Document:

SPONSORED
      RESEARCH AGREEMENT FY06-ORA3-06 

    MODIFICATION
      NO. 2

     

    For
      Valuable Consideration, the receipt and sufficiency of which are acknowledged
      by
      the parties,
      the Sponsored Research Agreement (hereinafter referred to as "SRA Agreement")
      dated
      July 15, 2005, between the Board of Regents of the University of Oklahoma,
      an
education
      agency of the State of Oklahoma, (hereinafter referred to as "University")
      and
3DICON
      Corporation, an Oklahoma corporation with principal offices at P O Box 470941,
      Tulsa,
      Oklahoma 74147-0941, (hereinafter referred to as "Sponsor"), as amended by
      Modification
      No 1, is hereby further amended as follows:

     

    SECTION
      3. PERIOD OF PERFORMANCE

     

    3.1
      The
      Period of Performance will be: July 15, 2005 through March 31,
      2007.

     

    SECTION
      4. COSTS, BILLINGS AND OTHER SUPPORT

     

    4.1
      Unless this Agreement or the Project is terminated before the expiration of
      the
      Period of
      Performance, for the services, reports, and other items to be delivered
      hereunder Sponsor shall
      pay
      University a fixed price in the amount of Five
      Hundred Seventy-Eight Thousand Eight
      Hundred Forty-Three Dollars and 00/00 cents ($578,843.00)
      without interest, as follows: upon execution of this contract, Sponsor shall
      pay
      University Five Hundred Dollars and
      00/00
      cents ($500.00); on or before November 10, 2005, Sponsor shall pay University
      Seventy-Five Thousand and Ninety-Seven Dollars and 33/00 cents ($75,097.33);
      on
      or before January
      15, 2006, Sponsor shall pay University Seventy-Five Thousand Five Hundred
Ninety-Seven
      Dollars and 33/00 cents ($75,597.33); on or before April 15, 2006, Sponsor
      shall
      pay
      University Seventy-Five Thousand Five Hundred Ninety-Seven Dollars and 3.3/00
      cents ($75,597.33); and on or before each of the following dates: December
      31,
      2006, January .31, 2007, February 28, 2007 and March 31, 2007, Sponsor shall
      pay
      University the sum of Eighty-Eight
      Thousand Twelve Dollars and 76/100 cents ($88,012.76), University agrees to
      incur
      expenses primarily in accordance with the cost estimate included in First
      Supplement to
      Appendix B ("Budget"),
      a copy of which is attached to this Modification No, 2, which by reference
      is made a part hereof for all purposes. If Sponsor terminates this Agreement
      prior to the
      expiration of the Period of Performance, it shall pay all amounts due and owing
      the University
      through the date of termination including all non-cancel able commitments for
      equipment;
      provided, that any equipment Sponsor has financed as of the date of termination
      shall be transferred to Sponsor

     

    Appendix
      A
      is
      amended to add the terms and provisions attached to this Modification No. 2
      and
      identified as "First Supplement to Appendix A".

     

    Except
      as
      amended by this Modification and by Modification No, 1, all other terms and
      conditions
      of the SRA Agreement remain unchanged.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Parties
      have agreed by mutual consent to the modifications listed above and have so
      indicated through
      the execution of this agreement.

     

    
      	3DICON CORPORATION	 	
              THE
                BOARD OF REGENTS OF THE 
UNIVERSITY
                OF OKLAHOMA

            
	 	 	 	 
	 	 	 	 
		 	BY: 	 

	
            	 	TITLE:	        Services
	 	 	 	 
	
            	 	DATE:
	

    

     

    READ
      AND UNDERSTOOD:

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    First
      Supplement to Appendix A.

     

    Investigation
      of 3-Bimensional Display Technologies

     

    A
      Proposal for Supplemental Funds to:

     

    3D
      Icon
      Corporation Attn; Martin Keating

    P.O.
      Box
      470941

    Tulsa,
      OK
      74147-0941

    Phone:
      918-492-5082

    FAX:
      918-492-5367

     

    Submitted
      by:

     

    James
      J,
      Sluss, Jr., Pramode K, Verma and Monte P.. Tull

    School
      of
      Electrical & Compute: Engineering

    University
      of Oklahoma

     

    August
      30, 2006

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Proposal
      for Supplemental Funds

     

    Project
      Title; Investigation of 3 -Dimensional Display Technologies 

     

    Sponsor:
      3DIcon Corporation

     

    OU
      Projects: 125573300 

     

    Project
      Period: 7/15/05-I/14/07 

     

    Supplement:
      9/1/06-1/14/07

     

    Summary

     

    OU
      is
      currently pursuing research under an established Sponsored Research Agreement
      with 3DIcon Corporation in the area of 3-dimensional display technologies,
      The
      goals of this
      research ate: to produce patentable and/or copyrightable intellectual property;
      to produce
      proof- of-concept technology that demonstrates the viability of the intellectual
      property;
      and, to assess opportunities for manufacturing technological products in
Oklahoma.
      To date, three provisional patent applications have been submitted as a result
      of the research, as well as the preparation of a full utility patent application
      that is near to submission.

     

    With
      the
      consent and direction of the sponsor, the OU team has begun to pursue the
      development of fluorescent nanoparticles by engaging with Dr. Gerard Newman
      and
      Dr Martina Dreyer of 'the School of Chemical, Biological, and Materials
      Engineering Early laboratory
      results on the synthesis of these new nanopaiticles are encouraging However,
      supplemental
      funds are required to support the ongoing participation of our new research
      collaborators
      for both salaries and project materials.

     

    In
      addition, again with the consent and direction of the sponsor, the OU team
      has
      begun the
      fabrication of two prototype swept-volume displays that are the topic of an
      invention disclosure
      filed with the OU Office of Technology Development and of the
      soon-to-be-filed
      utility patent application, A portion of the supplemental funds will go toward
      the support
      of the prototype fabrication activities. 

     

    Budget
      Justification

     

    The
      bulk
      of the budget for this supplemental request goes to support the salaries, fringe
      and IDC for Dr., Gerard Newman, Dr, Martina Dreyer, and Dr., Hakki Refai, Dr
      Refai's salary was initially covered by the original project budget, but a
      portion of budgeted salary
      funds were reallocated to allow us to bring Dr Dreyer onto the project at the
      beginning of the summer - thus the need to replenish sufficient funds to see
      our
commitment
      to Dr. Refai through to the end of 2006. The remaining request of $11,623 for
      equipment will go toward fabrication of the swept-volume display
      prototypes,

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Please
      note: it is not an improper deduction to reduce an employee's accrued vacation,
      personal
      or other forms of paid time off for full or partial day absences for personal
      reasons,
      sickness or disability.

     

    (Note
      to Employer: This should not appear if the employer does not have a bonajlde
      sickness
      or disability policy that provides for wage replacement
      benefits)

     

    To
      Report Concerns or Obtain More Information

     

    If
      you
      have questions about deductions from your pay, please immediately contact
Human
      Resources If you believe you have been subject to any improper deductions or
      your
      pay
      does not accurately reflect your hours worked, you should immediately report
      the
      matter to your supervisor, If the supervisor is unavailable or if you believe
      it
      would be
      inappropriate to contact that person (or if you have not received a prompt
      and
      fully acceptable
      reply), you should immediately contact [Identify
      Contact Name},
      the
Director
      of Human Resources at [Identify,
      Contact Phone Number], [Identify Contact Name
      and Phone Number],
      or any
      other supervisor in the company with whom you feel comfortable.
      If you are unsure of whom to contact if you have not received a satisfactory
      response
      within five business days after1
      reporting the incidents please immediately contact
      [Identify
      Contact Name and Phone Number].,

     

    Every
      report will be fully investigated and corrective action will be taken where
      appropriate,
      up to and including discharge for any employee(s) who violates this policy.,
      In
      addition, the Company will not allow any form of retaliation against individuals
      who report alleged violations of this policy or: who cooperate in the Company's
      investigation of
      such
      reports Retaliation is unacceptable, and any form of retaliation in violation
      of
this
      policy will result in disciplinary action, up to and including
      discharge.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    First
      Supplement to Appendix B 
DETAIL
      BUDGET Year
      1

     

    

     

    
      	
              "Travel
                expenses will be reimbursed at federal rates, state rates, or specified
                rates, as appropriate

            	
              Revised
                5/10/2005GLOBAL
      BRIDGE NOTE
      PURCHASE AGREEMENT

     

    THIS
      GLOBAL BRIDGE NOTE PURCHASE AGREEMENT (“Agreement”) is made as of December 11,
      2006, by and among Capital
      Growth Systems, Inc.,
      a
      Florida corporation (“Borrower” or “Company”), and the lenders (each
      individually a “Lender,” and collectively the “Lenders”) executing a counterpart
      copy of this Agreement. Capitalized terms not otherwise defined in this
      Agreement shall have the meanings ascribed to them in Section 1
      below.

     

    WHEREAS,
      each of the Lenders intends to fund a bridge loan to Company (individually,
      a
“Loan” and collectively, the “Loans”), which Loans are anticipated to be repaid
      from the proceeds of an equity financing by Borrower of not less than $7,000,000
      (the “Pipe Financing”) as set forth below, together with the proceeds from
      additional debt financing for the Company. The proceeds of Loans shall be used
      for the acquisition of 100% of the capital stock of Global Capacity Group,
      Inc.,
      a Texas corporation by way of merger of a wholly owned subsidiary of the Company
      with Global Capacity Group, Inc. (and the successor corporation from such merger
      being hereinafter sometimes referred to as “Global”), with the capital stock of
      Global to be pledged as collateral security for the Loans; in addition, with
      the
      consent of the Majority Note holders, the principal amount of the Loans may
      be
      increased to fund additional working capital needs of the Company or Global.
      A
      copy of the merger agreement as amended effective November 30, 2006 for the
      acquisition of Global Capacity Group, Inc. has been provided to each of the
      Lenders.

     

    WHEREAS,
      the Pipe Financing shall be structured as an issuance of Units comprised of
      Series AA Preferred Stock and warrants (the “Units Warrants”) to purchase Series
      AA Preferred Stock. The Series AA Preferred Stock shall automatically convert
      to
      Common Stock of the Company upon the amendment of its articles of incorporation
      to authorize the issuance of not less than 200,000,000 shares of Common Stock.
      The “Pipe Common Stock Price” shall be the Unit purchase price divided by the
      number of shares of Common Stock issuable to Units purchasers on conversion
      of
      the Series AA Preferred Stock to Common Stock before giving effect to the Units
      Warrants. It is anticipated that he Pipe Common Stock Price shall be $0.45
      per
      share, as specified in the November 14, 2006 private placement memorandum for
      the Units (“Memorandum”), a copy of which have been made available for review by
      each Lender (and which will be supplemented to reflect the terms of this
      Agreement);

     

    WHEREAS,
      the Company has received a proposal dated November 21, 2006 from Hilco for
      the
      provision of a line of credit of up to $15,000,000, which the Company is
      considering (a copy of which has been made available for review by the
      prospective Lenders), and which may be modified or superseded by another
      proposal from Hilco or other prospective lenders; the Company has advised the
      Lenders that there can be no guarantees that the Company will be able to meet
      the conditions to the breaking of escrow with respect to the Memorandum. The
      Company has further advised the Lenders that Hilco is expected to deliver a
      term
      sheet for the proposed line of credit, which shall reduce the maximum
      availability under the line of credit to $12,000,000 and further will have
      certain holdback provisions with respect to the sums to be advanced in the
      event
      that loan transaction is consummated.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    WHEREAS,
      the parties wish to provide for the sale and issuance of the Notes in return
      for
      the provision by the Lenders of the Consideration to the Company on the terms
      and subject to the conditions set forth in this Agreement, and the collateral
      security set forth below. 

     

    NOW,
      THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

     

    1. Definitions.

     

    (a) “Aggregate
      Loan Amount”
shall
      mean Notes with an aggregate principal amount of up to $5,500,000, or such
      greater amount as is mutually agreed between the Company on the one hand and
      the
      Majority Note Holders. 

     

    (b) “Consideration”
shall
      mean the amount of money paid by each Lender pursuant to execution of a
      counterpart of this Agreement, or the value as set forth on the counterpart
      signature page of this Agreement “Price”
shall
      mean the purchase price for Equity Units.

     

    (c) “Initial
      Closing Date”
shall
      be the date on which the Company acquires Global Capacity Group, Inc. with
      the
      proceeds of the loans from the Lenders and such other funds as are available
      to
      the Company.

     

    (d) “Knowledge”
shall
      mean the actual knowledge of any officer of the Company.

     

    (e) “Majority
      Note Holders”
shall
      mean the holders of a majority in interest of the aggregate principal amount
      of
      Notes.

     

    (f) “Maturity
      Date”
shall
      mean as to each Note, 60 days following the date of the Note.

     

    (g) “Pipe
      Common Stock Price”
shall
      have the meaning set forth in the preamble hereof.

     

    (h) “Pipe
      Financing”
shall
      have the meaning set forth in the preamble hereof;

     

    (i) “Notes”
shall
      mean the one or more secured promissory notes issued to each Lender pursuant
      to
Section 2.1
      below,
      the form of which is attached hereto as Exhibit A.

     

    (j) “Securities”
shall
      have the meaning set forth in Section 6.2
      below.

     

    (k) “Warrants”
shall
      mean the detachable warrants issuable pursuant to Section 2
      below.

     

    2. Terms
      of the Notes and Warrants.
      In
      return for the Consideration paid by each Lender, the Borrower shall sell and
      issue to such Lender one or more unsecured Notes in the principal amount equal
      to the dollar amount set forth below the Lender’s name on the
      signature

      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

    page
      hereof (the aggregate principal amount so sold being the “Aggregate Note
      Amount”), bearing interest at eight percent (8%) per annum. Borrower in its sole
      discretion may increase the Aggregate Note Amount with respect to any Lender.
      The proceeds of the Notes shall be used for the funding in whole or part of
      the
      obligations of the Company with respect to the merger agreement for the
      acquisition of 100% of the beneficial ownership of Global Capacity Group, Inc.,
      and any remainder for general working capital purposes of the Borrower.
      Effective as of the date of application of the proceeds of a Lender’s funding as
      aforesaid, the Company shall issue to the Lender a warrant (the “Warrant”) to
      purchase 225.00225 shares of Series AA Preferred Stock (in the form attached
      as
      Exhibit B, and which equates to 500,000 shares of Common Stock on an as
      converted basis assuming the Series AA Preferred Stock is issued at $0.45 per
      share) for each $1,000,000 of Loan funded (prorated for fractional
      amounts).

     

    3. Closing.
      Each
      closing for the purchase of the Notes shall take place at the offices of the
      Company at 12:00 p.m., on the date of counterpart execution of this Agreement
      by
      the Lender in question, or at such other time and place as the Borrower and
      each
      Lender shall agree. At each Closing, each Lender shall deliver the Consideration
      to the Borrower and the Borrower shall deliver to each Lender one or more
      executed Notes in return for the respective Consideration provided to the
      Borrower.

     

    4. Use
      of
      Consideration.
      Subscription proceeds from the Notes either shall be deposited in an escrow
      account to be established by the Company with Shefsky & Froelich Ltd. or
      such other entity as Company shall select, and shall be held in escrow pending
      the sale of a sufficient amount of Notes, which together with other available
      funds of the Company shall be sufficient for the Company to consummate its
      acquisition of Global Capacity Group, Inc. (or such lesser amount agreeable
      to
      the Company and the Majority Note Holders), to be released from escrow in
      connection with the closing of the acquisition of Global Capacity Group, Inc.
      by
      the Company; provided however, in lieu of deposit of the Notes proceeds in
      escrow a Lender may make direct payment to the account designated by the Company
      for the purchase of Global Capacity Group, Inc., in which event the proceeds
      of
      any such funding shall be deemed to have been funded to the Company for purposes
      of the Loans called for hereunder. Interest shall accrue on the Notes effective
      as of the date of the closing of the acquisition of Global Capacity Group,
      Inc.
      The Notes shall be secured by a collateral pledge of the capital stock of Global
      pursuant to the form of Note Administration and Security Agreement attached
      as
      Exhibit C.

     

    5. Representations
      and Warranties of the Borrower.
      In
      connection with the transactions provided for herein, the Borrower hereby
      represents and warrants to the Lenders that:

     

    5.1 Organization,
      Good Standing and Qualification.
      The
      Borrower is a corporation, validly existing, and in good standing under the
      laws
      of the State of Florida and has all requisite corporate power and authority
      to
      carry on its business as now conducted. 

     

    5.2 Authorization.
      All
      corporate action has been taken on the part of the Borrower, its shareholders,
      officers, and directors necessary for the authorization, execution, delivery
      and
      performance, of this Agreement and the Notes and Warrants. Except as may be
      limited by applicable bankruptcy, insolvency, reorganization, or similar laws
      relating to or affecting the enforcement of creditors’ rights, the Borrower has
      taken all corporate action

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    required
      to make all of the obligations of the Borrower reflected in the provisions
      of
      this Agreement and the Notes and Warrants the valid and enforceable obligations
      they purport to be.

     

    5.3 Compliance
      with Other Instruments.
      Neither
      the authorization, execution and delivery of this Agreement or the Notes and
      Warrants, nor the issuance and delivery of the Notes and Warrants, will
      constitute or result in a default or violation of any law or regulation
      applicable to the Borrower or any term or provision of the Borrower’s current
      Articles, Bylaws or any material agreement or instrument by which it is bound
      or
      to which its properties or assets are subject.

     

    5.4 Valid
      Issuance.
      The
      Common Stock or Series AA Preferred Stock issuable upon exercise of the Warrants
      will be, when issued in accordance with the terms of this Agreement, duly and
      validly issued, fully paid and nonassessable and, based in part upon the
      representations and warranties of the Lenders in this Agreement, will be issued
      in compliance with all applicable federal and state securities
      laws.

     

    5.5 No
      Violation.
      The
      Borrower is not in violation of any order of any court, arbitrator or
      governmental body, material laws, ordinances or governmental rules or
      regulations (domestic or foreign) to which it is subject.

     

    5.6 No
      Litigation.
      There
      are no suits or proceedings pending or, to the Knowledge of the Borrower,
      threatened in any court or before any regulatory commission, board or other
      governmental administrative agency against or affecting the Borrower except
      as
      set forth in the Memorandum.

     

    5.7 Arms’
      Length Transactions.
      The
      transactions evidenced by this Agreement and the Notes and the other documents
      and instruments delivered in connection herewith or therewith (a) are the result
      of arms’ length negotiations among the parties hereto, (b) are made on
      commercially reasonable terms and (c) are undertaken by the Borrower without
      any
      intent to hinder, delay or defraud any entity to which the Borrower is or may
      become indebted.

     

    6. Representations
      and Warranties of the Lenders.
      In
      connection with the transactions provided for herein, each Lender hereby
      represents and warrants to the Borrower that:

     

    6.1 Authorization.
      This
      Agreement constitutes such Lender’s valid and legally binding obligation,
      enforceable in accordance with its terms, except as may be limited by (i)
      applicable bankruptcy, insolvency, reorganization, or similar laws relating
      to
      or affecting the enforcement of creditors’ rights and (ii) laws relating to the
      availability of specific performance, injunctive relief or other equitable
      remedies. Each Lender represents that the execution, delivery and performance
      of
      this Agreement has been duly authorized and approved by such
      Lender.

     

    6.2 Purchase
      Entirely for Own Account.
      Each
      Lender acknowledges that this Agreement is made with Lender in reliance upon
      such Lender’s representation to the Borrower that the Notes and any capital
      stock issuable upon exercise of the Warrants (collectively, the “Securities”)
      will be acquired for investment for Lender’s own account, as principal and not
      as a nominee or agent, and not with a view to the resale or distribution of
      any
      part thereof, and that

      
        
          
          

        

        
          -4-

          
            

          

        

        
          
          

        

      

    such
      Lender has no present intention of selling, granting any participation in,
      or
      otherwise distributing the same. By executing this Agreement, each Lender
      further represents that such Lender does not have any contract, undertaking,
      agreement or arrangement with any person to sell, transfer or grant
      participations to such person or to any third person, with respect to the
      Securities.

     

    6.3 Disclosure
      of Information.
      Each
      Lender acknowledges that he or it has received all the information, documents
      and materials he or it considers necessary or appropriate for deciding whether
      to acquire the Notes, and has been provided access to all public filings of
      Borrower with the Securities & Exchange Commission. Each Lender confirms
      that he or it has made such further investigation of the Borrower as was deemed
      appropriate to evaluate the merits and risks of this investment. Each Lender
      further represents that he or it has had an opportunity to ask questions and
      receive answers from the Borrower regarding the terms and conditions of the
      offering of the Notes and Warrants.

     

    6.4 Investment
      Experience.
      Each
      Lender is an investor in securities of companies in the development stage and
      acknowledges that he or it is able to fend for itself, can bear the economic
      risk of its investment and has such knowledge and experience in financial or
      business matters that it is capable of evaluating the merits and risks of the
      investment in the Notes and the Equity Units. If other than an individual,
      each
      Lender also represents he or it has not been organized solely for the purpose
      of
      acquiring the Notes and the Warrants.

     

    6.5 Accredited
      Investor.
      Each
      Lender is an “accredited investor” within the meaning of Rule 501 of Regulation
      D of the Securities Act of 1933, as presently in effect (the “Securities
      Act”).

     

    6.6 Restricted
      Securities.
      Each
      Lender understands that the Securities are characterized as “restricted
      securities” under the federal securities laws inasmuch as they are being
      acquired from the Borrower in a transaction not involving a public offering
      and
      that under such laws and applicable regulations such securities may not be
      resold except through a valid registration statement or pursuant to a valid
      exemption from the registration requirements under the Securities Act and
      applicable state securities laws. Each Lender represents that he or it is
      familiar with Rule 144 of the Securities Act, and understands the resale
      limitations imposed thereby and by the Securities Act and applicable state
      securities laws.

     

    6.7 Further
      Limitations on Disposition.
      Without
      in any way limiting the representations and warranties set forth above, each
      Lender further agrees not to make any disposition of all or any portion of
      the
      Securities unless and until the transferee has agreed in writing for the benefit
      of the Borrower to be bound by this Section 6
      and:

     

    (a) There
      is
      then in effect a registration statement under the Securities Act covering such
      proposed disposition and such disposition is made in accordance with such
      registration statement; or

     

    (b) (i) Lender
      has notified the Borrower of the proposed disposition and has furnished the
      Borrower with a detailed statement of the circumstances surrounding the proposed
      disposition and (ii) if reasonably requested by the Borrower,

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Lender
      shall have furnished the Borrower with an opinion of counsel, reasonably
      satisfactory to the Borrower, that such disposition will not require
      registration of such shares under the Securities Act.

     

    (c) All
      transferees agree in writing to be subject to the terms hereof, and any other
      agreements to which such Securities may be subject, to the same extent as if
      they were Lenders hereunder, including but not limited to the Note
      Administration and Security Agreement in the form attached hereto as Exhibit
      C.

     

    6.8 Legends.
      It is
      understood that the certificates evidencing the Securities, or any other
      securities issued in respect of the Securities upon any stock split, stock
      dividend, recapitalization, merger, consolidation, conversion, exercise or
      similar event, shall bear the legends required by applicable law as well as
      such
      agreements to which such Securities may be subject, including, without
      limitation, legends relating to restrictions on transfer under federal and
      state
      securities laws and legends required under applicable state securities laws,
      as
      well as the following legend:

     

    “THESE
      SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “SECURITIES ACT”), OR REGISTERED UNDER ANY STATE SECURITIES LAWS. THEY MAY
      NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED
      EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, (B) AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER
      THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT, OR (C) AN EXEMPTION
      FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
      (IF
      AVAILABLE), IN EACH OF CASES (A) THROUGH (C) IN ACCORDANCE WITH ANY APPLICABLE
      STATE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.”

     

    7. Defaults
      and Remedies.

     

    7.1 Events
      of Default.
      The
      following events shall be considered Events of Default with respect to each
      Note:

     

    (a) The
      Borrower shall default in the payment of any part of the principal or unpaid
      accrued interest on any Note for more than thirty (30) days after the Maturity
      Date or at a date fixed by acceleration or otherwise;

     

    (b) The
      Borrower shall make an assignment for the benefit of creditors, or shall admit
      in writing its inability to pay its debts as they become due, or shall file
      a
      voluntary petition for bankruptcy, or shall file any petition or answer seeking
      for itself any reorganization, arrangement, composition, readjustment,
      dissolution or similar relief under any present or future statute, law or
      regulation, or shall file any answer admitting the material allegations of
      a
      petition filed against the Borrower in any such proceeding, or shall seek or
      consent to or acquiesce in the appointment of any

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    trustee,
      receiver or liquidator of the Borrower, or of all or any substantial part of
      the
      properties of the Borrower, or the Borrower or its respective manager, officers
      or majority members shall take any action looking to the dissolution or
      liquidation of the Borrower;

     

    (c) Within
      sixty (60) days after the commencement of any proceeding against the Borrower
      seeking any bankruptcy reorganization, arrangement, composition, readjustment,
      liquidation, dissolution or similar relief under any present or future statute,
      law or regulation, such proceeding shall not have been dismissed, or within
      sixty (60) days after the appointment without the consent or acquiescence of
      the
      Borrower of any trustee, receiver or liquidator of the Borrower or of all or
      any
      substantial part of the properties of the Borrower, such appointment shall
      not
      have been vacated; or

     

    (d) The
      Borrower or any of its subsidiaries shall fail to observe or perform any other
      obligation to be observed or performed by it under this Agreement or the Notes
      or the Note Administration and Security Agreement attached hereto as Exhibit
      C
      within 30 (thirty) days after written notice from the Servicer named therein
      (the “Servicer”) or the Majority Note Holders to perform or observe the
      obligation, or any representation or warranty made by the Borrower hereunder
      or
      thereunder shall be false in any material respect as of the date made and such
      representation or warranty is not cured, if susceptible to cure, within 30
      (thirty) days after the Borrower’s Knowledge of such failure.

     

    7.2 Remedies.
      Upon
      the occurrence of an Event of Default under Section 7.1
      hereof,
      at the option and upon the declaration of the Servicer or the Majority Note
      Holders, acting pursuant to the form of Note Administration and Security
      Agreement, the entire unpaid principal and accrued and unpaid interest on each
      Note, and all other amounts owing under this Agreement shall, without
      presentment, demand, protest, or notice of any kind, all of which are hereby
      expressly waived, be forthwith due and payable, and the Servicer named therein
      and acting on behalf of all of the Note holders may, immediately and without
      expiration of any period of grace, enforce payment of all amounts due and owing
      under each Note and exercise any and all other remedies granted to it at law,
      in
      equity or otherwise; provided, however, that if any Event of Default occurs
      under Sections 7.1(b)
      or 7.1(c),
      all
      unpaid principal and accrued and unpaid interest on such Note, and all other
      amounts owing under this Agreement, shall automatically become immediately
      due
      and payable.

     

    8. Miscellaneous.

     

    8.1 Successors
      and Assigns.
      Except
      as otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      assigns of the parties, provided, however, that the Borrower may not assign
      its
      obligations under this Agreement without the written consent of the Servicer
      or
      Majority Note Holders (which shall not be unreasonably withheld), and no Lender
      may, without the written consent of the Borrower (which shall not be
      unreasonably withheld), assign all or any portion of a Note to any person or
      entity. Nothing in this Agreement, express or implied, is intended to confer
      upon any party other than the parties hereto or their respective successors
      and
      assigns any

      
        
          
          

        

        
          -7-

          
            

          

        

        
          
          

        

      

    rights,
      remedies, obligations or liabilities under or by reason of this Agreement,
      except as expressly provided in this Agreement.

     

    8.2 Governing
      Law.
      This
      Agreement and the Notes shall be governed by and construed under the laws of
      the
      State of Illinois as applied to agreements among Illinois residents, made and
      to
      be performed entirely within the State of Illinois. Any action to enforce this
      Agreement or any of the rights or obligations hereunder shall be litigated
      by
      bench trial, with all parties hereto waiving their right to trial by
      jury.

     

    8.3 Counterparts,
      Power of Attorney.
      This
      Agreement, and any of the other agreements, documents and instruments
      contemplated hereby, may be executed in two or more counterparts, whether by
      original, photocopy, facsimile or email pdf, each of which shall be deemed
      an
      original, but all of which together shall constitute one and the same
      instrument. Delivery of an executed signature page to this Agreement, and any
      of
      the other Agreements, documents and instruments contemplated hereby, by
      facsimile transmission shall be effective as delivery of a manually signed
      counterpart hereof or thereof. By execution of this Agreement, each Lender
      grants an irrevocable power of attorney to each of Thomas G. Hudson, Lee
      Wiskowski, Douglas Stukel and any Servicer named in the Note Administration
      and
      Security Agreement, and any officer of the Servicer (each an “Attorney”) to
      execute in the name, place and stead of each Lender and such Lender’s successors
      in interest: (i) the Note Administration and Security Agreement; and (ii) any
      document requiring the execution of the Lender related to any action to be
      taken
      by the Servicer on behalf of such Lender pursuant to the Note Administration
      and
      Security Agreement..

     

    8.4 Titles
      and Subtitles.
      The
      titles and subtitles used in this Agreement are used for convenience only and
      are not to be considered in construing or interpreting this
      Agreement.

     

    8.5 Notices.
      All
      notices and other communications given or made pursuant hereto shall be in
      writing and shall be deemed effectively given: (i) upon personal delivery to
      the
      party to be notified, (ii) when sent by confirmed electronic mail or facsimile
      if sent during normal business hours of the recipient, if not so confirmed,
      then
      on the next business day, (iii) five (5) days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid or
      (iv)
      one (1) day after deposit with a nationally recognized overnight courier,
      specifying next day delivery, with written verification of receipt. All
      communications shall be sent to the respective parties at the following
      addresses (or at such other addresses as shall be specified by notice given
      in
      accordance with this Section 8.5):

     

    
      	
              If
                to the Borrower:

            	
              Capital
                Growth Systems, Inc.

              50
                East Commerce Drive - Suite A

              Schaumburg,
                IL 60173

              Attention: Thomas
                Hudson, CEO

            
	
               

            	 
	
              If
                to Lenders:

            	
              At
                the respective addresses shown on the signature page
                hereof.

            

    

    

    
      
        
          
          

        

        
          -8-

          
            

          

        

        
          
          

        

      

    

     

    8.6 Expenses.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorneys’
fees, costs and necessary disbursements in addition to any other relief to
      which
      such party may be entitled. The Borrower shall pay all costs and expenses that
      it incurs with respect to the negotiation, execution, delivery and performance
      of this Agreement.

     

    8.7 Entire
      Agreement; Amendments and Waivers; Counsel.
      This
      Agreement and the Notes and the other documents delivered pursuant hereto
      constitute the full and entire understanding and agreement between the parties
      with regard to the subjects hereof and thereof. The Borrower’s agreements with
      each of the Lenders are separate agreements, and the sales of the Notes to
      each
      of the Lenders are separate sales. Nonetheless, any term of this Agreement
      or
      the Notes may be amended and the observance of any term of this Agreement or
      the
      Notes may be waived (either generally or in a particular instance and either
      retroactively or prospectively), with the written consent of the Borrower and
      either the Majority Note Holders. Any waiver or amendment effected in accordance
      with this Section 8.8
      shall be
      binding upon each party to this Agreement and any holder of any Note purchased
      under this Agreement at the time outstanding and each future holder of all
      such
      Notes. Each Lender has been advised by Shefsky & Froelich Ltd. (“SF”) that:
      (i) in preparation of this Agreement it has acted as counsel solely on behalf
      of
      the Company and not on behalf of any of the Lenders or the Servicer; (ii) in
      the
      past it may have represented one or more of the Lenders and may do so in the
      future with respect to matters other than the subject matter of this Agreement,
      which representation may be deemed to constitute a conflict of interest; (iii)
      it has advised each of the Lenders and the Servicer to retain separate counsel
      with respect to the subject matter of this Agreement; and (iv) the Illinois
      Code
      of Professional Responsibility requires SF to advise the Lenders and Servicer
      of
      this conflict of interest and to obtain the consent of the Company and of the
      Lenders and Servicer to SF’s representation of the Company with respect to this
      Agreement and future matters. By execution of this Agreement each Lender
      consents (and by execution of the Note Administration and Security Agreement,
      the Servicer consents) to SF’s representation of Company as aforesaid and
      further acknowledges and agrees that in the event of a dispute in the future
      between the Company and any of the Lenders, each of the Lenders agrees that
      it
      will not take any action to preclude SF from representing the Company in the
      future.

     

    8.8 Effect
      of Amendment or Waiver.
      Each
      Lender acknowledges that by the operation of Section 8.8
      hereof,
      the Majority Note Holders will have the right and power to diminish or eliminate
      all rights of such Lender under this Agreement and each Note issued to such
      Lender.

     

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

     

    8.10 Exculpation
      Among Lenders.
      Each
      Lender acknowledges that he, she or it is not relying upon any person, firm,
      corporation or stockholder, other than the Company and its officers and
      directors in their capacities as such, in making its investment or decision
      to
      invest in the Borrower. Each Lender agrees that no other Lender nor the
      respective controlling persons, officers, directors, partners, agents,
      stockholders or employees of any other Lender shall be liable for
      any
      action heretofore or hereafter taken or omitted to be taken by any of them
      in
      connection with the purchase and sale of the Securities.

      
        
          
          

        

        
          -9-

          
            

          

        

        
          
          

        

      

    IN
      WITNESS WHEREOF, the parties have executed this Global Bridge Note Purchase
      Agreement as of the date first above written.

     

    
      	
              BORROWER:

            	 	
              LENDERS:

            
	 	 	 
	
              Capital
                Growth Systems, Inc.

            	 	   

	 	 	
              [Signature]

            
	 	 	 
	
              By:

            	/s/
              Thomas Hudson   	 	   

	
              Its:

            	Chief
              Executive Officer    	 	
              [Print
                Name]

            
	 	 	 
	 	 	 
	 	 	
              Amount:

            	
              $

            	   
	
              (Cash);
                or

            
	 	 	 	
              $

            	   
	
              Value
                for other 

            
	 	 	 	 	
              consideration
                

            
	 	 	 	 	
              provided

            
	 	 	 
	 	 	
              Address:

            	  

	 	 	 	  

	 	 	 
	 	 	 
	 	 	   

	 	 	
              [Signature]

            
	 	 	 
	 	 	   

	 	 	
              [Print
                Name]

            
	 	 	 
	 	 	 
	 	 	
              Amount:

            	
              $

            	  
	
              (Cash);
                or

            
	 	 	 	
              $

            	   
	
              Value
                for other 

            
	 	 	 	 	
              consideration
                

            
	 	 	 	 	
              provided

            
	 	 	 
	 	 	
              Address:

            	   

	 	 	 	   

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    THIS
      NOTE
      AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF OR IN CONNECTION HEREWITH
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
      “SECURITIES ACT”), OR REGISTERED UNDER ANY STATE SECURITIES LAWS. THEY MAY NOT
      BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED
      EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED, (B) AN OPINION OF COUNSEL SATISFACTORY TO THE BORROWER
      THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT, OR (C) AN EXEMPTION
      FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER
      (IF
      AVAILABLE), IN EACH OF CASES (A) THROUGH (C) IN ACCORDANCE WITH ANY APPLICABLE
      STATE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.

     

    CGSI
      GLOBAL PROMISSORY NOTE

     

    
      	
              $

            	    
	 	
              __________,
                2006

            

    

    

    FOR
      VALUE
      RECEIVED, Capital
      Growth Systems, Inc.,
      a
      Florida corporation (the “Borrower”), hereby promises to pay to the order of
      [_________________(the “Lender”), the principal sum of __________________
      ($__________), together with interest thereon from the date of this Promissory
      Note (the “Note”). Simple interest shall accrue on the principal balance of this
      Note at eight percent (8%) per annum. The principal and accrued interest shall
      be due and payable by the Borrower on the Maturity Date. Following the Maturity
      Date the principal balance of this Note shall bear simple interest at ten
      percent (10%) per annum.

     

    This
      Note
      is one of the Notes issued pursuant to the Global Bridge Note Purchase Agreement
      dated as of November 30, 2006, pursuant to which this form of Note is attached
      as an exhibit (“Purchase Agreement”), and capitalized terms not defined herein
      shall have the meaning set forth in the Purchase Agreement.

     

    1. Payment.
      All
      payments shall be made in lawful money of the United States of America at the
      principal office of the Borrower, or at such other place as the holder hereof
      may from time to time designate in writing to the Borrower. Payment shall be
      credited first to Costs (as defined below), if any, then to accrued interest
      due
      and payable and any remainder applied to principal. Prepayment may be made
      in
      whole or part without penalty, and the Company shall fund prepayments as
      provided for in the Purchase Agreement. In connection with the delivery,
      acceptance, performance or enforcement of this Note, the Borrower hereby waives
      demand, notice, presentment, protest, notice of dishonor and other notice of
      any
      kind, and asserts to extensions of the time of payment, release, surrender
      or
      substitution of security, or forbearance or other indulgence, without notice.
      The Borrower agrees to pay all amounts under this Note without offset,
      deduction, claim, counterclaim, defense or recoupment, all of which are hereby
      waived.

     

    2. Amendments
      and Waivers; Resolutions of Dispute; Notice.
      The
      amendment or waiver of any term of this Note, the resolution of any controversy
      or claim arising out of or relating to this Note and the provision of notice
      shall be conducted pursuant to the terms of the Purchase Agreement.

     

    3. Successors
      and Assigns.
      This
      Note applies to, inures to the benefit of, and binds the successors and assigns
      of the parties hereto; provided, however, that the Borrower may not

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

    assign
      its obligations under this Note without the written consent of the Servicer
      or
      Majority Note Holders and the Lender may not, without the written consent of
      the
      Borrower (which shall not be unreasonably withheld), assign all or any portion
      of this Note to any person or entity. Any transfer of this Note may be effected
      only pursuant to the Purchase Agreement and by surrender of this Note to the
      Borrower and reissuance of a new note to the transferee, who agrees in writing
      in form satisfactory to Lender to be bound by the terms of the Purchase
      Agreement. The Lender and any subsequent holder of this Note receives this
      Note
      subject to the foregoing terms and conditions, and agrees to comply with the
      foregoing terms and conditions for the benefit of the Borrower and any other
      Lenders.

     

    4. Officers
      and Directors not Liable.
      In no
      event shall any officer or director of the Borrower or Servicer be liable for
      any amounts due and payable pursuant to this Note.

     

    5. Expenses.
      The
      Borrower and hereby agrees, subject only to any limitation imposed by applicable
      law, to pay all expenses, including reasonable attorneys’ fees and legal
      expenses, incurred by the holder of this Note (“Costs”) in endeavoring to
      collect any amounts payable hereunder which are not paid when due, whether
      by
      declaration or otherwise. The Borrower agrees that any delay on the part of
      the
      holder in exercising any rights hereunder will not operate as a waiver of such
      rights. The holder of this Note shall not by any act, delay, omission or
      otherwise be deemed to have waived any of its rights or remedies, and no waiver
      of any kind shall be valid unless in writing and signed by the party or parties
      waiving such rights or remedies.

     

    6. Governing
      Law.
      This
      Note shall be governed by and construed under the laws of the State of Illinois
      as applied to other instruments made by Illinois residents to be performed
      entirely within the State of Illinois. Any dispute with respect to this Note
      shall be litigated in the state or federal courts situated in Cook County,
      Illinois.

     

    7. Approval.
      The
      Borrower hereby represents that it has approved the Borrower’s execution of this
      Note based upon a reasonable belief that the principal provided hereunder is
      appropriate for the Borrower after reasonable inquiry concerning the Borrower’s
      financing objectives and financial situation. In addition, the Borrower hereby
      represents that it intends to use the principal of this Note primarily for
      the
      operations of its business, and not for any personal, family or household
      purpose.

     

    IN
      WITNESS WHEREOF, the Borrower has executed this Note on the day and year first
      above written.

     

    
      	 	 	
              Capital
                Growth Systems, Inc..

            
	 	 	 
	 	 	
              By:

            	   

	 	 	
              Its:

            	    

    

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

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

     

    
      	
              No.

            	    
	 	
              ____________,
                200_

            
	 	
              Chicago,
                Illinois

            

    

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    FORM
      OF GLOBAL BRIDGE NOTE WARRANT TO PURCHASE

     

    SERIES
      AA PREFERRED STOCK AT $1,000 PER PREFERRED SHARE, OR $0.45

    PER
      COMMON SHARE ON AS CONVERTED BASIS

     

    Void
      after December 31, 2009, Unless Extended

     

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

     

    1. Number
      of Warrant Shares; Exercise Price.
      This
      Warrant shall evidence the right of the Holder to purchase up to __________
      Warrant Shares (which number of Warrant Shares will remain fixed and is not
      subject to any adjustment except as provided in Section
      6
      below)
      at an initial exercise price per Warrant Share of $1,000 per share of Series
      AA
      Preferred Stock (i.e. $0.45 per share of Common Stock following the Amendment)
      (the “Exercise Price”), subject to adjustment as provided in Sections
      6 and  7
      below.

     

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

      
        
          
          

        

        
          B-1

          
            

          

        

        
          
          

        

      

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

     

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

     

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

     

    (d) The
      term
“Memorandum” shall mean the private placement memorandum dated November 14, 2006
      of the Company, as amended from time to time.

     

    (e) The
      term
“Offering Warrants” shall mean this Warrant and each other warrant issued to
      purchasers of Notes pursuant to the Global Bridge Note Purchase Agreement,
      to
      which this form of Warrant is attached as an Exhibit.

     

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

     

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

      
        
          
          

        

        
          B-2

          
            

          

        

        
          
          

        

      

    the
      Board
      of Directors and as set forth in Section
      7,
      and, if
      applicable, a new warrant evidencing the balance of the shares remaining subject
      to the Warrant.

     

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

     

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

     

    (b) In
      the
      event that Company issues New Securities for a consideration of less than $0.45
      per share of Common Stock (on an as converted to Common Stock basis, as adjusted
      per this Section
      5
      hereof)
      (the “Original Purchase Price”), or if the Original Purchase Price shall have
      been adjusted hereunder, and the Company issues New Securities for a purchase
      price below the adjusted Purchase Price, then the then-current Purchase Price
      shall be adjusted downward to a price determined by dividing

     

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

     

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

     

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

    
      
        
        

      

      
        B-3

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

    (c) Reclassification
      or Reorganization.
      If the
      Warrant Shares issuable upon the exercise of this Warrant shall be changed
      into
      the same or different number of shares of any class or classes of stock, whether
      by capital reorganization, reclassification or

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    (e) Notice
      of Record Dates; Adjustments.
      In the
      event of a Corporate Transaction, the Company shall provide to the Holder twenty
      (20) days advance written Notice of such Corporate Transaction. The Company
      shall promptly notify the Holder in writing of each adjustment or readjustment
      of the Exercise Price hereunder and the

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

    

     

    number
      of
      Warrant Shares issuable upon the exercise of this Warrant. Such Notice shall
      state the adjustment or readjustment and show in reasonable detail the facts
      on
      which that adjustment or readjustment is based, as well as whether this Warrant
      will be cancelable as specified above.

     

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

     

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

     

    
      	
              X
                =

            	
              Y
                (A - B)

            
	 	
              A

            

    

    

    
      	
              Where:

               

            	
              X
                =

               

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

               

            
	 	
              Y
                =

               

            	
              the
                number of Converted Warrant Shares;

               

            
	 	
              A
                =

               

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

               

            
	 	
              B
                =

               

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

               

            

    

    

    (b) No
      fractional shares shall be issuable upon cashless exercise of the Warrant,
      and
      if the number of shares to be issued determined in accordance with the foregoing
      formula is other than a whole number, the Company shall pay to the Holder
      an

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

    

     

    amount
      in
      cash equal to the fair market value of the resulting fractional share on the
      Conversion Date (as defined below). 

     

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

     

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

     

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

     

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

     

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

     

    8. Replacement
      of Warrants.
      On
      receipt by the Company of evidence reasonably satisfactory to the Company of
      the
      loss, theft, destruction or mutilation of this Warrant and, in the case of
      any
      such loss, theft or destruction of this Warrant, on delivery of an indemnity
      agreement reasonably satisfactory in form and amount to the Company or, in
      the
      case of any

      
        
          
          

        

        
          B-7

          
            

          

        

        
          
          

        

      

    such
      mutilation, on surrender and cancellation of such Warrant, the Company at its
      expense will execute and deliver to the Holder, in lieu thereof, a new Warrant
      of like tenor.

     

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

     

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

     

    11. Miscellaneous.

     

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

     

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

     

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

     

    (d) Attorneys’
      Fees.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Warrant, the prevailing party shall be entitled to reasonable

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

    

     

    attorneys’
      fees, costs and disbursements in addition to any other relief to which such
      party may be entitled.

     

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

     

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

     

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

     

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

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

      
        
          
          

        

        
          B-9

          
            

          

        

        
          
          

        

      

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

     

    
      	 	 	
              CAPITAL
                GROWTH SYSTEMS, INC.

            
	 	 	 
	 	 	 
	 	 	
              By:

            	   

	 	 	
              Name:

            	   

	 	 	
              Title:

            	   

	 	 	 
	 	 	 
	 	 	 
	 	 	
              HOLDER
                NAME:

            	   

	 	 	 
	 	 	
              Address:

            	   

	 	 	 	   

    

     

     

    
      
        
        

      

      
        B-10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION OF GLOBAL BRIDGE NOTE $0.45 WARRANT

     

    (To
      be signed only on exercise of Warrant)

     

    
      	
              To:

            	
              COMPANY
                NAME.

            

    

     

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

     

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

     

    

    
      	 	  
 	 
	 	
              (Name)

            	 
	 	 	 
	 	   
	 
	 	 	 
	 	   
	 
	 	
              (Address)

            	 

    

    

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

     

    
      	
              Dated:

            	   
	 	  

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

            
	 	 	 
	 	 	  

	 	 	
              (Print
                Name)

            
	 	 	 
	 	 	 
	 	 	
              Address:

            	  

	 	 	 	  

    

     

    
      
        
        

      

      
        B-A-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF ASSIGNMENT OF $0.45 WARRANT

     

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

     

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

     

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

     

    
      	
              Name:

            	   

	 	
              (Please
                Print)

            
	 
	
              Address:

            	   

	 	
              (Street)

            
	 	   

	 	
              (City)

            	
              (State)

            	
              (Zip
                Code)

            
	 
	
              Date:

            	    

	 
	 
	
              Holder’s
                Signature:

            	  

	 
	
              Holder’s
                Address:

            	   

	 	
              (Street)

            
	 	   

	 	
              (City)

            	
              (State)

            	
              (Zip
                Code)

            

    

    

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

    
      
        
        

      

      
        B-B-1

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    GLOBAL
      BRIDGE NOTE ADMINISTRATION AND SECURITY AGREEMENT

     

    THIS
      GLOBAL BRIDGE NOTE ADMINISTRATION AND SECURITY AGREEMENT dated as of December
      7,
      2006, is by and between Capital Growth Systems, Inc., a Florida corporation
      (“Company” or “Debtor”), David Lies (or his successor in interest) in his
      capacity as Servicer hereunder (“Servicer”) and each holder of a Global Bridge
      Note (each a “Note” and collectively, the “Notes,” and the holder of each Note
      being a “Holder” and collectively, the “Holders”) issued pursuant to the form of
      Global Bridge Note Purchase Agreement dated as of December 7, 2006 (“Purchase
      Agreement”) between Debtor and the purchasers executing counterpart copies
      thereof.

     

    RECITALS: 

     

    A. Company
      is in need of bridge financing to be funded by the Holders in accordance with
      the terms of the Purchase Agreement, the proceeds of which will be used by
      Company in whole or part to fund its acquisition of 100% of the capital stock
      of
      Global Capacity Group, Inc., a Texas corporation by way of merger of a wholly
      owned subsidiary of Company with Global Capacity Group, Inc. (the successor
      entity to such merger being hereinafter referred to as “Global”), and the
      balance to fund the working capital needs of Company and/or Global. The
      obligations of Company with respect to the Purchase Agreement are collectively
      referred to as the “Obligations,” which shall be secured by the security
      interest granted herein in 100% of the capital stock of the date of acquisition
      of Global by the Company, and accordingly Company by execution hereof agrees,
      in
      order to induce the funding of the Purchase Agreement, to enter into this
      Agreement.

     

    B. The
      parties desire to enter into this Agreement to set forth the terms and
      conditions governing the Obligations and related transactions (the
“Transactions”), and further to confirm acknowledgment that the Notes shall be
      secured by substantially the same Collateral, and be subject to administration
      as provided by the Servicer on behalf of all of the Holders pro rata in
      accordance with the Obligations. Servicer has agreed to act as collateral agent
      on behalf of all the Holders as set forth below.

     

    NOW,
      THEREFORE, in consideration of the foregoing, and for the covenants and
      agreements contained herein, the parties hereto agree as follows:

     

    1. Recitals.
      The
      recitals set forth above are incorporated by reference herein and made a part
      herewith as if fully rewritten.

     

    2. Loan
      to Debtor.
      Simultaneously with the execution of each counterpart to the Purchase Agreement,
      the Holder signing such counterpart shall loan the sum set forth below Holder’s
      signature on the signature page thereof for an amount agreed to between that
      Holder and Company, and with the sum set forth as to each Holder on the Purchase
      Agreement constituting that Holder’s “Loan” to the Company, and all of which are
      collectively referred to as the “Loans.” 

      
        
          
          

        

        
          C-1

          
            

          

        

        
          
          

        

      

    3. Grant
      of Security Interest.

     

    (a) As
      security for the Obligations, the Debtor hereby assigns to the Holders and
      grants to the Holders a continuing security interest in the following assets,
      whether now owned or hereafter existing or acquired by any of the Debtors
      (collectively, the “Collateral”): 100% of the capital stock (“Shares”) of Global
      and all proceeds therefrom and all dividends with respect thereto. Simultaneous
      with the execution hereof by Company, Company agrees to deliver to Servicer
      the
      stock certificate representing 100% of the capital stock of Global immediately
      upon the Company’s acquisition of Global, together with an assignment separate
      from certificate duly executed in blank. If Company now is or hereafter becomes
      entitled (with or without additional consideration) to other or additional
      securities related to the capital stock of Global as the result of any corporate
      reorganization, merger, consolidation, stock split, stock dividend, conversion,
      preemptive right, partnership action, distribution or otherwise, such additional
      securities shall constitute a portion of the Collateral and be subject to this
      Agreement in the same manner and to the same extent as the Shares are with
      respect to this Agreement. Company shall deliver to Servicer or its designees
      any certificates and assignments separate from certificate endorsed in blank
      with respect to all of the securities referenced in the preceding
      sentence.

     

    (b) The
      security interest of each Holder under this Agreement extends to all Collateral
      of the kind which is the subject of this Agreement. By counterpart execution
      hereof, each Holder hereby appoints Servicer to act as his, her or its
      collateral agent with respect to the Collateral called for hereunder and with
      respect to the enforcement of the rights of the Holders as more fully set forth
      below, with any such action taken to be taken on behalf of all of the Holders
      on
      a pro rata basis based upon the percentage of total Obligations owing to each
      of
      the Holders from time to time (the percentage as to each Holder being the
      Holder’s “Ownership Percentage”). All references herein to “Servicer” shall
      include the Servicer named above or any successor person or entity appointed
      by
      written consent signed by Holders holding a majority of the outstanding unpaid
      principal with respect to the Notes from time to time (such majority in interest
      being the “Majority Holders” and each such successor being named by the Majority
      Holders hereinafter sometimes referred to as a “Successor Servicer”), and in the
      event the Servicer ceases to serve for any reason and there is no Successor
      Servicer, then all actions to be taken by Servicer on behalf of the Holders
      shall be valid if taken at the direction of the Majority Holders, which action
      shall be binding upon all of the Holders if taken by a duly appointed Servicer,
      Successor Servicer or the Majority Holders.

     

    (c) Each
      Debtor hereby authorizes the Servicer on behalf of the Holders to file such
      Uniform Commercial Code financing statements and such other public or private
      filings as the Servicer deems necessary and proper to evidence or perfect the
      Holders’ security interest in the Collateral, including but not limited to, such
      filings as the Servicer deems necessary and proper to file with the Office
      of
      the Florida Secretary of State. Debtor hereby grants to Servicer (and any
      successor Servicer as called for hereunder) an irrevocable power of attorney
      to
      execute any of the documents referenced in this Section
      3(c)
      in the
      name, place and stead of Debtor, as Holder deems necessary and proper. This
      power of attorney is coupled with an interest.

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

       

    

    4. Company
      Covenants.
      From
      and after the date hereof and so long as any amount remains unpaid on any of
      the
      Notes, except to the extent compliance in any case or cases is waived in writing
      by the Holder, Debtor hereby covenants and agrees with Servicer on behalf of
      each of the Holders as follows:

     

    (a) Servicer
      and each Holder or their respective designees shall at all reasonable times
      have
      full access to, and the right to audit, check, inspect and make abstracts and
      copies from Debtor’s and Global’s books, records and audits. Servicer, each
      Holder and their respective designees shall keep all such information obtained
      from Debtor and Servicer confidential.

     

    (b)
       Debtor
      will at any times and from time to time upon request of Servicer take or cause
      to be taken any action and execute, acknowledge, deliver or record any further
      documents, opinions, security agreements or other instruments which Servicer
      in
      his reasonable discretion deems necessary or appropriate to carry out the
      purposes of this Agreement and to preserve, protect and perfect the security
      intended to be created and preserved in the Collateral and to establish,
      preserve and protect the security interest of Holders in and to the
      Collateral.

     

    (c) Except
      as
      set forth in Section
      3(d),
      above
      or as otherwise permitted by Servicer or by Holders by written consent of
      Majority Holders, Debtor shall not sell, transfer, convey or otherwise dispose
      of any of the Collateral or any of the assets of Global other than dispositions
      of inventory in the ordinary course of business.

     

    5. Default.
      Any one
      of the following shall constitute an Event of Default hereunder: 

     

    (a) Company
      fails to make a payment when due under any Note;

     

    (b) Company
      fails to timely perform or observe any term, covenant or agreement contained
      in
      this Agreement or the Global Bridge Note Purchase Agreement;

     

    (c) Any
      representation or warranty made by Debtor herein is false in any material
      respect on the date hereof; 

     

    (d) 
      Debtor
      or Global suspends the operation of its business;

     

    (e) 
      Debtor
      or Global becomes the subject of state insolvency proceedings, or makes an
      assignment for the benefit of creditors; or a receiver, trustee, custodian
      or
      other similar official is appointed for, or takes possession of any substantial
      part of the property of Debtor or Global; or

     

    (f) 
      Debtor
      or Global takes corporate action to authorize such organization to become the
      subject of proceedings under the United States Bankruptcy Code or the execution
      by Debtor or Global of a petition to become a debtor under the United States
      Bankruptcy Code or the filing of any involuntary petition against Debtor or
      Global under the United States Bankruptcy Code which remains undismissed for
      a
      period of 30 days; or the entry of an order for relief under the United States
      Bankruptcy Code against Debtor or Global.

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    (g) Whenever
      an Event of Default shall be existing hereunder, Servicer on behalf of Holders
      may exercise from time to time any rights and remedies available to any Holder
      under applicable law. Any notification of and intended disposition of any of
      the
      Collateral required by law shall be deemed reasonable if properly given at
      least
      ten (10) days before such disposition. Any proceeds of any disposition by
      Servicer on behalf of the Holders of the Collateral may be applied by Servicer
      to the payment of expenses in connection with the Collateral, including
      reasonable attorneys' fees and legal expenses of Servicer, and any balance
      of
      such proceeds may be applied by Servicer toward the payment of the Notes, pro
      rata among the Holders in accordance with the Ownership Percentages
      (i.e.,
      the
      relative outstanding principal amounts of the varying Notes).

     

    Debtor
      hereby appoints Servicer its true and lawful attorney, irrevocably, with full
      power after the occurrence of an Event of Default, to act, require, demand,
      receive, compound and give acquittance for any and all monies and claims for
      monies due or to become due to Debtor or Global under or arising out of the
      Collateral, to endorse any checks or other instruments or orders in connection
      therewith and to file any claims or take any actions or institute any
      proceedings which Servicer may deem to be necessary or advisable in the
      premises, which appointment as attorney is coupled with an
      interest.

     

    6. Specific
      Rights and Obligations of Servicer.

     

    (a) Appointment
      of Servicer.
      Holders
      appoint Servicer to act as their attorney in fact to take all actions to enforce
      the rights of the Holders under the Notes, including, without limitation, the
      institution of and prosecution of lawsuits and taking all other actions relating
      to the enforcement of the Holders’ rights. Servicer shall maintain a list of
      Holders outstanding from time, which Servicer shall append hereto in counterpart
      as Exhibit A.

     

    (b) Default
      Under Notes.
      Upon
      Servicer’s receipt of notice from a Holder (which may be an Affiliate of
      Servicer) or from Company that Company has defaulted in its obligations under
      any of the Notes or this Agreement, which default is not timely cured, the
      Servicer shall promptly send written notice to each of the Holders of the Notes
      which describes the nature of the default. Such notice shall also include one
      or
      more possible courses of action to be pursued in connection with such default,
      which action may include but not be limited to any of the following: (i)
      extension of due date and/or payment date with respect to the Notes; (ii)
      release of Collateral; (iii) subordination of Notes; (iv) other modifications
      to
      Notes’ terms; and (v) conversion of Notes to equity. The Servicer shall take the
      action which is approved in writing by the Majority Holders; provided,
      however,
      the
      Servicer need not take any proposed action unless he receives from the Holders
      a
      sufficient advance payment (pro rata based on the principal balance of
      outstanding Notes) against prospective fees to render him comfortable in
      undertaking such action. Should any Holder not pay the Holder’s proportionate
      share of any Servicer fee assessment, then such Holder shall nonetheless be
      liable therefor (on a nonrecourse basis, to the extent of the value of the
      Holder’s Note) and further directs the Company and Servicer to deduct and pay
      over to the Servicer, together with interest at twelve percent (12%) per annum,
      such amount from the next proceeds payable to such Holder with respect to the
      Holder’s Note.

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

       

    

    (c) Compensation
      of a Servicer.
      In
      consideration for performing his duties under this Agreement, the Company agrees
      to pay Servicer in the case of a default, a fee of equal to Servicer’s regular
      hourly rates which Servicer may charge for services plus reimbursement for
      all
      out-of-pocket costs including fees and expenses of attorneys and other
      associated professionals as may be retained by Servicer for purposes of
      providing its services. The Holders direct the Company and Servicer to deduct
      and pay over to Servicer and his associated service providers any amounts
      payable by the Holders from the first proceeds otherwise payable to each Holder
      to the extent such Holder has not advanced his pro rata share thereof to
      Servicer.

     

    (d) Written
      Direction Upon Majority Holders.
      In
      carrying out its duties under this Agreement, the Servicer shall abide by the
      direction of the Majority Holders and not in number of the Holders. Unless
      the
      direction from the Majority Holders indicates otherwise, a direction to the
      Servicer to enforce the rights of the Holders under the Notes shall authorize
      the Servicer to pursue, or elect not to pursue, one or more remedies as the
      Servicer, in his sole discretion, shall determine. The Holders acknowledge
      that
      the Servicer and/or his affiliates may hold a majority-in-interest of the Notes
      individually or in concert with a minority of the remaining Holders, which
      may
      provide Servicer the ability to determine the cause of action in question.
      The
      parties further acknowledge that any net proceeds after costs and expenses
      that
      are realized with respect to collection of the Notes shall be allocated pro
      rata
      among all Holders based upon the outstanding sums due to them from time to
      time
      with respect to the Notes.

     

    (e) Voting.
      All
      actions and votes of the Holders required or permitted under the terms of this
      Agreement or the Notes shall be conducted pursuant to either written consent
      by
      the Majority Holders or a vote per the following terms and
      provisions:

     

    (i) The
      Holder of each Note shall have the right to cast the number of votes determined
      by dividing the outstanding principal balance of the Note of such Holder by
      1,000.

     

    (ii) All
      votes
      of the Holders shall be taken with or without a meeting, as determined by the
      Servicer. In connection with each vote (where written consent is not sought
      by
      Servicer), the Servicer shall provide each Holder the following:

     

    (1) a
      ballot
      providing for each Holder to cast the Holders’ number of votes for or against
      each matter being voted upon;

     

    (2) a
      statement that each Holder’s ballot must be received by the Servicer within
      fifteen (15) days from the date on which such ballots are deposited in the
      United States mail, postage prepaid, or otherwise delivered to the Holders;
      and

     

    (3) an
      envelope self-addressed to the Servicer.

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    (iii) All
      ballots must be returned to the Servicer not later than the date indicated
      above. Ballots received after such fifteen (15) day period shall be considered
      void.

     

    (iv) No
      later
      than ten (10) days after the date indicated on the ballot pursuant to
Section 6(f)(2)(b)
      above
      the Servicer shall count the votes. All votes returned or received after the
      fifteen (15) day period shall not be counted. The Servicer shall, within ten
      (10) days after tallying the votes, notify the Holders of the outcome of said
      vote by written notice. Notwithstanding the foregoing, if holders of a
      Majority-in-Interest of the Holders’ Notes approve a proposed course of action,
      the Servicer may take such action immediately and need not wait until subsequent
      votes are tallied.

     

    (v) Should
      a
      deadline fall on a weekend or holiday, the applicable time period shall be
      extended to the end of the next business day.

     

    7. Amendment
      to Notes, Security Agreement.
      In
      addition to the enforcement actions referenced above, each Holder agrees that
      the Majority Holders of the Notes shall have the right to act on behalf of
      each
      Holder:

     

    (a) modify
      the terms of all the Notes, which modifications include but are not limited
      to
      extension of the due date of the Notes, modification of the interest called
      for
      thereunder or the conversion to equity of the Notes or any portion
      thereof;

     

    (b) modify
      the term of the this Agreement, including coverage and for release of the
      Collateral therefor or modify the terms of the Purchase Agreement;
      and

     

    (c) enter
      into such forms of subordination agreement or standstill agreement as the
      Servicer deems necessary and proper. By execution of this Agreement, each Holder
      grants to Servicer and his successors and assigns (each an “Attorney”) an
      irrevocable power of attorney to execute in such Holder’s name, place and stead
      any document said Attorney deems necessary and proper to carryout the purpose
      or
      intent of this Agreement or any actions contemplated hereunder, including but
      not limited to each of :

     

    (i) any
      future amendments to the Notes, this Agreement or the Purchase
      Agreement;

     

    (ii) any
      intercreditor agreement they deem necessary and proper;

     

    (iii) any
      amendments to any of the foregoing; and

     

    (iv) such
      form
      of UCC-3 amendment or termination to financing statement and such form of
      comparable document or notice filing and such form of debenture as necessary
      to
      perfect the Holder’s security interest in the Collateral.

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

     

    8. Notices.
      All
      notices required or permitted to be given in writing and may be delivered
      personally to the person to whom it is authorized to be given, or sent by
      registered, certified or first class mail, postage paid, addressed as follows
      (or such other address as the party entitled to notice shall provide to the
      other parties hereto from time to time):

     

    
      	
              To
                Debtor:

            	
              c/o
                Capital Growth Systems, Inc.

              50
                E. Commerce Drive - Suite A

              Schaumburg,
                IL 60173

            
	 	 
	 	 
	
              To
                each Holder or the Servicer:

            	
              At
                the address of record in the Company’s
                offices.

            

    

    

    9. Indemnification
      of Servicer; Conflicts of Interest.
      Holders
      acknowledge that Servicer is acting as their agent and attorney in fact as
      set
      forth above and each agrees to indemnify, hold harmless and defend Servicer,
      (and if an entity, its officers, directors and employees), agents, attorneys,
      subcontractors and assigns (collectively, the “Indemnitees) against all claims,
      actions, damages and expenses of any kind arising out of or in connection with
      the Servicer’s actions taken under this Agreement, or services taken with
      respect to this Agreement or reasonably believed to be in the scope of the
      Indemnitee’s authority, provided that the Indemnitee in question has not acted
      with willful misconduct or fraud in connection with its actions.

     

    10. Successors.
      Should
      Servicer wish to resign from its responsibilities hereunder, he may do so upon
      delivery of five (5) days’ prior notice to the parties hereto; in such event or
      should the Holders seek to elect a new party to assume Servicer’s obligations
      hereunder, they may do so upon approval in writing of the Majority Holders
      and
      delivery of notice to Servicer and to the Company, which shall promptly
      disseminate said notice to the other parties hereto.

     

    11. Removal.
      The
      Majority Holders may remove the Servicer and/or replace the Servicer with a
      Substitute Servicer. Any such removal shall be effective only after ten (10)
      days’ prior written notice is provided to Servicer that the removal has been
      approved (or such shorter period of time as is mutually agreed by Servicer
      and
      the Holders).

     

    12. General.

     

    (a) Debtor
      agrees to pay all expenses (including reasonable attorneys' fees and legal
      expenses) paid or incurred by Servicer on behalf of the Holders in endeavoring
      to collect the Notes, and in enforcing this Agreement. No delay on the part
      of
      Servicer on behalf of the Holders in the exercise of any rights or remedies
      shall operate as a waiver thereof, and no single or partial exercise by Holder
      of any right or remedy shall preclude other or further exercise thereof or
      the
      exercise of any other right or remedy.

     

    (b) This
      Agreement shall remain in full force and effect until the payment in full of
      the
      Notes or the conversion of the Notes into equity in the sole discretion of
      the
      Holder of each Note. This Agreement has been delivered at Chicago, Illinois,
      and
      shall be construed in accordance with and governed by the internal laws of
      the
      State of Illinois. Any dispute with respect to this Agreement shall be litigated
      in the state or federal courts situated in Cook County, Illinois to which
      jurisdiction and venue all parties consent, and shall be adjudicated by bench
      trial, with all parties waiving their right to trial by jury. The rights and
      privileges of Holder hereunder shall inure to the benefit of their respective
      successors and assigns.

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

     

    (c) This
      Agreement contains the entire agreement among the parties hereto with respect
      to
      the matters set forth herein. This Agreement shall be binding upon and inure
      to
      the benefit of the parties hereto and their successors and assigns.

     

    (d) This
      Agreement may be executed in any number of counterparts and by the different
      parties hereto and on separate counterparts and each such counterpart shall
      be
      deemed to be an original, but all such counterparts shall together constitute
      one and the same agreement. 

     

    (e) The
      Company shall reimburse the Servicer for his reasonable costs, including
      attorneys’ fees, in connection with the documentation, review and negotiation of
      this Transaction, including costs for the formation of the Holder as a limited
      liability company.

     

    13. Counsel.
      THE
      PARTIES ACKNOWLEDGE AND AGREE THAT SHEFSKY & FROELICH (“S&F”) IS ACTING
      SOLELY IN ITS CAPACITY AS COUNSEL FOR COMPANY WITH RESPECT TO THE TRANSACTIONS
      CONTEMPLATED HEREIN AND NOT ON BEHALF OF ANY HOLDER OR SERVICER. THE TERMS
      OF
      SECTION 8.7 OF THE GLOBAL BRIDGE NOTE PURCHASE AGREEMENT REGARDING CONFLICTS
      OF
      INTEREST ARE INCORPORATED BY REFERENCE HEREIN AND MADE A PART HEREOF AS IF
      FULLY
      REWRITTEN. 

      
        
          
          

        

        
          C-8

          
            

          

        

        
          
          

        

      

    IN
      WITNESS WHEREOF, this Global Bridge Note Administration and Security Agreement
      has been duly executed as of the day and the year first above
      written.

     

    
      	
              DEBTOR:

            	 	
              HOLDER
                (executing other than per power of 

            
	 	 	
              attorney):

            
	
              CAPITAL
                GROWTH SYSTEMS, INC.

            	 	 
	 	 	   

	 	 	
              [Print
                Name]

            
	
              By:

            	  
	 	 
	
              Its:

            	   
	 	
              By:

            	  

	 	 	
              Its:

            	   

	 	 	 
	 	 	
              Principal
                Amount of Note:

            	
              $

            	   

	 	 	 
	 	 	 
	 	 	 	
              HOLDERS
                LISTED ON EXHIBIT
                A
                (pursuant

            
	 	 	 	
              to
                Power of Attorney in favor of the undersigned 

            
	 	 	
              on
                behalf of all such Holders):

            
	 	 	 
	 	 	
              By:

            	   

	 	
              Its:

            	   

	 	 	 
	 	 	 
	 	 	
              SERVICER:

            
	 	 	 
	 	 	   

	 	 	
              David
                Lies

            
	 	 	 

    

     

    
      
        
        

      

      
        C-9

        
          

        

      

      
        
        

      

       

    

    Schedule
      to Exhibit 10.01

    

    The
      agreements listed below are substantially identical to this exhibit and are
      not
      being filed separately as exhibits pursuant to Rule 12b-31 promulgated under
      the
      Exchange Act.

    

    
      	
              Thomas
                Hudson

            	
              $500,000

            	
              December
                7, 2006

            
	
              Thomas
                Hudson IRA

            	
              $500,000

            	
              December
                7, 2006

            
	
              Michael
                Balkin

            	
              $400,000

            	
              December
                7, 2006

            
	
              David
                Lies

            	
              $2,000,000

            	
              December
                7, 2006

            
	
              Alex
                Meruelo Living Trust

            	
              $1,300,000

            	
              December
                7, 2006

            

    

     

    
      
        
        

      

      C-10

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