Document:

EXHIBIT 10.12

NEITHER THIS WARRANT NOR THE WARRANT SHARES  ISSUABLE UPON EXERCISE  HEREOF HAVE
BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES
ACT") OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM
THE  REGISTRATION  REQUIREMENTS OF THE SECURITIES ACT AND SUCH OTHER  SECURITIES
LAWS.  NEITHER  THIS  WARRANT  NOR THE SHARES OF  WARRANT  STOCK  ISSUABLE  UPON
EXERCISE  HEREOF MAY BE SOLD,  PLEDGED,  TRANSFERRED,  ENCUMBERED  OR  OTHERWISE
DISPOSED OF EXCEPT  PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM  REGISTRATION  UNDER THE
PROVISIONS OF THE SECURITIES ACT.

                          GREEN MOUNTAIN CAPITAL, INC.

                          Common Stock Purchase Warrant

       (Expiring on the fifth anniversary of the date of issuance hereof)

This is to certify that, for value received and subject to the conditions herein
set forth,  Sandgrain  Securities,  Inc.  (the  "Warrantholder")  is entitled to
purchase,  at a price per share of  Twenty-five  Cents  ($0.25)  per share,  Six
Hundred  Thousand  (60,000) shares of common stock,  par value $0.0001 per share
(the "Common Stock"), of Green Mountain Capital, Inc., a Nevada corporation (the
"Company"),  subject to  adjustment as provided  below (such shares  purchasable
upon exercise of this Warrant are herein called the "Warrant Stock"). The amount
per  share  specified  above,  as  adjusted  from time to time  pursuant  to the
provisions  hereinafter set forth,  is herein called the "Purchase  Price." This
Warrant will be immediately  exercisable and may be exercised  anytime after its
issuance.  In the event of a exercise of this Warrant,  the Warrantholder  shall
surrender  this  Warrant to the  Company  with  payment of the  Purchase  Price,
together  with a notice of exercise  (the date of such  surrender  being  herein
referred to as the "Date of  Exercise"),  in which event the Company shall issue
to the Warrantholder the number of shares of Warrant Stock.

1. By acceptance of this Warrant,  the Warrantholder  agrees, for itself and all
subsequent holders,  that prior to making any disposition of this Warrant or any
shares of Warrant  Stock,  the  Warrantholder  shall give written  notice to the
Company describing briefly the manner in which any such proposed  disposition is
to be made;  and no such  disposition  shall be made  unless  and  until (i) the
Company has received an opinion of counsel satisfactory to it to the effect that
no  registration  under the Securities  Act of 1933, as amended (the "Act"),  is
required with respect to such disposition; or (ii) a registration statement with
respect to the  Warrant or the  Warrant  Stock has been filed by the Company and
declared effective by the Securities and Exchange Commission (the "Commission").

<PAGE>

2. (a) If outstanding  shares of the Company's  Common Stock shall be subdivided
into a greater  number of shares  thereof or a dividend in Common Stock shall be
paid in respect of Common Stock, the Purchase Price in effect  immediately prior
to such subdivision or at the record date of such dividend shall  simultaneously
with the  effectiveness of such subdivision or immediately after the record date
of such  dividend be  proportionately  reduced and  conversely,  if  outstanding
shares  of  Common  Stock  shall be  combined  into a  smaller  number of shares
thereof,  the Purchase  Price in effect  immediately  prior to such  combination
shall,   simultaneously   with  the  effectiveness  of  such   combination,   be
proportionately  increased.  When any  adjustment  is required to be made in the
Purchase  Price,  the  number of shares of  Common  Stock  purchasable  upon the
exercise of this Warrant  shall be changed to the number  determined by dividing
(i) an amount equal to the number of shares issuable pursuant to the exercise of
this Warrant  immediately  prior to such  adjustment  multiplied by the Purchase
Price in effect immediately prior to such adjustment, by (ii) the Purchase Price
in effect immediately after such adjustment.

                                       2
<PAGE>

      (b) If there shall occur any capital reorganization or reclassification of
the Company's Common Stock (other than a change in par value or a subdivision or
combination as provided for in subparagraph (a) above),  or any consolidation or
merger of the Company  with or into another  corporation,  or in the case of any
sale,  transfer or other  disposition  to another  person,  corporation or other
entity of all or substantially all the property,  assets, business and good will
of the  Company  as an  entirety,  then,  as  part of any  such  reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition, as
the case may be, lawful  provision shall be made so that the registered owner of
this Warrant shall have the right thereafter to receive upon the exercise hereof
the kind and amount of shares of stock or other  securities  or  property  which
said registered owner would have been entitled to receive if,  immediately prior
to any  such  reorganization,  reclassification,  consolidation,  merger,  sale,
transfer or other  disposition,  as the case may be, said  registered  owner had
held the number of shares of Common Stock which were then  purchasable  upon the
exercise  of  this  Warrant.  In  any  such  case,  appropriate  adjustment  (as
determined  by the  Board  of  Directors  of the  Company)  shall be made in the
application  of the  provisions  set forth herein with respect to the rights and
interests  thereafter  of the  registered  owner of this  Warrant  such that the
provisions set forth herein (including  provisions with respect to adjustment of
the Purchase Price) shall  thereafter be applicable,  as nearly as is reasonably
practicable,  in relation to any shares of stock or other securities or property
thereafter deliverable upon the exercise of this Warrant.

      (c) In case the  Company  shall  declare a dividend  upon shares of Common
Stock  payable  otherwise  than out of earnings or earned  surplus and otherwise
than in shares of Common Stock or in stock or obligations directly or indirectly
convertible into or exchangeable for Common Stock, the Warrantholder shall, upon
exercise  of this  Warrant in whole or in part,  be  entitled  to  purchase,  in
addition to the number of shares of Common Stock  deliverable upon such exercise
against   payment  of  the  Purchase  Price   therefor,   but  without   further
consideration,  the cash, stock or other securities or property which the holder
of Warrant would have received as dividends (otherwise than out of such earnings
or earned  surplus  and  otherwise  than in  shares  of Common  Stock or in such
convertible or exchangeable  stock or  obligations),  if continuously  since the
date set forth above such holder (i) had been the holder of record of the number
of shares of Common Stock  deliverable  upon such exercise and (ii) had retained
all dividends in stock or other securities (other than shares of Common Stock or
such  convertible  or  exchangeable  stock or  obligations)  paid or  payable in
respect of said number of shares of Common Stock or in respect of any such stock
or other  securities so paid or payable as such dividends.  For purposes of this
subparagraph  (c), a dividend payable otherwise than in cash shall be considered
to be  payable  out of  earnings  or earned  surplus  and shall be charged in an
amount equal to the fair value of such  dividend as  determined  by the Board of
Directors of the Company.

                                       3
<PAGE>

      (d) In case at any time:

      (i) the Company shall pay any cash or stock dividend upon its Common Stock
or make any distribution to the holders of its Common Stock; or

      (ii) the Company shall offer for  subscription  pro rata to the holders of
its  Common  Stock  any  additional  shares  of stock of any  class or any other
rights; or

      (iii)  the  Company  shall  effect  any  capital   reorganization  or  any
reclassification  of or change in the  outstanding  capital stock of the Company
(other than a stock split, a change in par value, or a change  resulting  solely
from a subdivision or combination of outstanding shares of Common Stock), or any
consolidation or merger,  or any sale,  transfer or other  disposition of all or
substantially all its property,  assets,  business and good will as an entirety,
or the liquidation, dissolution or winding up of the Company; or

                                       4
<PAGE>

      (iv) the Company  shall declare a dividend upon shares of its Common Stock
payable  otherwise  than out of earnings or earned  surplus or otherwise than in
shares  of Common  Stock or any  stock or  obligations  directly  or  indirectly
convertible into or exchangeable for Common Stock;

then,  in any such case,  the Company  shall cause at least  fifteen  (15) days'
prior notice thereof to be furnished to the Warrantholder at the address of such
holder  shown on the books of the  Company.  Such notice  shall also specify the
date on which the books of the Company  shall close,  or a record be taken,  for
such stock dividend,  distribution or subscription  rights, or the date on which
such reclassification,  reorganization,  consolidation,  merger, sale, transfer,
disposition,  liquidation, dissolution, winding up, or dividend, as the case may
be, shall take place,  and the date of  participation  therein by the holders of
Common  Stock if any such date is to be fixed,  and  shall  also set forth  such
facts with  respect  thereto as shall be  reasonably  necessary  to indicate the
effect of such action on the rights of the Warrantholder.

      (e) When any adjustment is required to be made in the Purchase Price,  the
Company shall promptly mail to the Warrantholder a certificate setting forth the
Purchase Price after such  adjustment and setting forth a brief statement of the
facts requiring such adjustment.  Such certificate shall also set forth the kind
and amount of stock or other  securities  or  property  into which this  Warrant
shall be exercisable  following the occurrence of any of the events specified in
subparagraphs (b) or (c) above.

                                       5
<PAGE>

      (f) The Company shall not be required upon the exercise of this Warrant to
issue any fractional shares, but shall make any adjustment therefor on the basis
of the mean  between the closing  low bid and closing  high asked  prices on the
over-the-counter  market as reported by the National  Association  of Securities
Dealers  Automated  Quotations  System or the closing market price on a national
securities exchange on the trading day immediately prior to exercise,  whichever
is  applicable  or, if  neither is  applicable,  then on the basis of the market
value of any such fractional  interest as shall be reasonably  determined by the
Company.

      (g) The Company will,  within 120 days after the end of each of its fiscal
years,  mail to the  registered  holder of this  Warrant at the  address of such
holder  shown on the books of the  Company a  certificate  (if the  Company  has
engaged  independent public  accountants,  such certificate shall be prepared by
such independent public accountants) (i) specifying the Purchase Price in effect
as of the end of such fiscal year and the number of shares of Common  Stock,  or
the kind and  amount of any  securities  or  property  other than  Common  Stock
purchasable  by the holder of this Warrant and (ii) setting  forth in reasonable
detail the facts requiring any adjustments made during such fiscal year.

3. The  Company  agrees  that (i) a number of  shares of Common  Stock and other
securities  and property  sufficient to provide for the exercise of this Warrant
upon the basis  hereinbefore  set forth  shall at all times  during  the term of
Warrant be reserved  for the exercise  hereof,  and (ii) during the term of this
Warrant,  it will keep current in filing any forms and other materials  required
to be filed with the Commission  pursuant to the Act and the Securities Exchange
Act of 1934, as amended.

                                       6
<PAGE>

      2. 4. (a) Exercise of the purchase rights  represented by this Warrant may
be made at any time or times on or after the closing of the offering, and before
the close of business on the  Termination  Date by the surrender of this Warrant
and the Notice of Exercise  Form or Notice of  Cashless  Exercise  Form  annexed
hereto duly  executed,  at the office of the  Company  (or such other  office or
agency of the Company as it may designate by notice in writing to the registered
Warrantholder hereof at the address of such Warrantholder appearing on the books
of the Company) and upon payment of the Exercise  Price of the Warrant  Stock as
provided herein the Warrantholder shall be entitled to receive a certificate for
the number of Warrant Stock so purchased. Certificates for the shares of Warrant
Stock purchased hereunder shall be delivered to the Warrantholder  hereof within
twenty (20) trading  days after the date on which this  Warrant  shall have been
exercised as aforesaid.  This Warrant shall be deemed to have been exercised and
such  certificate or certificates  shall be deemed to have been issued,  and the
Warrantholder  or any other person so  designated  to be named  therein shall be
deemed to have become a Warrantholder  of record of such shares of Warrant Stock
for all  purposes,  as of the date the Warrant has been  exercised by payment to
the  Company  of the  Exercise  Price and all taxes  required  to be paid by the
Warrantholder,  if any,  pursuant  to  Section 4 prior to the  issuance  of such
shares of Warrant Stock, have been paid.

      (b)  Payment may be made  either (i) in cash or by  certified  or official
bank check payable to the order of the Company equal to the applicable aggregate
Exercise  Price,  (ii) by delivery  of the  Warrant,  or shares of Common  Stock
and/or  shares of Warrant  Stock  receivable  upon  exercise  of the  Warrant in
accordance  with Section  3(c) below,  or (iii) by a  combination  of any of the
foregoing  methods,  for the number of shares of Warrant Stock specified in such
Exercise  Notice (as such  exercise  number  shall be  adjusted  to reflect  any
adjustment  in  the  total  number  of  shares  Warrant  Stock  issuable  to the
Warrantholder  per the  terms  of this  Warrant)  and  the  Warrantholder  shall
thereupon be entitled to receive the number of duly authorized,  validly issued,
fully-paid  and  non-assessable  shares of Common Stock  determined  as provided
herein.

                                       7
<PAGE>

      (c)  Notwithstanding  any provisions  herein to the contrary,  if the Fair
Market Value of one share of Common Stock is greater than the Exercise Price (at
the date of calculation as set forth below),  in lieu of exercising this Warrant
for cash, the  Warrantholder  may elect to receive shares equal to the value (as
determined  below) of this Warrant (or the portion  thereof being  exercised) by
surrender of this Warrant at the principal  office of the Company  together with
the  properly  endorsed  Notice of  Cashless  Exercise  Form in which  event the
Company  shall issue to the  Warrantholder  a number of shares of Warrant  Stock
computed using the following formula:

                                 X=Y   (A-B)
                                       -----
                                        (A)

      Where:

      X =   the  number  of  shares  of  Warrant  Stock  to  be  issued  to  the
            Warrantholder on such exercise

      Y =   the number of shares of Warrant Stock  purchasable under the Warrant
            or, if only a portion of the Warrant is being exercised, the portion
            of the Warrant being exercised (at the date of such calculation)

      A =   the Fair Market Value of one share of the Company's Common Stock (at
            the date of such calculation)

      B =   Exercise Price (as adjusted to the date of such calculation)

                                       8
<PAGE>

(d) "Fair Market  Value" shall mean the average  4:00 PM Eastern  Standard  Time
closing bid price of the Company's  Common Stock as quoted on the Nasdaq OTC:BB,
Pink Sheets or other  national  market or exchange as reflected on the Bloomberg
quotation  system  ("Closing  Bid") on the three (3)  trading  days  immediately
following the date of receipt of the Notice of Cashless Exercise Form.

(e)  Notwithstanding  anything  herein to the  contrary,  each  certificate  for
Warrant Stock issued  hereunder  shall bear a legend  reading  substantially  as
follows  (unless the Company  receives an opinion of counsel  satisfactory to it
that such a legend is not required in order to assure compliance with the Act).

      THE SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS
      OF ANY STATE. THESE SHARES MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR
      HYPOTHECATED  UNLESS  THERE IS AN EFFECTIVE  REGISTRATION  STATEMENT
      UNDER SUCH ACT  COVERING  SUCH  SHARES OR THE  COMPANY  RECEIVES  AN
      OPINION  OF  COUNSEL  FOR THE  HOLDER  OF  THESE  SHARES  REASONABLY
      SATISFACTORY  TO THE  COMPANY,  STATING  THAT SUCH  SALE,  TRANSFER,
      ASSIGNMENT  OR  HYPOTHECATION  IS EXEMPT FROM THE  REGISTRATION  AND
      PROSPECTUS  DELIVERY  REQUIREMENTS OF SUCH ACT AND FROM REGISTRATION
      OR QUALIFICATION REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS.

5. All shares of Common Stock or other securities delivered upon the exercise of
this  Warrant  shall be validly  issued,  fully paid and  nonassessable  and the
Company  will pay all taxes,  if any, in respect of the  issuance  thereof  upon
exercise of this Warrant.

6. (a) Subject to the  provisions  of  Paragraph 1 hereof,  this Warrant and all
rights hereunder are transferable on the books of the Company, upon surrender of
this Warrant,  with the form of assignment  attached hereto duly executed by the
registered  holder hereof or by his attorney duly authorized in writing,  to the
Company at its principal  office  hereinabove  referred to, and thereupon  there
shall be issued in the name of the  transferee or  transferees,  in exchange for
this Warrant, a new warrant or warrants or like tenor and date,  representing in
the aggregate the right to subscribe for and purchase the number of shares which
may be subscribed for and purchased hereunder.

                                       9
<PAGE>

      (b) If this Warrant shall be lost,  stolen,  mutilated or  destroyed,  the
Company,  on such terms as to indemnify or otherwise as it may in its discretion
reasonably  impose,  shall issue a new warrant of like  denomination,  tenor and
date as this  Warrant so lost,  stolen,  mutilated  or  destroyed.  Any such new
warrant  shall  constitute  an original  contractual  obligation of the Company,
whether or not the allegedly lost, stolen,  mutilated or destroyed warrant shall
be at any time enforceable by anyone.

      (c) The Company may deem and treat the  registered  holder of this Warrant
as the absolute owner of this Warrant for all purposes and shall not be affected
by any notice to the contrary.

      (d) This Warrant,  including all the rights and obligations granted to the
Warrantholder  hereunder,  shall be specifically enforceable against the Company
by the  Warrantholder,  in addition to and not by way of  substitution  for, any
other remedies available to the Warrantholder, at law or in equity.

      (e) This  Warrant,  in all  events,  shall be wholly void and of no effect
after the fifth anniversary of the date of issuance of this Warrant.

                                       10
<PAGE>

7. The  Warrantholder  shall not, by virtue of  ownership  of this  Warrant,  be
entitled to any rights  whatsoever of a shareholder  of the Company,  but shall,
upon written request to the Company,  be entitled to receive quarterly or annual
reports, or any other reports to shareholders of the Company.

IN WITNESS  WHEREOF,  the Company  has caused this  Warrant to be executed as of
November 14, 2006, by its duly authorized officer.

                                        GREEN MOUNTAIN CAPITAL, INC.

                                        By: /s/ Charlie Yiasemis
                                            President & Chief Executive Officer

                                       11
<PAGE>

                               NOTICE OF EXERCISE

To:   Green Mountain Capital, Inc.

      (i) The  undersigned  hereby elects to purchase  ________ shares of Common
Stock (the "Warrant  Stock"),  of Green Mountain  Capital,  Inc. pursuant to the
terms of the  attached  Warrant,  and tenders  herewith  payment of the exercise
price in full, together with all applicable transfer taxes, if any.

      (ii) Please issue a certificate or certificates  representing  said shares
of  Warrant  Stock in the name of the  undersigned  or in such  other name as is
specified below:

                        ________________________________________________________
                        (Name)

                        ________________________________________________________
                        (Address)

                        ________________________________________________________

                        ________________________________________________________
                        Social Security or Tax Identification Number

                        Dated: _________________________

                        ________________________________________
                        Signature

                        ________________________________________
                        Print Name

                                       12
<PAGE>

                           NOTICE OF CASHLESS EXERCISE

To:   Green Mountain Capital, Inc.

            (1) The  undersigned  hereby elects to purchase the number of shares
of Common Stock (the "Warrant Stock"),  of Green Mountain  Capital,  Inc. as are
purchasable  pursuant  to the terms the  formula  set forth in  Section 4 of the
attached Warrant,  and makes payment therefore in full by surrender and delivery
of this Warrant.

            (iii) (2) Please issue a certificate  or  certificates  representing
said  shares of Warrant  Stock in the name of the  undersigned  or in such other
name as is specified below:

                        ________________________________________________________
                        (Name)

                        ________________________________________________________
                        (Address)

                        ________________________________________________________

                        ________________________________________________________
                        Social Security or Tax Identification Number

                                        Dated: _________________________

                        ________________________________________
                        Signature

                        ________________________________________
                        Print Name

                                       13
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

            FOR VALUE RECEIVED,  the foregoing  Warrant and all rights evidenced
thereby are hereby assigned to ___________________________________________ whose
address is ________________________________________________________________
________________________________________________________________________________

Dated: ________________________

                           Holder's Signature:
                           -----------------------------------------------------

                           Holder's Address:
                           -----------------------------------------------------

                           -----------------------------------------------------

Signature Guaranteed:

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.EXHIBIT
      10.1

    

    PURCHASE
      AGREEMENT

    

    This
      PURCHASE AGREEMENT (the “Agreement”), by and between Augustine Fund, L.P., an
      Illinois limited partnership (“Augustine”), Capital Growth Systems, Inc., a
      Florida corporation (“CGSY”) and Michael Balkin (“Balkin”) and David Lies
      (“Lies”) (each of Balkin and Lies, also a “Guarantor” and collectively the
“Guarantors”) is entered into as of July 28, 2006 (the “Agreement
      Date”).

     

    RECITALS:

    

    WHEREAS,
      Augustine is the holder of the following promissory notes issued by 20/20
      Technologies, Inc. (“20/20 Inc.”), 20/20 Technologies, LLC, and Magenta Netlogic
      Limited d/b/a/ CSB Global, Ltd. (collectively, the “Debtors”) issued pursuant to
      that certain Augustine Loan and Security Agreement dated January 13, 2005,
      between the Debtors and Augustine, as amended on June 22, 2005 (the “Loan
      Agreement”) in the aggregate original principal amount of $1,600,000
      (collectively the “Notes”):

     

    
      	
              First
                Tranche Convertible Promissory Note dated January 13, 2005

              (as
                amended by Allonge) (the “First Note”)

            	 	
              $

            	
              500,000

            	 
	 	 	 	 	 
	
              Second
                Tranche Convertible Promissory Note, dated February 10, 2005

              (the
                “Second Note”)

            	 	
              $

            	
              500,000

            	 
	 	 	 	 	 
	
              Third
                Tranche - First Advance Promissory Note,

              dated
                June 22, 2005 (the “Third Note”)

            	 	
              $

            	
              200,000

            	 
	 	 	 	 	 
	
              Third
                Tranche - Second Advance Promissory Note,

              dated
                July 1, 2005 (the “Fourth Note”)

            	 	
              $

            	
              200,000

            	 
	 	 	 	 	 
	
              Third
                Tranche - Third Advance Promissory Note,

              dated
                August 1, 2005 (the “Fifth Note”)

            	 	
              $

            	
              200,000

            	 

    

    

    WHEREAS,
      Augustine holds the Notes subject to the provisions of that certain Amended
      and
      Restated Intercreditor Agreement dated as of September 20, 2005 (the
“Intercreditor Agreement”); 

     

    WHEREAS,
      the
      First Note, the Third Note, and a portion of the Fifth Note equal to $188,888.88
      of the underlying principal amount of the Fifth Note shall be deemed the “CGSY
      Notes” (totaling $888,888.88 in principal), and the Second Note, the Fourth Note
      and a portion of the Fifth Note equal to $11,111.12 of the underlying principal
      amount of the Fifth Note shall be deemed the “Guarantor Notes” (totaling
      $711,111.12 in principal);

     

    WHEREAS,
      Augustine also holds warrants to acquire an aggregate of 2,055,747 shares of
      Series C Preferred Shares of 20/20 Inc. as set forth on Schedule 1
      (collectively, the “Warrants”). The “Second Warrant”, the “Fourth Warrant” and a
      portion of the “Fifth Warrant” (each as defined in Schedule 1 attached hereto)
      in an amount equal to the same proportion of the underlying principal amount
      of
      the Fifth Note purchased by the Guarantors hereunder (totaling 14,277 shares
      of
      the Fifth Warrant and collectively, totaling 913,666 shares) shall be deemed
      the
“Guarantor Warrants.” The remaining balance of each Warrant (totaling 1,142,081
      shares) shall be deemed the “CGSY Warrants”; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    WHEREAS,
      Augustine desires to sell to each of Balkin and Lies an equal portion of the
      Guarantor Notes and the Guarantor Warrants, and Balkin and Lies each desire
      to
      purchase from Augustine an equal portion of the Guarantor Notes and the
      Guarantor Warrants, on the terms and conditions set forth below;

     

    WHEREAS,
      Augustine desires to sell to CGSY the CGSY Notes and the CGSY Warrants, and
      CGSY
      desires to purchase from Augustine the CGSY Notes and the CGSY Warrants, on
      the
      terms and subject to the conditions set forth below;

     

    NOW,
      THEREFORE,
      in
      consideration of the foregoing, the mutual promises, covenants and agreements
      of
      the parties hereto set forth herein, and other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged by each party
      hereto, the parties hereby agree as follows:

     

    
      	1.  	
              Sale
                and Purchase of the Guarantor Notes and Warrants.
                At the Initial Closing (as defined in Section 2
                below), Augustine shall sell, assign and deliver to the Guarantors,
                the
                Guarantor Notes and the Guarantor Warrants, free and clear of any
                and all
                liens, claims, pledges, security interests and other encumbrances
                of any
                kind or nature, and the Guarantors shall purchase the Guarantor Notes
                and
                the Guarantor Warrants, for the amount specified in Section 3
                below.

            

    

     

    
      	2.  	
              Initial
                Closing Date.
                Subject to the conditions set forth in Section 12.1, the closing
                of the
                sale and purchase of the Guarantor Notes and the Guarantor Warrants
                (the
                “Initial Closing”) shall be held at 3:00 p.m., Chicago time, on July 28,
                2006 or such other date that the foregoing conditions have been satisfied
                (or waived) in accordance with the terms hereof (such date and time
                of the
                Closing being referred to as the “Initial Closing Date”) and will be
                deemed to be effective at the end of that business day. The Closing
                will
                take place at the offices of Kelley Drye & Warren LLP, 333 W. Wacker,
                Chicago, Illinois 60606, or such other location as the parties shall
                agree. 

            

    

     

    
      	3.  	
              Guarantor
                Purchase Price.
                For the Guarantor Notes and the Guarantor Warrants, the Guarantors
                shall
                deliver to Augustine a cash
                payment in the amount of $800,000 (the “Guarantor Purchase Price”). Each
                Guarantor shall purchase 50% of the Guarantor Notes and the Guarantor
                Warrants and pay 50% of the Guarantor Purchase
                Price.

            

    

     

    
      	4.  	
              Deliverables
                at the Initial Closing.

            

    

     

    4.1.  By
      Augustine.
      At the
      Initial Closing, Augustine shall take or have taken or caused the following
      actions and deliver the following executed documents and other deliverables:
      

     

    4.1.1.  Augustine
      shall deliver to the Guarantors the Guarantor Notes and the Guarantor Warrants,
      accompanied by duly executed assignment documents, sufficient to transfer such
      instruments, pending receipt of the Guarantor Purchase Price; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.1.2.  Augustine
      shall deliver to the Guarantors such other documents, instruments or consents
      as
      shall be reasonably requested by the Guarantors to effectuate or confirm the
      transactions contemplated by this Agreement; and

     

    4.1.3.  Augustine
      shall assign to the Guarantors all of its rights, obligations and interest
      under
      the Loan Agreement and the Intercreditor Agreement related to the Guarantor
      Notes and the Guarantor Warrants.

     

    4.2.  By
      the
      Guarantors.
      At the
      Closing, CGSY shall take or have taken or caused the following actions and
      deliver the following executed documents and other deliverables:

     

    4.2.1.  Each
      Guarantor shall deliver to Augustine 50% of the Purchase Price; and

     

    4.2.2.  Each
      Guarantor shall deliver such other documents, instruments or consents as shall
      be reasonably requested by Augustine to effectuate or confirm the transactions
      contemplated by this Agreement. 

     

    4.3.  UCC
      Filings.
      Promptly following the Initial Closing, Augustine will make, or authorize the
      Guarantors to make, filings as necessary under the Uniform Commercial Code
      to
      reflect the assignment to the Guarantors of Augustine’s security interest in
      certain assets of the Debtors.

     

    
      	5.  	
              Sale
                and Purchase of the CGSY Notes and Warrants.
                At the Second Closing (as defined in Section 6 below), Augustine
                shall sell, assign and deliver to CGSY, the CGSY Notes and the CGSY
                Warrants, free and clear of any and all liens, claims, pledges, security
                interests and other encumbrances of any kind or nature, and CGSY
                shall
                purchase the CGSY Notes and the CGSY Warrants, for the amount specified
                in
                Section 7 below.

            

    

     

    
      	6.  	
              Second
                Closing Date.
                Subject to the conditions set forth in Section 12.2, the closing
                of the
                sale and purchase of the CGSY Notes and the CGSY Warrants (the “Second
                Closing”) shall be held at 3:00 p.m., Chicago time, on August 31, 2006 or
                such other date that the foregoing conditions have been satisfied
                (or
                waived) in accordance with the terms hereof (such date and time of
                the
                Closing being referred to as the “Second Closing Date”) and will be deemed
                to be effective at the end of that business day. The Closing will
                take
                place at the offices of Kelley Drye & Warren LLP, 333 W. Wacker,
                Chicago, Illinois 60606, or such other location as the parties shall
                agree. 

            

    

     

    
      	7.  	
              CGSY
                Purchase Price.
                For the CGSY Notes and the CGSY Warrants, CGSY shall deliver to Augustine
                a cash payment in the amount of $1,000,000 (the “CGSY Purchase Price”). In
                further consideration of the Augustine entering into this Agreement,
                CGSY
                shall upon execution of this Agreement, issue a warrant to purchase
                150,000 shares of common stock of CGSY in the form attached hereto
                as
                Exhibit A (the “Warrant”) to Augustine or its affiliated designee(s).
                

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	8.  	
              Deliverables
                at the Second Closing.

            

    

     

    8.1.  By
      Augustine.
      At the
      Second Closing, Augustine shall take or have taken or caused the following
      actions and deliver the following executed documents and other deliverables:
      

     

    8.1.1.  Augustine
      shall deliver to CGSY the CGSY Notes and the CGSY Warrants, accompanied by
      duly
      executed assignment documents, sufficient to transfer such instruments, pending
      receipt of the CGSY Purchase Price; 

     

    8.1.2.  Augustine
      shall assign to CGSY all of its rights, obligations and interest under the
      Loan
      Agreement and the Intercreditor Agreement as related to the CGSY Notes and
      the
      CGSY Warrants; and

     

    8.1.3.  Augustine
      shall deliver such other documents, instruments or consents as shall be
      reasonably requested by CGSY to effectuate or confirm the transactions
      contemplated by this Agreement.

     

    8.2.  By
      CGSY.
      At the
      Second Closing, CGSY shall take or have taken or caused the following actions
      and deliver the following executed documents and other
      deliverables:

     

    8.2.1.  CGSY
      shall deliver to Augustine the CGSY Purchase Price; and

     

    8.2.2.  CGSY
      shall assume all of Augustine’s rights, obligations and interest under the Loan
      Agreement and the Intercreditor Agreement; and

     

    8.2.3.  CGSY
      shall deliver such other documents, instruments or consents as shall be
      reasonably requested by Augustine to effectuate or confirm the transactions
      contemplated by this Agreement.

     

    8.3.  UCC
      Filings.
      Promptly following the Second Closing, Augustine will make, or authorize CGSY
      to
      make, filings as necessary under the Uniform Commercial Code to reflect the
      assignment to CGSY of Augustine’s security interest in certain assets of the
      Debtors.

     

    
      	9.  	
              Representations
                and Warranties of Augustine.
                Augustine hereby represents and warrants to CGSY and each of the
                Guarantors, as of the Agreement Date, the Initial Closing Date and
                the
                Second Closing Date as follows: 

            

    

     

    9.1.  Augustine
      is the beneficial owner of the Guarantor Notes, the CGSY Notes, the CGSY
      Warrants and the Guarantor Warrants and has full and complete title thereto
      with
      absolute right to sell them, and there are no liens, pledges, chattel mortgages,
      or other encumbrances of any kind against any of the Notes or the
      Warrants;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9.2.  There
      are
      no undisclosed interests, present or future, in the Guarantor Notes, the CGSY
      Notes, the Guarantor Warrants or the CGSY Warrants, nor does Augustine know
      of
      any assertion of such an interest, or of any fact or circumstances that would
      give any person any such present or future interest or entitle any person to
      assert such an interest;

     

    9.3.  There
      is
      no provision of any contract, indenture, or other instrument to which Augustine
      is a party or to which any of the Guarantor Notes, the CGSY Notes, the Guarantor
      Warrants or the CGSY Warrants are subject that would prevent, limit, or
      condition the sale or transfer of such instruments;

     

    9.4.  Augustine
      has the right, power, legal capacity and authority to execute and enter into
      this Agreement and to execute all other documents and perform all other acts
      to
      be executed or performed by it as may be necessary in connection with the
      performance of this Agreement; 

     

    9.5.  Neither
      the execution and delivery of any of this Purchase Agreement by Augustine,
      nor
      the consummation of the transactions contemplated therein, nor performance
      of
      and compliance with the terms and provisions thereof will violate any law,
      legal
      order or other legal requirement applicable to Augustine; 

     

    9.6.  No
      approval or consent not heretofore obtained by any person or entity is necessary
      in connection with the execution of this Agreement or the consummation of the
      transactions contemplated hereby; and

     

    9.7.  Augustine
      acknowledges that the Notes are currently in default and that the current value
      of the Warrants is questionable. Augustine represents and warrants that all
      remedies are available with respect to the Notes and the Warrants and Augustine
      has granted no waiver of any its rights under the Notes or with respect to
      any
      default with respect to such Notes.

     

    
      	10.  	
              Representations
                and Warranties of each Guarantor.
                Each Guarantor, severally but not jointly, hereby represents and
                warrants
                to Augustine, as of the Agreement Date, the Initial Closing Date
                and the
                Second Closing Date as follows:

            

    

     

    10.1.  There
      is
      no provision of any contract, indenture, or other instrument to which such
      Guarantor is a party that would prevent, limit, or condition its purchase of
      the
      Guarantor Notes or the Guarantor Warrants, or his obligations under Section
      13
      hereof;

     

    10.2.  Such
      Guarantor has the right, power, legal capacity and authority to execute and
      enter into this Agreement and to execute all other documents and perform all
      other acts to be executed or performed by him as may be necessary in connection
      with the performance of this Agreement; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.3.  No
      approval or consent not heretofore obtained by any person or entity is necessary
      in connection with the execution of this Agreement or the consummation of the
      transactions contemplated hereby; and

     

    10.4.  Guarantor
      understands that the Notes are currently in default and that the current value
      of the Warrants is questionable. Guarantor is not relying on Augustine for
      any
      information regarding, and Guarantor has performed his own due diligence with
      respect to, the Debtors and their business and prospects, the collateral
      securing the Notes, and the prospects of repayment and/or continued default
      with
      respect to the Notes.

     

    
      	11.  	
              Representations
                and Warranties of CGSY.
                CGSY hereby represents and warrants to Augustine, as of the Agreement
                Date, the Initial Closing Date and the Second Closing Date as
                follows:

            

    

     

    11.1.  There
      is
      no provision of any contract, indenture, or other instrument to which CGSY
      is a
      party that would prevent, limit, or condition its purchase of the CGSY Notes
      or
      the CGSY Warrants;

     

    11.2.  CGSY
      has
      the right, power, legal capacity and authority to execute and enter into this
      Agreement and to execute all other documents and perform all other acts to
      be
      executed or performed by him as may be necessary in connection with the
      performance of this Agreement; 

     

    11.3.  No
      approval or consent not heretofore obtained by any person or entity is necessary
      in connection with the execution of this Agreement or the consummation of the
      transactions contemplated hereby. 

     

    11.4.  CGSY
      understands that the Notes are currently in default and that the current value
      of the Warrants is questionable. CGSY is not relying on Augustine for any
      information regarding, and CGSY has performed its own due diligence with respect
      to, the Debtors and their business and prospects, the collateral securing the
      Notes, and the prospects of repayment and/or continued default with respect
      to
      the Notes.

     

    
      	12.  	
              Conditions
                to Each Closing.
                

            

    

     

    12.1.  Initial
      Closing.
      

     

    12.1.1.  The
      obligations of Augustine to effect the transactions contemplated by the Initial
      Closing shall be conditioned on (i) the representations and warranties of CGSY
      and the Guarantors being true and accurate when made and as of the date of
      the
      Initial Closing, and (ii) CGSY being ready and able to deliver all deliverables
      specified in Section 4.2. 

     

    12.1.2.  The
      obligations of the Guarantors to effect the transactions contemplated by the
      Initial Closing shall be conditioned on (i) the representations and warranties
      of Augustine being true and accurate when made and as of the date of the Initial
      Closing, and (ii) Augustine being ready and able to deliver all deliverables
      specified in Section 4.1. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    12.2.  Second
      Closing.

     

    12.2.1.  The
      obligations of Augustine to effect the transactions contemplated by the Second
      Closing shall be conditioned on (i) the representations and warranties of CGSY
      and the Guarantors being true and accurate when made and as of the date of
      the
      Initial Closing, and (ii) CGSY being ready and able to deliver all deliverables
      specified in Section 8.2.

     

    12.2.2.  The
      obligations of CGSY to effect the transactions contemplated by the Second
      Closing shall be conditioned on (i) the representations and warranties of
      Augustine being true and accurate when made and as of the date of the Initial
      Closing, and (ii) Augustine being ready and able to deliver all deliverables
      specified in Section 8.1. 

     

    12.3.  Waiver.
      

     

    12.3.1.  The
      conditions set forth in Sections 12.1.1 and 12.2.1 are for Augustine’s sole
      benefit and may be waived by Augustine at any time, in its sole discretion,
      by
      providing the applicable counterparty with prior written notice thereof.

     

    12.3.2.  The
      conditions set forth in Sections 12.1.2 and 12.2.2 are for CGSY’s and the
      Guarantors’ benefit, and may be waived upon prior written notice to Augustine;
      provided, however, that in such event Augustine shall not be required to proceed
      with either the Initial Closing or the Second Closing unless any such waiver
      is
      countersigned by CGSY and each Guarantor.

     

    
      	13.  	
              Guarantee.
                

            

    

     

    13.1.  Each
      Guarantor, jointly and severally, hereby (i) unconditionally and irrevocably
      guarantees to Augustine, the punctual payment of the CGSY Purchase Price (the
      “Guaranteed Obligations”), and (ii) agrees to pay, upon demand, any and all
      reasonable expenses (including reasonable counsel fees and expenses) incurred
      by
      Augustine in enforcing any rights under this Section 13. In the event that
      Augustine has satisfied all conditions set forth in Section 12.2.2, and the
      Second Closing has not occurred by 3:00 p.m. on August 31, 2006, Augustine
      shall
      notify the Guarantors who shall satisfy such payment obligations within two
      (2)
      business days of deemed receipt of such notice.

     

    13.2.  The
      liability of each Guarantor shall not be affected or impaired by any of the
      following acts or things: (i)  any waiver or indulgence granted in respect
      of, or any delay or lack of diligence in the enforcement of, any of the
      Guaranteed Obligations, or any failure to institute proceedings, file a claim,
      give any required notice or otherwise protect any of the Guaranteed Obligations;
      (ii) any full or partial release of, settlement with or agreement not to
      sue any person in respect of any of the Guaranteed Obligations; or
      (iii) any discharge of any evidence of any of the Guaranteed Obligations or
      any acceptance of any instrument or substitution therefore; provided, that
      any
      such substitute instrument provides for identical terms as the original
      instrument. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    13.3.  The
      liability of each Guarantor hereunder shall be irrevocable, absolute and
      unconditional, irrespective of, and each Guarantor hereby irrevocably waives
      any
      defenses it may now or hereafter have in any way relating to, any or all of
      the
      following: (i) any lack of validity or enforceability of this Agreement or
      any
      agreement or instrument relating hereto which may be available to any person
      liable in respect of any of the Guaranteed Obligations; or (ii) the existence
      of
      any claim, set-off, defense that such Guarantor may have at any time against
      any
      Person.

     

    13.4.  Each
      Guarantor hereby waives (i) promptness and diligence, (ii) notice of
      acceptance, and any other notice, with respect to any of the Guaranteed
      Obligations, (iii) any requirement that Augustine exhaust any right or take
      any action against CGSY, (iv) any right to compel or direct Augustine to
      seek payment or recovery of any amounts owed from any one particular fund or
      source or to exhaust any right or take any action against CGSY or any other
      person, (v) any requirement that Augustine exhaust any right or take any
      action against CGSY or any other person and (vi) any other defense
      available to such Guarantor.

     

    13.5.  The
      provisions of this Section 13 shall (i) remain in full force and effect until
      the date on which all of the Guaranteed Obligations shall have been indefeasibly
      paid in full in cash, (ii) be binding upon each Guarantor and its successors
      and
      assigns and (iii) inure to the benefit of and be enforceable by Augustine and
      its permitted successors, pledgees, transferees and assigns.

     

    
      	14.  	
              Miscellaneous.

            

    

     

    14.1.  Confidentiality
      and Information Sharing.
      The
      parties to this Agreement agree to keep the financial terms of the transactions
      contemplated hereby confidential and will limit disclosure of such information
      (i) to professional advisors, and (ii) as required for the filing of tax
      returns; provided that CGSY may announce such transactions pursuant to a press
      release to be mutually agreed upon and make such other filings with the
      Securities and Exchange Commission as its counsel may deem necessary or
      advisable for purposes of complying with CGSY’s public disclosure
      obligations.

     

    14.2.  Amendment;
      Waiver.
      No
      amendment, modification or alteration of the terms or provisions of this
      Agreement, including waiver of any term or provision, shall be binding unless
      the same shall be in writing and duly executed by all of the parties
      hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14.3.  Assignment.
      This
      Agreement may not be assigned by any of the parties hereto without the prior
      written consent of all the other parties hereto, and any attempted assignment
      without such consent shall be deemed null and void and of no force or
      effect.

     

    14.4.  Binding
      Agreement.
      This
      Agreement is binding upon and will inure to the benefit of the parties, and
      their respective heirs, executors, agents, legal representatives, successors
      and
      assigns, if any.

     

    14.5.  Entire
      Agreement.
      This
      Agreement, including the exhibits attached hereto, constitutes the entire
      agreement between the parties with respect to the sale and purchase of the
      Debenture and the other transactions described herein and contemplated hereby,
      and supersedes all prior and contemporaneous promises, communications and
      agreements, whether verbal or written, with respect thereto.

     

    14.6.  Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      for
      all purposes be deemed to be an original and all of which together shall
      constitute the same instrument.

     

    14.7.  Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the internal
      laws and decisions of the State of Illinois, other than its principles of
      conflicts of laws. The parties agree that all actions and proceedings arising
      out of or related to this Agreement and the transactions contemplated hereby
      shall be brought only in a state or federal court located in Cook County,
      Illinois, and the parties hereby consent to such venue and to the jurisdiction
      of such courts over the subject matter of such proceeding and
      themselves.

     

    14.8.  Notices.
      All
      notices and other communications required or desired to be given pursuant to
      this Agreement will be given in writing and will be deemed duly given upon
      personal delivery, or on the third day after mailing if sent by registered
      or
      certified mail, postage prepaid, return receipt requested, or on the day after
      mailing if sent by a nationally recognized overnight delivery service which
      maintains records of the time, place and recipient of delivery, and in each
      case
      if addressed as follows:

     

    14.8.1.  If
      to
      Augustine, then to:

     

    Augustine
      Fund, L.P.

    c/o
      Augustine Capital Management, LLC

    Attn:
      Tom
      Duszynski, COO

    141
      West
      Jackson Boulevard - suite 2182

    Chicago,
      Illinois 60604

    

    14.8.2.  If
      to
      either Guarantor, then to:

     

    c/o
      Michael Balkin

    1145
      Green Bay Road

    Glencoe,
      Illinois 60022

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    14.8.3.  If
      to
      CGSY, then to:

     

    
      Capital
        Growth Systems, Inc.

      
        50
          East
          Commerce Dr., Suite A

      

      
        Schaumburg,
          Illinois 60173

      

    

    
 

    or
      to
      such other person, entity or address as either party may respectively designate
      in like manner, from time to time.

     

    14.9.  Severability.
      If any
      provision contained herein is held to be invalid or unenforceable by a court
      of
      competent jurisdiction, such provision will be severed herefrom and such
      invalidity or unenforceability will not affect any other provision of this
      Agreement, the balance of which will remain in and have its intended full force
      and effect.

     

    14.10.  Survival.
      All of
      the terms, representations, warranties and other provisions of this Agreement
      shall survive and remain in effect after the Closing Date.

     

    14.11.  
      Appropriate Actions; Further Assurances.
      Upon
      reasonable request of any party to another party hereto, such other party shall
      promptly execute and deliver, without payment of any additional consideration,
      any other assurances or additional documents or instruments necessary, proper
      or
      advisable, and take such additional action as the requesting party may
      reasonably request, to consummate the transactions contemplated by, and to
      carry
      out fully the purposes of, this Agreement.

     

    14.12.  No-Shop.
      In
      consideration for the considerable time, effort and expense to be undertaken
      by
      CGSY and each of the Guarantors in connection with transactions contemplated
      hereby, from the Agreement Date through August 31, 2006, Augustine will not,
      directly or indirectly, through any representative or otherwise, solicit or
      entertain offers from, negotiate with or in any manner encourage, discuss,
      accept, or consider any proposal of any other person or entity relating to
      the
      acquisition of the Guarantor Notes, the CGSY Notes, the Guarantor Warrants
      or
      the CGSY Warrants in whole or in part, whether directly or indirectly. Augustine
      shall immediately notify CGSY and each of the Guarantors regarding any contact
      between Augustine or its respective representatives and any other person or
      entity regarding any such offer or proposal or any related inquiry.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties hereto have caused this Agreement to be executed and delivered by their
      respective, duly authorized representatives as of the date first above
      written.

     

    
      	 Augustine
              Fund, L.P.	 	 	Capital
              Growth Systems, Inc.
	
               

              By: Augustine Capital Management, LLC,

            	 	 	 
	
              Its General Partner

               

            	 	 	 
	/s/ Thomas
              Duszynski	 	 	/s/ Thomas
              G.
              Hudson
	
              

            	 	 	
              

            
	By:
              Thomas
              Duszynski
Its: CFO	 	 	By:
              Thomas G.
              Hudson
Its: CEO

    

        

    
      
        	
              	 	 	
              
	
              	 	 	 
	
              	 	 	 
	/s/ Michael
                Balkin	 	 	/s/ David
                Lies 
	
                
Michael
                Balkin	 	 	
                
David
                Lies 
	
	 	 	

      

          

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      1

    

    Warrants

    

    

    

    Augustine
      First Tranche Warrant 

    Series
      C Preferred Stock Purchase Warrant, January 13, 2005, No.: C-3

642,420
      (the “First Warrant”)

    

    Augustine
      Second Tranche Warrant 

    Series
      C Preferred Stock Purchase Warrant, February 10, 2005, No.: C-4

642,420
      (the “Second Warrant”)

    

    Series
      C Preferred Stock Purchase Warrant

    (Third
      Tranche - First Advance), June 22, 2005, No.: Aug. Tranche 3 -
      #1
256,969
      (the “Third Warrant”)

    

    Series
      C Preferred Stock Purchase Warrant

    (Third
      Tranche - Second Advance), July 1, 2005, No.: Aug. Tranche 3 - #2

256,969
      (the “Fourth Warrant”)

    

    Series
      C Preferred Stock Purchase Warrant

    (Third
      Tranche - Third Advance), August 1, 2005, No.: Aug. Tranche 3 -
      #3
256,969
      (the “Fifth Warrant”)

    

    Total:
      2,055,747

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    WARRANT

    

    See
      Attached.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    THIS
      CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED, OR UNDER ANY APPLICABLE STATE SECURITIES LAW, AND IN THE ABSENCE OF
      SUCH REGISTRATION MAY NOT BE SOLD OR TRANSFERRED UNLESS THE ISSUER OF THIS
      WARRANT HAS RECEIVED AN OPINION OF ITS COUNSEL, OR OF COUNSEL REASONABLY
      SATISFACTORY TO IT, THAT THE PROPOSED SALE OR TRANSFER WILL NOT VIOLATE THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY APPLICABLE STATE
      SECURITIES LAW.

    

    

    Warrant
      No. _____

    

    Issue
      Date: July 28, 2006

    

    

    WARRANT
      TO PURCHASE COMMON STOCK OF

    

    CAPITAL
      GROWTH SYSTEMS, INC.

    (a
      Florida corporation)

    

    This
      is
      to certify that Augustine Capital Management, LLC, or his, her or its permitted
      assigns (“Holder”), is entitled to purchase, subject to the provisions of this
      Warrant, from Capital Growth Systems, Inc., its successors and assigns (the
      “Company”), at any time on or after the Issue Date and for a period of three (3)
      years after the Issue Date (the “Exercise Period”), 150,000 shares of Common
      Stock (the “Warrant Shares”), for an exercise price equal to $0.50 per share of
      Common Stock to be issued hereunder.

    

    The
      number of shares of Common Stock to be received upon the exercise of this
      Warrant (the “Exercisable Shares”) and the exercise price to be paid for a share
      of Common Stock (the “Exercise Price”) may be adjusted from time to time as
      herein set forth. 

    

    1. Method
      of Exercise.
      Subject
      to the other provisions of this Warrant, this Warrant may only be exercised
      in
      whole or in part during the Exercise Period by (i) payment of the Exercise
      Price
      by either (A) cash or a certified or bank check, payable to the order of the
      Company or (B) a written notice to the Company that Holder is exercising this
      Warrant (or a portion thereof) by authorizing the Company to withhold from
      issuance a number of shares of Warrant Shares issuable upon exercise of this
      Warrant which when multiplied by the Market Price of the Warrant Shares is
      equal
      to the aggregate Exercise Price (and such withheld shares shall no longer be
      issuable under this Warrant), and (ii) presentation and surrender of this
      Warrant to the Company with the exercise notice substantially in the form
      attached hereto as Exhibit A
      duly
      executed (the “Exercise Notice”). Upon receipt by the Company of this Warrant
      and the Exercise Notice in proper form for exercise, the Holder shall be deemed
      to be the Holder of record of the shares of Common Stock issuable upon such
      exercise, notwithstanding that the stock transfer books of the Company shall
      then be closed or that certificates representing such shares of Common Stock
      shall not then be actually delivered to the Holder. The Company shall use its
      best efforts to issue the proper stock certificate within five (5) business
      days
      of receiving all required documentation. Such stock certificate shall bear
      such
      legends as the Company may deem necessary or appropriate.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. Payment
      of Taxes.
      The
      Company shall pay all expenses in connection with the issue or delivery of
      this
      Warrant, other than any tax or charge imposed by law upon Holder, in which
      case
      such taxes or charges shall be paid by Holder.

    

    3. Fractional
      Shares.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. With respect to any fraction of a share called
      for
      upon exercise hereof, the Company shall pay to the Holder an amount in cash
      equal to such fraction multiplied by the current Market Price of a full
      share.

    

    4. Exchange,
      Assignment or Loss of Warrant.

    

    (a) Exchange.
      This
      Warrant is exchangeable, without expense, at the option of the Holder, upon
      presentation and surrender hereof to the Company for other Warrants in identical
      form of different denominations entitling the Holder thereof to purchase in
      the
      aggregate the same number of shares of Common Stock purchasable
      hereunder.

    

    (b) Assignment.
      This
      Warrant may be freely assigned and transferred by the Holder without the consent
      of the Company; provided, however that no Holder shall assign or transfer this
      Warrant (or any portion hereof) to any Person that directly competes in whole
      or
      in significant part with the Company. Any assignment shall be made by surrender
      of this Warrant to the Company with the assignment form substantially in the
      form attached hereto as Exhibit B
      duly
      executed (the “Assignment Form”). The Company shall, within five (5) business
      days of receipt of the Warrant and Assignment Form, either (i) consent to such
      assignment and execute and deliver a new Warrant in identical form in the name
      of the assignee named in such instrument of assignment and this Warrant shall
      promptly be canceled, or (ii) notify the Holder that the Company is withholding
      its consent to such assignment. This Warrant may be divided or may be combined
      with other Warrants which carry the same rights upon presentation hereof at
      the
      office of the Company together with a written notice specifying the names and
      the denominations in which new Warrants are to be issued and signed by the
      Holder hereof. The term “Warrant” as used herein includes any Warrants issued in
      substitution for or replacement of this Warrant or into which this Warrant
      may
      be divided or exchanged.

    

    (c) Loss.
      Upon
      receipt by the Company of evidence satisfactory to it of the loss, theft,
      destruction, or mutilation of this Warrant, and (in the case of loss, theft
      or
      destruction) of reasonably satisfactory indemnification, and upon surrender
      and
      cancellation of this Warrant if mutilated, the Company will execute and will
      deliver a new Warrant in identical form. Any such new Warrant executed and
      delivered shall constitute an additional contractual obligation on the part
      of
      the Company, whether or not this Warrant so lost, stolen, destroyed or mutilated
      shall be at any time enforceable by anyone.

    

    5. Rights
      of the Holder.
      The
      Holder, by virtue hereof, shall not be entitled to any rights of a shareholder
      in the Company, either at law or in equity, and the rights of the Holder are
      limited to those expressed in this Warrant.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Anti-Dilution
      Adjustments.
      In
      order to prevent dilution of the exercise rights granted hereunder, the terms
      of
      this Warrant will be subject to adjustment from time to time pursuant to this
      Section 6.

    

    (a) Adjustments
      for Other Dividends and Distributions.
      In the
      event the Company at any time prior to the expiration of this Warrant makes
      or
      issues, or fixes a record date for the determination of holders of Common Stock
      entitled to receive, a dividend or other distribution payable in securities
      of
      the Company other than shares of Common Stock, then and in each such event
      provision shall be made so that the Holder shall receive upon exercise hereof,
      in addition to the number of shares of Common Stock receivable thereupon, the
      amount of securities of the Company which the Holder would have received had
      this Warrant been exercised for Common Stock on the date of such event and
      had
      the Holder thereafter, during the period from the date of such event to and
      including the exercise date, retained such securities receivable by the Holder
      as aforesaid during such period, subject to all other adjustments called for
      during such period under this Section 6 with respect to the rights of the Holder
      of this Warrant.

    

    (b) Subdivision
      or Combination of Common Stock.
      If the
      Company at any time subdivides (by any stock split, stock dividend,
      recapitalization or otherwise) one or more classes of its outstanding shares
      of
      Common Stock into a greater number of shares, then simultaneously with the
      happening of such event, (i) the Exercise Price shall, be adjusted by
      multiplying the then Exercise Price by a fraction, the numerator of which shall
      be the number of shares of Common Stock outstanding immediately prior to such
      event and the denominator of which shall be the number of shares of Common
      Stock
      outstanding immediately after such event, and the product so obtained shall
      thereafter be the Exercise Price then in effect, and (ii) the number of shares
      of Common Stock for which this Warrant is exercisable shall be proportionately
      increased. If the Company at any time combines (by reverse stock split or
      otherwise) one or more classes of its outstanding shares of Common Stock into
      a
      smaller number of shares, then simultaneously with the happening of such event,
      the Exercise Price and the number of shares of Common Stock for which this
      Warrant is exercisable shall immediately be proportionately
      decreased.

    

    (c) Certain
      Events.
      If any
      event occurs of the type contemplated by the provisions of this Section 6
      but not expressly provided for by such provisions, then the Company’s board of
      directors and the Company will make an appropriate adjustment in the Exercise
      Price and number of Exercisable Shares so as to protect the rights of the Holder
      hereunder.

    

    (d) Subsequent
      Adjustments.
      The
      Exercise Price and number of Exercisable Shares, as so adjusted pursuant to
      this
      Section, shall be readjusted in the same manner upon the happening of any
      successive event or events described herein in this Section 6.

    

    7. Reorganization,
      Reclassification, Consolidation, Merger or Sale.
      Any
      capital reorganization, reclassification, consolidation, merger or sale of
      all
      or substantially all of the Company’s assets to another Person which is effected
      in such a way that holders of Common Stock are entitled to receive (either
      directly or upon subsequent liquidation) cash, stock, securities or assets
      with
      respect to or in exchange for Common Stock is referred to herein as an “Organic
      Change.” Prior to the consummation of any Organic Change, the Company shall
      provide Holder with notice of such Organic Change, such notice to reference
      this
      Section 7 and to be delivered at least thirty (30) days prior to the
      consummation of the Organic Change. The Holder shall have a period of thirty
      (30) days to exercise this Warrant (which exercise may be conditioned upon
      the
      consummation of the Organic Change), and upon consummation of the Organic
      Change, this Warrant and any unexercised Warrant Shares shall automatically
      terminate. In the event the Organic Change is not consummated, this Warrant
      shall remain in full force and effect.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8. Definitions.
      

    

    (a)  “Common
      Stock” means, collectively, the Company’s common stock, par value
      $.0001.

    

    (b)  “Market
      Price” of any security means the average of the closing prices of such
      security’s sales on all securities exchanges on which such security may at the
      time be listed, or, if there has been no sales on any such exchange on any
      day,
      the average of the highest bid and lowest asked prices on all such exchanges
      at
      the end of such day, or, if on any day such security is not so listed, the
      average of the representative bid and asked prices quoted in the NASDAQ System
      as of 4:00 P.M., New York time, or, if on any day such security is not quoted
      in
      the NASDAQ System, the average of the highest bid and lowest asked prices on
      such day in the domestic over-the-counter market as reported by the National
      Quotation Bureau, Incorporated, or any similar successor organization, in each
      such case averaged over a period of 21 days consisting of the day as of which
      “Market Price” is being determined and the 20 consecutive business days prior to
      such day. If at any time such security is not listed on any securities exchange
      or quoted in the NASDAQ System or the over-the-counter market, the “Market
      Price” will be the fair value thereof determined by the Company’s board of
      directors, in good faith.

    

    (c)  “Person”
      means an individual, a partnership, a limited liability company, a corporation,
      an association, a joint stock company, a trust, a joint venture, an
      unincorporated organization and a governmental entity or any department, agency
      or political subdivision thereof.

    

    9. Reservation
      of Stock.
      From
      and after the issue date of this Warrant, the Company will at all times reserve
      and keep available, solely for issuance and delivery on the exercise of the
      Warrant, such number of shares of Common Stock as may from time to time be
      issuable on the exercise of the Warrant.

    

    10. Piggyback
      Registration.
      If the
      Company proposes to file a Registration Statement in connection with a public
      offering of any of its securities (other than a Registration Statement on Form
      S-4 or Form S-8, or any comparable successor form or form substituting therefor,
      or filed in connection with any exchange offer or an offering of securities
      solely to the Company’s existing equity holders) (a “Piggyback Registration
      Statement”), whether or not for sale for its own account, then each such time
      the Company shall give written notice of a proposed offering (a “Piggyback
      Notice”) to the Holder of its intention to effect such a registration at least
      twenty (20) days prior to the anticipated filing date of such Piggyback
      Registration Statement. The Piggyback Notice shall offer the Holder the
      opportunity to include in such Piggyback Registration Statement such amount
      of
      Exercisable Shares as it may request. The Company will include in such Piggyback
      Registration Statement (and related qualifications under blue sky laws) and
      the
      underwriting, if any, involved therein, all Exercisable Shares with respect
      to
      which the Company has received a written request from Holder for inclusion
      therein within fifteen (15) days after receipt of the Piggyback Notice.
      Notwithstanding the above, the Company may determine, at any time, not to
      proceed with such Piggyback Registration Statement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    11. Notices.
      Except
      as otherwise expressly provided, all notices referred to herein will be in
      writing and will be deemed duly given upon personal delivery, or on the third
      day after mailing if sent by registered or certified mail, postage prepaid,
      return receipt requested, or on the day after mailing if sent by a nationally
      recognized overnight delivery service which maintains records of the time,
      place
      and recipient of delivery, in each case addressed (i) to the Company at its
      principal executive offices, and (ii) to Holder at Holder’s address as it
      appears in the stock records of the Company (unless otherwise indicated by
      Holder).

    

    12. Applicable
      Law.
      This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of Illinois

    

    IN
      WITNESS WHEREOF, Capital Growth Systems, Inc. has caused this Warrant to be
      signed by its duly authorized officer and dated as of the date set forth
      above.

     

    
      	 	 	 
	 	CAPITAL
              GROWTH SYSTEMS, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Name:
              Thomas G. Hudson
	 	
              Title:
                CEO

            

    

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    Exercise
      Notice

     

    

    

    [To
      be
      executed only upon exercise of Warrant]

    

    The
      undersigned registered owner of this Warrant irrevocably exercises this Warrant
      for the purchase of __________ Shares of Common Stock of Capital Growth Systems,
      Inc. and herewith makes payment therefor, all at the price and on the terms
      and
      conditions specified in this Warrant and requests that certificates for the
      shares of Common Stock hereby purchased (and any securities or property issuable
      upon such exercise) be issued in the name of and delivered to
      _________________________ whose address is _________________________ and, if
      such shares of Common Stock shall not include all of the shares of Common Stock
      issuable as provided in this Warrant, that a new Warrant of like tenor and
      date
      for the balance of the shares of Common Stock issuable hereunder be delivered
      to
      the undersigned.

    

    

    Dated:
      __________             _________________________________

      (Name
      of Registered
      Owner)

    

      _________________________________

      (Signature
      of Registered
      Owner)

    
 

      _________________________________

      (Street
      Address)

    

      _________________________________

      (City)
      (State) (Zip
      Code)

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Assignment
      Form

    

    

    FOR
      VALUE
      RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns
      and transfers unto the Assignee named below all of the rights of the undersigned
      under this Warrant, with respect to the number of shares of Common Stock set
      forth below:

    
 

    
      
        
          	
                  No. of Shares of
Name
                    and Address of Assignee 

                	 	 Common
                  Stock 	 
	 	 	 	 	 
	 	 	 	 	 

        

      

    

    

    

    and
      if
      such shares of Common Stock shall not include all of the shares of Common Stock
      issuable as provided in this Warrant, then new Warrants of like tenor and date
      shall be issued. The undersigned does hereby irrevocably constitute and appoint
      _________________________ attorney-in-fact to register such transfer on the
      books of Capital Growth Systems, Inc., maintained for the purpose, with full
      power of substitution in the premises.

     

     

    
      Dated:
        __________             _________________________________

        (Name
        of Registered
        Owner)

      

        _________________________________

        (Signature
        of Registered
        Owner)

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