Document:

STOCK
      OPTION AGREEMENT

    

    THIS
      STOCK OPTION AGREEMENT
      (this
“Agreement”) is entered into as of February 21, 2008 by and between RICHARD
      LATON (the “Optionee”) and Sionix Corporation, a Nevada corporation (the
“Corporation”). The foregoing parties are sometimes referred to hereinafter
      individually as a “Party” or collectively as the “Parties.” All capitalized
      terms not otherwise defined herein shall have the definition ascribed to them
      in
      the Grant Notice.

    

    WHEREAS,
      in
      recognition of the Optionee’s contributions to the Corporation, both as a former
      member of its board of advisors and as a current member of its board of
      directors, the Corporation has granted the Optionee an option to purchase shares
      of its common stock pursuant to the Notice of Grant of Stock Option dated the
      date hereof (the “Option”).

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements hereinafter set forth,
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the Parties do hereby covenant and agree as
      follows:

    

    1. Grant
      of Option.
      The
      Corporation hereby grants to the Optionee, as of the Grant Date, an Option
      to
      purchase up to the aggregate number of Option Shares specified in the Grant
      Notice. The Option Shares shall be purchasable from time to time during the
      Option term specified in Paragraph 2 below at the Exercise Price. 

    

    2. Option
      Term.
      The
      Option shall have a term of five (5) years measured from the Grant Date and
      shall accordingly expire at the close of business on the Expiration Date, unless
      sooner terminated pursuant to Paragraph 7 of this Agreement. 

    

    3. Limited
      Transferability.
      

     

    (a)  During
      the Optionee’s lifetime, the Option shall be exercisable only by the Optionee
      and shall not be assignable or transferable other than by will or by the laws
      of
      descent and distribution following the Optionee’s death. However, Optionee may
      designate one or more persons as the beneficiary or beneficiaries of this
      Option, so that, if Optionee is holding this Option at the time of his or her
      death, this Option shall, in accordance with such designation, automatically
      be
      transferred to such beneficiary or beneficiaries upon Optionee’s death. Such
      beneficiary or beneficiaries shall take the transferred Option subject to all
      the terms and conditions of this Agreement, including (without limitation)
      the
      limited time period during which this option may, pursuant to Paragraph 6(c),
      be
      exercised following Optionee’s death.

     

    (b)  If
      this
      option is designated a Non-Statutory Option in the Grant Notice, then this
      Option may be assigned in whole or in part during Optionee’s lifetime to one or
      more members of Optionee’s family (as defined in Rule 701 promulgated by the
      Securities and Exchange Commission) or to a trust established for the benefit
      of
      one or more such family members or to Optionee’s former spouse, to the extent
      such assignment is in connection with Optionee’s estate plan or pursuant to a
      domestic relations order. The assigned portion shall be exercisable only by
      the
      person or persons who acquire a proprietary interest in the Option pursuant
      to
      such assignment. The terms applicable to the assigned portion shall be the
      same
      as those in effect for this Option immediately prior to such assignment.

     

    (c)  Anything
      herein to the contrary notwithstanding, in no event shall the Optionee sell
      prior to the one year anniversary of the Grant Date (the “Lock-Up Period”) any
      shares of Common Stock acquired upon exercise of the Option. The Optionee
      consents to the placement of a legend to that effect on any Common Stock
      certificates issued to the Optionee during the Lock-Up Period upon exercise
      of
      the Option.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    4. Fully
      Vested Option.
      The
      Option is fully vested and immediately exercisable, subject to the terms of
      this
      Agreement. 

    

    5. Representations
      of the Optionee.
      The
      Optionee hereby represents as follows:

     

    (a)
      The
      Optionee either has a preexisting personal or business relationship with the
      Corporation or any of its officers, directors or controlling persons, or by
      reason of his business or financial experience or the business or financial
      experience of his professional advisors who are unaffiliated with and who are
      not compensated by the Corporation or any affiliate or selling agent of the
      Corporation, directly or indirectly, could be reasonably assumed to have the
      capacity to protect his own interests in connection with the transaction.

     

    (b)
      The
      Optionee is acquiring the Option and, upon exercise, the Option Shares, for
      his
      own account and not with a view to or for sale in connection with any
      distribution thereof. 

     

    (c)
      The
      Optionee did not learn of the offer and sale of the Option through the
      publication of any advertisement. 

     

    6. Waiver
      and Acknowledgement.
      The
      Optionee hereby waives any and all right he may have to receive stock options
      pursuant to the letter, dated June 1, 2006, from the Corporation to its board
      of
      advisors and agrees that the Option is granted in lieu of any options owing
      to
      the Optionee pursuant to such letter. In addition to the Option, the Corporation
      acknowledges and agrees that it continues to owe the Optionee $144,000,
      representing the monthly fee earned by the Optionee for services rendered from
      October 1, 2004 through February 20, 2007, which shall be repaid as provided
      in
      Section 3(c) of the Consulting Agreement between the Optionee and the
      Corporation dated of even date herewith. 

    

    7. Corporate
      Transactions.

    

    (a) In
      the
      event of  (a)
      a
      dissolution or liquidation of the Corporation, (b) a merger or consolidation
      in
      which the Corporation is not the surviving corporation (other than a merger
      or
      consolidation with a wholly-owned subsidiary, a reincorporation of the
      Corporation in a different jurisdiction, or other transaction in which there
      is
      no substantial change in the stockholders of the Corporation or their relative
      stock holdings), (c) a merger in which the Corporation is the surviving
      corporation but after which the stockholders of the Corporation immediately
      prior to such merger (other than any stockholder that merges, or which owns
      or
      controls another corporation that merges, with the Corporation in such merger)
      cease to own their shares or other equity interest in the Corporation, (d)
      the
      sale of substantially all of the assets of the Corporation, or (e) the
      acquisition, sale, or transfer of more than 50% of the outstanding shares or
      the
      Corporation by tender offer or similar transaction (each, a “Corporate
      Transaction”), the Corporation shall provide written notice to the Optionee of
      such Corporate Transaction no less than 15 business days prior to the
      consummation thereof.

    

    (b) Immediately
      following the consummation of the Corporate Transaction, the Option shall
      terminate and cease to be outstanding.

    

    (c) This
      Agreement shall not in any way affect the right of the Corporation to adjust,
      reclassify, reorganize or otherwise change its capital or business structure
      or
      to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
      of its business or assets.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    8. Adjustment
      in Option Shares.
      Should
      any change be made to the Common Stock by reason of any stock split, stock
      dividend, recapitalization, combination of shares, exchange of shares or other
      change affecting the outstanding Common Stock as a class without the
      Corporation’s receipt of consideration, appropriate adjustments shall be made to
      (i) the total number and/or class of securities subject to this option and
      (ii)
      the Exercise Price in order to reflect such change and thereby preclude a
      dilution or enlargement of benefits hereunder.

    

    9. Shareholder
      Rights.
      The
      Optionee shall not have any shareholder rights with respect to the Option Shares
      until the Optionee shall have exercised the Option in accordance with this
      Agreement and become a holder of record of the purchased shares.

    

    11. Manner
      of Exercising Option.

    

    (a) In
      order
      to exercise the Option with respect to all or any part of the Option Shares,
      the
      Optionee (or any other person or persons exercising the option) must take the
      following actions:

    

    (i) Execute
      and deliver to the Corporation a written notice setting forth the number of
      Option Shares for which the Option is exercised.

    

    (ii) Pay
      the
      aggregate Exercise Price for the purchased shares in cash or in one or more
      of
      the following forms:

    

    (A) by
      cancellation of indebtedness of the Corporation to the Optionee;

    

    (B) by
      surrender of shares of Common Stock that either: (1) have been owned by the
      Optionee for more than six (6) months and have been paid for within the meaning
      of Rule 144 promulgated under the Securities Act of 1933, as amended (and,
      if
      such shares were purchased from the Corporation by use of a promissory note,
      such note has been fully paid with respect to such shares); or (2) were obtained
      by the Optionee in the public market;

    

    (C) with
      respect only to purchases upon exercise of an Option, and provided that a public
      market for the Corporation’s stock exists:

    

    (1) through
      a
“same day sale” commitment from the Optionee and a broker-dealer that is a
      member of the Financial Industry Regulatory Authority (an “FINRA Dealer”)
      whereby the Optionee irrevocably elects to exercise the Option and to sell
      a
      portion of the shares so purchased to pay for the Exercise Price, and whereby
      the FINRA Dealer irrevocably commits upon receipt of such shares to forward
      the
      Exercise Price directly to the Corporation; or

    

    (2) through
      a
“margin” commitment from the Optionee and a FINRA Dealer whereby the Optionee
      irrevocably elects to exercise the Option and to pledge the shares so purchased
      to the FINRA Dealer in a margin account as security for a loan from the FINRA
      Dealer in the amount of the Exercise Price, and whereby the FINRA Dealer
      irrevocably commits upon receipt of such shares to forward the Exercise Price
      directly to the Corporation; or

    

    (D) by
      any
      combination of the foregoing. 

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    Except
      to
      the extent the sale and remittance procedure is utilized in connection with
      the
      Option exercise, payment of the Exercise Price in one of the forms provided
      above must accompany the written notice delivered to the Corporation in
      connection with the Option exercise.

    

    (iii) Furnish
      to the Corporation appropriate documentation that the person or persons
      exercising the Option (if other than Optionee) have the right to exercise the
      Option.

    

    (iv) Execute
      and deliver to the Corporation such written representations as may be requested
      by the Corporation in order for it to comply with the applicable requirements
      of
      federal and state securities laws.

    

    (v) Make
      appropriate arrangements with the Corporation for the satisfaction of all
      federal, state and local income and employment tax withholding requirements
      applicable to the Option exercise.

    

    (b) As
      soon
      as practical after the exercise date, the Corporation shall issue to or on
      behalf of the Optionee (or any other person or persons exercising the Option)
      a
      certificate for the purchased Option Shares, with the appropriate legends
      affixed thereto.

    

    (c) Fractions
      of Option Shares will not be issued but will either be replaced by a cash
      payment equal to the fair market value of such fraction of an Option Share
      (based on the closing price of the Common Stock reported by Bloomberg LP on
      the
      replacement date) or will be rounded up to the nearest whole share of Common
      Stock, as determined by the Corporation.

    

    12. Compliance
      with Laws and Regulations.
      The
      exercise of the Option and the issuance of the Option Shares upon such exercise
      shall be subject to compliance by the Corporation and the Optionee with all
      applicable requirements of law relating thereto and with all applicable
      regulations of any national securities exchange or interdealer quotation system
      on which the Corporation’s Common Stock may be listed or quoted at the time of
      such exercise and issuance.

    

    13. Successors
      and Assigns.
      Except
      to the extent otherwise provided in Paragraph 3, the provisions of this
      Agreement shall inure to the benefit of, and be binding upon, the Corporation
      and its successors and assigns and the Optionee, the Optionee’s assigns and the
      legal representatives, heirs and legatees of the Optionee’s estate.

    

    14. Notices.
      Any
      notice required to be given or delivered to the Corporation under the terms
      of
      this Agreement shall be in writing and addressed to the Corporation at its
      principal executive offices. Any notice required to be given or delivered to
      the
      Optionee shall be in writing and addressed to the Optionee at the last address
      the Optionee filed in writing with the Corporation. All notices shall be deemed
      effective upon personal delivery or upon deposit in the U.S. mail, postage
      prepaid and properly addressed to the Party to be notified.

    

    15. Governing
      Law.
      The
      interpretation, performance and enforcement of this Agreement shall be governed
      by the laws of the State of California without resort to that State’s
      conflict-of-laws rules.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Parties hereto have executed this Stock Option Agreement as of the date first
      set forth above.

    

    
      	CORPORATION:
	 	 
	SIONIX
              CORPORATION
	 	 
	 	 
	 	 
	 	 
	
              By:  

            	/s/ Richard
              Papalian
	
              Name:
                

            	
              Richard
                Papalian

            
	
              Title:
                

            	
              Chief
                Executive Officer

            
	 	 
	 	 
	 	 
	 OPTIONEE:
	 	 
	 	 
	 	 
	
              
                /S/ RICHARD
                  LATON

              

            
	
               RICHARD
                LATON

            

    

    

    
      
        
        

      

      
        5ASSET
      PURCHASE AGREEMENT

     

    BY
      AND AMONG

     

    FRONTRUNNER
      NETWORK SYSTEMS CORP.

     

    CAPITAL
      GROWTH SYSTEMS, INC.

     

    AND

     

    WILLIAMS
      INTERACTIVE MEDIA INC.

     

    DATED
      FEBRUARY 19, 2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    
      

        
          	
                  ARTICLE
                    I PURCHASE AND SALE

                	
                  1

                
	
                  1.1

                	
                  Purchased
                    Assets.

                	
                  1

                
	
                  1.2

                	
                  Excluded
                    Assets

                	
                  2

                
	
                  1.3

                	
                  Assumed
                    Liabilities.

                	
                  3

                
	
                  1.4

                	
                  Excluded
                    Liabilities

                	
                  3

                
	
                  ARTICLE
                    II CLOSING

                	
                  3

                
	
                  2.1

                	
                  Closing
                    Date.

                	
                  3

                
	
                  2.2

                	
                  Purchase
                    Price

                	
                  4

                
	
                  2.3

                	
                  Payment
                    of Purchase Price

                	
                  6

                
	
                  2.4

                	
                  Allocation
                    of Purchase Price

                	
                  6

                
	
                  2.5

                	
                  Release
                    of Escrow Amount; Post-Closing Payment

                	
                  6

                
	
                  2.6

                	
                  Buyer’s
                    Additional Deliveries.

                	
                  7

                
	
                  2.7

                	
                  Seller’s
                    Deliveries.

                	
                  7

                
	
                  ARTICLE
                    III REPRESENTATIONS, WARRANTIES AND COVENANTS

                	
                  8

                
	
                  3.1

                	
                  Representations,
                    Warranties and Covenants of Seller and Shareholder.

                	
                  8

                
	
                  3.2

                	
                  Representations
                    and Warranties of Buyer.

                	
                  14

                
	
                  ARTICLE
                    IV ADDITIONAL AGREEMENTS

                	
                  14

                
	
                  4.1

                	
                  Sales
                    and Transfer Taxes; Tax Settlements.

                	
                  14

                
	
                  4.2

                	
                  Discharge
                    of Liabilities.

                	
                  14

                
	
                  4.3

                	
                  Operation
                    of Business Prior to Closing

                	
                  14

                
	
                  4.4

                	
                  Further
                    Assurances.

                	
                  15

                
	
                  4.5

                	
                  Access
                    to Books and Records; Audit

                	
                  15

                
	
                  4.6

                	
                  Consents

                	
                  15

                
	
                  4.7

                	
                  Change
                    in Representations and Warranties

                	
                  15

                
	
                  4.8

                	
                  Employment
                    by Buyer

                	
                  15

                
	
                  4.9

                	
                  Liability

                	
                  16

                
	
                  4.10

                	
                  Post-Closing
                    Payment

                	
                  16

                
	
                  4.11

                	
                  Over
                    90-Day A/R Amount

                	
                  16

                
	
                  4.12

                	
                  Cafeteria
                    Plan

                	
                  16

                
	
                  4.13

                	
                  401(k)
                    Plan

                	
                  17

                
	
                  ARTICLE
                    V CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER

                	
                  17

                
	
                  5.1

                	
                  No
                    Misrepresentation or Breach of Covenants, Representations and
                    Warranties.

                	
                  17

                
	
                  5.2

                	
                  No
                    Restraint or Litigation.

                	
                  17

                
	
                  5.3

                	
                  Necessary
                    Consents.

                	
                  17

                
	
                  5.4

                	
                  Corporate
                    Approvals

                	
                  17

                
	
                  5.5

                	
                  Escrow
                    Agreement

                	
                  17

                
	
                  5.6

                	
                  Liens
                    Releases

                	
                  18

                
	
                  5.7

                	
                  Tax
                    Clearance

                	
                  18

                
	
                  ARTICLE
                    VI CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER AND
                    SHAREHOLDER

                	
                  18

                
	
                  6.1

                	
                  No
                    Misrepresentation or Breach of Covenants and Warranties.

                	
                  18

                
	
                  6.2

                	
                  No
                    Restraint or Litigation.

                	
                  18

                
	
                  6.3

                	
                  Escrow
                    Agreement

                	
                  18

                
	
                  ARTICLE
                    VII

                	
                  18

                
	
                  SURVIVAL
                    OF REPRESENTATIONS, WARRANTIES AND COVENANTS AND
                    INDEMNIFICATION

                	
                  18

                

        

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

        

        
          	
                  7.1

                	
                  Survival
                    of Representations, Warranties, Covenants and Indemnities

                	
                  18

                
	
                  7.2

                	
                  Indemnification
                    by Seller and Shareholder

                	
                  19

                
	
                  7.3

                	
                  Indemnification
                    by Buyer

                	
                  19

                
	
                  7.4

                	
                  Limitation
                    on Indemnification

                	
                  20

                
	
                  7.5

                	
                  Notice
                    of Indemnification Claims

                	
                  20

                
	
                  7.6

                	
                  Miscellaneous

                	
                  21

                
	
                  7.7

                	
                  Payment
                    of Indemnification

                	
                  22

                
	
                  7.8

                	
                  Exclusivity

                	
                  22

                
	
                  ARTICLE
                    VIII TERMINATION

                	
                  22

                
	
                  8.1

                	
                  Methods
                    of Termination.

                	
                  22

                
	
                  8.2

                	
                  Procedure
                    Upon Termination.

                	
                  23

                
	
                  ARTICLE
                    IX GENERAL PROVISIONS

                	
                  23

                
	
                  9.1

                	
                  Definitions.

                	
                  23

                
	
                  9.2

                	
                  Public
                    Announcement.

                	
                  26

                
	
                  9.3

                	
                  Notices.

                	
                  26

                
	
                  9.4

                	
                  Successors
                    and Assigns.

                	
                  27

                
	
                  9.5

                	
                  Entire
                    Agreement; Amendments.

                	
                  27

                
	
                  9.6

                	
                  Interpretation.

                	
                  27

                
	
                  9.7

                	
                  Waivers.

                	
                  27

                
	
                  9.8

                	
                  Expenses.

                	
                  27

                
	
                  9.9

                	
                  Partial
                    Invalidity.

                	
                  28

                
	
                  9.10

                	
                  Execution
                    in Counterparts.

                	
                  28

                
	
                  9.11

                	
                  Governing
                    Law.

                	
                  28

                
	
                  9.12

                	
                  Currency

                	
                  28

                
	
                  9.13

                	
                  Recitals.

                	
                  28

                

        

      

    

    

    SCHEDULES
      AND EXHIBITS

    

    
      	
              Schedule
                1.1(c)

            	
              Real
                and Personal Property Leases

            
	
              Schedule
                1.1(f)

            	
              Contracts

            
	
              Schedule
                1.1(g)

            	
              Employment
                Agreements

            
	
              Schedule
                1.1(h)

            	
              Equipment
                and Personal Property

            
	
              Schedule
                1.1(n)

            	
              Intellectual
                Property

            
	
              Schedule
                1.2

            	
              Excluded
                Assets

            
	
              Schedule
                2.4

            	
              Allocation
                of Purchase Price

            
	
              Schedule
                3.1(j)

            	
              Employees
                and Independent Contractors

            
	
              Schedule
                3.1(m)

            	
              Real
                Property

            
	
              Schedule
                3.1(o)

            	
              Product
                Warranties

            
	
              Schedule
                3.1(p)

            	
              Contracts

            
	
              Schedule
                3.1(q)

            	
              Welfare
                Plans

            
	
              Schedule
                3.1(r)

            	
              Customers
                and Suppliers

            
	 	 
	
              Exhibit
                A

            	
              Escrow
                Agreement

            
	
              Exhibit
                B

            	
              Assumption
                Agreement

            
	
              Exhibit
                C

            	
              Bill
                of Sale

            
	
              Exhibit
                D

            	
              Non-Competition
                Agreement

            
	
              Exhibit
                E

            	
              Glendale
                Heights Sublease

            

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    ASSET
      PURCHASE AGREEMENT

     

    THIS
      ASSET PURCHASE AGREEMENT (the “Agreement”),
      is
      entered into this 19th day of February, 2008 by and among Williams Interactive
      Media Inc., a New York corporation (“Buyer”),
      Frontrunner Network Systems Corp., a Delaware corporation (“Seller”)
      and
      Capital Growth Systems, Inc., a Florida corporation (“Shareholder”).

     

    RECITALS

     

    A. Seller
      is
      in the business of installing and servicing customer-premise voice, data and
      video networks (“Business”).

     

    B. Seller
      desires to sell to Buyer and Buyer desires to purchase from Seller,
      substantially all of Seller’s tangible and intangible assets of the Business,
      all as further detailed in this Agreement and on the terms and the conditions
      set forth herein.

     

    C. Shareholder
      is the sole owner of all the issued and outstanding stock of Seller and will
      benefit from the consummation of the transactions contemplated by this
      Agreement, and Buyer has conditioned its willingness to enter into this
      Agreement upon Shareholder assuming certain obligations under this
      Agreement.

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and agreements hereinafter
      set forth, Buyer, Seller and Shareholder, intending to be legally bound, hereby
      agree as follows:

     

    ARTICLE
      I

    PURCHASE
      AND SALE

     

    1.1 Purchased
      Assets.
      Upon the
      terms and subject to the conditions of this Agreement, on the Closing Date
      (as
      hereinafter defined), Seller shall sell, transfer, assign, convey and deliver
      to
      Buyer, and Buyer shall purchase from Seller, on a going concern basis, free
      and
      clear of any liens, claims, charges, security interests, mortgages, pledges,
      easements, conditional sales or other title retention agreements, defects in
      title, covenants or other restrictions of any kind (“Encumbrances”),
      all of
      Seller’s right, title and interest of in, to and under all of the tangible and
      intangible assets of the Business (except for the Excluded Assets as defined
      in
Section
      1.2),
      including, but not limited to, the following:

     

    (a) all
      accounts receivable of the Business;

     

    (b) all
      inventory of the Business

     

    (c) the
      real
      property and personal property leases listed on Schedule
      1.1(c);

     

    (d) all
      prepaid expenses that are usable and consumable in the ordinary course of
      Business;

     

    (e) all
      prepaid deposits of the Business;

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (f) all
      customer and other contracts, including, but not limited to, those listed and
      described on Schedule
      1.1(f)
      (the
“Contracts”);

     

    (g) all
      employment agreements listed and described on Schedule
      1.1(g);

     

    (h) the
      equipment and other personal property listed on Schedule
      1.1(h);

     

    (i) all
      rights of Seller pursuant to any express or implied warranties, representations
      or guarantees made by suppliers furnishing goods or services to the
      Business;

     

    (j) all
      governmental and other permits, licenses, approvals, certificates of inspection,
      authorizations relating to the Business;

     

    (k) all
      books, records, files and documents relating to the Business, including, but
      not
      limited to, the original Contracts, books of account, ledgers, journals, sales
      and purchase records, credit information, cost and pricing information, business
      reports, plans and projections and all other correspondence, data and
      information, financial or otherwise, in any format and media
      whatsoever;

     

    (l) all
      claims, causes of action and rights of recovery relating to the
      Business;

     

    (m) all
      phone
      numbers, facsimile numbers or other similar property associated with the
      Business;

     

    (n) all
      patents, copyrights and trademarks (and all applications for any of the
      foregoing), if any, and all licenses, processes, products, apparatus, formulas,
      trade secrets, know-how, discoveries, inventions, (including conceptions of
      inventions), if any, product drawings, computer programs, and design,
      manufacturing, engineering and other technical information used or useful in
      the
      Business including, but not limited to, the name “Frontrunner Network Systems,
      Inc.” and any related or similar trade names, trademarks, service marks, logos,
      e-mail addresses, web sites, URLs, domain names or assumed names to the extent
      they incorporate such name and the intellectual property identified on
Schedule
      1.1(n)
      (collectively, the “Intellectual
      Property”); 

     

    (o) all
      insurance proceeds (including applicable deductibles, co-payments or self
      insured requirements) arising in connection with damage to the assets of the
      Business being purchased by Buyer occurring prior to the Closing Date, to the
      extent not expended for the repair or restoration of the assets of the Business
      being purchased by Buyer; and

     

    (p) all
      goodwill associated with the Business (the
      assets described in this Section
      1.1
      being
      collectively the “Purchased
      Assets”).

     

    1.2 Excluded
      Assets.
      The
      Purchased Assets shall not include any of Seller’s rights to any tax refunds or
      tax settlements with any taxing authority relating to any tax period ending
      on
      or prior to the Closing Date (“Tax
      Settlements”),
      and
      those assets listed and described on Schedule
      1.2
      (the
“Excluded
      Assets”).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    1.3 Assumed
      Liabilities.
      Buyer
      shall assume and perform all liabilities and obligations associated with the
      Contracts and prepaid deposits, all account payables of Seller listed on the
      Purchase Price Schedule (as defined in Section
      2.2(c)),
      Seller’s remaining debt obligation to Nortel Networks Inc. (the “Nortel
      Networks Debt”)
      evidenced by a the promissory note dated October 1, 2007 with a face amount
      of
      $711,687.50 and amount outstanding of $591,634.42 as of the date of this
      Agreement (the “Assumed
      Liabilities”)
      and
      Seller’s obligations under the Cafeteria Plan (as hereinafter defined) and
      Seller’s 401(k) Plan in accordance with Sections
      4.12 and 4.13.
      

     

    1.4 Excluded
      Liabilities.
      Buyer
      shall not assume and shall not be liable for, and Seller and Shareholder will
      indemnify Buyer from and against, all obligations, commitments and liabilities
      of and claims against Seller (whether absolute, accrued or contingent) relating
      to the Business, except for the Assumed Liabilities. Without limiting the
      generality of the foregoing, it is agreed that Buyer will have no liability
      for
      any of the following obligations or liabilities:

     

    (a) all
      liabilities in respect of all indebtedness of Seller to all Persons, other
      than
      the accounts payable of Seller listed on the Purchase Price Schedule and the
      Nortel Networks Debt; 

     

    (b) all
      liabilities for all taxes, duties, levies, assessments and other such charges,
      including any penalties, interests and fines with respect thereto, payable
      by
      Seller to any Governmental Agency, including, without limitation, any taxes
      in
      respect of or measured by the sale, consumption or performance by Seller of
      any
      product or service prior to the Closing Date and any tax or any similar
      obligations in respect of all remuneration payable to all Persons employed
      in
      the Business prior to the Closing Date;

     

    (c) all
      liabilities for salary, bonus, vacation pay and other compensation and all
      liabilities under employee benefit plans of Seller relating to employment of
      all
      Persons in the Business prior to the Closing Date;

     

    (d) all
      severance payments, damages for wrongful dismissal and all related costs in
      respect of the termination by Seller of the employment of any employee of the
      Business who does not accept Buyer’s offer of employment referred to in
Section
      4.8;
      and

     

    (e) all
      liabilities for claims for injury, disability, death or workers’ compensation
      arising from or related to employment in the Business prior to the Closing
      Date
      (collectively, the “Excluded
      Liabilities”).

     

    ARTICLE
      II

    CLOSING

     

    2.1 Closing
      Date.
      Subject
      to satisfaction of the conditions hereinafter set forth, the closing shall
      be
      consummated on February 15, 2008, in Rochester, New York or at such other place
      as shall be agreed upon in writing by Buyer and Seller (the“Closing”).
      The
      time and date on which the closing is actually held is sometimes referred to
      herein as the “Closing
      Date”.

     

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    2.2 Purchase
      Price. 

     

    (a) Subject
      to adjustment under Section
      2.2(c),
      the
      purchase price for the Business and the Purchased Assets (the “Purchase
      Price”)
      shall
      be the sum of (i) through (iv) below, less (v) and (vi) below:

     

    (i) the
      difference between (A) accounts receivable of Seller other than those Seller
      accounts receivable that are in dispute by customers of Seller on the Closing
      Date (with the amount of such disputed accounts receivable being hereinafter
      referred to as the “Reserved
      A/R Amount”),
      and
      (B) trade accounts payable of Seller, each as valued as of the Closing Date
      (the
“Accounts
      Balance”),
      provided that if the Accounts Balance is a negative number, it shall serve
      to
      reduce the Cash Purchase Price (as hereinafter defined) due at the Closing;
      plus

     

    (ii) the
      assumption by Buyer of the Nortel Networks Debt; plus

     

    (iii) the
      value
      of Seller’s Closing Date warehoused inventory, valued at average cost, provided,
      that in no case shall Buyer pay more than $50,000 for Seller’s warehoused
      inventory (the “Inventory
      Amount”);
      plus

     

    (iv) the
      dollar value of payroll and employment expenses from the Closing Date through
      February 22, 2008 for exempt employees (the “Exempt
      Payroll Expenses”);

     

    (v) the
      actual cost of Seller’s Closing Date work in progress inventory and staged
      inventory (the “WIP
      Amount”);
      less

     

    (vi) the
      difference, but not less than zero, between: (A) the outgoing cash obligation
      for materials related to the Closing Date Advanced Billings Liability (as
      hereinafter defined) and (B) the incoming cash from the accounts receivables
      and
      amounts scheduled to be invoiced related to the Closing Date Advanced Billings
      Receivable (as hereinafter defined) (the “Net
      Advanced Billings Amount”).
      As
      used herein, the term “Closing
      Date Advanced Billings Liability”
means
      the sum of (1) the Closing Date accounts payable balance for materials and
      equipment associated with the Closing Date Advanced Billings balance, (2)
      amounts yet-to-be invoiced by suppliers as of the Closing Date for materials
      and
      equipment associated with the Closing Date Advanced Billing balance, and (3)
      the
      expected Seller cost for material and equipment yet-to-be purchased as of the
      Closing Date associated with the Closing Date Advanced Billings balance. As
      used
      herein, the term “Closing
      Date Advanced Billings Receivable”
means
      the sum of (1) the Closing Date accounts receivable balance associated with
      the
      Closing Date Advanced Billings balance, and (2) amounts yet-to-be invoiced
      by
      Seller to its customers as of the Closing Date associated with the Closing
      Date
      Advanced Billings balance; less

     

    (vii) $60,000
      for potential out-of-pocket expenses with respect to existing maintenance
      contracts (the “Maintenance
      Amount”).
      As
      used herein, the term “Cash
      Purchase Price”
means
      the Accounts Balance, Inventory Amount, the WIP Amount, the Exempt Payroll
      Expenses less the Maintenance Amount and less the Net Advanced Billings
      Amount.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (b) The
      Cash
      Purchase Price due at the Closing shall be reduced by the following amounts
      to
      be held in escrow (the “Escrow
      Holdback”)
      and
      paid out to the parties in accordance with the terms set forth
      herein:

     

    (i) the
      dollar value of Seller accounts receivable which are more than 90 days past
      due
      which do not otherwise constitute a part of the Reserved A/R Amount (the
“Over
      90-day A/R Amount”);
      and

     

    (ii) one-third
      of the dollar value of Seller accounts receivable which are greater than 60
      days
      past due and less than 91 days past due which do not otherwise constitute a
      part
      of the Reserved A/R Amount (the “60-90
      Day A/R Amount”).

     

    (c) Five
      (5)
      days before the Closing, Seller shall deliver to Buyer a schedule containing
      the
      estimated Closing Date Accounts Balance, Inventory Amount, WIP Amount, the
      Exempt Payroll Expenses and the Net Advanced Billing Amount (the “Purchase
      Price Schedule”),
      and a
      schedule containing the estimated Closing Date Reserved A/R Amount (the
“Reserved
      A/R Schedule”)
      and a
      schedule containing the estimated Closing Date Over 90-day A/R Amount and the
      60-90 Day A/R Amount (the “Escrow
      Holdback Schedule”)
      each
      as determined in good faith by Seller. 

     

    (d) Within
      thirty (30) days after the Closing, Seller shall deliver to Buyer an actual
      Purchase Price Schedule (the “Actual
      Schedule”)
      as of
      the Closing Date as determined in good faith by Seller. If on or before ten
      (10)
      days following receipt of the Actual Schedule, Buyer does not send written
      notice to Seller of an Objection to amounts set forth on the Actual Schedules
      then on such tenth day (or the next succeeding business day if the tenth day
      is
      not a business day): 

     

    (i) Buyer
      shall pay to Seller the amount by which the Actual Schedule exceeds the Purchase
      Price Schedule delivered in accordance with Section
      2.2(b);

     

    (ii) Seller
      shall pay to Buyer the amount by which the Purchase Price Schedule delivered
      in
      accordance with Section
      2.2(b)
      exceeds
      the Actual Schedule.

     

    (i)
      and
      (ii) above are referred to as a “Post-Closing
      Payment Obligation”.

     

    (e) If
      on or
      before the ten (10) days following receipt of the Actual Schedule, Buyer sends
      to Seller written notice of an objection to any amounts set forth on the Actual
      Schedule with such objection specifying which item Buyer objects to, then the
      parties shall have five days to resolve the disputed amount. If the parties
      are
      unable to resolve the disputed amount, then the amounts that are not in dispute
      shall be paid, disbursed and/or deposited in accordance with Section
      2.2(d)
      and
      those that are disputed shall be submitted to an independent appraiser mutually
      selected by the parties. The determination of the appraiser as to the disputed
      amount shall be binding on the parties. Disputed amounts that are resolved
      pursuant to the agreement of the parties or pursuant to an independent appraiser
      are hereinafter referred to as a “Resolved
      Amount”.
      Within
      two business days of the resolution of an Objection as set forth herein, the
      Resolved Amount shall be paid in accordance with Section
      2.2(d).

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    2.3 Payment
      of Purchase Price.
      At the
      Closing, Buyer shall pay to Seller in immediately available funds, the Cash
      Purchase Price as set forth on the Purchase Price Schedule less the Escrow
      Holdback as set forth on the Escrow Holdback Schedule and Buyer shall deposit
      the Escrow Holdback into an escrow account with AztecAmerica Bank as escrow
      agent (the “Escrow
      Agent”)
      in
      accordance with that certain Escrow Agreement in the form of Exhibit
      A.

     

    2.4 Allocation
      of Purchase Price.
      The
      Purchase Price shall be allocated among the Purchased Assets in accordance
      with
Schedule
      2.4.
      Seller
      and Buyer jointly shall complete and separately file Form 8594 with their
      respective federal income tax returns for the tax year in which the Closing
      Date
      occurs in accordance with such allocation and guidelines, and neither Seller
      nor
      Buyer shall, without the written consent of the other, take a position on any
      tax return or before any Governmental Agency charged with the collection of
      any
      such tax, or in judicial proceeding, that is in any manner inconsistent with
      the
      terms of such allocation.

     

    2.5 Release
      of Escrow Amount; Post-Closing Payment.
      The
      parties agree to send joint written instructions to the Escrow Agent to release
      amounts from the Escrow Holdback and for other post-Closing payments in
      accordance with this Section
      2.5
      as
      follows:

     

    (a) With
      respect to the Over 90-day A/R Amount, if prior to February 28, 2009, either
      party shall receive any payment with respect to those accounts constituting
      the
      Over 90-Day A/R Amount, such party shall promptly notify the other of the name
      of the customer and the amount received (the “Paid
      Over 90-day A/R Amount”).
      On
      the last day of each calendar quarter and on February 28, 2009, the parties
      shall send written notice (the “Over
      90-day A/R Notice”)
      to the
      Escrow Agent to pay to Seller from the Escrow Holdback any Paid Over 90-day
      A/R
      Amounts received by Buyer during such calendar quarter (or during such month,
      with respect to the February 28, 2009 notice) and to pay to Buyer from the
      Escrow Holdback any Paid Over 90-day A/R Amounts received by Seller during
      such
      calendar quarter (or during such month, with respect to the February 28, 2009
      notice). Any Over 90-day A/R Amount remaining as part of the Escrow Holdback
      after payment of the amounts set forth in the February 28, 2009 Over 90-day
      A/R
      Notice shall be paid from the Escrow Amount to Buyer.

     

    (b) With
      respect to the 60-90 Day A/R Amount, if prior to February 28, 2009, either
      party
      shall receive any payment any payment with respect to those accounts
      constituting the 60-90 Day A/R Amount, such party shall promptly notify the
      other of the name of the customer and the amount received (the “Paid 60-90
      Day A/R Amount”).
      If
      Seller receives the Paid 60-90 Day A/R Amount, then it shall promptly pay to
      Buyer two-thirds of such Amount and the parties shall promptly send written
      notice (the “60-90
      Day A/R Notice”)
      to the
      Escrow Agent to pay to Buyer from the Escrow Holdback an amount equal to
      one-third of the Paid 60-90 Day A/R Amount. If Buyer receives the Paid 60-90
      Day
      A/R Amount, then the parties shall send the 60-90 Day A/R Notice to the Escrow
      Agent instructing the Escrow Agent to pay to Seller from the Escrow Holdback
      an
      amount equal to one-third of the Paid 60-90 Day A/R Amount. Any 60-90 Day A/R
      Amount remaining as part of the Escrow Holdback at February 28, 2009 shall
      be
      paid from the Escrow Holdback to Buyer.

     

    (c) If
      prior
      to February 28, 2009, Buyer shall receive any payment with respect to those
      receivables set forth on the Reserved A/R Schedule, Buyer shall immediately
      notify Seller of such an occurrence and shall, within three (3) days of receipt
      thereof, pay to Seller the amount received with respect to such
      receivable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    2.6 Buyer’s
      Additional Deliveries.
      Subject
      to fulfillment or waiver of the conditions set forth in Article
      V,
      at
      Closing, Buyer shall deliver to Seller the Escrow Agreement duly executed by
      Buyer, the sublease for Seller’s Glendale Heights facility, in the form of
Exhibit
      E,
      an
      assumption agreement executed by Buyer, Nortel Networks and Seller with respect
      to Buyer’s obligation to assume the Nortel Networks Debt (in a form reasonable
      to Seller), and such other documents as Seller may reasonably request or as
      may
      be otherwise necessary to evidence and effect the sale, assignment, transfer,
      conveyance and delivery of the Business and Purchased Assets to Buyer, including
      the Assumption Agreement in the form of Exhibit
      B.

     

    2.7 Seller’s
      Deliveries.
      Subject
      to fulfillment or waiver of the conditions set forth in Article
      VI,
      at
      Closing, Seller shall deliver to Buyer all the following:

     

    (a) the
      Escrow Agreement, duly executed by Seller;

     

    (b) a
      Bill of
      Sale in the form of Exhibit
      C,
      duly
      executed by Seller;

     

    (c) certificates
      of title or origin (or like documents) with respect to any equipment included
      in
      the Purchased Assets for which a certificate of title or origin is required
      in
      order to transfer title;

     

    (d) any
      consents, waivers or approvals obtained by Seller with respect to the Purchased
      Assets or the consummation of the transactions contemplated by this
      Agreement;

     

    (e) the
      Non-Competition Agreement in the form of Exhibit
      D,
      duly
      executed by Seller and Shareholder;

     

    (f) the
      original promissory note evidencing the Nortel Networks Debt; and

     

    (g) such
      other bills of sale, assignments and other instruments of transfer or conveyance
      as Buyer may reasonably request or as may be otherwise necessary to evidence
      and
      effect the sale, assignment, transfer, conveyance and delivery of the Purchased
      Assets to Buyer.

     

    In
      addition to the above deliveries, Seller shall take all steps and actions as
      Buyer may reasonably request or as may otherwise be necessary to put Buyer
      in
      actual possession or control of the Business and the Purchased
      Assets.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

    REPRESENTATIONS,
      WARRANTIES AND COVENANTS

     

    3.1 Representations,
      Warranties and Covenants of Seller and Shareholder.
      Seller
      and Shareholder, jointly and severally, represent and warrant to Buyer as of
      the
      date of this Agreement as follows and covenant that from the date of this
      Agreement until the Closing Date, that they will not perform any act or permit
      any action to be taken or condition to exist which would make any of the
      following representations and warranties untrue in any respect, and confirm
      that
      Buyer is relying upon the accuracy of each representation and warranty in
      connection with the purchase of the Business as a going concern and completion
      of the transactions contemplated by this Agreement:

     

    (a) Corporate
      Status.
      Seller
      is a corporation duly organized, validly existing and in good standing under
      the
      laws of the State of Delaware. Seller and Shareholder each has taken all actions
      necessary to authorize the execution, delivery and performance of its
      obligations hereunder.

     

    (b) Authority;
      Due Execution.
      Seller
      and Shareholder each has full power and authority to execute, deliver and
      perform this Agreement and all of the other documents contemplated hereby to
      be
      executed by it (each an “Ancillary
      Agreement”).
      This
      Agreement has been duly executed and delivered by Seller and Shareholder and
      this Agreement is, and each of the Ancillary Agreements upon execution and
      delivery will be, legal, valid and binding obligations of Seller and Shareholder
      enforceable in accordance with their terms (subject to bankruptcy and similar
      laws affecting creditors’ rights and principles of equity).

     

    (c) Effect
      of Agreement.
      Neither
      the execution and delivery of this Agreement or the Ancillary Agreements nor
      the
      consummation of any of the transactions contemplated hereby or thereby nor
      compliance with or fulfillment of the terms, conditions and provisions hereof
      or
      thereof will conflict with, result in a breach of the terms, conditions or
      provisions of, or constitute a default, or result in the creation or imposition
      of any Encumbrance upon any of the Purchased Assets under (i) the articles
      of
      incorporation or bylaws of Seller or Shareholder, (ii) any agreement,
      instrument, right, restriction, license or obligation to which Seller or
      Shareholder is a party or any of the Purchased Assets is subject or by which
      Seller or Shareholder is bound, (iii) any judgment, order or decree of any
      state, federal or local court or tribunal to which Seller or Shareholder is
      a
      party or any of the Purchased Assets is subject or by which Seller or
      Shareholder is bound, or (iv) any federal or state law affecting Seller,
      Shareholder or the Purchased Assets.

     

    (d) Title
      to Purchased Assets.
      Seller
      has good and marketable title to all of the Purchased Assets, free and clear
      of
      all Encumbrances, with the exception of: (i) the lien in favor of Hilco
      Financial, LLC (“Hilco”)
      and
      (ii) the lien in favor of the holders of Two Year Term Notes, as administered
      by
      Aequitas Capital Management, Inc. as successor in interest to CGSI Term Note
      Servicer, Inc. (“Aequitas”).
      Upon
      delivery to Buyer on the Closing Date of the instruments of transfer
      contemplated by Section
      2.7,
      and the
      lien releases for the liens referenced in the preceding sentence, Seller will
      hereby transfer to Buyer good and marketable title to the Purchased Assets,
      subject to no Encumbrances, other than any Encumbrances arising out of, or
      directly related to the Nortel Networks Debt.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (e) Taxes.
      Except
      as Schedule
      3.1(e),
      Seller
      has, in respect of the Business, accurately and timely filed all tax returns
      and
      reports which are required to be filed and has timely paid in full all foreign,
      federal, state and local taxes (including interest and penalties) which have
      become due. Except as described above, Seller is not a party to any pending
      action or proceeding, nor, to Seller’s Knowledge, is any action or proceeding
      threatened, by any Governmental Agency for assessment or collection of taxes,
      and no claim for assessment or collection of taxes, has been asserted against
      Seller. To Seller’s Knowledge, no events have occurred which could result in the
      imposition on Buyer of any transferred liability for any taxes, penalties or
      interest due or to become due from Seller. Seller
      has not granted any extension or waiver of the statute of limitations period
      applicable to any tax return, which period (after giving effect to such
      extension or waiver) has not yet expired. Seller has not entered into any
      agreement or arrangement with any Governmental Agency with regard to the tax
      liability of Seller. All
      monies required to be withheld by Seller from any employee, independent
      contractor, creditor, shareholder or other third party for any and all taxes
      have been collected or withheld, and either paid to the proper Governmental
      Agency or set aside in accounts for such purpose. 

     

    (f) Proceedings;
      Compliance with Laws.
      Except
      as set forth on Schedule
      3.1(f),
      there
      are no lawsuits, claims, proceedings or investigations pending and there is
      no
      outstanding orders, notices, writs, injunctions or decrees of any court,
      government or Governmental Agency against or affecting Seller, the Purchased
      Assets or the Business or, to Seller’s Knowledge, threatened against or
      affecting Seller in respect of the Purchased Assets or the Business nor, to
      Seller’s Knowledge, is there any basis for any of the same. Except as set forth
      on Schedule
      3.1(f),
      there
      is no lawsuit, claim or proceeding pending in which Seller is the plaintiff
      or
      claimant which relates to the Purchased Assets or the Business. The Purchased
      Assets and their uses comply in all material respects with all applicable
      federal, state and local laws affecting them and the Business, and Seller has
      complied in all material respects with all federal, state and local laws which
      are applicable to the Purchased Assets or the Business. 

     

    (g) Licenses,
      Permits.
      Seller
      owns, holds or possesses all licenses, franchises, permits, privileges,
      immunities, approvals and other authorizations in all applicable jurisdictions
      necessary or appropriate to conduct the Business, and the conduct of the
      Business on the date hereof is being conducted in all material respects in
      compliance with all applicable laws and regulations. 

     

    (h) No
      Omissions.
      None of
      the representations or warranties of Seller or Shareholder contained herein,
      and
      none of the information referred to in this Article
      III,
      and
      none of the other information or documents furnished or to be furnished to
      Buyer
      by Seller pursuant to the terms of this Agreement, is false or misleading in
      any
      material respect or omits to state a fact necessary to make the statements
      herein or therein not misleading in any material respect. To each of Seller’s
      and Shareholder’s Knowledge, there is no fact which adversely affects or in the
      future is likely to adversely affect the Purchased Assets or the Business in
      any
      material respect which has not been set forth or referred to in this
      Agreement.

     

    (i) Condition
      of Assets.
      The
      tangible assets being purchased by Buyer pursuant hereto are being sold on
      an
      as-is basis in their as-is condition. To Seller’s Knowledge, these assets are in
      working condition as of the date hereof. No other Person owns or has any right
      to occupy or use any of the assets used in the Business. The Purchased Assets
      constitute all of the assets necessary to operate and conduct the Business
      as
      currently operated and conducted by Seller.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (j) Employees
      and Independent Contractors.
      Set
      forth on Schedule
      3.1(j)
      is a
      list of all employees and independent contractors of Seller providing services
      in support of the Business on the Closing Date (including all Persons currently
      on short or long-term disability), along with the amount of the current annual
      salaries and total compensation paid or due for services to each of them for
      the
      most recent fiscal year end and the year to date, accrued vacation and sick
      days, and a full and complete description of all arrangements (oral and written)
      with regard to each of them with respect to compensation in effect on the
      Closing Date or agreed to prior to the Closing Date with effect thereafter,
      including, without limitation, for any all pay, wages, commission, bonus,
      severance, stay-pay, change in control, profit sharing or similar arrangement.
      To Seller’s Knowledge, no executive, key employee, or group of employees has any
      plans to terminate employment with Seller. To Seller’s Knowledge, there is no
      attempt to organize or establish a labor union or employee association for
      the
      employees of Seller. Any and all wages and associated payroll costs and similar
      charges or amounts with respect to all of the employees owing by Seller will
      have been paid in full up to the Closing Date. 

     

    (k) Intellectual
      Property.
      Schedule
      1.1(n)
      lists
      all the Intellectual Property used in the Business. Except as set forth in
      Schedule
      1.1(n),
      the
      Intellectual Property is legally and beneficially owned exclusively by Seller
      and is used exclusively in the Business and is not the subject of any pending
      or
      to Seller’s Knowledge threatened proceeding for opposition, cancellation,
      reexamination, revocation or rectification and to Seller’s Knowledge, there are
      no facts or matters which might give rise to any such proceeding. To Seller’s
      Knowledge, its use of the Intellectual Property is not infringing upon or
      otherwise violating the rights of any third party in or to such Intellectual
      Property, and no proceedings have been instituted against, and no notices have
      been received by, Seller that are presently outstanding alleging that the use
      of
      the Intellectual Property infringes upon or otherwise violates any rights of
      a
      third party in or to such Intellectual Property. The consummation of the
      transactions contemplated by this Agreement will not result in the loss of
      or
      impairment of any rights in the Intellectual Property. Except as set forth
      in
Schedule
      1.1(n),
      no
      shareholder, director, officer or employee of Seller owns, directly or
      indirectly, in whole or in part, any right in the Intellectual Property that
      Seller has used or the use of which is necessary for the Business as now
      conducted.

     

    (l) Insurance.
      Seller
      has delivered to Buyer true, correct and complete copies of all policies of
      insurance to which Seller is a party or under which the Business or any officer
      or director of the Business, is or has been covered at any time within the
      3
      years immediately preceding the date of this Agreement.

     

    (m) Real
      Property.
      Schedule
      3.1(m)
      contains
      a true, complete and correct list of the Current Real Property. Seller does
      not
      now own and has not in the past owned any real property. Except as set forth
      on
Schedule
      3.1(m),
      (a)
      Seller enjoys peaceful and undisturbed possession of the Current Real Property,
      (b) to Seller’s Knowledge none of the Current Real Property is subject to any
      commitment for sale or use by any Person other than Seller, (c) the Current
      Real
      Property and each user thereof is in material compliance with all Governmental
      Requirements (including without limitation all zoning, subdivision and other
      applicable land use ordinances and by-laws and all health and safety laws and
      regulations) and all existing covenants, conditions, restrictions and easements,
      and the current use of the Current Real Property does not constitute a
      non-conforming use under the applicable zoning ordinances and by-laws. There
      are
      no condemnation, eminent domain or expropriation proceedings pending, or to
      the
      Knowledge of Seller contemplated or threatened, against the Current Real
      Property or any part thereof, and Seller knows of no desire of any Governmental
      Agency to take or use the Current Real Property or any part
      thereof.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (n) Environmental
      Matters.

     

    (i) Seller
      has conducted and is conducting the Business and the operation of the Purchased
      Assets in compliance with all applicable Environmental Laws. 

     

    (ii) Seller
      has not transported or accepted for transport or arranged for disposal of any
      Regulated Substance at any Site presently listed on, or to Seller’s Knowledge,
      proposed to be listed on, the National Priorities List created pursuant to
      the
Comprehensive
      Environmental Response Compensation and Liability Act of 1980,
      as
      amended, or on any similar list created by any state.

     

    (iii) Seller
      has received no notice of any Environmental Claim, and knows of no circumstances
      that are reasonably likely to give rise to any Environmental Claim.

     

    (iv) Seller’s
      use of the Current Real Property has been in compliance with all Environmental
      Laws.

     

    (o) Product
      Warranty.

     

    (i) The
      current form of each product warranty offered by Seller is attached as
Schedule
      3.1(o).

     

    (ii) Schedule
      3.1(o)
      sets
      forth a true and complete list of (A) all products manufactured, distributed
      or
      sold by Seller or any predecessor of Seller that have been recalled or withdrawn
      (whether voluntarily or otherwise) at any time since January 1,
      2004, and
      (B)
      all proceedings (whether completed or pending) at any time since January 1,
      2004
      seeking the recall, withdrawal, suspension or seizure of any product sold by
      Seller or any predecessor of Seller.

     

    (iii) To
      Seller's Knowledge, there are no defects in design, materials, manufacture
      or
      otherwise in any products manufactured, distributed or sold by Seller or any
      predecessor of Seller since January 1, 2004 or any defect in repair to any
      such
      products which could reasonably give rise to any claims in excess of historical
      warranty expenses.

     

    (iv) Seller
      has no Knowledge of any circumstances which are likely to cause warranty and
      other related expenses to materially increase from the average of such expenses
      for the past five years.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (p) Contracts;
      No Defaults.
      Except
      as described on Schedule
      1.1(f)
      or
Schedule
      3.1(p),
      Seller
      is not a party to or subject to any material agreement, contract or commitment
      (whether oral or written), and there is no other agreement, contract or
      commitment that is material to the Business. All the Contracts are valid,
      binding and in full force and effect and Seller is not in default or, to
      Seller’s Knowledge is the other party in default. Nothing has occurred which,
      with or without the passage of time or giving of notice or both, would
      constitute a default by Seller under any Contract. Each Contract may be assigned
      to Buyer without the consent of any other Person and without giving notice
      to
      any Person regarding this Agreement or the sale and transfer of the Purchased
      Assets or other transactions contemplated hereby, except as disclosed in
Schedule
      3.1(p).
      Complete and correct copies of all written Contracts have been provided to
      Buyer, which contain the entire agreement between the parties.

     

    (q) Employee
      Benefit Plans.

     

    (i) Neither
      Seller nor any ERISA Affiliate has ever maintained adopted or established,
      contributed or been required to contribute to, or otherwise participate in
      or
      been required to participate in, nor will they become obligated to do so through
      the Closing Date, any “employee pension benefit plan,” as defined in Section
      3(2) of ERISA, including any “multiemployer plan,” as defined in Section 3(37)
      of ERISA.

     

    (ii) Schedule
      3.1(q)
      contains
      a list identifying each “employee welfare benefit plan,” as defined in Section
      3(1) of ERISA, (the “Welfare
      Plans”)
      that
      are presently maintained, administered or contributed to by Seller, or which
      presently cover any employee or former employee of Seller. Each Welfare Plan
      has
      been maintained and administered in compliance with its terms and with all
      applicable Governmental Requirements.

     

    (iii) Seller
      has delivered or has caused to be delivered to Buyer true and complete copies
      of
      the Welfare Plans.

     

    (iv) No
      Welfare Plan provides benefits, including without limitation, any severance
      or
      other post-employment benefit, salary continuation, termination, death,
      disability, or health or medical benefits (whether or not insured), life
      insurance or similar benefit with respect to current or former employees (or
      their spouses or dependents) of Seller beyond their retirement or other
      termination of service other than (i) coverage mandated by applicable law,
      or
      (ii) benefits, the full cost of which is borne by the current or former employee
      (or his or her beneficiary).

     

    (v) The
      Frontrunner Network Systems, Corp. Profit Sharing and 401(k) Plan (the
“401(k)
      Plan”)
      has
      been maintained in compliance with its terms and the requirements prescribed
      by
      any and all statutes, orders, rules and regulations, including but not limited
      to, ERISA and the Internal Revenue Code of 1986, as amended, (“Code”), which are
      applicable to such 401(k) Plan. The 401(k) Plan is “qualified” within the
      meaning of Section 401(a) of the Code, and has been qualified during the period
      from the date of its adoption to the date of this Agreement. There are no
      pending or, to the knowledge of the Seller and Shareholder, threatened (A)
      claims, suits or other proceedings by any employees, former employees or plan
      participants or the beneficiaries, spouses or representatives of any of them,
      other than ordinary and usual claims for benefits by participants or
      beneficiaries, or (B) suits, investigations or other proceedings by any federal,
      state, local or other governmental agency or authority, of or against the 401(k)
      Plan, the assets held thereunder, or the trustee of any such assets. The Seller
      and Shareholder have not engaged (A) in any transaction or acted or failed
      to
      act in a manner that violates the fiduciary requirements of Section 404 of
      ERISA, or (B) in any “prohibited transaction” within the meaning of Section
      406(a) or 406(b) of ERISA, or of Section 4975(c) of the Code, with respect
      to
      the 401(k) Plan. No liability has been incurred by the Seller or by an ERISA
      Affiliate for any tax, penalty or other liability with respect to the 401(k)
      Plan. The Seller has made all required contributions under the 401(k) Plan
      on a
      timely basis.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      (r) Customers
        and Suppliers.
        Schedule
        3.1(r)
        contains
        a true, correct and complete list or description of all of the customers
        of the
        Business over the past 2 years. Records of customers of the Business for
        the
        last 2 years have not been destroyed (except for computer stored information
        deleted in the ordinary course of business). The customer list of the Business
        are true, correct and complete and accurately identify the customers of the
        Business in all material respect. Seller is the exclusive owner of, and has
        the
        unrestricted right to use, the customer list. Neither the customer list nor
        any
        information relating to the customers of the Business has, within the 3 years
        prior to the date of this Agreement, been made available to any Person other
        than Buyer or a Person that has executed a confidentiality agreement with
        respect to such information. All transactions with customers have been and
        are
        currently conducted on an arm’s length basis. The Business has not entered into
        any agreement with or made any commitment to any customer of the Business
        which
        would require adjustment to price or the granting of any refund, discount
        or
        other concession to such customer that is not otherwise set forth in a Contract
        memorializing such agreement or commitment and included in Schedule
        1.1(f)
        or
Schedule
        3.1(r).
        Seller
        is not required to provide any letters of credit, bonds or other financial
        security in connection with any arrangements with any customers of the Business.
        Except as set forth in Schedule
        3.1(r),
        in the
        last 2 years no supplier or customer of the Business has told Seller that
        it
        intends to terminate its relationship with the Business. To Seller’s Knowledge
        and except as set forth on Schedule
        3.1(r),
        there
        is no problem or dispute with any existing supplier or customer of the Business.
        

       

      (s) No
        Commissions.
        No
        Person acting on behalf of Seller has claims to, or is entitled to, under
        any
        contract or otherwise, any payment as a broker, finder or intermediary in
        connection with the origin, negotiation, execution or consummation of the
        transactions provided for in this Agreement.

       

      (t) Non-Waiver.
        No
        investigations made by or on behalf of Buyer at any time will have the effect
        of
        waiving, diminishing the scope of or otherwise affecting or mitigating any
        representation or warranty made in this Agreement or pursuant to this Agreement
        or the right of Buyer to rely upon such representation and
        warranty.

       

      (u) No
        Other Liabilities.
        To each
        of Seller’s and Shareholder’s Knowledge, there are no liabilities of Seller or
        the Business for which Buyer may become liable after the Closing Date, other
        than the Assumed Liabilities.

       

      3.2 Representations
        and Warranties of Buyer.
        Buyer
        hereby represents and warrants to Seller and Shareholder as
        follows:

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      (a) Corporate
        Status.
        Buyer
        is a corporation duly organized, validly existing and in good standing under
        the
        laws of the State of New York. Buyer has taken all actions necessary to
        authorize the execution, delivery and performance of its obligations
        hereunder.

       

      (b) Authority;
        Due Execution.
        Buyer
        has full power and authority to execute, deliver and perform this Agreement
        and
        all of the Ancillary Agreements to which it is a party. This Agreement has
        been
        duly executed and delivered by Buyer and this Agreement is, and each of the
        Ancillary Agreements upon execution and delivery will be, legal, valid and
        binding obligations of Buyer enforceable in accordance with their terms (subject
        to bankruptcy and similar laws affecting creditors’ rights and principles of
        equity).

       

      (c) Effect
        of Agreement.
        Neither
        the execution and delivery of this Agreement or the Ancillary Agreements
        nor the
        consummation of any of the transactions contemplated hereby or thereby nor
        compliance with or fulfillment of the terms, conditions and provisions hereof
        or
        thereof will conflict with, result in a breach of the terms, conditions or
        provisions of, or constitute a default, or result in the creation or imposition
        of any Encumbrance upon any of the Purchased Assets under (i) the articles
        of
        incorporation or bylaws of Buyer, (ii) any agreement, instrument, right,
        restriction, license or obligation to which Buyer is a party, (iii) any
        judgment, order or decree of any state, federal or local court or tribunal
        to
        which Buyer is a party or any of its assets is subject or by which Buyer
        is
        bound, or (iv) any federal or state law affecting Buyer or its
        assets.

       

      ARTICLE
        IV

      ADDITIONAL
        AGREEMENTS

       

      4.1 Sales
        and Transfer Taxes; Tax Settlements.
        Any
        sales tax directly attributable to the sale or transfer of the Business and
        Purchased Assets shall be paid by Buyer. Buyer and Seller agree to timely
        sign
        and deliver such certificates or forms as may be necessary or appropriate
        to
        establish an exemption from (or otherwise relieve) or make a report with
        respect
        to such sales taxes. Buyer agrees to promptly forward to Seller any Tax
        Settlement amounts received by Buyer and any correspondence delivered to
        Buyer
        with respect to the Tax Settlements.

       

      4.2 Discharge
        of Liabilities.
        Seller
        covenants and agrees that it will pay and discharge, and hold Buyer harmless
        from, each and every liability and obligation of Seller in respect of the
        Business or the Purchased Assets arising from events occurring on or prior
        to
        the Closing Date, excepting only the Assumed Liabilities, it being understood
        and agreed that Buyer is assuming no liabilities or obligations of Seller
        other
        than the Assumed Liabilities.

       

      4.3 Operation
        of Business Prior to Closing.
        From
        the date hereof until Closing, or until such time as this Agreement is
        terminated in accordance with Article
        VIII,
        as the
        case may be, Seller shall operate and carry on the Business only in the ordinary
        course and in a manner consistent with preserving intact the Business
        organization, retaining the employees identified on Schedule
        3.1(j)
        and
        preserving the value of the Purchased Assets, the Business and its goodwill
        with
        all suppliers, customers, employees and others having business relations
        with
        the Business; provided that nothing contained herein shall prevent Seller
        from
        distributing any cash in any of its bank accounts to Shareholder.

      
         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

      

       

      4.4 Further
        Assurances.
        Seller
        shall, from time to time after the Closing Date when so requested by Buyer,
        perform, execute, acknowledge or deliver or cause to be performed, executed,
        acknowledged or delivered, all such further acts, deeds, assignments, transfers,
        conveyances and assurances as may be required for assigning, transferring,
        granting, conveying, selling, assuring and confirming to Buyer and its
        successors and assigns, and for aiding and assisting in reducing to possession,
        the Business and Purchased Assets transferred to Buyer as herein
        contemplated.

       

      4.5 Access
        to Books and Records; Audit.
        

       

      (a) Prior
        to
        March 31, 2009, Buyer and Seller shall be given access, during normal business
        hours and upon not less than three (3) days written notice, to such of each
        other’s books and records as are reasonably necessary to determine if such party
        received any payments on any accounts receivable that made up the Reserved
        A/R
        Amount, the Over 90-day A/R Amount and the 60-90 Day A/R Amount. The notice
        requesting review of such books and records shall include a reference to
        which
        books and records the requesting party desires to review. 

       

      (b) On
        or
        prior to March 31, 2009, Buyer shall provide such cooperation as Seller or
        Seller’s independent registered public accountants may reasonably request
        (including, but not limited to, access to accounting personnel of Buyer and
        the
        books and records of Buyer) in order for Seller (or its accountants) to complete
        the tax and financial audits of Seller’s business for the year ended December
        31, 2007 and the interim period ending on the Closing Date.

       

      (c) Prior
        to
        the five (5) year anniversary of the date hereof, Seller and Shareholder
        shall
        be given access, during normal business hours and upon not less than three
        (3)
        days written notice, to such books and records of Seller that constitute
        part of
        the Purchased Assets (the “Books
        and Records”)
        as are
        reasonably necessary in Seller or Shareholder’s sole discretion to respond to
        any audit or inquiry by any Governmental Authority. Buyer covenants and agrees
        not to destroy any of the files, workpapers or other documents which make
        up the
        Books and Records prior to the five (5) year anniversary of the date
        hereof.

       

      4.6 Consents.
        Prior
        to the Closing, Seller will use its best efforts to obtain, and to the extent
        necessary will fully cooperate with Buyer to assist Buyer’s efforts to obtain
        all authorizations, consents and permits of others required to permit the
        consummation of the transactions contemplated by this Agreement and the
        continuation of the Business by Buyer. Without limiting the generality of
        the
        foregoing, Seller will use its best efforts to obtain any required consents
        to
        the assignment of the Contracts to Buyer.

       

      4.7 Change
        in Representations and Warranties.
        In the
        event Seller learns that any of the representations and warranties of Seller
        contained in or referred to in this Agreement is or will become inaccurate
        in
        any material respect, Seller will give immediate detailed written notice
        of the
        inaccuracy to Buyer.

       

      4.8 Employment
        by Buyer.
        Upon
        the Closing, Seller will terminate the employment of all of its employees
        and
        Buyer will offer employment to each employee of Seller who is both listed
        on
Schedule
        3.1(j)
        and
        actively employed by the Business as of the Closing Date (i.e., not on long-term
        disability or other leave) (collectively, the “Employees”).
        Buyer’s offer of employment to the Employees will be on substantially similar
        terms and conditions as Seller employs such Employees. Nothing herein, expressed
        or implied, confers upon any Employee any rights or remedies of any nature
        or
        kind, including, without limitation, any rights of employment with
        Buyer.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      4.9 Liability.
        Seller
        will retain and pay all obligations and liabilities arising out of Seller’s
        employment of the Employees prior to the Closing Date or their termination
        by
        Seller, including liability for all claims, with respect to occurrences on
        or
        before the Closing Date (regardless of when such claim is filed) arising
        out of
        labor or employment (which will include accrued vacation and sick pay), pension
        contributions, worker’s compensation, disability, unemployment insurance and
        related matters. Seller will not be liable for any such employment obligations
        with respect to Buyer’s employment of the Employees after the Closing Date,
        provided that any such obligations of Buyer do not relate to any act or omission
        of Seller which occurred prior to the Closing Date.

       

      4.10 Post-Closing
        Payment;
        Payment of Employees.
        Buyer
        and Seller shall take all steps necessary and shall cooperate with each other
        to
        ensure that the Post-Closing Payment Obligations are satisfied in accordance
        with Section
        2.2(d) and (e).
        Seller
        agrees to pay all exempt employees on February 22 for the payroll period
        ending
        February 22.

       

      4.11 Over
        90-Day A/R Amount.
        If
        after February 28, 2009, there remains any uncollected receivable (in full
        or in
        part) with respect to those accounts constituting the Over 90-Day A/R Amount,
        Buyer shall transfer the bill for such receivable to Seller (or its designee)
        and Seller (or its designee) shall be allowed to pursue the payment of such
        receivable in any manner deemed reasonably necessary by Seller. Buyer
        acknowledges and agrees that the pursuit of such uncollected receivables
        shall
        not be a breach of any covenant of Seller or Shareholder contained herein
        or in
        any Ancillary Agreement (including, but not limited to, the Non-Competition
        Agreement).

       

      4.12 Cafeteria
        Plan.
        

       

      (a) Within
        ten (10) days following the Closing Date, Seller will transfer to Buyer and
        Buyer will assume the Frontrunner Network Systems Corp. Flexible Spending
        Account Plan (the “Cafeteria
        Plan”).

       

      (b) Seller
        shall pay to Buyer on the date of transfer described above, an amount equal
        to
        the aggregate dependent care flexible spending account (the “DFSA”)
        balances of the Employees as of the Closing Date.

       

      (c) If
        an
        Employee’s aggregate elective deferrals to the health care flexible spending
        account (“HFSA”)
        under
        the Cafeteria Plan are in excess of the benefits paid by such HFSA on the
        Closing Date, the account balance shall be deemed to be a positive number
        (a
“Positive
        Account Balance”),
        and
        if a HFSA under the Cafeteria Plan has paid benefits in excess of an Employee’s
        aggregate elective deferrals to such HFSA on the Closing Date, the account
        balance shall be deemed to be a negative number (a “Negative
        Account Balance”).
        If,
        on the Closing Date, the aggregate Positive Account Balances exceed the
        aggregate Negative Account Balances, Seller shall pay the difference to Buyer
        on
        the date of transfer described above. If, however, the aggregate Negative
        Account Balances exceed the aggregate Positive Account Balances on the Closing
        Date, Buyer shall pay the difference to the Seller on the date of transfer
        described above.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      (d) Following
        the transfer referred to above, Buyer or its designee shall be responsible
        for
        administering the payment of claims for Employees relating to reimbursements
        of
        health care and dependent care expenses prior to the Closing Date but submitted
        for reimbursement after the Closing Date, including coordination of the
        remaining balances in the Cafeteria Plan HFSAs and DFSAs so that individual
        elections are not exceeded.

       

      4.13 401(k)
        Plan.
        Within
        ten (10) days following the Closing Date, Seller will transfer to Buyer and
        Buyer will assume the 401(k) Plan and Buyer will be substituted for Seller
        as
“Employer” for all purposes under the governing terms of the 401(k)
        Plan.

       

      ARTICLE
        V

      CONDITIONS
        PRECEDENT TO OBLIGATIONS OF BUYER

       

      The
        obligations of Buyer under this Agreement shall, at the option of Buyer,
        be
        subject to the satisfaction, on or prior to the Closing Date, of the following
        conditions:

       

      5.1 No
        Misrepresentation or Breach of Covenants, Representations and
        Warranties.
        There
        shall have been no material breach by Seller or Shareholder in the performance
        of any of its covenants and agreements herein; each of the representations
        and
        warranties of Seller or Shareholder contained or referred to herein shall
        be
        true and correct in all material respects on the Closing Date as though made
        on
        the Closing Date, except for changes therein specifically permitted by this
        Agreement or resulting from any transaction expressly consented to in writing
        by
        Buyer.

       

      5.2 No
        Restraint or Litigation.
        No
        action, suit, investigation or proceeding shall have been instituted or
        threatened to restrain or prohibit or otherwise challenge the legality or
        validity of the transactions contemplated hereby.

       

      5.3 Necessary
        Consents.
        Seller
        shall have received any consents, in form and substance reasonably satisfactory
        to Buyer, to the transactions contemplated hereby from the parties to the
        Contracts and from Nortel Networks which are necessary to prevent a material
        adverse change in the Purchased Assets, the Business or in the operations,
        liabilities, profits, prospects or condition (financial or otherwise) of
        the
        Business.

       

      5.4 Corporate
        Approvals.
        Seller
        will
        have
delivered
        to Buyer
        proof that its Board of Directors and Shareholder have approved the execution
        and delivery of this Agreement and the consummation of the transactions
        contemplated by this Agreement on or prior to the date of this
        Agreement.

       

      5.5 Escrow
        Agreement.
        The
        Escrow Agent and Seller shall have executed and delivered the Escrow
        Agreement.

       

      5.6 Liens
        Releases.
        Seller
        shall have delivered to Buyer a lien release from each of Hilco, Aequitas
        and
        Dell, releasing all liens they have against the Purchased Assets, in a form
        acceptable to Buyer’s legal counsel.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      5.7 Tax
        Clearance.
        A
        Notification of Sale, Transfer, or Assignment in Bulk and a Notice of Sale
        or
        Purchase of Business Assets having been submitted by Buyer to the New York
        Department of Taxation and Finance and the Illinois Department of Revenue
        respectively, on February 6, 2008, neither Buyer, Seller nor any of their
        respective agents or representatives shall have received any notice from
        the
        State of New York or the State of Illinois that unpaid taxes are due (other
        than
        those taxes that have been collected or have accrued and will be remitted
        in a
        timely fashion in the ordinary course of business) or that Buyer should hold
        back or escrow funds from the Purchase Price.

       

      ARTICLE
        VI

      CONDITIONS
        PRECEDENT TO OBLIGATIONS OF SELLER AND SHAREHOLDER

       

      The
        obligations of Seller and Shareholder under this Agreement shall, at the
        option
        of Seller, be subject to the satisfaction, on or prior to the Closing Date,
        of
        the following conditions:

       

      6.1 No
        Misrepresentation or Breach of Covenants and Warranties.
        There
        shall have been no material breach by Buyer in the performance of any of
        its
        covenants and agreements herein; each of the representations and warranties
        of
        Buyer contained or referred to in this Agreement shall be true and correct
        in
        all material respects on the Closing Date in as though made on the Closing
        Date,
        except for changes therein specifically permitted by this Agreement or resulting
        from any transaction expressly consented to in writing by Seller or any
        transaction contemplated by this Agreement.

       

      6.2 No
        Restraint or Litigation.
        No
        action, suit or proceeding by any Governmental Agency shall have been instituted
        or threatened to restrain, prohibit or otherwise challenge the legality or
        validity of the transactions contemplated hereby.

       

      6.3 Escrow
        Agreement.
        The
        Escrow Agent and Buyer shall have executed and delivered the Escrow
        Agreement.

       

      ARTICLE
        VII 

      SURVIVAL
        OF REPRESENTATIONS, WARRANTIES AND COVENANTS AND
        INDEMNIFICATION

       

      7.1 Survival
        of Representations, Warranties, Covenants and Indemnities.
        The
        representations
        and
        warranties
        of this
        Agreement will, without regard to any investigation by the Parties, survive
        the
        Closing until the first anniversary of the Closing Date, at which time they
        will
        terminate, except that: (a) the representations and warranties set forth
        in
Section
        3.1(e)
        (Taxes)
        will survive the Closing until all applicable statutes of limitation, as
        extended, have expired; (b) the representations and warranties set forth
        in
Section
        3.1(n)
        (Environmental) will survive the Closing for a period of 5 years after the
        Closing Date; (c) the representations and warranties set forth in Section
        3.1(q)
        (Employee Benefit Plans) will survive the Closing for a period of 3 years
        after
        the Closing Date; (d) there will be no time limitation on the representations
        and warranties set forth in Sections
        3.1(b) and 3.2(b)
        (Authority, Due Execution) and Section
        3.1(d)
        (Title
        to Purchased Assets); and (e) any good faith claims made in writing by the
        Indemnified Person prior to the expiration of the applicable survival period
        with respect to any Loss arising out of any breach of any representation
        and
        warranty by any party, will survive until the liability is finally determined.
        The covenants of the parties to this Agreement, including but not limited
        to the
        covenants and indemnities set forth in this Article
        VII,
        will
        survive the Closing until they have been fully satisfied or otherwise
        discharged.

       

      
        
          
          

        

        
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      7.2 Indemnification
        by Seller and Shareholder.
        Subject
        to the terms and conditions of this Article VII, Seller and Shareholder hereby
        agree to, jointly and severally, defend, indemnify and hold harmless Buyer’s
        Indemnified Persons from and against all Losses directly or indirectly incurred
        by or sought to be imposed upon any of them:

       

      (a) resulting
        from or arising out of any breach of any of the representations or warranties
        made by Seller or Shareholder hereunder or pursuant to any Ancillary
        Agreement;

       

      (b) resulting
        from or arising out of any breach of any covenant or agreement made by Seller
        or
        Shareholder in or pursuant to this Agreement or any Ancillary Agreement,
        document or instrument executed and delivered pursuant to this Agreement,
        including but not limited to, failure to pay or otherwise discharge any
        liability or obligation of Seller not included in the Assumed
        Liabilities;

       

      (c) resulting
        from or arising out of the conduct of the Business at any time on or prior
        to
        the Closing Date including, but not limited to, any proceeding against Seller
        or
        Shareholder and any litigation or similar matter arising out of such conduct,
        whether or not described or required to be described on Schedule
        3.1(f),
        except
        to the extent that the Loss arises from or relates to an Assumed
        Liability;
        provided
        that any Losses of Buyer related to Seller’s accounts receivable or Maintenance
        Contracts shall be satisfied solely out of the Escrow Holdback as set forth
        herein;
        

       

      (d) resulting
        from or arising out of any liability, payment or obligation in respect of
        any
        Taxes owing by Seller of any kind or description (including interest and
        penalties) for all the pre-closing tax periods;

       

      (e) resulting
        from or arising out of any Environmental Claim or any violation of any
        Environmental Laws which occurred or relate to time periods or events on
        or
        prior to the Closing Date; and

       

      (f) resulting
        from or arising out of any employment matter, except for any Assumed
        Liabilities.

       

      7.3 Indemnification
        by Buyer.
        Subject
        to the terms and conditions of this Article VII, from and after the Closing
        Date, Buyer agrees, to defend, indemnify and hold harmless Seller’s Indemnified
        Persons from any and all Losses directly or indirectly incurred by or sought
        to
        be imposed upon them:

       

      (a) resulting
        from or arising out of any breach of any of the representations or warranties
        made by Buyer, in or pursuant to this Agreement or in any agreement, document
        or
        instrument executed and delivered pursuant to this Agreement or in connection
        with the Closing;

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      (b) resulting
        from or arising out of any breach of any covenant or agreement made by Buyer
        in
        or pursuant to this Agreement, any Ancillary Agreement, or any document or
        instrument executed and delivered pursuant to this Agreement or in connection
        with any failure to pay, perform or otherwise discharge any of the Assumed
        Liabilities; and 

       

      (c) resulting
        from or arising out of the conduct of the Business at any time after the
        Closing
        Date.

       

      7.4 Limitation
        on Indemnification.
        The
        Buyer Indemnified Persons and Seller Indemnified Persons shall be entitled
        to
        indemnification pursuant to this Article
        VII
        only if
        the aggregate amount of the Losses and Expenses incurred by the Buyer
        Indemnified Person or the Seller Indemnified Person, as the case may be,
        exceeds
        $10,000 in the aggregate. The maximum aggregate amount for non-Prevailing
        Wage
        Rate Losses (as hereinafter defined) for which the Buyer Indemnified Persons
        shall be entitled to indemnification shall not exceed $300,000 in the aggregate
        and $500,000 in the aggregate when combining non-Prevailing Wage Rate Losses
        with Prevailing Wage Rate Losses; provided,
        however,
        the
        preceding limitations shall not apply to any Losses of a Buyer Indemnified
        Person related to Seller’s accounts receivable or Maintenance Contracts which
        shall be satisfied solely out of the Escrow Holdback as set forth
        herein.

       

      7.5 Notice
        of Indemnification Claims.
        

       

      (a) If
        (i) a
        Third Party Action is brought against any Indemnified Person that is subject
        to
        a right of indemnification under this Article VII, or (ii) any Indemnified
        Person becomes aware of facts or circumstances establishing that such
        Indemnified Person has experienced or incurred Losses or will experience
        or
        incur Losses subject to indemnification under this Article VII, then such
        Indemnified Person will give to the Indemnifying Person notice of such claim
        (“Indemnification
        Notice”)
        as
        soon as reasonably practicable but in no event more than 30 days after the
        Indemnified Person has received notice of or obtains actual knowledge of
        such
        claims (provided that failure to give such notice will not limit the
        Indemnifying Person’s indemnification obligation hereunder except to the extent
        that the delay in giving, or failure to give, the notice adversely affects
        the
        Indemnifying Person’s ability to defend against the claim). To the extent
        practicable, the Indemnification Notice will describe with reasonable
        specificity (A) the nature of and the basis for the indemnification claim,
        including any relevant supporting documentation, and (B) an estimate of all
        Losses associated with it.

       

      (b) Defense
        of Third Party Actions.

       

      (i) Upon
        receipt of a notice of a Third Party Action subject to an Indemnification
        Notice
        under this Section
        7.5,
        the
        Indemnifying Person will have the right, at its option and at its own expense,
        to participate in and be present at the defense of such Third Party Action,
        but
        not to control its defense, negotiation or settlement, which control will
        remain
        with the Indemnified Person, unless the Indemnifying Person makes the election
        provided in paragraph (ii) below.

       

      
        
          
          

        

        
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      (ii) By
        written notice within 45 days after receipt of a notice of a Third Party
        Action,
        an Indemnifying Person may elect to assume control of the defense, negotiation
        and settlement, with counsel reasonably satisfactory to the Indemnified Person;
        provided, however, that its right to assume such control will be subject
        to the
        Indemnifying Person agreeing in writing (A) to promptly indemnify the
        Indemnified Person for its expenses to date, (B) that any Losses arising
        out of
        the Third Party Action constitute a claim that is subject to indemnification
        under this Agreement; and (C) to hold the Indemnified Person harmless from
        and
        against any and all Losses caused by or arising out of any settlement of
        the
        Third Party Action approved by the Indemnifying Person or any judgment in
        connection with that Third Party Action. The Indemnifying Person will not
        in the
        defense of the Third Party Action enter into any settlement which does not
        include as a term the giving by the third party claimant of an unconditional
        release of the Indemnified Person, or consent to entry of any judgment except
        with the consent of the Indemnified Person.

       

      (iii) Upon
        assumption of control of the defense of a Third Party Action under paragraph
        (ii) above, the Indemnifying Person will not be liable to the Indemnified
        Person
        for any legal or other expenses subsequently incurred in connection with
        the
        defense of the Third Party Action.

       

      (iv) If
        the
        Indemnifying Person does not elect to control the defense of a Third Party
        Action under paragraph (ii), the Indemnifying Person will promptly reimburse
        the
        Indemnified Person for expenses incurred by the Indemnified Person in connection
        with defense of such Third Party Action, as and when the same are incurred
        by
        the Indemnified Person to the extent that the expense arises from a Loss
        that is
        subject to indemnification under this Agreement.

       

      (v) Any
        Person who has not assumed control of the defense of any Third Party Action
        will
        have the duty to cooperate with the party which assumed the such
        defense.

       

      7.6 Miscellaneous.
        

       

      (a) Buyer’s
        Indemnified Persons will be entitled to indemnification under Section
        7.2(a)
        and
        Seller’s Indemnified Persons will be entitled to indemnification under
Section
        7.3(a)
        regardless of whether the matter giving rise to the applicable liability,
        payment, obligation or expense may have been previously disclosed to any
        such
        Person.

       

      (b) If
        any
        Loss is recoverable under more than one provision of this Article
        VII,
        the
        Indemnified Person will be entitled to assert a claim for such Loss until
        the
        expiration of the longest period of time within which to assert a claim for
        Loss
        under any of the provisions which are applicable.

       

      (c) Any
        claim
        for indemnification pursuant to Sections
        7.2(a) or 7.3(a)
        of this
        Agreement must be made in accordance with this Article
        VII
        prior to
        the expiration of the applicable survival period set forth in Section
        7.1.

       

      (d) The
        obligations of the Indemnifying Person will continue with respect to any
        claims
        for Losses properly asserted by any Indemnified Person under this Article
        VII
        prior to
        the last date upon which such Indemnified Person may assert such claims until
        resolution of the claim.

       

      
        
          
          

        

        
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      (e) Buyer
        will undertake commercially reasonable efforts to mitigate all Losses incurred
        under this
        Agreement until
        such time as any claim for Losses under this
        Agreement is
        finally and fully resolved, including, without limitation, the time during
        which
Seller
        may be pursuing claims with respect to such Losses under and with respect
        to any
        policy or policies of insurance maintained by Seller prior to the Closing
        Date.
        In
        addition, if and to the extent that such Losses are or may be covered by
        any
        such policy or policies of insurance maintained by Seller prior to the Closing
        Date,
        Buyer
        will provide
        reasonable cooperation and assistance to Seller
        in
        conjunction with its efforts to make any and all claims under and with respect
        to such insurance policies, and any proceeds of such insurance policies which
        actually are paid or become payable to Buyer will be applied to offset any
        Losses which otherwise would be paid or become payable by Seller under
this
        Agreement,
        provided that the prosecution or resolution of any claims under or with respect
        to such insurance policies will not abate, impair, or delay Buyer’s ability to
        pursue its rights under this Article
        VII.

       

      7.7 Payment
        of Indemnification.
        Payment
        of any amount due under this Article
        VII
        will be
        made within 30 days after payment is due.

       

      7.8 Exclusivity.
        The
        parties agree that, except in the case of fraud or for a breach of the
        Non-Competition Agreement or the escrow provisions of this Agreement and
        the
        Escrow Agreement, their sole and exclusive remedy for, under or in connection
        with this Agreement, including, but not limited to, any violations or any
        breach
        of this Agreement, will be a claim under and in accordance with the provisions
        of this Article
        VII.

       

      ARTICLE
        VIII

      TERMINATION

       

      8.1 Methods
        of Termination.
        This
        Agreement may be terminated as follows:

       

      (a) By
        mutual
        consent of Buyer and Seller as evidenced by a writing signed by both parties;
        

       

      (b) By
        written notice of Buyer to Seller if any condition to the obligations of
        Buyer
        set forth in Article
        V
        is not
        satisfied on or before the Closing; 

       

      (c) By
        written notice of Seller to Buyer if any of the conditions to the obligations
        of
        Seller set forth in Article
        VI
        is not
        satisfied on or before the Closing; 

       

      (d) By
        Buyer
        if the Cash Purchase Price as determined on the Purchase Price Schedule
        delivered pursuant to Section
        2.2(c)
        is
        greater than $1 million; and

       

      (e) By
        either
        Buyer or Seller upon written notice to the other, if the Closing has not
        occurred prior to ten (10) days from the date of this Agreement.

       

      8.2 Procedure
        Upon Termination.
        In the
        event of termination pursuant to Section
        8.1
        hereof,
        this Agreement shall terminate without further action by either of Buyer
        and
        Seller hereto. If this Agreement is terminated as provided herein:

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (a) Each
        party will return all documents and other material relating to the transactions
        contemplated hereby, whether so obtained before or after the execution hereof,
        to the party furnishing the same; and

       

      (b) Neither
        Buyer nor Seller shall be under any liability to the other party hereto by
        reason of this Agreement, its negotiation or its said termination, whether
        for
        costs, expenses, damages or otherwise.

       

      ARTICLE
        IX

      GENERAL
        PROVISIONS

       

      9.1 Definitions.
        All
        capitalized terms used in this Agreement and not defined in other sections
        will
        have the meanings set forth below:

       

      (a) “Associated
        Property”
means
        any real property at any time owned, leased or used by Seller in the conduct
        of
        the Business.

       

      (b) “Buyer’s
        Indemnified Persons”
means
        Buyer, its directors, officers, employees, stockholders, and
        agents.

       

      (c) “Current
        Real Property”
means
        all real property currently owned or leased by Seller.

       

      (d) “Environment”
means
        any water or water vapor, land (including land surface or subsurface), air,
        fish, wildlife, biota and all other natural resources.

       

      (e) “Environmental
        Claim”
means
        any claim, suit, action, litigation, judgment, proceeding, demand, allegation,
        or any other assertion or threat of assertion of a right to legal,
        administrative or equitable relief for any loss, damage, liability, obligation,
        penalty, or injunctive or other equitable remedy of any kind or nature
        whatsoever (including, without limitation, those arising from common law,
        statutory enactments or amendments or regulatory promulgations or amendments
        subsequent to the date of this agreement) relating to, resulting from, or
        arising out of:

       

      (i) any
        use
        of the Purchased Assets or any Associated Property or the conduct of the
        Business by any Person at any time prior to the Closing Date;

       

      (ii) the
        presence of any Regulated Substance or the Release or threat of a Release
        of any
        Regulated Substance on, at, or from any Associated Property which arises
        out of
        the conduct of the Business prior to the Closing Date including, without
        limitation, such Releases as may begin after the Closing Date and such Releases
        as may have begun prior to the Closing Date including any such Releases as
        may
        continue or persist thereafter;

       

      (iii) the
        failure to promptly undertake and diligently pursue to completion all
        investigative, containment, removal, clean-up, disposal or other remedial
        actions regarding or associated with a Release of any Regulated Substance
        at any
        Associated Property;

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (iv) the
        disposal or other disposition of any waste or any other material whatsoever
        generated or otherwise originating from the conduct of the Business, or from
        the
        use or operation of the Purchased Assets, by any Person at any time at any
        location prior to the Closing Date;

       

      (v) human
        exposure to any Regulated Substance, noise, vibration or nuisance of any
        kind
        arising out of the conduct of the Business, or the ownership, use, sale,
        operation, conveyance or operation of any Associated Property or the Purchased
        Assets prior to the Closing Date, including but not limited to exposures
        associated with any Release of any Regulated Substance;

       

      (vi) any
        violation by any Person of any Environmental Law arising out of the conduct
        of
        the Business prior to the Closing Date and any violation of any Environmental
        Law which arises after the Closing Date and which results from or relates
        to the
        ownership, use, sale, operation, conveyance of the Purchased Assets or the
        Associated Property by any Person prior to the Closing Date; or

       

      (vii) non-compliance
        with any Environmental Permit prior to the Closing Date and any non-compliance
        with any Environmental Permit which occurs or is discovered after the Closing
        Date and which arises out of, results from or relates to the ownership, use,
        sale, operation, conveyance of the Subject Assets or the Associated Property
        by
        any Person prior to the Closing Date.

       

      (f) “Environmental
        Law”
means
        any statute, law, ordinance, rule, regulation, permit, standard, cleanup
        objective, guideline or license of any Governmental Agency relating to the
        protection of the Environment or governing the use, storage, treatment,
        generation, transportation, processing, handling, production or disposal
        of any
        substance, waste, pollutant or contaminant (including, without limitation,
        common law, statutory enactments or amendments or regulatory promulgations
        or
        amendments subsequent to the date of this agreement).

       

      (g) “Environmental
        Permit”
means
        any permit, license, approval, authorization, consent or registration required
        by any applicable Environmental Law in connection with the ownership, use
        or
        operation of the Purchased Assets or the ownership, use or operation of any
        Associated Property including, without limitation, the storage, treatment,
        generation, transportation, processing, handling, production or disposal
        of any
        Regulated Substance or the leasing, sale, transfer or conveyance of the
        Purchased Assets of any Associated Property.

       

      (h) “ERISA”
means
        the Employee Retirement Income Security Act of 1974, as amended.

       

      (i) “ERISA
        Affiliate”
means
        a
        trade or business, whether or not incorporated, which is deemed to be in
        common
        control or affiliated with Seller within the meaning of Section 4001 of ERISA
        or
        Sections 414(b), (c), (m) or (o) of the Internal Revenue Code of 1986, as
        amended (the “Code”).

       

      (j) “Governmental
        Agency”
means
        any federal, state, local or foreign government, political subdivision, court,
        agency or other entity, body, organization or group exercising any executive,
        legislative, judicial, quasi-judicial, regulatory or administrative function
        of
        government.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      (k) “Governmental
        Requirement”
means
        any published law, statute, ordinance, directive or regulation of any
        Governmental Authority.

       

      (l) “Indemnified
        Person”
means
        any Person entitled to be indemnified under this Article VII.

       

      (m) “Indemnifying
        Person”
means
        any Person obligated to indemnify another Person under this Article
        VII.

       

      (n) “Knowledge”
means,
        with respect to any party, actual knowledge after reasonable inquiry by such
        party, including directors, officers, partners, executors or trustees of
        that
        party and, with respect to Seller, shall include actual knowledge of
[Insert
        Names],
        of the
        relevant subject matter or on the basis of such knowledge of the relevant
        subject matter as such party would have had if it had conducted a reasonable
        investigation regarding the accuracy of any representation or warranty contained
        in this Agreement.

       

      (o) “Loss”
and
        “Losses”
means
        any and all losses, damages, liabilities, payments, costs and
        obligations,
        awards,
        judgments, fines, penalties, damages, expenses, deficiencies or other
        charges,
        and all
        expenses related to them. Losses will include any reasonable legal fees and
        costs incurred by any of the Indemnified Persons subsequent to the Closing
        in
        good faith defense of any Third Party Action, whether or not any liability
        or
        payment, obligation or judgment is ultimately imposed against the Indemnified
        Person.  

       

      (p) “Person”
means
        any Governmental Agency, individual, association, joint venture, partnership,
        corporation, limited liability company, trust or other entity.

       

      (q) “Prevailing
        Wage Rate Losses”
means
        any Losses and Expenses incurred by a Buyer Indemnified Person arising out
        of,
        or resulting from, Seller’s failure to comply with New York State’s Public Work
        Prevailing Wage Rate prior to the Closing Date.

       

      (r) “Regulated
        Substance”
means
        any substance, waste, pollutant or contaminant, as defined in or regulated
        by
        any applicable Environmental Law or as determined by any Governmental
        Agency.

       

      (s) “Release”
has
        the
        meaning given to that term in the Comprehensive
        Environmental Response, Compensation, and Liability Act of 1980,
        as
        amended (42 U.S.C. Section 9601, et seq.), and the regulations promulgated
        under
        it.

       

      (t) “Seller’s
        Indemnified Persons”
means
        Seller, Shareholder, or any of their directors, officers, employees, shareholder
        and agents.

       

      (u) “Third
        Party Action”
means
        any written assertion of a claim, or the commencement of any action, suit,
        or
        Proceeding, by a third party against an Indemnified Person with
        respect to which it is reasonably foreseeable that an Indemnified Person
        would
        be entitled to indemnification under Article VII.

       

      
        
          
          

        

        
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      9.2 Public
        Announcement.
        Shareholder shall have the authority to issue any press release or other
        public
        announcement accurately reflecting the transactions contemplated by this
        Agreement, as determined by Shareholder in its sole discretion. Shareholder
        shall use its commercially reasonable best efforts to provide Buyer with
        a copy
        of such press release or public announcement prior to its release.

       

      9.3 Notices.
        All
        notices or other communications required or permitted hereunder shall be
        in
        writing and shall be deemed given, delivered and received (a) when delivered,
        if
        delivered personally, (b) four (4) days after mailing, when sent by registered
        or certified mail, return receipt requested and postage prepaid, and (c)
        one (1)
        business day after delivery to a private courier service, when delivered
        to a
        private courier service providing documented overnight service, in each case
        addressed as follows:

       

      If
        to
        Seller:

       

      Frontrunner
        Network Systems, Corp.

      c/o
        Capital Growth Systems, Inc.

      Attention:
        Dan Kardatzke

      500
        West
        Madison Street, Suite 2060

      Chicago,
        Illinois 60661

      

      with
        a
        copy to:

       

      Mr.
        Mitchell D. Goldsmith

      Shefsky
        & Froelich Ltd.

      111
        East
        Wacker Drive, Suite 2800

      Chicago,
        IL 60601

      (312)
        836-4006

       

      If
        to
        Buyer:

       

      Williams
        Interactive Media Inc.

      c/o
        Williams Telecommunications

      Attention:
        Mr. Jim Williams, President

      5610
        Kennedy Road

      Mississauga,
        Ontario

      L4Z
        2A9

      

      with
        a
        copy to:

       

      George
        Eydt

      150
        King
        Street West 

      P.O.
        Box
        30, Suite 2309 

      Toronto,
        Ontario M5H1J9

      (416)
        595-2671

      

      or
        to
        such other address or addresses as may hereafter be specified by notice given
        by
        any of the above to the others.

       

      
        
          
          

        

        
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      9.4 Successors
        and Assigns.
        The
        rights of either party under this Agreement shall not be assignable by either
        party hereto prior to the Closing without the written consent of the other.
        This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their successors and permitted assigns. The successors and permitted
        assigns
        hereunder shall include without limitation, any permitted assignee as well
        as
        the successors in interest to such permitted assignee (whether by merger,
        liquidation (including successive mergers or liquidations) or otherwise).
        Nothing in this Agreement, expressed or implied, is intended or shall be
        construed to confer upon any Person other than the parties and successors
        and
        assigns permitted by this Section 9.4
        any
        right, remedy or claim under or by reason of this Agreement.

       

      9.5 Entire
        Agreement; Amendments.
        This
        Agreement and the Exhibits and Schedules referred to herein and the documents
        delivered pursuant hereto contain the entire understanding of the parties
        hereto
        with regard to the subject matter contained herein or therein, and supersede
        all
        prior agreements, understandings or letters of intent between or among any
        of
        the parties hereto. This Agreement shall not be amended, modified or
        supplemented except by a written instrument signed by an authorized
        representative of each of the parties hereto.

       

      9.6 Interpretation.
        Article
        titles and headings to sections herein are inserted for convenience of reference
        only and are not intended to be a part of or to affect the meaning or
        interpretation of this Agreement. The Schedules and Exhibits referred to
        herein
        shall be construed with and as an integral part of this Agreement to the
        same
        extent as if they were set forth verbatim herein.

       

      9.7 Waivers.
        Any term
        or provision of this Agreement may be waived, or the time for its performance
        may be extended, by the party or parties entitled to the benefit thereof.
        Any
        such waiver shall be validly and sufficiently authorized for the purposes
        of
        this Agreement if, as to any party, it is authorized in writing by an authorized
        representative of such party. The failure of any party hereto to enforce
        at any
        time any provision of this Agreement shall not be construed to be a waiver
        of
        such provision, nor in any way to affect the validity of this Agreement or
        any
        part hereof or the right of any party thereafter to enforce each and every
        such
        provision. No waiver of any breach of this Agreement shall be held to constitute
        a waiver of any other or subsequent breach.

       

      9.8 Expenses.
        Each
        party hereto will pay all costs and expenses incident to its negotiation
        and
        preparation of this Agreement and to its performance and compliance with
        all
        agreements and conditions contained herein on its part to be performed or
        complied with, including the fees, expenses and disbursements of its counsel
        and
        accountants.

       

      9.9 Partial
        Invalidity.
        Wherever
        possible, each provision hereof shall be interpreted in such manner as to
        be
        effective and valid under applicable law, but in case any one or more of
        the
        provisions contained herein shall, for any reason, be held to be invalid,
        illegal or unenforceable in any respect, such provision shall be ineffective
        to
        the extent, but only to the extent, of such invalidity, illegality or
        unenforceability without invalidating the remainder of such invalid, illegal
        or
        unenforceable provision or provisions or any other provisions hereof, unless
        such a construction would be unreasonable.

       

      
        
          
          

        

        
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      9.10 Execution
        in Counterparts.
        This
        Agreement may be executed in one or more counterparts, whether by original,
        photocopy or facsimile, each of which shall be considered an original
        instrument, but all of which shall be considered one and the same agreement,
        and
        shall become binding when one or more counterparts have been signed by each
        of
        the parties hereto and delivered to each of Seller and Buyer.

       

      9.11 Governing
        Law.
        This
        Agreement shall be governed by and construed in accordance with the internal
        laws (as opposed to the conflicts of law provisions) of the State of
        Illinois.

       

      9.12 Currency.
        All
        dollar amounts appearing in this Agreement are U.S. dollars.

       

      9.13 Recitals.
        The
        Recitals set forth above are hereby incorporated in and made a part of this
        Agreement by this reference.

       

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        remainder of this page is intentionally blank.)

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

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

       

      
        	
                SELLER:

              
	 
	
                FRONTRUNNER
                  NETWORK SYSTEMS CORP.

              
	 
	
                By:
                  

              	
                /s/
                  Jonathan Wynne Evans

              
	 	
                Jonathan
                  Wynne Evans, President

              
	 
	
                SHAREHOLDER:

              
	 
	
                CAPITAL
                  GROWTH SYSTEMS, INC.

              
	 
	
                By:

              	
                /s/
                  Patrick C. Shutt

              
	 	
                Patrick
                  C. Shutt, CEO

              
	 
	
                BUYER:

              
	 
	
                WILLIAMS
                  INTERACTIVE MEDIA INC.

              
	 
	
                By:
                  

              	
                /s/
                  Jim Williams

              
	 	
                Jim
                  Williams, President

              

      

      

      
        
          
          

        

        
          29

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