Document:

EXHIBIT
      10.02

     

    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
      CENTREPATH PROMISSORY NOTE

     

    
      	
              $

            	
              1,000,000

            	 	
              November
                30, 2006

            

    

    

    FOR
      VALUE
      RECEIVED, Capital
      Growth Systems, Inc.,
      a
      Florida corporation (the “Borrower”), hereby promises to pay to the order of
Thomas
      G.
      Hudson (the “Lender”), the principal sum of One
      Million ($1,000,000), 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 CentrePath 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 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.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

       

    

    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:

            	/s/
              Thomas Hudson
	 	 	
              Its:

            	Chief
              Executive Officer

    

    

      Schedule
        to Exhibit 10.02

    

     

    
      
        	
                David
                  Lies

              	
                $1,000,000

              	
                November
                  30, 2006

              
	
                Don
                  Larsen

              	
                $1,000,000

              	
                November
                  30, 2006

              
	
                Robert
                  Geras

              	
                $2,350,000

              	
                November
                  30, 2006

              
	
                George
                  Mellon

              	
                $2,350,000

              	
                November
                  30, 2006

              

      

       

    

    
      
        
        

      

      
        A-2EXHIBIT
      10.03

     

    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.

            	 	 	
              November
                30, 2006

            
	 	
              Chicago,
                Illinois

            

    

    

    CAPITAL
      GROWTH SYSTEMS, INC.

     

    CENTREPATH
      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, Thomas G. Hudson (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 675.00675
      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 CentrePath 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 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.

     

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    (b) In
      the
      event that Company issues New Securities for a consideration of less than $0.45
      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 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.

     

    
      
        
        

      

      
        B-4

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    
      
        
        

      

      
        B-5

        
          

        

      

      
        
        

      

       

    

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

     

    
      
        
        

      

      
        B-6

        
          

        

      

      
        
        

      

       

    

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        B-7

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    11. Miscellaneous.

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        B-8

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    (g) Governing
      Law.
      This
      Warrant shall be governed by and construed and enforced in accordance with
      the
      laws of the State of 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 CentrePath Bridge Note Warrant
      to
      be executed by its duly authorized officer as of the date first written
      above.

     

    
      	 	 	
              CAPITAL
                GROWTH SYSTEMS, INC.

            
	 	 	 
	 	 	 
	 	 	
              By:

            	/s/
              Derry L. Behm
	 	 	
              Name:

            	Derry
              L. Behm
	 	 	
              Title:

            	Chief
              Financial Officer
	 	 	 
	 	 	 
	 	 	 
	 	 	
              HOLDER
                NAME:

            	Thomas
              Hudson
	 	 	 
	 	 	
              Address:

            	 
	 	 	 	 

    

     

    
      Schedule
        to Exhibit 10.03

       

      
        	
                David
                  Lies

              	
                225.00225

              	
                November
                  30, 2006

              
	
                Don
                  Larsen

              	
                225.00225

              	
                November
                  30, 2006

              
	
                Robert
                  Geras

              	
                545.63046

              	
                November
                  30, 2006

              
	
                George
                  Mellon

              	
                545.63046

              	
                November
                  30, 2006

              

      

       

    

    
      
        
        

      

      
        B-10

        
          

        

      

       

    

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION OF CENTREPATH 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

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