
      SAME;

     

    
      
        
        

      

      
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    (c) AGREES
      THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY
      MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY
      SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH CREDIT PARTY AT THE ADDRESS
      OF
      SUCH CREDIT PARTY SET FORTH IN SECTION
      9.5
      OR AT SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN NOTIFIED PURSUANT
      THERETO;

    

    (d) AGREES
      THAT NOTHING HEREIN SHALL AFFECT THE RIGHT OF LENDER TO EFFECT SERVICE OF
      PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF LENDER
      TO
      BRING ANY ACTION OR PROCEEDING AGAINST SUCH CREDIT PARTY, OR ITS PROPERTY IN
      THE
      COURTS OF OTHER JURISDICTIONS.

    

    (e) WAIVES
      THE RIGHT TO ASSERT ANY SETOFF, COUNTERCLAIM OR CROSS-CLAIM IN RESPECT OF,
      AND
      ALL STATUTES OF LIMITATIONS WHICH MAY BE RELEVANT TO, SUCH ACTION OR PROCEEDING;
      AND

    

    (f) WAIVES
      DUE DILIGENCE, DEMAND, PRESENTMENT AND PROTEST AND ANY NOTICES THEREOF AS WELL
      AS NOTICE OF NONPAYMENT.

    

    9.2 JURY
      TRIAL.
      EACH CREDIT PARTY AND LENDER HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY
      ACTION OR PROCEEDING ARISING OUT OF THIS CREDIT AGREEMENT, THE OTHER CREDIT
      DOCUMENTS OR ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED HERETO OR
      THERETO.

    

    9.3 GOVERNING
      LAW.
      THE RIGHTS AND DUTIES OF EACH CREDIT PARTY AND LENDER UNDER THIS CREDIT
      AGREEMENT, THE NOTES (INCLUDING MATTERS RELATING TO THE MAXIMUM PERMISSIBLE
      RATE) AND THE OTHER CREDIT DOCUMENTS SHALL BE GOVERNED BY THE INTERNAL LAWS
      OF
      THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICT OF LAW
      PRINCIPLES.

    

    9.4 Delays;
      Partial Exercise of Remedies.
      No
      delay
      or omission of Lender to exercise any right or remedy hereunder or under any
      of
      the other Credit Documents, whether before or after the happening of any Event
      of Default, shall impair any such right or shall operate as a waiver thereof
      or
      as a waiver of any such Event of Default. No single or partial exercise by
      Lender of any right or remedy shall preclude any other or further exercise
      thereof, or preclude any other right or remedy.

    

    9.5 Notices.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed, facsimiled or delivered, if to any Credit Party, at the
      following address:

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    50
      East
      Commerce Drive, Suite A

    Schaumburg,
      Illinois 60173

     

    
      
        
        

      

      
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    Attention: Chief
      Executive Officer

    Facsimile: (630)
      872-5801

    

    with
      a
      copy to:

    

    SHEFSKY
      & FROELICH LTD.

    111
      East
      Wacker Drive, Suite 2800 

    Chicago,
      Illinois 60601 

    Attention: Mitchell
      D. Goldsmith

    Facsimile: (312)
      527-3194

     

    and,
      if
      to Lender, to it at the following address:

    

    HILCO
      FINANCIAL, LLC

    5
      Revere
      Drive

    Suite
      206

    Northbrook,
      Illinois 60062

    Attention: David
      B.
      Chisholm

    Facsimile: (847)
      509-1150

    

    with
      a
      copy to:

    

    KATTEN
      MUCHIN ROSENMAN LLP

    525
      West
      Monroe Street

    Chicago,
      Illinois 60661

    Attention:
      Denise S. Burn, Esq.

    Facsimile:
      (312) 577-8778

    

    or,
      as to
      each party, at such other address as shall be designated by such party in a
      written notice to the other parties complying as to delivery with the terms
      of
      this Section 9.5.
      All
      such notices and other communications shall be effective, (a)
      if
      mailed, when received or three days after deposited in the mails, whichever
      occurs first, (b)
      if
      facsimiled, on the date of transmission if transmitted before 4:00 p.m. (Chicago
      time), otherwise on the next Business Day, (c) if
      delivered by personal delivery, upon delivery, or (d)
      if
      delivered by overnight courier one (1) Business Day after delivery to the
      courier (specifying one (1) Business Days’ delivery), in each case, properly
      addressed.

     

    9.6 Assignability
      by Lender.
      

    

    (a) Lender
      may make, carry or transfer Loans at, to or for the account of, any of its
      branch offices or the office of an Affiliate of Lender.

    

    (b) Lender
      may assign or sell participations to one or more banks, other financial
      institutions, investment funds or any other Person all or a portion of the
      Commitment, the Loans and the other rights and obligations of Lender under
      this
      Credit Agreement, any Note and the other Credit Documents.

     

    
      
        
        

      

      
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    9.7 Confidentiality.
      Lender
      agrees that it will use its reasonable best efforts not to disclose without
      the
      prior consent of such Credit Party (other than to its employees, auditors,
      advisors, Affiliates and counsel) any information with respect to any Credit
      Party or any of its Subsidiaries which is furnished pursuant to this Credit
      Agreement or any of the other Credit Documents and which is designated by such
      Credit Party to Lender in writing as confidential, provided,
      Lender
      may disclose any such information (a)
      as has
      become generally available to the public, (b)
      as may
      be required or appropriate in any report, statement or testimony submitted
      to or
      examination conducted by any Governmental Authority having or claiming to have
      jurisdiction over such Lender, (c)
      as may
      be required or appropriate in response to any summons or subpoena or in
      connection with any litigation, (d)
      in order
      to comply with any Requirement of Law, (e)
      to any
      prospective or actual transferee or participant in connection with any
      contemplated transfer or participation of any Note or the Commitment or any
      interest therein by Lender, (f)
      to other
      financial institutions with respect to which Lender has a contractual
      relationship in accordance with Lender’s regular banking procedures,
provided,
      each
      such other financial institution agrees to be bound by the confidentiality
      provisions contained in this Section
      9.7,
      (g)
      to any
      nationally recognized rating agency that requires access to information
      regarding Lender’s investment portfolio in connection with such rating agency’s
      issuance of ratings with respect to Lender, provided,
      Lender
      advises such rating agency of the confidential nature of such information,
      (h)
      as may
      be required or appropriate in protecting, preserving, exercising or enforcing
      any of its rights in, under or related to the Collateral or the Credit Documents
      and (i)
      as may
      be required or appropriate in consulting with any Person with respect to any
      of
      the foregoing matters.

    

    9.8 Indemnification;
      Expenses.
      Credit
      Parties shall
      and
      hereby agree to jointly and severally indemnify, defend and hold harmless Lender
      and its directors, officers, agents, employees, counsel, advisors and Affiliates
      from and against (a)
      any and
      all losses, claims, damages, liabilities, deficiencies, judgments or expenses
      incurred by any of them (except to the extent that it is finally judicially
      determined to have resulted from their own gross negligence or willful
      misconduct) arising out of or by reason of any litigations, investigations,
      claims or proceedings which arise out of or are in any way related to
(i)
      this
      Credit Agreement or the transactions contemplated thereby; (ii)
      the
      administration by Lender of the credit facility under this Credit Agreement
      as a
      co-borrowing facility with a borrowing agent and funds administrator,
(iii)
      any
      of
      the Related Transaction Documents or Related Transactions, (iv)
      the
      issuance of Letters of Credit; (v)
      the
      failure of Lender or any Underlying Issuer to honor a drawing under any Letter
      of Credit, as a result of any act or omission, whether rightful or wrongful,
      of
      any present or future de jure or de facto government or Governmental Authority;
      (vi)
      any
      actual or proposed use by any Credit Party of any Letter of Credit or the
      proceeds of any Loans; or (vii)
      Lender’s
      entering into this Credit Agreement, the other Credit Documents or any other
      agreements, instruments or documents relating thereto, including amounts paid
      in-settlement, court costs and the fees and disbursements of counsel incurred
      in
      connection with any such litigation, investigation, claim or proceeding or
      any
      advice rendered in connection with any of the foregoing; and (b)
      any such
      losses, claims, damages, liabilities, deficiencies, judgments or expenses that
      arise directly or indirectly from or in connection with any federal, state
      or
      local environmental laws, acts, rules, regulations, orders, directions,
      ordinances, criteria or guidelines. If and to the extent that the Obligations
      of
      any Credit Party hereunder are unenforceable for any reason, such Credit Party
      hereby agrees to make the maximum contribution to the payment and satisfaction
      of such Obligations which is permissible under applicable law. Each Credit
      Party’s obligations hereunder shall survive any termination of this Credit
      Agreement and the other Credit Documents and Payment in Full, and are in
      addition to, and not in substitution of, any other of its Obligations. In
      addition, each Credit Party shall, upon demand, pay to Lender all Expenses,
      including, without limitation, costs and expenses (including the reasonable
      fees
      and disbursements of counsel and other professionals) paid or incurred by Lender
      in (i)
      enforcing or defending its rights under or in respect of this Credit Agreement,
      the other Credit Documents or any other agreement, document or instrument now
      or
      hereafter executed and delivered in connection herewith, (ii)
      collecting the Loans and other Obligations, (iii)
      foreclosing or otherwise collecting upon the Collateral or any part thereof
      and
(iv)
      obtaining any legal, accounting or other advice in connection with any of the
      foregoing.

     

    
      
        
        

      

      
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    9.9 Entire
      Agreement.
      This
      Credit Agreement and the other Credit Documents constitute the entire agreement
      among Credit Parties and Lender (in their respective capacities as such) and
      supersedes any prior agreements between them.

    

    9.10 Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Credit Agreement or any Collateral
      Document, nor consent to any departure by any Credit Party therefrom, shall
      in
      any event be effective unless the same shall be in writing and signed by Lender
      (and, in the case of amendments, each Credit Party), and each such amendment,
      waiver or consent shall be effective only in the specific instance and for
      the
      specific purpose for which given.

    

    9.11 Non-liability
      of Lender.
      The
      relationship between each Credit Party and Lender shall be solely that of
      borrower or guarantor, as the case may be, and lender. Lender shall have no
      fiduciary responsibilities to any Credit Party. Lender undertakes no
      responsibility to any Credit Party to review or inform such Credit Party of
      any
      matter in connection with any phase of such Credit Party’s business or
      operations.

    

    9.12 Counterparts.
      This
      Credit Agreement may be executed in any number of counterparts and by the
      different parties hereto in separate counterparts, each of which when so
      executed and delivered shall be an original, but all of which shall together
      constitute one and the same instrument. Any such counterpart which may be
      delivered by facsimile, email or similar electronic transmission shall be deemed
      the equivalent of an originally signed counterpart and shall be fully admissible
      in any enforcement proceedings regarding this Credit Agreement.

    

    9.13 Effectiveness;
      Successors and Assigns.
      This
      Credit Agreement shall become effective when it shall have been executed by
      each
      Credit Party and Lender and when the conditions precedent set forth in
Article
      4
      have
      been satisfied or waived in writing by Lender in accordance with the terms
      of
      this Credit Agreement, and thereafter shall be binding upon and inure to the
      benefit of each Credit Party and Lender, and their respective successors and
      assigns, except that no Credit Party shall have the right to assign its rights
      hereunder or any interest herein without the prior written consent of Lender,
      and any assignment by Lender shall be governed by Section
      9.6.

    

    9.14 Severability.
      In
      case
      any provision in or obligation under this Credit Agreement or the Notes or
      the
      other Credit Documents shall be invalid, illegal or unenforceable in any
      jurisdiction, the validity, legality and enforceability of the remaining
      provisions or obligations, or of such provision or obligation in any other
      jurisdiction, shall not in any way be affected or impaired thereby.

     

    
      
        
        

      

      
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    9.15 Headings
      Descriptive.
      The
      headings of the several sections and subsections of this Credit Agreement,
      and
      the Table of Contents, are inserted for convenience only and shall not in any
      way affect the meaning or construction of any provision of this Credit
      Agreement.

    

    9.16 Maximum
      Rate.
      Notwithstanding
      anything to the contrary contained elsewhere in this Credit Agreement or in
      any
      other Credit Document, each Credit Party and Lender each hereby agrees that
      all
      agreements between them under this Credit Agreement and the other Credit
      Documents, whether now existing or hereafter arising and whether written or
      oral, are expressly limited so that in no contingency or event whatsoever shall
      the amount paid, or agreed to be paid, to Lender for the use, forbearance,
      or
      detention of the money loaned to any Credit Party and evidenced hereby or
      thereby or for the performance or payment of any covenant or obligation
      contained herein or therein, exceed the Highest Lawful Rate. If due to any
      circumstance whatsoever, fulfillment of any provisions of this Credit Agreement
      or any of the other Credit Documents at the time performance of such provision
      shall be due shall exceed the Highest Lawful Rate, then, automatically, the
      obligation to be fulfilled shall be modified or reduced to the extent necessary
      to limit such interest to the Highest Lawful Rate, and if from any such
      circumstance Lender should ever receive anything of value deemed interest by
      applicable law which would exceed the Highest Lawful Rate, such excessive
      interest shall be applied to the reduction of the principal amount then
      outstanding hereunder or on account of any other then outstanding Obligations
      and not to the payment of interest, or if such excessive interest exceeds the
      principal unpaid balance then outstanding hereunder and such other then
      outstanding Obligations, such excess shall be refunded to Credit Parties. All
      sums paid or agreed to be paid to Lender for the use, forbearance, or detention
      of the Obligations and other Indebtedness of any Credit Party to Lender shall,
      to the extent permitted by applicable law, be amortized, prorated, allocated
      and
      spread throughout the full term of such Indebtedness until Payment in Full
      so
      that the actual rate of interest on account of all such Indebtedness does not
      exceed the Highest Lawful Rate throughout the entire term of such Indebtedness.
      The terms and provisions of this Section shall control every other provision
      of
      this Credit Agreement and all agreements among Credit Parties and
      Lender.

    

    9.17 Right
      of Setoff.
      In
      addition to and not in limitation of all rights of offset that Lender may have
      under applicable law, Lender shall, upon the occurrence and during the
      continuance of any Event of Default and whether or not Lender has made any
      demand or the Obligations are matured, Lender shall have the right to
      appropriate and apply to the payment of the Obligations all deposits (general
      or
      special, time or demand, provisional or final) then or thereafter held by or
      under the control of, and other Indebtedness or property then or thereafter
      owing by, Lender, including any and all amounts in any Depositary Account,
      the
      Hilco Account or the Disbursement Account.

    

    9.18 Rights
      Cumulative.
      Each of
      the rights and remedies of Lender under the Credit Documents shall be in
      addition to all of its other rights and remedies under the Credit Documents
      and
      applicable law, and nothing in the Credit Documents shall be construed as
      limiting any such rights or remedies.

     

    
      
        
        

      

      
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    9.19 Patriot
      Act Notice.
      Lender,
      to the extent Lender is subject to the Patriot Act, hereby notifies each Credit
      Party that pursuant to the requirements of the Patriot Act, it may be required
      to obtain, verify and record information that identifies such Credit Party,
      which information includes the name and address of such Credit Party and other
      information that will allow Lender to identify such Credit Party in accordance
      with the Patriot Act.

    

    9.20 Joint
      and Several Liability of Borrowers.

    

    (a) Each
      of
      the Borrowers shall be jointly and severally liable hereunder and under each
      of
      the other Credit Documents with respect to all Obligations, regardless of which
      of such Persons actually receives the proceeds of the Loans or the benefit
      of
      any other extensions of credit hereunder, or the manner in which any of the
      Borrowers account therefor or Lender accounts therefor in their respective
      books
      and records. Notwithstanding the foregoing, (i)
      the
      obligations and liabilities of the respective Borrowers with respect to proceeds
      of Loans which it receives or Letters of Credit issued for its account, and
      related fees, costs and expenses, and (ii)
      the
      obligations and liabilities of the respective Borrowers arising as a result
      of
      the joint and several liability of the Borrowers hereunder with respect to
      proceeds of Loans received by, or Letters of Credit issued for the account
      of,
      the other Borrower, together with the related fees, costs and expenses, shall
      be
      separate and distinct obligations, both of which are primary obligations of
      the
      Borrowers. Neither the joint and several liability of, nor the Liens granted
      to
      Lender under the Collateral Documents by, any of the Borrowers shall be impaired
      or released by (A)
      the
      failure of Lender, any successors or assigns thereof, or any holder of any
      Note
      or any of the Obligations to assert any claim or demand or to exercise or
      enforce any right, power or remedy against any Borrower or any other Person,
      the
      Collateral or otherwise; (B)
      any
      extension or renewal for any period (whether or not longer than the original
      period) or exchange of any of the Obligations or the release or compromise
      of
      any obligation of any nature of any Person with respect thereto; (C)
      the
      surrender, release or exchange of all or any part of any property (including
      without limitation the Collateral) securing payment, performance and/or
      observance of any of the Obligations or the compromise or extension or renewal
      for any period (whether or not longer than the original period) of any
      obligations of any nature of any Person with respect to any such
      property;
      (D)
      any
      action or inaction on the part of Lender, or any other event or condition with
      respect to the other Borrower, including any such action or inaction or other
      event or condition, which might otherwise constitute a defense available to,
      or
      a discharge of, such Borrower, or a guarantor or surety of or for any or all
      of
      the Obligations; and (E)
      any
      other
      act, matter or thing (other than payment or performance of the Obligations)
      which would or might, in the absence of this provision, operate to release,
      discharge or otherwise prejudicially affect the obligations of such or any
      other
      Borrower.

    

    9.21 Funds
      Administrator.

    

    (a) Borrowers
      maintain an integrated cash management system reflecting their interdependence
      on one another and the mutual benefits shared among them as a result of their
      respective operations. In order to efficiently fund and operate their respective
      businesses and minimize the number of borrowings which they will make under
      this
      Credit Agreement and thereby reduce the administrative costs and record keeping
      required in connection therewith, including the necessity to enter into and
      maintain separately identified and monitored borrowing facilities, Borrowers
      have requested, and Lender has agreed that all Loans will be advanced to and
      for
      the account of Borrowers on a joint and several basis in accordance with the
      other provisions hereof. Each Borrower hereby acknowledges that it will be
      receiving direct and indirect benefits from each Loan made pursuant to this
      Credit Agreement.

     

    
      
        
        

      

      
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    (b) Each
      Borrower hereby designates, appoints, authorizes and empowers CGS as its
      borrowing agent and fund administrator to act as specified in this Credit
      Agreement and each of the other Credit Documents and hereby acknowledges such
      designation, authorization and empowerment, and accepts such appointment. Each
      Borrower hereby irrevocably authorizes and directs Funds Administrator to take
      such action on its behalf under the provisions of this Credit Agreement and
      the
      other Credit Documents, and any other instruments, documents and agreements
      referred to herein or therein, and to exercise such powers and to perform such
      duties hereunder and thereunder as are specifically delegated to or required
      of
      Funds Administrator by the respective terms and provisions hereof and thereof,
      and such other powers are reasonably incidental thereto, including, without
      limitation, to take the following actions for and on such Borrower’s
      behalf:

    

    (i) to
      submit
      on behalf of each Borrower, Borrowing Base Certificates, Notices of Borrowing,
      requests for issuance of Letters of Credit and all other notices to Lender
      in
      accordance with the provisions of this Credit Agreement and the other Credit
      Documents;

    

    (ii) to
      receive on behalf of each Borrower the proceeds of Loans in accordance with
      the
      provisions of this Credit Agreement, such proceeds to be disbursed to or for
      the
      account of the applicable Borrower as soon as practicable after its receipt
      thereof; and

    

    (iii) to
      submit
      on behalf of each Borrower Compliance Certificates and all other certificates,
      notices and other communications given or required to be given
      hereunder.

    

    Funds
      Administrator hereby further is authorized and directed by each Borrower to
      take
      all such actions on behalf of such Borrower necessary to exercise the specific
      power granted in clauses (i) through (iii) above and to perform such other
      duties hereunder and under the Credit Documents, and deliver such agreements,
      documents, certificates and instruments as delegated to or required of Funds
      Administrator by the terms hereof or thereof.

    

    (c) The
      administration by Lender of the credit facility under this Credit Agreement
      as a
      co-borrowing facility with a borrowing agent and funds administrator in the
      manner set forth herein is solely as an accommodation to Credit Parties and
      at
      their request and Lender shall not incur any liability to any Credit Party
      as a
      result thereof.

    

    ARTICLE
      10

    GUARANTY

    

    10.1 Guaranty. Each
      Guarantor jointly and severally hereby unconditionally and irrevocably
      guarantees the punctual payment when due, whether at stated maturity, by
      acceleration or otherwise, of all Obligations of each other Credit Party,
      including, without limitation, of each Borrower, now or hereafter existing
      under
      any Credit Document, whether for principal, interest (including, without
      limitation, all interest that accrues after the commencement of any Insolvency
      Proceeding with respect to any Borrower or any other Credit Party), fees,
      commissions, expense reimbursements, indemnifications or otherwise (such
      obligations, to the extent not paid by Borrowers, the “Guaranteed
      Obligations”),
      and
      agrees to pay any and all Expenses) incurred by Lender in enforcing any rights
      under the guaranty set forth in this Article
      10.
      Without
      limiting the generality of the foregoing, each Guarantor’s liability shall
      extend to all amounts that constitute part of the Guaranteed Obligations and
      would be owed by any Borrower or any other Credit Party to Lender under any
      Credit Document, but for the fact that they are unenforceable or not allowable
      due to the existence of any Insolvency Proceeding involving Borrower or any
      other Credit Party. This guaranty is a guaranty of payment and not of
      collection.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    

    10.2 Guaranty
      Absolute.Each
      Guarantor jointly and severally guarantees that the Guaranteed Obligations
      will
      be paid strictly in accordance with the terms of the Credit Documents,
      regardless of any law, regulation or order now or hereafter in effect in any
      jurisdiction affecting any such terms or the rights of Lender with respect
      thereto. The obligations of each Guarantor under this Article
      10
      are
      independent of the Guaranteed Obligations, and a separate action or actions
      may
      be brought and prosecuted against each Guarantor to enforce such obligations,
      irrespective of whether any action is brought against any Credit Party or
      whether any Credit Party is joined in any such action or actions. The liability
      of each Guarantor under this Article
      10
      shall be
      irrevocable, absolute and unconditional irrespective of, and each Guarantor
      hereby irrevocably waives any defenses it may now or hereafter have in any
      way
      relating to, any or all of the following:

    

    (a) any
      lack
      of validity or enforceability of any Credit Document or any agreement or
      instrument relating thereto;

    

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Guaranteed Obligations, or any other amendment or waiver of or
      any
      consent to departure from any Credit Document, including, without limitation,
      any increase in the Guaranteed Obligations resulting from the extension of
      additional credit to any Credit Party or otherwise;

    

    (c) any
      taking, exchange or release of, or non-perfection of a Lien on, any Collateral,
      or any taking, release or amendment or waiver of or consent to departure from
      any other guaranty, for all or any of the Guaranteed Obligations;

    

    (d) any
      change, restructuring or termination of the corporate, limited liability company
      or partnership structure or existence of any Credit Party; or

    

    (e) any
      other
      circumstance (including, without limitation, any statute of limitations) or
      any
      existence of or reliance on any representation by Lender that might otherwise
      constitute a defense available to, or a discharge of, any Credit Party or any
      other guarantor or surety, other than the occurrence of all of the following:
      (i) the termination of the Commitment, (ii) the payment in full in cash of
      the
      Guaranteed Obligations and all other amounts payable under this Article 10,
      and
      (iii) the termination of Credit Agreement and the other Credit Documents in
      accordance with the respective terms and provisions hereof and
      thereof,.

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    

    This
      Article
      10
      shall
      continue to be effective or be reinstated, as the case may be, if at any time
      any payment of any of the Guaranteed Obligations is rescinded or must otherwise
      be returned to Lender or any other Person upon the insolvency, bankruptcy or
      reorganization of any Borrower or any other Credit Party or otherwise, all
      as
      though such payment had not been made.

    

    10.3 Waiver.Each
      Guarantor hereby waives promptness, diligence, notice of acceptance and any
      other notice with respect to any of the Guaranteed Obligations and this
Article
      10
      and any
      requirement that Lender exhaust any right or take any action against any other
      Credit Party, any other Person or any Collateral. Each Guarantor acknowledges
      that it will receive direct and indirect benefits from the financing
      arrangements contemplated herein and that the waiver set forth in this Section
      10.3 is knowingly made in contemplation of such benefits. Each Guarantor hereby
      waives any right to revoke this Article
      10,
      and
      acknowledges that this Article 10
      is
      continuing in nature and applies to all Guaranteed Obligations, whether existing
      now or in the future.

    

    10.4 Continuing
      Guaranty. This
      Article
      10
      is a
      continuing guaranty and shall (a) remain in full force and effect until the
      indefeasible payment in full in cash of the Guaranteed Obligations and all
      other
      amounts payable under this Article
      10
      and the
      termination of this Credit Agreement, (b) be binding upon each Guarantor, its
      successors and assigns and (c) inure to the benefit of, and be enforceable
      by,
      Lender and its successor, pledgees, transferees and assigns.

    

    10.5 Maximum
      Liability.The
      provisions of this Guaranty are severable, and in any action or proceeding
      involving any state corporate or other similar law, or in any Insolvency
      Proceeding, if the obligations of any Guarantor under this Guaranty would
      otherwise be held or determined to be avoidable, invalid or unenforceable on
      account of the amount of such Guarantor’s liability under this Guaranty, then,
      notwithstanding any other provision of this Guaranty to the contrary, the amount
      of such liability shall, without any further action by the Guarantors or Lender,
      be automatically limited and reduced to the highest amount that is valid and
      enforceable as determined in such action or proceeding (such highest amount
      determined hereunder being the relevant Guarantor’s “Maximum
      Liability”).
      This
      Section with respect to the Maximum Liability of each Guarantor is intended
      solely to preserve the rights of Lender to the maximum extent not subject to
      avoidance under applicable law, and no Guarantor nor any other Person shall
      have
      any right or claim under this Section with respect to such Maximum Liability,
      except to the extent necessary so that the obligations of any Guarantor
      hereunder shall not be rendered voidable under applicable Requirements of Law.
      Each Guarantor agrees that the Guaranteed Obligations may at any time and from
      time to time exceed the Maximum Liability of each Guarantor without impairing
      this Guaranty or affecting the rights and remedies of Lender hereunder, provided
      that, nothing in this sentence shall be construed to increase any Guarantor’s
      obligations hereunder beyond its Maximum Liability.

    

    10.6 Subordination. Each
      of
      the Guarantors hereby agrees that, after the occurrence and during the
      continuance of any Default or Event of Default, the payment of any amounts
      due
      with respect to the Indebtedness owing by any Borrower to such Guarantor or
      any
      amounts due with respect to the Indebtedness owing by any Borrower to such
      Guarantor or by any Guarantor to any other Guarantor is hereby subordinated
      to
      the prior indefeasible payment in full in cash of the Obligations. Each
      Guarantor hereby agrees that, after the occurrence and during the continuance
      of
      any Default or Event of Default, such Guarantor shall not demand, sue for or
      otherwise attempt to collect any Indebtedness of any Borrower or any other
      Guarantor owing to such Guarantor until the Obligations shall have been paid
      indefeasibly in full in cash. If, notwithstanding the foregoing sentence, such
      Guarantor shall collect, enforce or receive any amounts in respect of such
      indebtedness, such amounts shall be collected, enforced and received by such
      Guarantor as trustee for Lender, and such Guarantor shall deliver any such
      amounts to Lender for application to the Obligations.

     

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

    

    10.7 Subrogation.No
      Guarantor shall exercise any rights that it may now have or hereafter acquire
      against any other Credit Party or any other guarantor or that arise from the
      existence, payment, performance or enforcement of such Guarantor’s obligations
      under this Article
      10,
      including, without limitation, any right of subrogation, reimbursement,
      exoneration, contribution or indemnification and any right to participate in
      any
      claim or remedy of Lender against any other Credit Party or any other guarantor
      or any Collateral, whether or not such claim, remedy or right arises in equity
      or under contract, statute or common law, including, without limitation, the
      right to take or receive from any other Credit Party or any other guarantor,
      directly or indirectly, in cash or other property or by set-off or in any other
      manner, payment or security solely on account of such claim, remedy or right,
      unless and until all of the Guaranteed Obligations and all other amounts payable
      under this Article
      10
      shall
      have been indefeasibly paid in full in cash and the Commitment has terminated;
      provided,
      that no
      Guarantor shall have any rights hereunder against any Credit Party or any of
      its
      Subsidiaries if all or any portion of the Guaranteed Obligations shall have
      been
      satisfied with proceeds from the exercise of remedies in respect of the Capital
      Securities of such Credit Party or Subsidiary pursuant to a Collateral Document.
      If any amount shall be paid to any Guarantor in violation of the immediately
      preceding sentence, such amount shall be held in trust for the benefit of Lender
      and shall forthwith be paid to Lender to be credited and applied to the
      Guaranteed Obligations and all other amounts payable under this Article
      10,
      whether
      matured or unmatured, in accordance with the terms of this Credit Agreement,
      or
      to be held as Collateral for any Guaranteed Obligations or other amounts payable
      under this Article
      10
      thereafter arising. If (i) any Guarantor shall make payment to Lender of all
      or
      any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations
      and all other amounts payable under this Article
      10
      shall be
      paid in full in cash and (iii) the Commitment has terminated, Lender will,
      at
      such Guarantor’s request and expense, execute and deliver to such Guarantor
      appropriate documents, without recourse and without representation or warranty,
      reasonably necessary to evidence the transfer by subrogation to such Guarantor
      of an interest in the Guaranteed Obligations resulting from such payment by
      such
      Guarantor.

     

    -
      Remainder of Page Intentionally Blank; Signature Pages Follow
      -

    

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Credit Agreement to be executed and delivered
      by
      their proper and duly authorized officers as of the date set forth
      above.

     

    BORROWERS:

    

    20/20
      TECHNOLOGIES, INC.,
      a
      Delaware corporation

     

    By:     
      ________________________________

    Name: ________________________________

    Title: 
      ________________________________

    

    

    20/20
      TECHNOLOGIES I, LLC,
      a
      Delaware

     limited
      liability company

    

    By: 20/20
      TECHNOLOGIES, INC.,
      a
 

    Delaware
      corporation

    Its: Manager

    

    By:    
      _____________________________

    Name: _____________________________

    Title:  
      _____________________________

     

     

    CENTREPATH,
      INC.,
      a
      Delaware corporation

     

    By:   
       ________________________________

    Name: ________________________________

    Title: 
       ________________________________

    

    

    FRONTRUNNER
      NETWORK SYSTEMS, 

    CORP., a
      Delaware corporation

     

    By:    
       ________________________________

    Name: ________________________________

    Title: 
       ________________________________

     

    

      Capital
        Growth Systems, Inc., et al

      Credit
        Agreement

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be
      executed and delivered by their proper and duly authorized officers as of the
      date set forth above.

    

    BORROWERS
      (CONTINUED):

    

    NEXVU
      TECHNOLOGIES, LLC, a
      Delaware 

    limited
      liability company

    

    By: CAPITAL
      GROWTH SYSTEMS, INC.,
      a

       
Florida
      corporation

    Its: Manager

     

    
      By:    
        _____________________________

      Name: _____________________________

      Title:  
        _____________________________

    

    

    

    GLOBAL
      CAPACITY GROUP, INC., a
      Texas
      corporation

     

    
      By:    
         ________________________________

      Name: ________________________________

      Title: 
         ________________________________

    GUARANTORS:

    

    CAPITAL
      GROWTH SYSTEMS, INC.,
      a
      Florida corporation

    
       

      By:    
         ________________________________

      Name: ________________________________

      Title: 
         ________________________________

       

    

     

    MAGENTA
      NETLOGIC LIMITED,
      a
      private 

    limited
      company organized under the laws of the 

    United
      Kingdom 

     

    
      By:    
         ________________________________

      Name: ________________________________

      Title: 
         ________________________________

    

     

    

    Capital
      Growth Systems, Inc., et al

    Credit
      Agreement

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LENDER:

    

    HILCO
      FINANCIAL, LLC,
      a
      Delaware limited 

    liability
      company

    
       

      By:    
         ________________________________

      Name: ________________________________

      Title: 
         ________________________________

    

    Capital
      Growth Systems, Inc., et al

    Credit
      Agreement

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