Document:

ex101to8k06113_12302009.htm

    Exhibit 10.1

     

    
      

       

      PROMISSORY
NOTE

       

      

       

      
        	
                $1,750,000

              	
                December
      31, 2009

              

      

      

       

      ARTICLE
I

      GENERAL

       

      1.1   General.

       

      Wilhelmina
International, Inc. (formerly New Century Equity Holdings Corp.) (the “Payor”), for value
received, hereby promises to pay to the order of Dieter Esch, or such holder’s
successors and assigns (the “Holder”), the
principal amount of one million seven hundred and fifty thousand dollars ($1.750
million) or such greater or lesser amount outstanding on the Maturity Date (as
defined below), together with interest thereon calculated from the date hereof
in accordance with the provisions of this promissory note (this “Promissory
Note”).

       

      1.2   The
Promissory Note.

       

      This
Promissory Note is executed and delivered pursuant to and in accordance with the
terms of that certain letter agreement between Payor and Holder, dated as of
February 13, 2009 (as such agreement may be amended, modified or otherwise
supplemented from time to time the “Letter
Agreement”).

       

      1.3   Defined
Terms.

       

      Capitalized
terms used herein without definition are used as defined in the Letter
Agreement.  As used in this Promissory Note:

       

      “Business Day” shall
have the meaning ascribed to such term in the Acquisition
Agreement.

       

      “Closing Date” shall
have the meaning ascribed to such term in the Acquisition
Agreement.

       

      “Event of Default”
shall have the meaning ascribed to such term in Section 3.1 hereof.

       

      “Holder” shall have
the meaning ascribed to such term in Section 1.1 hereof.

       

      “Interest Rate” shall
mean the Weighted Average Loan Document Rate, from the date of this Promissory
Note to the date of payment thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      “Letter Agreement”
shall have the meaning ascribed to such term in Section 1.2 hereof.

       

      “Maturity Date” shall
mean December 31, 2010

       

      “Payment Date” means
each March 31, June 30, September 30 and December 31, occurring after the date
hereof, commencing at the end of the first calendar quarter following issuance
of this Promissory Note.

       

      “Payor” shall have the
meaning ascribed to such term in Section 1.1.

       

      “Weighted Average Loan
Document Rate” shall mean the sum of (a) the product of (x) the Term
Factor times (y) 6.65% plus (b) the product of (u)
the Revolver Factor times (v) the Adjusted Prime Rate; where (i) the “Term
Factor” means the fraction of the outstanding total indebtedness owed to
Signature Bank (immediately prior to any repayment that resulted in the issuance
of this Promissory Note) under the term loan as set forth in Loan Documents,
(ii) the “Revolver Factor” means one (1) minus the Term Factor and (iii) the
“Adjusted Prime Rate” means the prime rate (Bank of New York Mellon) plus one
half percent (.5%).

       

      

       

      ARTICLE
II

      NOTE
PROVISIONS 

       

      2.1      
 Maturity
Date; Manner of Payment.

       

      (a) The
outstanding principal balance of this Promissory Note, together with all
accrued, but unpaid interest thereon, shall be due and owing on the Maturity
Date.

       

      (b) All
payments of principal and interest on this Promissory Note shall be made in
lawful tender of the United States by check or by wire transfer of immediately
available funds to an account designated by the Holder in writing.  If
any principal or interest payment under this Promissory Note shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest.

       

      2.2        
  Interest.

       

      Interest
on the outstanding principal balance of this Promissory Note shall accrue at the
rate per annum equal to the Interest Rate from the date hereof until payment in
full of this Promissory Note.  Interest on this Promissory Note shall
be computed on the basis of a 360-day year and the actual number of days
elapsed.   Interest shall be paid in arrears on monthly basis
within 5 Business Days following the end of each month.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      2.3        
  Amortization.

       

      Until
payment in full of this Promissory Note, principal shall be repaid on a
quarterly basis on each Payment Date in quarterly installments of two hundred
and fifty thousand dollars ($250,000.00); provided that such installment payment
shall be reduced ratably in the event that one or more similar additional
promissory notes are issued under the Letter Agreement, such that the aggregate
installment payments on each such Payment Date under all such notes shall not
exceed two hundred and fifty thousand dollars ($250,000.00).

      

      2.4       
   Interest
on Overdue Amounts.

       

      So long
as any Event of Default shall be continuing, the Payor shall pay, in cash on
demand, interest to the extent permitted by law on this Promissory Note at a
rate per annum equal to two percent (2%) above the Interest Rate in
effect.

       

      2.5       
   Prepayments.

       

      This
Promissory Note may be prepaid at any time in whole or in part prior to the
Maturity Date, without any prepayment penalty, premium or fee of any kind, upon
two (2) Business Days advance notice to Holder.

       

      2.6       
   Mandatory
Prepayment.

       

      Upon the
closing of (and initial funding to Payor or its subsidiaries of amounts under) a
new revolving bank or debt facility (other than under the Loan Documents) for
Payor or the Company which provides Payor or the Company with committed working
capital financing (the “New Facility”), Payor shall use proceeds, up to the
amount Payor or the Company is permitted to draw under such New Facility, to
repay all or a portion of the amounts outstanding under this Note and/or any
other comparable outstanding promissory notes issued to Holder (i.e., Holder
shall inform Payor to which note or notes such proceeds shall be
directed).

       

      

       

      ARTICLE
III

      EVENTS
OF DEFAULT 

       

      3.1  
Events
of Default.

       

      Each of
the following events or occurrences shall constitute an “Event of
Default”:

       

      (a) the Payor
shall fail to pay principal when due, and such failure to make such payments
continues unremedied for more than 15 days after notice thereof;

       

      (b) the Payor
shall fail to pay principal when due at the Maturity Date;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c) the Payor
shall fail to comply in any material respect with any other agreement, covenant
or undertaking set forth in this Promissory Note, and such failure to comply
continues unremedied for more than 30 days after notice thereof;

       

      (d) the Payor
or any of its subsidiaries shall (i) apply for, consent to or suffer to
exist the appointment of, or the taking of possession by, a receiver, custodian,
trustee or liquidator of itself or of all or a substantial part of its property,
(ii) make a general assignment for the benefit of creditors, (iii) commence
a voluntary case under the federal bankruptcy laws (as now or hereafter in
effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition
seeking to take advantage of any other law providing for the relief of debtors,
(vi) acquiesce to, or failure to have dismissed within sixty (60) days, any
petition filed against it in any involuntary case under such bankruptcy laws, or
(vii) take any action for the purpose of effecting any of the foregoing;
or

       

      (e) the Payor
or any of its subsidiaries shall admit in writing its inability, or be generally
unable, to pay its debts as they become due.

       

      3.2  
Action
upon any Event of Default.

       

      If any
Event of Default shall occur, the outstanding principal amount, together with
accrued but unpaid interest thereon may at the option of the Holder upon notice
to the Payor be declared immediately due and payable.

       

      

      ARTICLE
IV

      MISCELLANEOUS
PROVISIONS

       

      4.1   Covenant.

       

      During
the time principal amounts are outstanding under this Promissory Note, Payor
agrees not to grant to any third party any lien on assets of the Company except
for Permitted Liens.  “Permitted Liens” means (i) liens in existence
as of the Closing Date (including but not limited to liens granted under or in
connection with the Loan Documents), (ii) liens granted to any lender or lenders
under or in connection with any New Facility (or any other credit facility
entered into in substitution of the credit facility under the Loan Documents),
(iii) liens for taxes that are not yet due and payable or are being contested in
good faith and (iv) workmen, repairmen, warehousemen, customer, employee,
carrier and similar liens arising in the ordinary course of
business.

       

      4.2   Waivers, Amendments,
etc.

       

      The
provisions of this Promissory Note may from time to time be amended, modified or
waived, if such amendment, modification or waiver is in writing and executed by
the Payor and the Holder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.3  
Notices.

       

      All
notices, requests, consents, payments, demands, and other communications
required or contemplated under this Promissory Note shall be in writing and (a)
personally delivered or sent via telecopy (receipt confirmed), (b) sent by
telegram (other than where original payment or other documents must be
delivered) for delivery within twenty-four (24) hours or (c) sent by FedEx, DHL
Worldwide Express or Airborne Courier (for next Business Day delivery), shipping
prepaid, as follows:

       

      If to the
Payor, addressed to it:

       

      Wilhelmina
International, Inc.

      (formerly
New Century Equity Holdings Corp.)

      200
Crescent Court, Suite 1400

      Dallas,
Texas 75201

       

      Attention:    
Chief Financial Officer

      Telephone:   
(214) 661-7474

      Facsimile:     
(214) 661-7475

       

      

      If to the
Holder, addressed to it:

       

      Horst
Dieter Esch

      1090
Primrose Place

      Park
City, UT 84098

      

      Telephone:   
(435) 615-1227

      Facsimile:      
(   )

       

      or to
such other persons or entities or addresses as any person or entity may request
by notice given as aforesaid.  Notices shall be deemed given and
received at the time of personal delivery or completed telecopying, or, if sent
by telegram, twenty-four (24) hours after the time sent, or, if sent by FedEx,
DHL Worldwide Express or Airborne Courier, one Business Day after such sending;
it being understood that receipt of any notice after 5:00 p.m. (in the
recipient's time zone) on any day shall be deemed to be received on the next
Business Day.

       

      4.4  
Severability.

       

      Any
provision of this Promissory Note which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Promissory Note or affecting the validity or
enforceability of such provision in any other jurisdiction.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.5      
    Headings.

       

      The
headings of this Promissory Note are inserted for convenience only and shall not
affect the meaning or interpretation of this Promissory Note or any provisions
hereof.

       

      4.6        
  Replacement
of Promissory Note.

       

      Upon the
Payor’s receipt of evidence satisfactory to it of the loss, theft, destruction
or mutilation of this Promissory Note and, in case of loss, theft or
destruction, of an indemnity reasonably satisfactory to it, or, in the case of
mutilation, upon surrender and cancellation of this Promissory Note, and in all
cases upon reimbursement to the Payor of all reasonable expenses incidental
thereto, the Payor will make and deliver a new Promissory Note of like tenor in
lieu of this Promissory Note.

       

      4.7          
Governing
Law; Submission to Jurisdiction; Waiver of Jury Trial.

       

      THIS
PROMISSORY NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW
PROVISION OR RULE (WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION)
THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION OTHER
THAN THE STATE OF NEW YORK.  EACH OF PAYOR AND HOLDER HEREBY
IRREVOCABLY SUBMITS TO THE EXCLUSIVE PERSONAL AND SUBJECT MATTER JURISDICTION OF
THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE
SUPREME COURT OF THE STATE OF NEW YORK LOCATED IN THE BOROUGH OF MANHATTAN OVER
ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS PROMISSORY
NOTE.  EACH OF PAYOR AND HOLDER HEREBY IRREVOCABLY WAIVES TO THE
FULLEST EXTENT PERMITTED BY LAW (A) ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER
HAVE TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT; AND (B) ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

       

      EACH OF
PAYOR AND HOLDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS PROMISSORY NOTE OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY.

       

      4.8     
     Entire
Understanding.

       

      This
Promissory Note (together with the Letter Agreement and any other documents to
be delivered hereunder and thereunder) constitutes the entire understanding and
agreement between the parties hereto concerning the subject matter
hereof.  All negotiations and writings between the parties with
respect to the subject matter hereof are merged into this Promissory Note, and
there are no representations, warranties, covenants, understandings, or
agreements, oral or otherwise, in relation thereto between the parties other
than those incorporated herein or to be delivered hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.9          
Usury
Laws.

       

      It is the
intention of the Payor and the Holder of this Promissory Note to conform
strictly to all applicable usury laws now or hereafter in force, and any
interest payable under this Promissory Note shall be subject to reduction to the
amount not in excess of the maximum legal amount allowed under the applicable
usury laws as now or hereafter construed by the courts having jurisdiction over
such matters.  If the maturity of this Promissory Note is accelerated
by reason of an election by the Holder hereof resulting from an Event of Default
or otherwise, then earned interest may never include more than the maximum
amount permitted by law, computed from the date hereof until payment, and any
interest in excess of the maximum amount permitted by law shall be canceled
automatically and, if theretofore paid, shall at the option of the Holder hereof
either be rebated to the Payor or credited on the outstanding principal amount
of this Promissory Note, or if this Promissory Note has been paid, then the
excess shall be rebated to the Payor.  The aggregate of all interest
(whether designated as interest, service charges, points or otherwise)
contracted for, chargeable, or receivable under this Promissory Note shall under
no circumstances exceed the maximum legal rate upon the unpaid principal balance
of this Promissory Note remaining unpaid from time to time.  If such
interest does exceed the maximum legal rate, it shall be deemed a mistake and
such excess shall be canceled automatically and, if theretofore paid, rebated to
the Payor or credited on the outstanding principal amount of this Promissory
Note, or if this Promissory Note has been repaid, then such excess shall be
rebated to the Payor.

       

      4.10    
    Successors;
Third-Party Beneficiaries.

       

      This
Promissory Note shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and permitted assigns; provided, however, that neither
the Payor nor Holder may assign, sell, pledge or otherwise transfer its rights
or obligations under this Promissory Note without the prior written consent of
the other party, which consent may be withheld in the other party’s sole
discretion; provided that Holder may assign its rights under this Promissory
Note to a controlled affiliate of Holder or to a family member for estate
planning purposes; provided further that the foregoing shall not restrict Holder
from conveying an economic interest in 50% of the principal proceeds of this
Note to Krassner Family Investments Limited Partnership (“KFILP”) by side
agreement between Holder and KFILP so long as no legal rights hereunder are
assigned, sold, pledged or otherwise transferred by Holder without the consent
of Payor.  Notwithstanding anything to the contrary, there are no
third-party beneficiaries of this Promissory Note.

       

      4.11    
    Waiver.

       

      Except as
otherwise provided for in this Note, and to the fullest extent permitted by
applicable law, Payor waives presentment, notice, demand and protest, and notice
of presentment, dishonor, intent to accelerate, acceleration, protest, default,
nonpayment, maturity, release, compromise, settlement, extension or renewal of
this Note at any time held by the Holder on which Payor may in any way be
liable, and hereby ratifies and confirms whatever the Holder may do in this
regard.  No failure or delay on the part of the Holder in the exercise
of any power, right or privilege hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or
privilege.  All rights and remedies existing hereunder are
cumulative.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        4.12    
    Attorney’s
Fees and Costs.

      

       

      In the
event that this Note is collected in whole or in part through suit, arbitration,
mediation, or other legal proceeding of any nature, then and in any such case
there shall be added to the unpaid principal amount plus interest all costs and
expenses of collection, including, without limitation, attorney’s fees and
disbursements.

      

       

      [Signature
Page Follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       IN WITNESS WHEREOF, the
Payor has duly executed and delivered this Promissory Note as of the date first
written above.

       

      

       

      
        	 
      	
                Wilhelmina
      International, Inc. (formerly New 
    Century Equity
      Holdings Corp.)

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                By:

              	
                
                  /s/
      Mark Schwarz

                

              
	 
      	 
      	
                Name:

              	
                Mark
      Schwarz

              
	 
      	 
      	
                Title:

              	
                Chief
      Executive Officerexh10-1_1392409.htm

    EXHIBIT
10.1

      ASSET PURCHASE
AGREEMENT

      

      THIS
ASSET PURCHASE AGREEMENT is entered into this 24th day of December, 2009
(the “Agreement”),
by and among Capital Growth Systems, Inc., a Florida corporation (“CGSI”), Global Capacity Group,
Inc. a Texas corporation (“GCG”) and Global Capacity
Direct, LLC (f/k/a Vanco Direct USA, LLC) a Delaware limited liability company
(“Vanco” and together
with CGSI and GCG, each a “Seller” and collectively, the
“Sellers”), and Global
Telecom & Technology Americas, Inc., a Virginia corporation (“Buyer”).

       

      R E C I T A L
S:

      

      A.           GCG
or Vanco have entered into contracts with those customers set forth on Exhibit A to provide
point to point circuits for the transmission of data (“Circuits”) pursuant to a
service level agreement.  Each such service level agreement is
hereinafter referred to as a “Customer Contract” with the
customer of the Seller subject to the Customer Contract being a “Customer.”

       

      B.           In
order to provide the Circuit(s) for each Customer Contract, one or more of the
Sellers has entered into a master service agreement with each of the providers
of telecommunications connectivity with respect to such Circuit(s) (each such
entity being a “Supplier” and each point of
connection within a Circuit provided by the Supplier is hereinafter referred to
as a “Circuit
Leg”).  The contractual obligation of each of the Sellers with
respect to each of the Circuit Legs is hereinafter referred to as a “Supplier Contract”, a list of
which is set forth on Exhibit
B.

       

      C.           Both
GCG and Vanco hold domestic and international Section 214 authorizations from
the U.S. Federal Communications Commission (“FCC”) and certificates of
public convenience and necessity or the equivalent from various state
telecommunications regulatory commissions (the “State Commissions” and,
collectively with the FCC, the “Telecom Regulatory
Authorities”), as necessary for them to lawfully engage in the business
of providing Circuits for their Customers.  The regulatory approval
necessary from the FCC for the assignment of each Circuit to Buyer hereunder is
hereinafter referred to as an “FCC Approval”.

       

      D.           The
Sellers desire to assign and otherwise transfer to Buyer, and Buyer desires to
receive from the Sellers, each Customer Contract, subject to the corresponding
Supplier Consent (as defined below), in each case on the terms and subject to
the conditions set forth herein, with each such assignment being referred to
hereafter as an “Assignment” and which
Assignment will be conditioned upon: (a) receipt from the applicable Customer of
its written consent to the Assignment of its Customer Contract from the
applicable Seller to Buyer, in a form reasonably acceptable to Buyer (each, a
“Customer Consent”), if
required under the terms and conditions of such Customer Contract (if no consent
is required for the Assignment of a Customer Contract under the terms and
conditions thereof, then the applicable Customer shall be provided with prior
notice of the Assignment in accordance with the terms and conditions of such
Customer Contract and applicable law, in a written notice in a form reasonably
satisfactory to Buyer, but Customer Consent shall not be required with respect
to such Customer Contract); (b) receipt from the Supplier(s) of connectivity
related to the applicable Customer Contract(s) of an agreement, to be effective
as of the date of the Assignment of that Customer Contract and in a form
reasonably satisfactory to Buyer, providing that: (i) there are no outstanding
costs, fees, taxes or other obligations under the Supplier Contract covering the
Circuits provided under such Customer Contract (“Circuit Supplier Obligations”)
or if there are Circuit Supplier Obligations, a statement of the amount thereof
(which shall be applied as a credit against the purchase price for the
assignment of the Customer Contract corresponding to such Circuit Supplier
Obligation pursuant to the terms of Section 2.1(a) below;
provided, however, that
in no event shall the aggregate amount of Circuit Supplier Obligations with
respect to any Closing, together with the Customer Deposit(s) (as defined below)
with respect to such Closing, be greater than the aggregate Purchase Price (as
defined below) for the Circuits being purchased by Buyer at the applicable
Closing); (ii) the applicable Seller shall not be liable for any costs, fees,
taxes or other obligations under the Supplier Contract covering the Circuit Legs
provided under such Customer Contract, solely to the extent arising

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      out of
provision of such Circuit Legs to Buyer after the Closing Date with respect to
such Supplier Contract; and (iii) the applicable Supplier will provide the
Circuit Leg(s) covered by such Supplier Contract to Buyer under Buyer’s existing
contract with such Supplier (or a new contract to be entered into between the
Supplier and Buyer if no Supplier Contract presently exists with Buyer) for at
least the remaining term thereof on terms no more costly per month than prior to
the Assignment, unless Buyer accepts other terms in its sole discretion (each, a
“Supplier Consent”)
(each Customer Consent and Supplier Consent with respect to a Customer Contract
or Supplier Contract is referred to collectively as a “Contractual Consents” for such
Customer Contract or Supplier Contract); and (c) receipt of the FCC Approval
with respect to such Assignment.

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, Buyer and each Seller hereby agree as follows:

       

      ARTICLE
I

      ASSIGNMENT
AND ASSUMPTION

       

      1.1   Assignment of Purchased
Assets.  Upon the terms and subject to the conditions set forth
herein, at each Closing (as defined herein), the applicable Seller shall assign
and deliver to Buyer, and Buyer shall assume, free and clear of all liens,
mortgages, pledges, easements, conditional sale or other title retention
agreements, defects in title, covenants or other restrictions of any kind
(collectively, “Encumbrances”), only the
following assets of the Sellers (collectively, the “Purchased
Assets”):

       

      (a) each of
the Customer Contracts and all rights thereunder related to services rendered
following the Closing at which such Customer Contract is assigned to Buyer
hereunder, including all of the applicable Seller’s rights, claims or causes of
action against third parties relating to each such Customer
Contract;

       

      (b) copies of
all books and records in the Sellers’ possession relating to the Customer
Contracts, including a tab-delimited Microsoft Excel spreadsheet, in form
reasonably satisfactory to Buyer, with the billing and other information
concerning the Customers (collectively, the “Books and Records”);
and

       

      (c) any
deposit(s) previously provided by the applicable Customer(s) to any of the
Sellers with respect to the Customer Contracts (the “Customer
Deposits”).

       

      1.2   Excluded
Assets.  Buyer is purchasing only the Purchased Assets referred
to in Section
1.1, and is not purchasing any other asset of any of the Sellers (all
such assets not being purchased by Buyer pursuant to this Agreement are
collectively referred to as the “Excluded
Assets”).

       

      1.3   Assumed
Liabilities.  Buyer hereby agrees to assume only the
Liabilities of the Sellers under each Customer Contract assigned to Buyer
hereunder, in each case solely to the extent relating to circumstances or events
first occurring or existing after the Closing at which such Customer Contract is
assigned to Buyer hereunder (and specifically excluding: (a) any Liabilities for
any breach of or default under any such Customer Contract by any of the Sellers
that occurred prior to such Closing; or (b) any violation of law by any of the
Sellers that occurred prior to the Closing) (collectively, the “Assumed
Liabilities”).  For purposes of this Agreement, “Liability” or “Liabilities” means any direct
or indirect liability, indebtedness, guaranty, endorsement, claim, loss, damage,
deficiency, cost, expense, obligation or responsibility, either accrued,
absolute, contingent, mature, unmature or otherwise and whether known or
unknown, fixed or unfixed, choate or inchoate, liquidated or unliquidated,
secured or unsecured.

       

      1.4   Excluded
Liabilities.  Except for the Assumed Liabilities, Buyer shall
not assume or otherwise be obligated to pay, perform or otherwise discharge any
Liability of any Seller (all such Liabilities being herein called the “Excluded
Liabilities”).  Without limiting the generality of the
foregoing, the Excluded Liabilities include: (a) any Liabilities of any of the
Sellers under any Customer Contract relating to circumstances or
events

       

      
        
          
             

          

           

        

        
          -2-

          
            

          

        

        
           

        

      

      occurring
or existing on or prior the Closing at which such Customer Contract is assigned
to Buyer hereunder; (b) any outstanding costs, fees, taxes or other obligations
under any Supplier Contract covering the Circuits provided under any Customer
Contract assigned to Buyer hereunder as of the Closing at which such Customer
Contract is assigned to Buyer hereunder; and (c) any Liability under any Bulk
Sales Law (as defined below).  Notwithstanding anything to the contrary herein, to the extent that any Circuit Supplier
Obligations are deducted from the Purchase Price at any Closing hereunder, then
the amount of such Circuit Supplier Obligations shall be an Assumed Liability
under this Agreement for which the Seller Indemnified Parties are entitled to
indemnification from Buyer under Article IX in accordance with the terms and conditions
thereof.

       

      1.5   Non-Assigned Purchased
Assets.  Notwithstanding anything to the contrary in this
Agreement, if, despite the parties each having satisfied their respective
obligations under Section 8.2
(Regulatory and Other Approvals):  (i) Closing does not occur with
respect to any Customer Contract by March 31, 2010 (the “Outside Date”), or (ii) Seller
is unable to obtain a release of lien from the holders of debt secured with a
collateral pledge of any Customer Contract by the Outside Date, then: (a) this
Agreement shall not constitute an assignment or transfer of such Customer
Contract; and (b) the Supplier Consent under the Supplier Contract covering the
Circuits provided under such Customer Contract will be deemed to have been
rescinded solely with respect to such Customer Contract.

       

      1.6   Revenue.  If
any of the Sellers receives any revenue (other than any revenue for which Buyer
has received a credit pursuant to Section 2.1(a)) that
is attributable to any services provided by Buyer under any of the Customer
Contracts on or after the Closing with respect to such Customer
Contract  (“Buyer
Revenue”), it shall hold such Buyer Revenue in trust for Buyer and, as
soon as reasonably practicable after receipt thereof, pay all of such Buyer
Revenue over to Buyer, by check or wire transfer of immediately available
funds.  If Buyer receives any revenue that is attributable to any
services provided by any of the Sellers under any of the Customer Contracts
prior to the Closing with respect to such Customer Contract (“Seller Revenue”), it shall
hold such Seller Revenue in trust for the Sellers and, as soon as reasonably
practicable after receipt thereof, pay all of such Seller Revenue over to the
Sellers, by check or wire transfer of immediately available funds.  If
either the Sellers or Buyer receives any revenue that is not designated by the
applicable Customer as either Buyer Revenue or Seller Revenue and is not
otherwise reasonably identifiable as either Buyer Revenue or Seller Revenue, the
receiving party shall provide written notice thereof to the other party, contact
the applicable Customer and otherwise use commercially reasonable efforts to
determine whether such payment is Buyer Revenue or Seller Revenue, provide
written notice to the other party of the determination and, if applicable, make
payment to the other party as described above.

       

      1.7   Bulk Sales
Laws.  Buyer and the Sellers each hereby waive, to the fullest
extent allowable under applicable law, compliance with the requirements of the
bulk sales or bulk transfer laws of any jurisdiction which may be applicable to
the transactions contemplated by this Agreement (“Bulk Sales Law”).

       

      ARTICLE
II

      PURCHASE
AND SALE

       

      2.1   Purchase
Price.

       

      (a)   The
aggregate purchase price for all the Purchased Assets shall be eight
million  dollars ($8,000,000) (the “Purchase Price”), consisting
of payment by Buyer to the applicable Seller of the Purchase Price for each
Circuit under each Customer Contract being assigned to Buyer hereunder, as set
forth next to the name of such Customer Contract and such Circuit on Exhibit A hereto (the
Purchase Price for each such Circuit being a “Circuit Purchase Price”), from
which shall be deducted:

       

      (i)   the
amount of any prepayments received by any of the Sellers on or prior to the
Closing with respect to the Customer Contract(s) being assigned to Buyer
hereunder for services to be rendered under such Customer Contract(s) following
the Closing with respect to such Customer Contract; and

       

      
        
          
             

          

           

        

        
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      (ii)   the
amount of any outstanding Circuit Supplier Obligations under the Supplier
Contract(s) covering the Circuits provided under the Customer Contract(s) being
assigned to Buyer hereunder as of the Closing with respect to each such Customer
Contract (which deducted amount shall be paid by Buyer to the
applicable Supplier(s) at such Closing by wire transfer of funds as payment
against the Supplier Contract(s) in question).

       

      (b)   In the event that,
despite the parties each having satisfied their respective obligations under
Section 8.2
(Regulatory and Other Approvals), the Customer Consent is not obtained for one
or more of the Customer Contracts and corresponding Circuits included on Exhibit A hereto
(each, a “Non-Purchasable
Circuit”), the Sellers shall have the right, after providing at least ten
(10) Business Days prior written notice to Buyer, to replace such
Non-Purchasable Circuit(s) and instead assign to Buyer a circuit(s) within
Sellers’ inventory which has a Monthly Recurring Margin (defined as the gross
monthly revenue derived from such circuit minus the gross monthly vendor cost
incurred by such circuit) equal or greater to that of such Non-Purchasable
Circuit(s), that is, in each case, reasonably acceptable to Buyer.

       

      2.2   Closings.

       

      (a)   Closings of the purchases
and sales by Buyer and the Sellers of Customer Contracts under this Agreement
(each, a “Closing” and
collectively, the “Closings”) shall occur as set
forth in this Section 2.1.  The
date on which each Closing is actually held is sometimes referred to herein as
its “Closing
Date.”

       

      (b)   Subject
to the fulfillment or waiver of the conditions set forth in Articles V and VI, the initial
Closing (the “Initial
Closing”) shall be held at the offices of the Sellers at 10:00 am
(central time) two (2) business days after the date on which: (i) the FCC
Approval has been provided by the FCC; and (ii) both  Contractual
Consents (i.e., the Customer Consent and the Supplier Consent) have been
obtained with respect to Customer Contract(s) collectively covering Circuit(s)
with an aggregate Circuit Purchase Price that both: (A) is at least seventy-five
percent (75%) of the Purchase Price, and (B) results in Net Proceeds (as defined
below) of at least four million dollars ($4,000,000) (collectively, the “Initial Closing Customer
Contracts”); provided,
however, that in no event will the Initial Closing occur after the
Outside Date.  For purposes of this Agreement, “Net Proceeds” means, with
respect to the applicable Circuits, the aggregate Purchase Price for such
Circuits minus the aggregate Circuit Supplier Obligations amount (if any) with
respect to such Circuits.  At the Initial Closing, the Sellers shall
transfer to Buyer any Customer Deposit(s) with respect to the Initial Closing
Customer Contract(s).

       

      (c)   If less than all of the Customer Contracts are
assigned by the Sellers to Buyer at the Initial Closing, then an additional
Closing shall be held on the two (2) week anniversary of the Closing Date of the
Initial Closing (the “First
Subsequent Closing”), with respect to the Customer Contract(s), if any,
for which both Contractual Consents were not obtained by the Closing Date of the
Initial Closing but have been obtained by the Closing Date of the First
Subsequent Closing  and the fulfillment or waiver of the conditions
set forth in Articles
V and VI
has occurred (collectively, the “First Subsequent Closing Customer
Contracts”).

       

      (d)   If less
than all of the Customer Contracts are assigned by the Sellers to Buyer at the
Initial Closing and the First Subsequent Closing, then an additional Closing
shall be held on the two (2) week anniversary of the Closing Date of the First
Subsequent Closing (the “Second
Subsequent Closing” and, together with the First Subsequent Closing, the
“Subsequent Closings”),
with respect to the Customer Contract(s), if any, for which both Contractual
Consents were not obtained by the Closing Date of the First Subsequent Closing
but have been obtained by the Closing Date of the Second Subsequent Closing and
the

       

      
        
          
             

          

           

        

        
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      fulfillment
or waiver of the conditions set forth in Articles V and VI has occurred
(collectively, the “Second
Subsequent Closing Customer Contracts”).

       

      (e)   Notwithstanding
anything to the contrary in this Agreement, in no event will any Customer
Contract for which the applicable Customer has provided to any Seller a
disconnect notice or other notice of termination be assigned to Buyer under this
Agreement or otherwise be included in the Purchased Assets.

       

      2.3   Seller Initial Closing
Deliverables.  At the Initial Closing, the Sellers shall
deliver to Buyer:

       

      (a)   a certificate, dated as
of the Closing Date for the Initial Closing, in form and substance reasonably
satisfactory to Buyer, certifying that: (i) the conditions to Buyer’s obligation
to consummate the Initial Closing set forth in Section 2.2(b) and
Article V have
been satisfied (a “Seller
Initial Closing Certificate”); and (ii) attached thereto are correct and
complete copies of the resolutions evidencing all approvals of the board of
directors/board of managers and stockholders/equity holders required under
applicable law and the organizational documents of each of the Sellers in
connection with the execution and delivery of this Agreement and performance and
consummation of the transactions contemplated hereby;

       

      (b)   evidence reasonably
satisfactory to Buyer that all of the conditions to Buyer’s obligation to
consummate the Initial Closing set forth in Section 2.2(b) and
Article V have
been satisfied, including copies of: (i) the Customer Consent(s) relating to the
Customer Contract(s) being assigned to Buyer at the Initial Closing, duly
executed by the applicable Customer(s) (or proof of sending of notice of
assignment if Customer Consent is not required under applicable law and the
terms and conditions of the applicable Customer Contract); (ii) evidence
reasonably satisfactory to Buyer of the Supplier with respect to each Supplier
Contract covering the Circuits provided to the Customers under the applicable
Customer Contracts(s) having either: (A) agreed to supply such Circuits to Buyer
under an existing contract with Buyer, or (B) entered into a new contract with
Buyer, on terms reasonably acceptable to Buyer, under which such Supplier will
provide such Circuits to Buyer, in each case for a term no less than the
remaining term of the corresponding Customer Contracts), duly executed by the
applicable Seller and the applicable Supplier (each, an “Initial Closing Supplier
Consent”); (iii) documents reasonably satisfactory to Buyer evidencing
release by the Lenders of all of their respective security interest(s) in the
Customer Contract(s) being assigned to Buyer at the Initial Closing; and (iv)
the Lender Consent(s) with respect to assignment of the Customer Contract(s)
being assigned to Buyer at the Initial Closing, duly executed by the applicable
Lenders;

       

      (c)   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 to Buyer of the Customer
Contract(s) being assigned to Buyer at the Initial Closing;

       

      (d)   the Books and Records;
and

       

      (e)   any Customer Deposit(s)
with respect to the Initial Closing Customer Contract(s); provided, however, that: (i)
the Sellers shall be entitled, in lieu of delivering such Customer Deposits to
Buyer, to instead provide a credit for such amount against the Purchase Price to
be paid at such Closing, in which event Buyer shall assume the liability to the
applicable Customers for such Customer Deposits; provided, however, that in no
event shall the aggregate Customer Deposit(s) with respect to any Closing,
together with the aggregate amount owed to Supplier(s) with respect to such
Closing (as described in Recital D hereto),
exceed the Purchase Price for such Closing.

       

      2.4   Buyer Initial Closing
Deliverables.  At the Initial Closing, Buyer shall deliver to
the Sellers:

       

      
        
          
             

          

           

        

        
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      (a)   a
certificate, dated as of the Closing Date for the Initial Closing, in form and
substance reasonably satisfactory to the Sellers, certifying that the conditions
to the Sellers’ obligation to consummate the Initial Closing set forth in Section 2.2(b) and
Article VI have
been satisfied (the “Buyer
Initial Closing Certificate”);

       

      (b)   the
aggregate Purchase Price with respect to the Circuits under the Customer
Contract(s) being assigned to Buyer at the Initial Closing, by wire transfer of
immediately available funds to the account(s) of the applicable
Seller(s);

       

      (c)   the Assignment of each
Customer Contract being assigned to Buyer at the Initial Closing, duly executed
by Buyer;

       

      (d)   the Initial Closing
Supplier Consents relating to the Supplier Contract(s) covering the Circuits
provided to Customers under the Customer Contracts(s) being assigned to Buyer at
the Initial Closing, duly executed by Buyer; and

       

      (e)   to the extent that the
Sellers elect to have Buyer assume the liability for the Customer Deposit(s)
with respect to the Customer Contract(s) being assigned to Buyer at such Closing
as noted in Section
2.3(e) above, Buyer hereby covenants and agrees that such liability shall
be borne solely by Buyer and not by any Seller.

       

      2.5   Seller Subsequent Closing
Deliverables.  At each Subsequent Closing, the Sellers shall
deliver to Buyer:

       

      (a)   a
certificate, dated as of the Closing Date for such Subsequent Closing, in form
and substance reasonably satisfactory to Buyer, certifying that the conditions
to Buyer’s obligation to consummate such Subsequent Closing set forth in Section 2.2(c) or
(d) (as
applicable) and Article V have been
satisfied (each, a “Seller
Subsequent Closing Certificate” and, together with the Seller Initial
Closing Certificate, the “Seller Closing
Certificate”);

       

      (b)   evidence
reasonably satisfactory to Buyer that all of the conditions to Buyer’s
obligation to consummate such Subsequent Closing set forth in Section 2.2(c) or
(d) (as
applicable) and Article V have been
satisfied, including copies of: (i) the Customer Consent(s) relating to the
Customer Contract(s) being assigned to Buyer at such Subsequent Closing, duly
executed by the applicable Customer (or due evidence that Customer ; (ii)
evidence reasonably satisfactory to Buyer of the Supplier with respect to each
Supplier Contract covering the Circuits provided to the Customers under the
applicable Customer Contracts(s) having either: (A) agreed to supply such
Circuits to Buyer under an existing contract with Buyer, or (B) entered into a
new contract with Buyer, on terms reasonably acceptable to Buyer, under which
such Supplier will provide such Circuits to Buyer, in each case for a term no
less than the remaining term of the corresponding Customer Contracts), duly
executed by the applicable Seller and the applicable Supplier (each, a “Subsequent Closing Supplier
Consent”); (iii) documents reasonably satisfactory to Buyer evidencing
release by the Lenders of all of their respective security interest(s) in the
Customer Contract(s) being assigned to Buyer at such Subsequent Closing; and
(iv) the Lender Consent(s) (as defined below) with respect to Assignment of the
Customer Contract(s) being assigned to Buyer at such Subsequent Closing, duly
executed by the applicable Lender(s);

       

      (c)   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 Customer
Contracts being assigned to Buyer at such Subsequent Closing; and

       

      (d)   any Customer Deposit(s)
with respect to such Subsequent Closing Customer Contract(s); provided, however, that: (i)
the Sellers shall be entitled, in lieu of delivering such Customer

       

      
        
          
             

          

           

        

        
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      Deposits
to Buyer, to instead provide a credit for such amount against the Purchase Price
to be paid at such Closing, in which event Buyer shall assume the liability to
the applicable Customers for such Customer Deposits; provided, however, that in no
event shall the aggregate Customer Deposit(s) with respect to any Closing,
together with the aggregate amount owed to Supplier(s) with respect to such
Closing (as described in Recital D hereto),
exceed the Purchase Price for such Closing.

       

      2.6   Buyer Subsequent Closing
Deliverables.  At each Subsequent Closing, Buyer shall deliver
to the Sellers:

       

      (a)   a certificate, dated as
of the Closing Date for such Subsequent Closing, in form and substance
reasonably satisfactory to the Sellers, certifying that the conditions to the
Sellers’ obligation to consummate such Subsequent Closing set forth in Section 2.2(c) and
Article VI have
been satisfied (the “Buyer
Subsequent Closing Certificate” and, together with the Buyer Initial
Closing Certificate, the “Buyer
Closing Certificate”);

       

      (b)   the
aggregate Purchase Price with respect to the Circuits under the Customer
Contract(s) being assigned to Buyer at such Subsequent Closing, by wire transfer
of immediately available funds to the account(s) of the applicable
Seller(s);

       

      (c)   the Assignment of each
Customer Contract being assigned to Buyer at such Subsequent Closing, duly
executed by Buyer;

       

      (d)   the Subsequent Closing
Supplier Consent(s) relating to the Supplier Contract(s) covering the Circuits
provided to Customers under the Customer Contracts(s) being assigned to Buyer at
such Subsequent Closing, duly executed by Buyer; and

       

      (e)   to the extent that the
Sellers elect to have Buyer assume the liability for the Customer Deposit(s)
with respect to the Customer Contract(s) being assigned to Buyer at such Closing
as noted in Section 2.5(d)
above, Buyer hereby covenants and agrees that such liability shall be borne
solely by Buyer and not by any Seller.

       

      ARTICLE
III

      REPRESENTATIONS
AND WARRANTIES OF THE SELLERS

       

      Each
Seller hereby jointly and severally represents and warrants to Buyer as
follows:

       

      3.1   Existence; Good Standing,
Authority; Enforceability.

       

      (a)   Each Seller is a
corporation or limited liability company duly organized, validly existing and in
good standing under the laws of its jurisdiction of organization and has all
required power and authority to own or lease its properties and assets and to
conduct its business as presently conducted.  Each Seller is duly
qualified to do business and in good standing as a foreign entity in all
jurisdictions in which the failure to be so qualified would be reasonably likely
to have a material adverse effect on such Seller.

       

      (b)   Each Seller has full
authority and capacity to execute, deliver and perform this Agreement and all of
the other documents contemplated hereby to be executed by such
Seller.  The execution, delivery and performance by each Seller of
this Agreement and all of the other documents contemplated hereby to be executed
by such Seller have been duly authorized by all required action on the part of
such Seller (including approval by its board of directors, board of managers,
stockholders or equity holders, as applicable).

       

      (c)   This Agreement and all of
the other documents contemplated hereby to be executed by each Seller have been
duly executed and delivered by such Seller and this Agreement is, and each of
such other

       

      
        
          
             

          

           

        

        
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      documents
upon execution and delivery will be, legal, valid and binding obligations of
such Seller, enforceable against such Seller in accordance with its
terms.

       

      3.2   Non-Contravention; Third
Party Notices, Consents and Approvals.

       

      (a)   Neither the execution and
delivery of this Agreement and the other documents contemplated hereby to be
executed by each Seller, 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: (i) violate, conflict with,
result in a breach of the terms, conditions or provisions of, or constitute a
default under: (A) under the Organizational Documents of any Seller, (B) any
agreement, instrument, right, restriction, license or obligation to which any
Seller is a party or any of the Purchased Assets is subject or by which any
Seller is bound, except for the required consents of the Agent and/or
corresponding lenders under the existing loan agreements (and corresponding loan
documents) to which the Sellers are subject with each of: (I) ACG CGS, L.L.C.,
as Agent for itself and any other named senior lenders (collectively, the “Senior Lenders”); and (II) the
purchase agreements with the holders of each of the Amended and Restated March
Debentures, July Debentures, November Debentures and VPP Debentures, as those
terms are defined in the Purchase Agreement, dated as of July 31, 2009, pursuant
to which CGSI issued secured debentures (collectively, the “Subordinated Lenders” and,
together with the Senior Lenders, the “Lenders”) (collectively, the
“Lender Consents”); (C)
any judgment, order or decree of any state, federal or local court or tribunal
to which any Seller is a party or any of the Purchased Assets is subject or by
which any Seller is bound, or (D) any federal or state law affecting any Seller
or the Purchased Assets (with the understanding by Buyer that no representation
or warranty is being made as to  the compliance of the contemplated
transactions with the applicable state telecommunications laws and is contingent
upon obtaining the FCC Approval); or (ii) result in the creation or imposition
of any Encumbrance upon any of the Purchased Assets.  For purposes of
this Agreement: (i) “Person” means any natural
person, firm, partnership, association, corporation, company, limited liability
company, trust, business trust, governmental authority or other entity; and (ii)
the “Organizational
Documents” of a Person means: (A) its articles of incorporation,
certificate of incorporation, certificate of formation or similar document(s)
filed with a governmental authority, which filing forms or organizes the Person;
and (B) its bylaws, limited liability company operating agreement, partnership
agreement, trust agreement or similar document(s), whether or not filed with a
governmental authority, which organize or govern the internal affairs of such
Person, as amended to date and in effect at the time in question.

       

      (b)   Except for: (i) the
Regulatory Approvals; (ii) required Lender Consents; and (iii) the Contractual
Consents, no notice to, or consent of or with, any governmental entity or, with
respect to any of the Supplier Contracts or any of the Customer Contracts, any
third Person, is required to be obtained by any Seller in connection with the
execution and delivery by the Sellers of this Agreement and the other documents
contemplated hereby to be executed by each Seller, or the consummation of the
transactions contemplated hereby or thereby.

       

      3.3   Customer Contracts and
Supplier Contracts.  Each Customer Contract and each Supplier
Contract is the legal, valid, binding obligation of the parties thereto,
enforceable against each such party in accordance with its
terms.  Except as set forth on Schedule 3.3(a)and except for instances in which the Sellers are past
due on payment terms under Supplier Contracts and instances in which Customers
are less than ninety (90) days past due on payment terms under Customer
Contracts, no party to any
Customer Contract or Supplier Contract is in material breach or default thereof,
and no event has occurred that, with or without notice or lapse of time, would
constitute a material breach or default thereunder, or permit termination,
modification or acceleration thereunder.  Except as set forth on Schedule
3.3(b) and except for normal churn
in the ordinary course of business, none of the Customers or the
Suppliers has, within the one year period prior to the date of this Agreement,
made any adverse change in its relationship with any of the Sellers as it
relates to the Customer Contracts (for Customers) or Supplier Contracts (for
Suppliers).  Except as set forth on
Schedule
3.3(c), none of the Sellers has
received any notice or other communication stating, and no Seller otherwise has
any reason to believe that, any of the Customers or Suppliers will terminate its
relationship with the Sellers or make any other

       

      
        
          
             

          

           

        

        
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      adverse
change in its relationship with any of the Sellers as it relates to any of the
Customer Contracts or Supplier Contracts.

       

      3.4   Litigation.  Except
as set forth on Schedule 3.4, there
are no lawsuits, claims, proceedings or investigations (collectively, “Proceedings”) pending
or, to the Sellers’ knowledge, threatened against or affecting any Seller in
respect of, or that would reasonably be expected to affect, any of the Customer
Contracts or Supplier Contracts nor, to the best knowledge of each Seller, is
there any basis for any of the same, and there is no lawsuit, claim or
proceeding pending in which any Seller is the plaintiff or claimant which
relates to any of the Customer Contracts or Supplier Contracts.  For
purposes of this Agreement, the Sellers’ “knowledge” (including
similar phrases) means the knowledge that any employee, officer or director of
any Seller actually has or the knowledge that any such person would be
reasonably expected to obtain after making the same reasonable inquiry that a
reasonably prudent business person would have made in the management and conduct
of a business in order to gain a reasonable understanding of the
matter.

       

      3.5   Accounts Receivable and
Payable.  Schedule 3.5(a) sets
forth a complete and correct accounts receivable aging schedule for each of the
accounts receivable of the Sellers relating to any of the Customer
Contracts.  Except as set forth on Schedule 3.5(b), all
of the accounts receivable of the Sellers relating to any of the Customer
Contracts: (a) represent valid obligations of Customers arising from bona fide transactions
entered into in the ordinary course of business; and (b) except for disputes in the ordinary course of business
between the Sellers and Customers that could not reasonably be expected to
adversely affect Buyer’s ability to collect on its accounts receivable from the
applicable Customer after the applicable Closing, are current and
collectible in full, without any counterclaim or set off, when due (and in no
event later than ninety (90) days after the date hereof).  No Seller
has modified, discounted, set off or accelerated the collection of any of its
accounts receivable relating to any of the Customer Contracts.  Except
as set forth on Schedule 3.5(c), no
accounts payable of any Seller related to any of the Supplier Contracts has been
outstanding for more than ninety (90) days.  No Seller has delayed any
of the payment terms or otherwise paid any of the accounts payable of such
Seller outside the ordinary course of its business consistent with past
practice.

       

      3.6   Title.  Except
as set forth on Schedule 3.6, the
Sellers are the sole beneficial and lawful owner of all of the Purchased Assets,
no Seller has transferred to any other Person any ownership rights or ownership
interest in any of the Purchased Assets, and the Sellers have good, valid and
marketable title to all of the Purchased Assets, free and clear of any and all
Encumbrances except for the encumbrances of the Senior Lenders and Subordinated
Lenders.  The sale by the Sellers to Buyer of the Purchased Assets
pursuant to this Agreement will convey to Buyer good, valid and marketable title
to the Purchased Assets, free and clear of any and all Encumbrances, subject to
waiver of liens in favor of the Senior Lenders and Subordinated Lenders, copies
of which shall be delivered by the Sellers to Buyer at the Closings in
accordance with Sections 2.3(b)(iii)
and 2.5(b)(iii).

       

      3.7   Telecom
Law.

       

      (a)   Except to the extent that
would not reasonably be expected to prevent, delay or otherwise impede the
ability of the parties to obtain the FCC Approval: (i) the Sellers are each in
compliance, in all material respects, with applicable Telecom Law and each
Seller has, in the past, conducted its business in compliance, in all material
respects, with applicable Telecom Law; and (ii) no investigation, review or
proceeding by any Telecom Regulatory Authority with respect to any Seller in
relation to any actual or alleged violation of Telecom Law is pending or, to the
Sellers’ knowledge, threatened, nor has any Seller received any notice from any
Telecom Regulatory Authority indicating an intention to conduct the
same.

       

      (b)   For purposes of this
Agreement, “Telecom
Law” means: (i) the Communications Act of 1934, as amended (including by
the Telecommunications Act of 1996); and (ii) any rules, regulations or policies
promulgated by the FCC or any State Commission.

       

      
        
          
             

          

           

        

        
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      3.8   Sufficient
Capital.  The Sellers reasonably believe that they have, and as
of each Closing hereunder reasonably believe that they will continue to have,
sufficient capital to fund operations of their business in the ordinary course
of business consistent with past practice.

       

      3.9   Brokers.  No
Seller is obligated to pay any brokerage, finder’s or other fee or commission in
connection with the transactions contemplated by this Agreement for which Buyer
is or could become liable.

       

      3.10   No Other
Representations.  NONE OF THE SELLERS HAS MADE OR IS MAKING ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER IN
CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OTHER THAN THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE
III.

       

      ARTICLE
IV

      REPRESENTATIONS
AND WARRANTIES OF BUYER

       

      Buyer
hereby represents and warrants to the Sellers as follows:

       

      4.1   Existence; Good Standing;
Authority; Enforceability.  Buyer is a corporation, duly
organized, validly existing and in good standing under the laws of the
Commonwealth of Virginia.  Buyer has full corporate power and
authority to execute, deliver and perform this Agreement.  The
execution, delivery and performance of this Agreement by Buyer has been duly
authorized and approved by Buyer and does not require any further authorization
or consent of Buyer.  This Agreement has been duly authorized,
executed and delivered by Buyer and is the legal, valid and binding obligation
of Buyer enforceable against Buyer in accordance with its terms.

       

      4.2   Non-Contravention.  Neither
the execution and delivery of this Agreement nor the consummation of any of the
transactions contemplated hereby nor compliance with or fulfillment of the
terms, conditions and provisions hereof 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 its assets under: (a)
the Organizational Documents of Buyer, (b) any agreement, instrument, right,
restriction, license or obligation to which Buyer is a party or to which any of
its assets is subject, (c) any judgment, order or decree of any state, federal
or local court or tribunal to which Buyer is a party or to which any of its
assets is subject, or (d) any federal or state law applicable to Buyer or its
assets.

       

      4.3   Brokers.  Buyer
is not obligated to pay any brokerage, finder’s or other fee or commission in
connection with the transactions contemplated by this Agreement for which any
Seller is or could become liable

       

      4.4   No Other
Representations.  BUYER HAS NOT MADE AND IS NOT MAKING ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, OF ANY NATURE WHATSOEVER IN
CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OTHER THAN THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS ARTICLE
IV.

       

      ARTICLE
V

      CONDITIONS
PRECEDENT TO BUYER’S PERFORMANCE

       

      The
obligation of Buyer to consummate each of the Closings under this Agreement is
subject to the satisfaction, at or before such Closing, of all the conditions
set out below in this Article V, unless
waived by Buyer in writing on or prior to the Closing Date for such
Closing.

       

      5.1   Representations and
Warranties; Covenants.  The representations and warranties of
the Sellers contained in Article III shall
have been true and correct when made and be true and correct in all respects (if
qualified by materiality) or true and correct in all material respects (if not
qualified by materiality), as of the

       

      
        
          
             

          

           

        

        
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      Closing
Date for such Closing (except with respect to those representations and
warranties that are made as of a specific date, only as of such date) and the
Sellers shall have each duly performed and complied in all material respects
with all covenants and agreements contained herein required to be performed or
complied with by them at or before such Closing.

       

      5.2   No Changes or Destruction of
Property.  Between the date hereof and the Closing Date for
such Closing, there shall have been no material adverse change in the Purchased
Assets that have not yet, as of the time of such Closing, been purchased by
Buyer hereunder.

       

      5.3   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.

       

      5.4   FCC Approval; Contractual
Consents.  The FCC Approval shall have been obtained and each
of the Contractual Consents applicable to such Closing shall have been
obtained.

       

      5.5   Closing
Deliverables.  Buyer shall have received each of the items
relating to such Closing described in Section 2.3 or 2.5, as
applicable.

       

      ARTICLE
VI

      CONDITIONS
PRECEDENT TO SELLERS’ PERFORMANCE

       

      The
obligations of the Sellers to consummate each of the Closings under this
Agreement are subject to the satisfaction, at or before such Closing, of all the
conditions set out below in this Article VI, unless
waived by the Sellers in writing on or prior to the Closing Date for such
Closing.

       

      6.1   Representations and
Warranties; Covenants.  The representations and warranties of
Buyer contained in Article IV shall have
been true and correct when made and be true and correct in all respects (if
qualified by materiality) or true and correct in all material respects (if not
qualified by materiality), as of the Closing Date for such Closing (except with
respect to those representations and warranties that are made as of a specific
date, only as of such date) and Buyer shall have duly performed and complied in
all material respects with all covenants and agreements contained herein
required to be performed or complied with by it at or before such
Closing.

       

      6.2    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.

       

      6.3   Closing
Deliverables.  The Sellers shall have received each of the
items relating to such Closing described in Section 2.4 or 2.6, as
applicable.

       

      ARTICLE
VII

      TERMINATION

       

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

       

      (a)   by mutual consent of
Buyer and the Sellers;

       

      (b)   by any party at any time
following the Outside Date if all of the Closings have not occurred by the
Outside Date; provided,
however, that the right to terminate this Agreement under this Section 7.1(b) shall
not be available to any party whose breach of any provision of this Agreement
shall have caused, or resulted in, the failure of the Closings to have occurred
by the Outside Date (for the avoidance of doubt, provided that the Seller have
not breached their respective obligations
under Section
8.2 (Regulatory and Other

       

      
        
          
             

          

           

        

        
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      Approvals),
the failure of the Sellers to obtain any necessary Lender Consents, Contractual
Consents or the FCC Approval shall not constitute a breach of this
Agreement);

       

      (c)   by Buyer,
upon a breach of any representation and warranty, covenant or agreement of the
Sellers set forth in this Agreement, or if any representation and warranty of
the Sellers set forth in this Agreement shall become untrue, in either case such
that the conditions to the obligations of Buyer to consummate each of the
Closings set forth in Section 5.1 would not
be satisfied as of the time of such breach or as of the time such representation
and warranty shall have become untrue; provided, however, that if
such breach or untruth is curable by the Sellers prior to the Outside Date
through the exercise of commercially reasonable efforts, then Buyer may not
terminate this Agreement under this Section 7.1(c) prior
to ten (10) Business Days following written notice having been provided by Buyer
to the Sellers of such breach or untruth (and then only if such breach or
untruth has not been cured);

       

      (d)   by the Sellers, upon a
breach of any representation and warranty, covenant or agreement of Buyer set
forth in this Agreement or if any representation and warranty of Buyer set forth
in this Agreement shall become untrue, in either case such that the conditions
to the Sellers’ obligation to consummate each of the Closings set forth in Section 6.1 would not
be satisfied as of the time of such breach or as of the time such representation
and warranty shall have become untrue; provided, however, that if
such breach or untruth is curable by Buyer prior to the Outside Date through the
exercise of commercially reasonable efforts, then the Sellers may not terminate
this Agreement under this Section 7.1(c) prior
to ten (10) Business Days following written notice having been provided by the
Sellers to Buyer of such breach or untruth (and then only if such breach or
untruth has not been cured);

       

      (e)   by either Buyer, on the
one hand, or the Sellers, on the other hand, if any condition to such party’s
obligation to consummate a Closing set forth in Article V or Article VI (as
applicable) shall have become incapable of satisfaction (other than as provided
in Sections
7.1(c) and (d)); provided, however, that the
right to terminate this Agreement under this Section 7.1(e) shall
not be available to any party whose breach of any provision of this Agreement
shall have caused, or resulted in, such Closing condition to have become
incapable of satisfaction; or

       

      (f)   by the Sellers pursuant
to Section
8.5(a).

       

      For
purposes of this Agreement, the term “Business Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
banking institutions in New York, New York are authorized or obligated by law or
executive order to close.  Any termination made in accordance with
Section 7.1(b),
(c), (d), (e) or (f) shall be
effective upon delivery of a notice of termination by the terminating party to
each other party, which notice shall refer to the subsection of this Section 7.1 pursuant
to which such termination is being made.

       

      7.2   Procedure Upon
Termination.  In the event of termination pursuant to Section 7.1 hereof,
this Agreement shall terminate without further action by either of Buyer and the
Sellers hereto.  If this Agreement is terminated as provided
herein:

       

      (a)   each party will, at its
election, either destroy (and certify such destruction in a certificate executed
by an officer of such party) or 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 the Sellers 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, except that: (i) any termination of this
Agreement after the Initial Closing or any Subsequent Closing shall not affect
the respective rights and obligations of the parties as they relate to the
Closings that have occurred prior to the termination of this Agreement; and (ii)
if such termination results from the willful breach

       

      
        
          
             

          

           

        

        
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      by a
party of any of its representations and warranties or covenants and agreements
set forth in this Agreement, such party shall be fully liable for any and all
Losses incurred or suffered by the other parties as a result of such willful
breach, provided however, that notwithstanding anything to the contrary
contained in this Agreement, the maximum liability of the Sellers on the one
hand or the Buyer on the other hand for failure to close the transactions
contemplated in this Agreement for any reason shall be $500,000 in the
aggregate.

       

      ARTICLE
VIII

      ADDITIONAL
AGREEMENTS

       

      8.1   Conduct Prior to
Closing.  Except as directed by Buyer pursuant to this
Agreement, from the date of this Agreement until the earlier to occur of: (x)
the Closing; or (y) the termination of this Agreement pursuant to and in
accordance with Section 7.1 (the
“Pre-Closing Period”),
each of the Sellers shall, solely to the extent that it would reasonably be
expected to affect any of the Customer Contracts or the Supplier Contracts,
conduct its business only in the ordinary course of business consistent with
past practice, preserve intact its business organization and relationships with
customers, suppliers and others having business dealings with it and keep
available the services of each of its present officers and
employees.  Without limiting the generality of the foregoing, except
as directed by Buyer pursuant to this Agreement, during the Pre-Closing Period,
the Sellers shall each:

       

      (a)   not amend, waive,
terminate, or take any action that would constitute a breach under, any Customer
Contract or Supplier Contract, or enter into any new Customer Contract or
Supplier Contract without the prior written consent of Buyer, which consent
shall not be unreasonably withheld (provided that an appropriate adjustment
shall be made to the Purchase Price for any new Customer Contract that is
substituted for an existing Customer Contract in accordance with Section 2.1(b) to the
extent that the gross margin is reduced or increased, consistent with the
pricing methodology for such existing Customer Contract implied by Exhibit A
hereto);

       

      (b)   not permit any
Encumbrance to encumber any of the Purchased Assets, or otherwise subject any of
the Purchased Assets to any Encumbrance, except for Encumbrances incurred in
connection with the refinancing of existing debt or an additional financing, in
each case where a condition to such refinancing or additional financing is the
waiver, in form and substance reasonably acceptable to Buyer, of all
Encumbrances thereunder with respect to the sale of the Purchased Assets to
Buyer;

       

      (c)   solely to the extent
relating to or affecting the Customer Contracts or the Supplier Contracts: (i)
pay accounts payable and other obligations and liabilities only in the ordinary
course of business consistent with past practices; and (ii) not modify the terms
of, discount, setoff or accelerate the collection of any accounts receivable or
any other debts owed to or claims held by such Seller, subject to: (A) the terms
of Section
8.1(a) above, and (B) the Sellers’ right, with Buyer’s consent (not to be
unreasonably withheld), to make modifications in the ordinary course of business
intended to improve the Sellers’ position with respect to Customer Contracts;
and

       

      (d)   not take any action or
fail to take any action that would result in any of the representations and
warranties of the Sellers set forth in Article III to not
continue to be true and correct as of each Closing;

       

      Nothing
contained in this Section 8.1 shall
give Buyer, directly or indirectly, the right to control or direct the
operations of any of the Sellers and the Sellers shall exercise, consistent with
the terms and conditions of this Agreement, complete control and supervision
over their respective operations.

       

      
        
          
             

          

           

        

        
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      8.2   Regulatory and Other
Approvals.

       

      (a)   During the Pre-Closing
Period, Buyer and the Sellers shall, in good faith and in a timely manner, use
their respective commercially reasonable efforts to take or cause to be taken
all actions, do or cause to be done all things necessary, proper or advisable,
and execute and deliver such documents, as may be required to cause the Closing
conditions contained in Articles V and VI applicable to such
party to be satisfied, and refrain from taking any actions that would have the
effect of delaying, impeding or preventing satisfaction of any of the Closing
conditions contained in Articles V and VI applicable to such
party; provided that
Buyer shall not be required to incur any out-of-pocket expenses in connection
with any such matters.

       

      (b)   Without limiting the
generality of Section
8.2(a), during the Pre-Closing Period, Buyer and the Sellers shall use
their respective commercially reasonable efforts to make all reasonably
necessary or advisable filings with, obtain all reasonably necessary or
advisable waivers, consents and approvals from the FCC and any other third
parties (including the Contractual Consents).

       

      (c)   During
the Pre-Closing Period, Buyer, on the one hand, and the Sellers, on the other
hand, shall: (i) provide regular written notices to the other party concerning,
and otherwise keep the other party reasonably apprised of, the status of their
process of obtaining the FCC Approval, the Contractual Consents and any other
waivers, consents or approvals to be obtained in connection with the
consummation of the transactions contemplated hereby (which shall include
correct and complete copies of any correspondence or other communications
received from the FCC or any other third party in connection therewith, to the
extent not prohibited by currently existing confidentiality agreements); and
(ii) each provide the other party with the right to review in advance, and
consult with the other party on, any filing, consent or approval request, or
other communication with or to the FCC or any other third party in connection
with their process of obtaining any such waiver, consent or
approval.

       

      8.3   Non-Solicitation of
Employees.  Except as otherwise agreed by the parties, during
the Pre-Closing Period and for a period of two (2) years thereafter, the Sellers
on the one hand (on behalf of themselves and their respective Affiliates), and
Buyer on the other hand (on behalf of Buyer and its Affiliates), each agree not
to directly or indirectly solicit for employment or performance of services or
hire for employment or performance of services any of the persons employed by
Sellers or their Affiliates (in the case of solicitation or hiring by Buyer or
its Affiliates) or any of the persons employed by Buyer or its Affiliates (in
the case of solicitation or hiring by any of Sellers or their Affiliates); provided, however, that: (i)
no general advertisement or general solicitation (whether directly or through a
recruiter), in each case which is not targeted to the persons referenced above,
shall be deemed to be a solicitation thereof in violation of this Section 8.3; and (ii)
either party shall be entitled to hire any person whose employment has been
terminated by the other party (a resignation by the terminated person shall not
be deemed a termination of employment by the other party for purposes
hereof).  The terms of this Section 8.3 shall
survive any termination of this Agreement.  For purposes of this
Agreement, the term “Affiliate” shall have the same
meaning as construed under Rule 405 promulgated under the Securities Act of
1933, as amended.  Notwithstanding anything to the contrary in this
Section 8.3,
the parties agree that Buyer shall have the right to solicit and employ each of
the persons agreed upon by the parties..

       

      8.4    Access to
Information.  During the Pre-Closing Period, each of the
Sellers shall permit Buyer and its representatives to have full access, during
normal business hours and after reasonable prior notice to the Sellers, to the
properties, books and records of the Sellers, solely to the extent relating to
the Purchased Assets; provided, however, that the
parties agree to cooperate so that any such access does not unreasonably
interfere with the conduct of the business of the Sellers and further agree to
comply, with respect to any information obtained pursuant to this Section 8.4, with the
obligations set forth in the Confidentiality Agreement, dated October 12, 2009,
between Buyer and Capital Growth Systems, Inc. d/b/a Global
Capacity.

       

      
        
          
             

          

           

        

        
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      8.5   Termination for Convenience;
Termination Fee.

       

      (a)           The Sellers shall be entitled to terminate this Agreement for any reason prior to the occurrence of the Initial
Closing by providing at least three (3) days prior written notice thereof to
Buyer pursuant to the last paragraph of Section 7.1 and, in such event shall be obligated to pay to Buyer a
five hundred thousand dollar ($500,000) cash termination fee to Buyer
(the “Termination
Fee”) promptly following the termination of
this Agreement.

       

      (b)           For the avoidance of doubt: (i) termination pursuant to
Section
8.5(a) shall not be effective unless and
until the Termination Fee has been received by Buyer; and (ii) Sellers shall not
be obligated to pay the Termination Fee to Buyer if this Agreement is terminated
pursuant to Sections 7.1(a), (b), (c), (d) or (e)..

       

      8.6   Notification During the
Pre-Closing Period of Breaches.  During the Pre-Closing Period,
Buyer, on the one hand, and the Sellers, on the other hand, will each notify the
other as soon as reasonably practicable (and in any event within three (3)
Business Days) after it becomes aware of: (a) any material breach of any of
their respective representations, warranties, covenants or agreements contained
in this Agreement; or (b) any fact or condition that would cause a condition to
the other party’s obligation to consummate the Closing set forth in Article V or VI to not be
satisfied.  No such notice provided shall be deemed to supplement or
amend any of the representations and warranties of the party providing such
notice for purposes of determining whether any of the conditions set forth in
Section 5.1 or
Section 6.1, as
applicable, have been satisfied or in any way affect, limit or constitute a
waiver of the liability of such party under this Agreement with respect to the
matters set forth in such notice.

       

                   
8.7           Non-Competition.  In
consideration of the Purchase Price to be paid by Buyer to the Sellers (which
each Seller agrees and acknowledges constitutes adequate and sufficient
consideration), each of the Sellers covenants and agrees that such Seller will
not:

       

      (a)   at any time during the
two (2) year period after the Closing at which any Customer Contract is assigned
to Buyer hereunder, directly or indirectly provide to underlying Customer(s) (or
any of their affiliates Seller shall not
provide any of the Circuit Legs that are
the subject of the Customer Contracts to such Customers or their affiliates (for
the avoidance of doubt, the restrictions in this Section 8.7 do not prohibit the
sale of circuits by Sellers which do not include the Circuit Legs subject to the
Customer Contracts being assigned to Buyer); or

       

      (b)   at any time during the
one (1) year period after the Closing at which any Customer Contract is assigned
by Buyer hereunder, directly or indirectly provide to underlying Customer(s) (or
any of their affiliates) any circuits for the
transmission of telecommunications data in or relating to the United States of
America or Canada.

       

      Each
Seller agrees and acknowledges that its covenants set forth above in this Section 8.7: (i) are
reasonable in geographic and temporal scope and in all other respects; (ii) are
fair to such Seller; and (iii) have been made in order to induce Buyer to enter
into this Agreement and consummate the transactions contemplated hereby and
Buyer would not have entered into this Agreement or consummated the transactions
contemplated hereby, but for the covenants of the Sellers contained in this
Section
8.7.  If, at any time of enforcement of any of the provisions
of this Section
8.7, a court determines that the duration, scope or area restrictions
stated herein are not enforceable under applicable law, the parties agree that
the maximum duration, scope or area (as applicable) permitted by applicable law
shall be substituted for the duration, area or scope (as applicable) stated
herein and

       

      
        
          
             

          

           

        

        
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      the court
shall be authorized by the parties to revise the restrictions contained herein
to cover such maximum duration, area or scope (as applicable).

       

                    
8.8    Sales
Tax.  Any sales, use, or transfer tax directly attributable to
the sale or transfer of the Purchased Assets shall be paid by the party
statutorily required to pay the same.

       

      ARTICLE
IX

      INDEMNIFICATION

       

      9.1   Survival of
Representations.  Each of the respective representations and
warranties of the Sellers and Buyer contained in this Agreement shall survive
for a period of eighteen (18) months following the termination of this Agreement
or the applicable Closing, whichever is first, except that: (a) the
representations and warranties of the Sellers set forth in Section 3.1
(Existence; Good Standing; Authority; Enforceability), Section 3.6 (Title to
Assets) and Section
3.9 (Brokers) shall survive indefinitely; and (b) the representations and
warranties of Buyer set forth in Section 4.1
(Existence; Good Standing; Authority; Enforceability) and Section 4.3 (Brokers)
shall survive indefinitely.  Notwithstanding anything to the contrary
in this Section
9.1, if a Notice of Claim has been provided by an Indemnified Party to an
Indemnifying Party concerning the breach of a representation and warranty set
forth in this Agreement prior to the end of the survival period that would
otherwise apply to such representation and warranty, the end of the survival
period of such representation and warranty shall be extended, solely with
respect to such claim and any other claim reasonably related thereto or
concerning the same facts, until such later date as such claim(s) have been
fully and finally resolved in accordance with this Article
IX.

       

      9.2   Indemnification.

       

      (a)   Indemnification by the
Sellers.  Subject to the other provisions of this Article IX, the
Sellers shall jointly and severally indemnify Buyer, each of its Affiliates, and
its and their respective directors, officers, employees, stockholders, partners,
members, managers, agents and representatives (each, a “Buyer Indemnified
Party”) for any Losses of such Buyer Indemnified Party resulting from,
arising out of, or relating to: (i) any breach of, or inaccuracy in, any
representation and warranty of any of the Sellers set forth in Article III; (ii) any
breach of any covenant or agreement of any of the Sellers contained in this
Agreement; (iii) any inaccuracy in the Seller Closing Certificate; or (iv) any
of the Excluded Liabilities, provided however that the maximum liability that
Sellers shall have for failure to consummate the Initial Closing due to any
breach of this Agreement  by any of  Sellers causing such
failure to close shall be $500,000 in the aggregate.

       

      (b)   Indemnification by
Buyer.  Subject to the other provisions of this Article IX, Buyer
shall indemnify the Sellers and each of their respective Affiliates, directors,
officers, employees, stockholders, partners, members, managers, agents and
representatives (each, a “Seller Indemnified
Party”) for any Losses of such Seller Indemnified Party resulting from,
arising out of, or relating to: (i) any breach of, or inaccuracy in, any
representation and warranty of Buyer set forth in Article IV; (ii) any
covenant or agreement of Buyer contained in this Agreement; (iii) any inaccuracy
in the Buyer Closing Certificate; or (iv) any of the Assumed Liabilities,
provided however that the maximum liability that Buyer shall have for failure to
consummate the Initial Closing due to any breach of this Agreement by Buyer
causing such failure to close shall be $500,000 in the aggregate.

       

      9.3   Indemnification Claim
Procedure.  If any Buyer Indemnified Party or Seller
Indemnified Party, as applicable, in such capacity (the “Indemnified Party”),
learns of any matter that it believes will entitle the Indemnified Party to
indemnification from any of the Sellers or Buyer, as applicable, in such
capacity (the “Indemnifying Party”)
under this Article
IX, the Indemnified Party shall provide to Indemnifying Party notice
describing the matter in reasonable detail, including the nature of the claim,
the basis for the indemnification obligation and, to the extent reasonably
estimable, the estimated Losses resulting therefrom (a “Notice of
Claim”).  The Indemnifying Party shall have ten (10) days after
its receipt of the Notice of Claim to respond to

       

      
        
          
             

          

           

        

        
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      the
claim(s) described therein in a written notice to the Indemnified Party (a
“Dispute
Notice”) setting forth, in reasonable detail, the Indemnifying Party’s
objection(s) to the claim(s) and its bases for such objection(s).  If
the Indemnifying Party fails to provide a Dispute Notice with such time period,
the Indemnifying Party will be deemed to have conceded the claim(s) set forth in
the Notice of Claim.  If the Indemnifying Party does not dispute, in
its Dispute Notice, all of the claims set forth in the corresponding Notice of
Claim, the Indemnifying Party shall be deemed to have conceded any claims to
which it has not disputed in such Dispute Notice.  If the Indemnifying
Party provides a Dispute Notice within such time period, the Indemnified Party
and the Indemnifying Party shall negotiate in good faith resolution of the
disputed claim(s) for a period of not less than twenty (20) days after the
response is provided.  If the Indemnifying Party and the Indemnified
Party are unable to resolve any such claim(s) within such time period, the
Indemnified Party shall be entitled to pursue any legal remedies available to
the Indemnified Party against the Indemnifying Party with respect to the
unresolved claim(s).

       

      9.4   Satisfaction of
Indemnification Obligations.  Any amount that any Indemnifying
Party is required to pay to any Indemnified Party under this Article IX shall be
paid promptly (and in any event within five (5) days) after such amount has been
determined to be due under this Article IX and any
such payment that is not made in full within such five (5) days period will
thereafter bear interest, compounded annually, at a rate equal to the prime rate
in effect from time to time (as published in The Wall Street Journal) plus two
(2) percentage points, until paid in full.

       

      9.5   Materiality and Material
Adverse Effect Qualifiers.  All materiality qualifications
contained in the representations and warranties of the parties set forth in this
Agreement (however they may be phrased) shall be taken into account for purposes
of this Article
IX solely for purposes of determining whether a breach of, or in accuracy
in, such representation and warranty has occurred and, if such breach or
inaccuracy has occurred, all such materiality qualifications shall be ignored
and not given any effect for purposes of determining the amount of Losses
arising out of or relating to such breach of, or inaccuracy in, such
representation and warranty under this Article
IX.

       

      9.6   Reliance.  The
respective representations and warranties made by the Sellers in Article III and by
Buyer in Article
IV are made by each such party with the knowledge and expectation that
the other party is placing complete reliance thereon in entering into, and
performing its obligations under, this Agreement.  No investigation
made by or the benefit of any Indemnified Party or any of its representatives,
nor any information or knowledge acquired or held by any Indemnified Party,
whether the result of any such investigation or otherwise (including as a result
of disclosure of any such information on any disclosure schedule hereto), shall
in any way limit, constitute a waiver of, or a defense to, any right of such
Indemnified Party to receive indemnification pursuant to this Article IX from the
applicable Indemnifying Party with respect to any of the representations and
warranties of the Indemnifying Party set forth in this Agreement.

       

      9.7   Definitions.  For
purposes of this Agreement: (a) “Losses” means any and all
losses, costs, obligations, liabilities, settlement payments, awards, judgments,
fines, penalties, damages, Expenses, deficiencies or other charges; and (b)
“Expenses” includes all
expenses incurred by a party for court costs, legal fees, filing fees and other
professional fees.

       

      ARTICLE
X

      MISCELLANEOUS

       

      10.1   Expenses.  Except
as otherwise expressly set forth herein, each of the parties shall pay all of
their respective costs and expenses incurred or to be incurred by it in
negotiating and preparing this Agreement and related documents and in Closing
and carrying out the transactions contemplated by this Agreement.

       

      10.2   Headings.  The
subject headings of the sections and subsections of this Agreement are included
for purposes of convenience only, and shall not affect the construction or
interpretation of any of its provisions.

       

      
        
          
             

          

           

        

        
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      10.3   Entire Agreement; Amendment;
Waiver.  This Agreement, and the Exhibits attached hereto,
constitute the entire agreement between the parties pertaining to the subject
matter contained in it and supersedes all prior and contemporaneous agreements,
representations, and understandings of the parties (whether oral or written)
with respect to the subject matter hereof, including any letter of intent,
exclusivity agreement, term sheet or memorandum of terms entered into or
exchanged by the parties.  No supplement, modification, or amendment
of this Agreement shall be binding unless executed in writing by all the parties
which states that it constitutes a supplement, modification or amendment to this
Agreement.  No waiver of any of the provisions of this Agreement shall
be deemed, or shall constitute, a waiver of any other provision, whether or not
similar, nor shall any waiver constitute a continuing waiver.  No
waiver shall be binding unless executed in writing by the party making the
waiver and delivered to the other parties which states that it constitutes a
waiver under this Agreement and specifies the provision hereof being
waived.

       

      10.4   Counterparts.  This
Agreement may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  Counterparts to this Agreement may be
exchanged by facsimile or other electronic transmission method.

       

      10.5   No Third Party
Beneficiaries.  Nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any Person other than the parties to it and their respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third person to any party to this
Agreement, nor shall any provision give any third person any right of
subrogation or action over against any party to this Agreement.

       

      10.6   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 by a commercial messenger delivery service with
verification of delivery, (b) four (4) days after mailing, when sent by
registered or certified mail, return receipt requested and postage prepaid, or
(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:

       

      
        	
                       To any Seller
      at:

              	 
      	
                Capital
      Growth Systems, Inc.

                c/o
      Patrick C. Shutt

                200
      South Wacker Drive, Suite 1650

                Chicago,
      Illinois 60606

              
	
                 

                       with a copy
      (which 

                       shall
      not constitute 

                        notice)
      to:

              	 
      	
                 

                Mitchell
      D. Goldsmith

                Shefsky
      & Froelich Ltd.

                111
      E. Wacker Dr., Suite 2800

                Chicago,
      Illinois 60601

              
	 
      	 
      	 
      
	
                       To Buyer
      at:

              	 
      	
                Global
      Telecom & Technology Americas, Inc.

                8484
      Westpark Dr., Suite 720

                McLean,
      Virginia 22102

                Attention:
      Christopher McKee, General Counsel

                 

              
	
                       with a copy
      (which 

                       shall not
      constitute 

                       notice) to:

              	 
      	
                Brad
      E. Mutschelknaus, Esq.

                Kelley
      Drye & Warren LLP

                3050
      K Street, N.W., Suite 400

                Washington,
      D.C. 20007

                 

              

      

      

      
        
          
             

          

           

        

        
          -18-

          
            

          

        

        
           

        

      

      Any party
may change its address for purposes of this Section 10.6 by
giving the other parties written notice of the new address in the manner set
forth above. Each communication transmitted in the manner described in this
Section 10.6
shall be deemed to have been provided, received and become effective for all
purposes at the time it shall have been: (x) delivered to the addressee as
indicated by the return receipt (if transmitted by mail) or the affidavit or
receipt of the messenger (if transmitted by personal delivery or courier
service); or (y) presented for delivery to the addressee as so addressed during
normal business hours, if such delivery shall have been rejected, denied or
refused for any reason or, in each case, at such other address as may be
specified in writing to the other parties hereto.

      

      10.7   GOVERNING
LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAWS OF THE STATE OF ILLINOIS.  ANY ACTION TO ENFORCE
THE TERMS OF THIS AGREEMENT SHALL BE LITIGATED IN THE STATE OR FEDERAL COURTS
SITUATED IN COOK COUNTY, ILLINOIS, TO WHICH JURISDICTION AND VENUE EACH OF THE
PARTIES CONSENTS.

       

      10.8   WAIVER OF PUNITIVE AND OTHER
DAMAGES AND JURY TRIAL.

       

      (a)   EXCEPT
FOR INDEMNIFICATION FOR SUCH DAMAGES INCURRED BY A PARTY AND ACTUALLY PAID TO A
THIRD PARTY, THE PARTIES EXPRESSLY WAIVE AND FOREGO ANY RIGHT TO RECOVER
PUNITIVE, EXEMPLARY, LOST PROFITS, CONSEQUENTIAL OR SIMILAR DAMAGES IN ANY
PROCEEDING ARISING OUT OF OR RESULTING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

       

      (b)   EACH PARTY ACKNOWLEDGES
AND AGREES THAT ANY PROCEEDING ARISING UNDER OR RELATING TO THIS AGREEMENT AND
THE TRANSACTIONS CONTEMPLATED HEREBY IS LIKELY TO INVOLVE COMPLICATED AND
DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

       

      (c)   EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT: (i) NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY PROCEEDING ARISING UNDER OR
RELATING TO THIS AGREEMENT, SEEK TO ENFORCE EITHER OF THE FOREGOING WAIVERS;
(ii) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS; (iii)
IT MAKES SUCH WAIVERS VOLUNTARILY, AND (iv) IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION
10.8.

       

      10.9   Successors and
Assigns.  The rights and obligations of the Sellers and Buyer
under this Agreement shall not be assignable or delegable, without the written
consent of the other parties; provided, however, that Buyer
shall have the right, without the consent of the Sellers but with prior notice
to the Sellers, to: (a) assign its rights and obligations hereunder to any
Affiliate thereof or to any successor of all or substantially all of its
businesses or assets, in each case that assumes this Agreement provided that
Buyer agrees to remain liable to Sellers for any obligations of any assignee of
Buyer (or its assigns) pursuant to this Agreement; or (b) collaterally assign
its rights hereunder to any lender.  Any purported assignment or
delegation in violation of this Section 10.9 will be
void.  Subject to the preceding sentences of this Section 10.9, this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and permitted assigns.

       

      10.10   Remedies.  Except
as noted in the last sentence of this Section 10.10, each
of the parties shall have and retain all rights and remedies, at law or in
equity, including rights to specific performance and

       

      
        
          
             

          

           

        

        
          -19-

          
            

          

        

        
           

        

      

      injunctive
or other equitable relief, arising out of or relating to a breach or threatened
breach of this Agreement.  Without limiting the generality of the
foregoing, subject to the last sentence of this Section 10.10, each
of the parties acknowledges that money damages would not be a sufficient remedy
for any breach or threatened breach of this Agreement and that irreparable harm
would result if this Agreement were not specifically
enforced.  Therefore, subject to the last sentence of this Section 10.10, the
rights and obligations of the parties shall be enforceable by a decree of
specific performance issued by any court of competent jurisdiction, and
appropriate injunctive relief may be applied for and shall be granted in
connection therewith, without the necessity of posting a bond or other security
or proving actual damages and without regard to the adequacy of any remedy at
law.  Subject to the last sentence of this Section 10.10, a
party’s right to specific performance or injunctive relief shall be in addition
to all other legal or equitable remedies available to such
party.  Notwithstanding anything to the contrary in this Section 10.10, Buyer
shall not be entitled to the remedy of specific performance to compel the
Sellers to consummate the transactions contemplated by this Agreement in the
event that the Initial Closing does not occur for any reason.

       

      10.11   Further
Actions.  Subject to the terms and conditions of this
Agreement, each of the parties, at its own cost and expense, in good faith and
in a timely manner, shall use its respective commercially reasonable efforts to
take or cause to be taken all appropriate actions, do or cause to be done all
things necessary, proper or advisable, and execute, deliver and acknowledge such
documents and other papers as may be required to carry out the provisions of
this Agreement and to give effect to the consummation of the transactions
contemplated by this Agreement.

       

      10.12   Construction.  This
Agreement shall be construed without regard to the identity of the persons who
drafted its various provisions; each and every provision of this Agreement shall
be construed as though all of the parties participated equally in the drafting
of the same, and any rule of construction that a document is to be construed
against the drafting party shall not be applicable to this
Agreement.  Unless otherwise expressly specified in this Agreement:
(a) the words “hereof”,
“hereby” and “hereunder,” and correlative
words, refer to this Agreement as a whole and not any particular provision; (b)
the words “include”,
“includes” and “including”, and correlative
words, are deemed to be followed by the phrase “without limitation”; (c) the
word “or” is not
exclusive and is deemed to have the meaning “and/or”; (d) references in
this Agreement to a “party” means Buyer or any of
the Sellers and to the “parties” means Buyer
and all of the Sellers; (e) the masculine, feminine or neuter form of a word
includes the other forms of such word and the singular form of a word includes
the plural form of such word; (f) references to a Person shall include the
successors and assigns thereof; (g) references made in this Agreement to an
Article, Section, Schedule or Exhibit mean an Article or Section of, or a
Schedule or Exhibit to, this Agreement; (h) and (i) any capitalized term used
but not defined in a Schedule or Exhibit to this Agreement shall have the
meaning set forth in this Agreement.

       

      [THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

      
        
          
             

          

           

        

        
          -20-

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties to this Agreement have duly executed it on the day
and year first above written.

       

      

      
        	 
      	
                SELLERS:

                 

                CAPITAL
      GROWTH SYSTEMS, INC.

                 

                By:    /s/ George A.
      King                          

                Name:   George A.
      King                                 

                Title:      President                                         

                 

              
	 
      	
                 

                GLOBAL
      CAPACITY GROUP, INC.

                 

                
                  
                    By:    /s/ George A.
      King                          

                    Name:   George A.
      King                                 

                    Title:      President                                         
                               

                

              
	 
      	
                 

                GLOBAL
      CAPACITY DIRECT, LLC F/K/A VANCO DIRECT USA, LLC

                 

                
                  
                    By:    /s/ George A.
      King                          

                    Name:   George A.
      King                                 

                    Title:      President                                         
                                             

                

              
	 
      	
                 

                BUYER:

                 

                GLOBAL
      TELECOM & TECHNOLOGY AMERICAS, INC.

                 

                
                  By:    /s/ Chris
      McKee                              

                  Name:   Chris
      McKee                                     

                  Title:     General Counsel and
      Secretary                                                            

                

                 

              

      

      
        
          
             

          

           
-21-

        

        
           

          
            

          

        

         

      

      Exhibit
A:

      

      Customer
Contracts and Circuits

      

      [attached]

      

      
        
           

        

        
           

          
            

          

        

         

      

      Exhibit
B:

      

      Supplier
Contracts

      

      [attached]

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