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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
      STATES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
      AND EXCHANGE COMMISSION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
      D.C. 20549</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of earliest event reported): September 8, 2006 </font>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
      Growth Systems, Inc. </font>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of Registrant as Specified in Its Charter)</font></div>
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      <table border="0" cellpadding="0" cellspacing="0" width="100%">

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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Florida</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0-30831</font></div>
            </td>
            <td width="5%">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">65-0953505</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="30%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                or other jurisdiction of </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation)</font></div>
            </td>
            <td width="5%" style="border-bottom: medium none;">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                File </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Number)</font></div>
            </td>
            <td width="5%" style="border-bottom: medium none;">&#160;</td>
            <td valign="top" width="30%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(I.R.S.
                Employer Identification</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.)</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">50
      East
      Commerce Drive, Suite A, Schaumburg, Illinois 60173 </font>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of Principal Executive Offices, Including Zip Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(630)
      872-5800</font></div>
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      <div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant's
      Telephone Number, Including Area Code)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      Applicable </font>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
      Name or Former Address, if Changed Since Last Report)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Soliciting material
      pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">Page
          1 of 10</font></div>
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    </div>
    <div><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TABLE
      OF CONTENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  1.01 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Entry
                  into a Material Definitive Agreement</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  2.01 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Completion
                  of Acquisition or Disposition of Assets </font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  2.03 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Creation
                  of a Direct Financial Obligation or an Obligation under an
                  Off-Balance&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sheet
                  Arrangement of a Registrant</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  3.02 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unregistered
                  Sales of Equity Securities</font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  5.02 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Departure
                  of Directors or Principal Officer; Election of Directors; Appointment
                  of&#160; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                  Officers</font></div>
              </td>
              <td valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7</font></td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  5.03 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year</font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  8.01 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  Events</font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  9.01 </font></div>
              </td>
              <td align="left" valign="top" width="84%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  Statements and Exhibits</font></div>
              </td>
              <td width="4%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8</font></td>
            </tr>

        </table>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signature
      Page</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          2 of 10</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01 Entry into a Material Definitive Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Agreement
      to Acquire 20/20 Technologies, Inc.</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, Capital Growth Systems, Inc., a Florida corporation (the
      &#8220;Company&#8221;), entered into an Agreement and Plan of Merger (the &#8220;20/20 Merger
      Agreement&#8221;) by and among the Company, 20/20 Merger Sub, Inc., a Delaware
      corporation and a wholly owned subsidiary of the Company (&#8220;20/20 Mergeco&#8221;), and
      20/20 Technologies, Inc., a Delaware corporation (&#8220;20/20&#8221;). Also party to the
      Agreement for the specific purposes called for therein was 20/20 Representative,
      Inc. (&#8220;20/20 Representative&#8221;). The transactions contemplated pursuant to the
      20/20 Merger Agreement (the &#8220;20/20 Acquisition&#8221;) were consummated on September
      8, 2006 (the &#8220;Closing Date&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of the 20/20 Merger Agreement, the Company agreed to acquire all
      of
      the capital stock of 20/20 in exchange for certain cash, stock consideration
      and
      the assumption of certain indebtedness. The Company and 20/20 effected the
      transaction through a&#160;reverse triangular merger whereby 20/20 Mergeco was
      merged with 20/20, and 20/20 was the surviving corporation (the
&#8220;Merger&#8221;).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      aggregate consideration paid to 20/20 in connection with the Merger was
      $13,000,000, comprised of cash consideration in the amount of $3,559,416, the
      assumption of additional&#160;indebtedness in the amount $4,137,516, and stock
      valued at $5,303,068 and comprised of 3,899,315 shares of the Company&#8217;s common
      stock, par value of $0.0001 (&#8220;Common Stock&#8221;) and 2,651.53 shares of the
      Company&#8217;s Series B preferred stock, par value $.0001 (the &#8220;Series B Preferred
      Stock&#8221;, and collectively with the shares of Common Stock, the &#8220;Transaction
      Shares&#8221;). The value of the Transaction Shares was based on the average closing
      price of the Company&#8217;s Common Stock for the ten trading days immediately
      preceding the Closing Date and was equal to $0.68 per share. <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Series B Preferred Stock, by its terms will automatically convert into an
      additional 3,899,315 shares of common stock upon the filing of articles of
      amendment to the Company&#8217;s articles of incorporation authorizing the issuance of
      not less than 50,000,000 shares of common stock, and it enjoys a liquidation
      preference prior to conversion equal to $0.68 per share.</font>The aggregate
      consideration to be paid is subject to a net asset adjustment with respect
      to
      20/20 which is anticipated to be completed by October 8, 2006. This adjustment
      <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">will
      be
      based upon a true up of the outstanding indebtedness of 20/20 as of the Closing
      Date and the outstanding cash and receivables as of the Closing Date (with
      an
      adjustment in the share issuance up or down to the extent the net indebtedness
      of 20/20 was greater or less than the amounts specified above).</font> A portion
      of the Transaction Shares have been held back as security in connection with
      certain indemnification obligations of 20/20 and its stockholders. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company has also agreed to take all reasonable steps to adopt an option
      plan&#160;in which all employees of the Company, including any wholly-owned
      subsidiaries thereof, including 20/20, shall be eligible to participate and
      which shall allow for the issuance of up to no less than 5,000,000 shares of
      the
      Company's common stock, provided that prior to&#160;the adoption of an amendment
      to its Articles of Incorporation authorizing the issuance of not less than
      50,000,000 shares of Common Stock, said plan may provide for the issuance of
      not
      less than 5,000 shares of Series A preferred stock of the Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Transaction Shares will be unregistered, restricted stock, and shall be subject
      to piggyback registration rights in connection with the registration rights
      granted to the investors (subject to placement agent cutback to the extent
      determined necessary by the placement agent) in the next equity financing
      transaction which the Company intends to pursue with minimum net proceeds of
      $6,000,000 (the &#8220;Next Equity Financing&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company's Chairman, Mr. Robert T. Geras, was an indirect debt holder of 20/20
      <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
      virtue of ownership of 90% of an entity which had advanced funds to 20/20 and
      was also a holder of preferred stock of 20/20</font>. Prior to serving as the
      Company's Chief Executive Officer, Mr. Thomas G. Hudson, served as the Chairman
      of the Board of Directors of 20/20.&#160;Prior to the closing of the 20/20
      Acquisition, Mr. Hudson held common stock in 20/20 and&#160;had also advanced
      funds to 20/20.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the closing of the 20/20 Acquisition, Patrick C. Shutt and
      George King, former executives of 20/20, have entered into employment agreements
      with the Company containing customary terms and conditions as discussed further
      below. In addition, the employment agreement of Mr. Hudson was amended as
      discussed below.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Merger Agreement contained certain conditions to closing including the
        obligation of 20/20 to deliver signed creditor agreements on terms satisfactory
        to the Company with respect to past due indebtedness. This condition was
        waived
        by the Company as part of the closing conditions, and it is in the process
        of
        negotiating with the holders of past due notes issued by 20/20 and its
        subsidiaries for establishment of a payment program to satisfy this
        indebtedness. The holders of two of the notes aggregating $310,000 in original
        principal amount have made demand for payment of their notes and the Company
        is
        in the process of seeking to establish a payment program with those holders.
        The
        Company is also in dialogue with the three holders of an additional $1,050,000
        of principal amount of past due notes issued by 20/20 and its subsidiaries
        regarding a payment program for their notes, for which no demand for payment
        has
        been made to date. All of the aforesaid notes were issued at varying times
        in
        2005 and bear simple interest at 8% per annum through maturity. The Company
        has
        entered into deferred payment programs with the holders of a substantial
        majority of the outstanding trade debt of 20/20 and subsidiaries but not
        with
        100% of those creditors. The Company expects but cannot guarantee that it
        will
        be able to manage the payment of the indebtedness referenced above from its
        current resources and future fund raising efforts. Should it be unsuccessful
        in
        the foregoing this could have a material adverse impact on the Company and
        its
        subsidiaries.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Shutt
      Employment and Option Agreements</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      on September 8, 2006, the Company entered into an employment agreement, a stock
      option agreement and a performance option agreement with Patrick C. Shutt,
      upon
      Mr. Shutt's appointment as the Company&#8217;s President and a member of the Board of
      Directors ("Board"). Each agreement was approved by the Company&#8217;s
      Board.</font></div>
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          3 of 10</font></div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Shutt&#8217;s appointment as President was pursuant to an employment agreement (&#8220;Shutt
      Employment Agreement&#8221;), the material terms of which are briefly summarized here.
      Mr. Shutt has been appointed to the position of President of the Company,
      subject to the power of the CEO and Board to limit such duties, responsibilities
      and authority. The term of the Shutt Employment Agreement is for a period of
      two
      (2) years, subject to either party terminating it prior to the expiration of
      such two (2) year term. The term shall continue for additional one (1) year
      terms if neither party terminates the Shutt Employment Agreement prior to the
      expiration of the original two (2) year term and each subsequent extension.
      Mr.
      Shutt&#8217;s annual base salary shall be equal to $200,000 with the possibility of an
      annual performance bonus as determined by the Board. Mr. Shutt will also be
      entitled to participate in all other benefits, perquisites, vacation days,
      benefit plans or programs of the Company which are available generally to other
      Company executives. In addition, the Company granted Mr. Shutt an option to
      acquire up to 1,500,000 shares of common stock of the Company at a strike price
      of $.70 per share (the &#8220;Employee Options&#8221;). In accordance with the option
      agreement (i) 25% of the Employee Options vested upon approval by the Board,
      and
      (ii) 25% shall thereafter vest on&#160;each anniversary of the Agreement over
      the next three (3) years.&#160;The Employee Options are governed by an option
      agreement between Mr. Shutt and the Company, reflecting such terms.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Shutt&#8217;s Employment Agreement also includes a grant of an option to acquire up
      to&#160;1,000,000 shares of the Company&#8217;s common stock (the &#8220;Performance
      Options&#8221;) for a strike price equal to $.70, as an incentive to attain certain
      revenue objectives. The Performance Options shall vest on the following
      basis:&#160; upon each realization by the Company of an incremental $20 million
      of third party service and/or maintenance revenue from new or existing
      customers, with gross margins in excess of 30%, pursuant to an agreement of
      one
      year or more, Mr. Shutt shall vest in 50% of the Performance Options; the
      remaining options vest upon realization by the Company of a second $20 million
      of third party service and/or maintenance revenue from new or existing
      customers, with gross margins in excess of 30%. The Performance Options are
      governed by an option agreement between Mr. Shutt and the Company, reflecting
      such terms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Shutt
      Employment Agreement provides for customary severance and an acceleration of
      unvested Employee Options and Performance Options in the event the Company
      terminates Mr. Shutt&#8217;s employment without cause or if Mr. Shutt terminates for
&#8220;good reason.&#8221;&#160;Additionally, the Employee Options and Performance Options
      immediately vest and become exercisable in the event of a &#8220;change of control&#8221; as
      follows: (i) 50% will vest immediately if at any time after the occurrence
      of a
      change in control or the announcement of a change in control the Company&#8217;s per
      share common stock price equals or exceeds $1.80; and (ii) 100% will vest
      immediately if at any time after the occurrence of a change in control or the
      announcement of a change in control the Company&#8217;s per share common stock price
      equals or exceeds $2.35, in the event the unvested options are not substituted
      or continued by the acquirer. Finally, the Shutt Employment Agreement provides
      for additional payments to Mr. Shutt in the event of a change of control or
      if
      some of the compensation payable to Mr. Shutt upon a change of control exceeds
      certain limitations contained in the Internal Revenue Code of 1986, as amended.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>King
      Employment and Option Agreements</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      on September 8, 2006, the Company entered into an employment agreement, a stock
      option agreement and a performance option agreement with George A. King, upon
      appointment of Mr. King as the Company&#8217;s President Global Operations and
      Development. Each agreement was approved by the Company&#8217;s Board.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      King&#8217;s appointment as President Global Operations and Development was pursuant
      to an employment agreement (&#8220;King Employment Agreement&#8221;), the material terms of
      which are briefly summarized here. Mr. King has been appointed to the position
      of President Global Operations and Development, responsible for knowledge
      database, carrier and channel partnerships and corporate business development,
      subject to the power of the CEO and Board to limit such duties, responsibilities
      and authority. The term of Mr. King&#8217;s Agreement shall be for a period of two (2)
      years, subject to either party terminating it prior to the expiration of such
      two (2) year term. The term shall continue for additional one (1) year term
      if
      neither party terminates the Agreement prior to the expiration of the original
      two (2) year term and each subsequent extension. Mr. King&#8217;s annual base salary
      shall be equal to $200,000 with the possibility of an annual performance bonus
      as determined by the Board. Mr. King will also be entitled to participate in
      all
      other benefits, perquisites, vacation days, benefit plans or programs of the
      Company which are available generally to other Company executives. In addition,
      the Company granted Mr. King an option to acquire up to 1,500,000 shares of
      common stock of the Company at a strike price equal to $.70 per share (&#8220;Employee
      Options&#8221;). In accordance with the option agreement (i) 25% of the Employee
      Options vested upon approval of the option agreement by the Board, and (ii)
      25%
      shall thereafter vest on each yearly anniversary of Mr. King&#8217;s Agreement over
      the next three (3) years.&#160;The Employee Options are governed by an option
      agreement between Mr. King and the Company, reflecting such terms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          4 of 10</font></div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      King&#8217;s Employment Agreement also includes a grant of an option to acquire up to
      1,000,000 shares of the Company&#8217;s common stock (the &#8220;Performance Options&#8221;) for a
      strike price equal to $0.70 per share. The Performance Options shall vest on
      the
      following basis:&#160; upon each realization by the Company of an incremental
      $20 million of third party service and/or maintenance revenue from new or
      existing customers, with gross margins in excess of 30%, pursuant to an
      agreement of one year or more, Mr. King shall vest in 50% of the Performance
      Options; the remaining options vest upon realization by the Company of a second
      $20 million of third party service and/or maintenance revenue from new or
      existing customers, with gross margins in excess of 30%. The Performance Options
      are governed by an option agreement between Mr.&#160;King and the Company,
      reflecting such terms.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      King
      Employment Agreement provides for customary severance and an acceleration of
      unvested Employee Options and Performance Options in the event the Company
      terminates Mr. King&#8217;s employment without cause or if Mr. King terminates for
&#8220;good reason.&#8221;&#160;Additionally, the Employee Options and Performance Options
      immediately vest and become exercisable in the event of a &#8220;change of control&#8221; as
      follows: (i) 50% will vest immediately if at any time after the occurrence
      of a
      change in control or the announcement of a change in control the Company&#8217;s per
      share common stock price equals or exceeds $1.80; and (ii) 100% will vest
      immediately if at any time after the occurrence of a change in control or the
      announcement of a change in control the Company&#8217;s per share common stock price
      equals or exceeds $2.35, in the event the unvested options are not substituted
      or continued by the acquirer in the event the unvested options are not
      substituted or continued by the acquirer. Finally, the King Employment Agreement
      provides for additional payments to Mr. King in the event of a change in control
      or if some of the compensation payable to Mr. King upon a change of control
      exceeds certain limitations contained in the Internal Revenue Code of 1986,
      as
      amended. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Amendment
      to Hudson Employment Agreement and Option Agreements</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      on September 8, 2006, the Company entered into an amendment of the employment
      agreement, a stock option agreement and a performance option agreement with
      Thomas G. Hudson, the Company&#8217;s CEO. Each agreement and amendment was approved
      by the Company&#8217;s Board.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of the amendment to the employment agreement (the &#8220;Amendment&#8221;), Mr.
      Hudson surrendered 1,993,985 of his previously-granted 2,993,985 performance
      options (the &#8220;Performance Options&#8221;) so that the Company could use such options
      to attract additional highly-qualified executives. Mr. Hudson retained the
      right
      to purchase 1,000,000 Performance Options pursuant to an amended option
      agreement whereby Mr. Hudson's right was adjusted to the right to acquire up
      to
      1,000,000 shares of the Company's common stock at a strike price equal to $0.70
      per share. The Performance Options shall vest on the following basis:&#160; upon
      each realization by the Company of an incremental $20 million of third party
      service and/or maintenance revenue from new or existing customers, with gross
      margins in excess of 30%, pursuant to an agreement of one year or more, Mr.
      Hudson shall vest in 50% of the Performance Option Shares; the remaining options
      vest upon realization by the Company of a second $20 million of third party
      service and/or maintenance revenue from new or existing customers, with gross
      margins in excess of 30%. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, the Company granted Mr. Hudson an additional option to acquire shares
      up to 303,307 additional shares of the Company's common stock (bringing the
      options under this agreement as amended to purchase up to an aggregate of
      1,800,000 shares at a strike price equal $.70 per share (&#8220;Employee Options&#8221;). In
      accordance with the option agreement (i) 25% of the Employee Options will vest
      immediately, and (ii) 25% shall thereafter vest on each anniversary of the
      Amendment over the next three (3) years. Further, the Employee Options are
      governed by an option agreement between Mr. Hudson and the Company, reflecting
      such terms. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      terms
      of the Amendment provide for vesting of options in the event of a &#8220;change of
      control&#8221; of the Company (as defined in Mr. Hudson&#8217;s Employment Agreement, as
      amended). The Employee Options will vest immediately and become exercisable
      in
      the event of a change of control if the unvested Employee Options are not
      substituted or continued by the acquirer. Additionally, in the event of a change
      of control of the Company, the Performance Options will vest as follows: (i)
      50%
      will vest immediately if at any time after the occurrence of a change in control
      or the announcement of a change in control the Company&#8217;s per share common stock
      price equals or exceeds $1.80; and (ii) 100% will vest immediately if at any
      time after the occurrence of a change in control or the announcement of a change
      in control the Company&#8217;s per share common stock price equals or exceeds $2.35,
      in the event the unvested options are not substituted or continued by the
      acquirer in the event the unvested options are not substituted or continued
      by
      the acquirer. Upon the completion of a change in control, all remaining unvested
      Performance Options will expire.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Secured
      Note Purchase Agreement</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      July
      23, 2006, the Company commenced an offering pursuant to a form of "Secured
      Note
      Purchase Agreement" with a limited number of accredited investors, of up to
      $6,000,000 of units comprised of secured bridge notes plus detachable warrants,
      with closing contingent upon the sale of not less than $5,000,000 of the units.
      The proceeds of the offering were intended to fund the cash component of the
      Company's proposed acquisition of 20/20, as well as to provide the Company
      with
      additional working capital. The Company effected the initial closing on the
      offering upon the placement of an aggregate of $5,432,367 of principal amount
      of
      secured bridge notes on September 8, 2006, at which time the Company closed
      our
      purchase of 20/20 through a reverse triangular merger. The notes are secured
      by
      a collateral assignment of the secured promissory notes that had been issued
      by
      20/20 to it secured lenders (with an original principal amount of approximately
      $3,200,000), as well as a first lien on the assets of our subsidiary, Nexvu
      Technologies, LLC., <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      are
      enforceable pursuant to a form of note administration and security agreement
      whereby an administrative agent has been appointed to act on behalf of all
      the
      note holders as a class.</font><strong>&#160;</strong>Each note has a term of
      120 days, bears simple interest (due on maturity) of 18% per annum, payable
      at
      maturity and may be prepaid in whole or part without penalty. The secured bridge
      notes are subject to mandatory prepayment with 25% of all net proceeds raised
      by
      the Company in&#160;its Next Equity Financing above $5,000,000 of proceeds,
      which prepayment percentage increases to 50% of all net equity proceeds raised
      in excess of $10,000,000. <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      unpaid principal amount of each note is convertible into investment units in
      the
      Next Equity Financing, while the note is outstanding and for a period of 30
      days
      following the date of payment of the principal back to the holder of the
      note.</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        warrants included in the secured bridge financing units provide the right
        to
        acquire 37,500 shares of the Company&#8217;s common stock for each $100,000 of
        principal amount invested; provided however, due to the Company&#8217;s need to
        authorize additional common stock in order to be able to fund subsequent
        equity
        issuances, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        Company has established a class of Series A Convertible Preferred Stock which
        automatically converts into common stock upon its effecting the necessary
        amendment to its Articles of Incorporation to authorize at least 50,000,000
        shares of common stock, and pending the effecting of such amendment the warrants
        are exercisable for an amount of Series A Preferred Stock which is substantially
        the functional equivalent of 37,500 shares of the common stock. Each warrant
        has
        a term expiring December 31, 2011, subject to a call provision in favor of
        the
        Company at any time that its common stock has achieved a level of $4.00 per
        share or greater for 20 consecutive trading days, whereupon on delivery of
        the
        call notice within 10 business days thereafter, if not exercised within 30
        days
        thereafter, the warrant lapses. Each warrant is exercisable at the lesser
        of
        $0.90&#160;per share or the effective per share price (on an as converted to
        common stock basis if the offering is not of common stock, without providing
        any
        value in the offering to warrants if any as part of units included with the
        capital stock) of the next equity financing of the Company of not less than
        $5,000,000.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.01 Completion of Acquisition or Disposition of Assets</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      set
      forth in Item 1.01 and incorporated herein by reference, on September 8, 2006,
      the Company consummated the acquisition of 20/20 pursuant to the 20/20 Merger
      Agreement. The aggregate consideration paid to 20/20 in connection with the
      Merger was $13,000,000, comprised of cash consideration in the amount of
      $3,559,416, the assumption of additional liabilities in the amount $4,137,516,
      and 3,899,315 shares of the Company&#8217;s Common Stock and 2,651.53 shares of the
      Company&#8217;s Series B Preferred Stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.03 Creation of a Direct Financial Obligation or an Obligation under an
      Off-Balance Sheet Arrangement of a Registrant</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      set
      forth in Item 1.01 and incorporated herein by reference, on September 8, 2006,
      the Company entered into a Secured Note Purchase Agreement, and incurred
      indeptedness <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
      connection with the issuance of such convertible notes in the </font>initial
      principal amount of $5,432,367.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02 Unregistered Sales of Equity Securities</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">With
      respect to each issuance outlined in this Item 3.02, unless otherwise stated,
      the Company relied upon exemptions contained in Regulation D promulgated under
      the Securities Act of 1933, as amended, to make such issuance.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      set
      forth in Item 2.01, on September 8, 2006, the Company issued to the shareholders
      of 20/20 an aggregate of 3,899,315 shares of the Company&#8217;s Common Stock and
      2651.53 shares of the Company&#8217;s Series B Preferred Stock. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Geras, the Company's Chairman, and Mr. Hudson, the Company's CEO, were
      stockholders and debt holders of 20/20 at such time.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 8, 2006, the Board of the Company authorized the issuance to certain
        previous lenders to the Company, warrants to purchase shares of the Company&#8217;s
        common stock in the following amounts, all with an exercise price of $0.70
        per
        share: David Beamish, 25,700 shares; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Momentum
        Capital, LLC (an affiliate of Lee Wiskowski and Douglas Stukel), 15,000
        shares;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Albert
        Pick 15,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        shares;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Douglas
        Stukel 25,700</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        shares;
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Michael
        Balkin 25,700 shares; Lou Orenstein 187,500 shares; and</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Albert
        Pick 30,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        shares.
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Messrs.
        Beamish, Stukel and Wiskowski are members of the Company&#8217;s board of
        directors.</font></div>
    </div>
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          6 of 10</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">135
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      the Company&#8217;s Series A Preferred Stock (convertible into 150,000 shares of
      Company common stock) to Mellon Enterprises, L.P. with an exercise price equal
      to the common stock equivalent price in the Next Equity Financing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 250,000 shares of the Company&#8217;s common stock to Mellon Enterprises,
      L.P. with an exercise price equal to the common stock equivalent price in the
      Next Equity Financing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 90,000 shares of the Company&#8217;s common stock to LaSalle 20/20 Lender,
      LLC (the &#8220;LaSalle Lender&#8221;) with an exercise price equal to the common stock
      equivalent price in the Next Equity Financing. Mr. Geras, the Company&#8217;s Chairman
      of the Company&#8217;s Board, is a principal in LaSalle Lender.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">379.6875
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      the Company&#8217;s Series A Preferred Stock to Venture Equities Management, Inc.
      (convertible into 421,875 shares of common stock with an exercise price equal
      to
      the common stock equivalent in the Next Equity Financing).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 1,833.43 shares of the Company&#8217;s Series A Preferred Stock
      (convertible into 2,037,138 shares of common stock)&#160;to various lenders in
      connection with the Secured Bridge Note Purchase Agreement with an exercise
      price equal to the common stock equivalent price in the Next Equity
      Financing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 450,000 shares of the Company&#8217;s common stock to Robert Geras, with
      an exercise price of $0.70 per share. Mr. Geras is the Company&#8217;s
      Chairman.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase&#160;715,000 shares of the Company&#8217;s common stock to Lee Wiskowski,
      with an exercise price of $0.70 per share. Mr. Wiskowski is an officer and
      director of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase&#160;715,000 shares of the Company&#8217;s common stock to Douglas Stukel,
      with an exercise price of $0.70 per share. Mr. Stukel is an officer and director
      of the Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 shares of the Company&#8217;s common stock to Phil Kenny, with an
      exercise price of $0.70 per share. Mr. Kenny is a director of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 of the Company&#8217;s common stock to David Beamish, with an
      exercise price of $0.70 per share. Mr. Beamish is a director of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font size="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 of the Company&#8217;s common stock to Skip Behm, with an exercise
      price of $0.70 per share. Mr. Behm is an officer of the
      Company</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        September 14, 2006, the Board of the Company authorized the issuance of warrants
        to purchase 100,000 of the Company&#8217;s common stock to Steve Blaes, with an
        exercise price of $0.70 per share. </font></div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02 </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Departure
      of Directors or Principal Officer; Election of Directors; Appointment of
      Principal Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Board
      of Directors of the Company appointed Patrick C. Shutt as&#160;a Director of the
      Company, effective September 14, 2006. Mr. Shutt&#8217;s appointment to the Board was
      to fill an existing vacancy therein. <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Shutt
      was appointed President of the Company, effective September 8,
      2006.</font>&#160;Prior to joining the Company, Mr. Shutt most recently served
      as a </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director
      and Chief Executive Officer of 20/20 Technologies, Inc. and Director and the
      CEO
      of Magenta net-Logic, Ltd., a wholly-owned subsidiary of 20/20. Prior to 20/20,
      Mr. Shutt served as Director, Chairman, Chief Executive Officer and President
      at
      Universal Access, Inc. from 1997 to November 2002.&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Board
        of Directors of the Company appointed George King as&#160;its President Global
        Operations and Development, effective September 8, 2006. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
        to
        joining the Company, Mr. King served as</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
        Chairman of 20/20 Technologies, Inc. and a Director of Magenta net-Logic,
        Ltd.,
        a wholly owned subsidiary of 20/20. Prior to 20/20, Mr. King served as a
        Director, Chief Development Officer and in several operating roles at Universal
        Access, Inc. from 1997 to November 2002.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">Page
          7 of 10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      appointments of Mr. Shutt to the position of President of the Company and Mr.
      King to the position of President Global Operations and Development were
      pursuant to employment agreements, more fully described in Item 1.01 above
      which
      is incorporated herein by reference. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">None
      of
      Mr. Shutt&#8217;s or Mr. King&#8217;s family members hold an executive office or a seat on
      the Board. Neither Mr. Shutt nor Mr. King serve as a director for any other
      reporting company. Each of Mr. Shutt and Mr. King were formerly
      shareholders,&#160;and officers and directors of 20/20, and Mr. Shutt was also a
      debtholder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
      Year</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 8, 2006, the Company classified and designated 200,000 shares of
      its
      authorized but unissued shares of preferred stock, 100,000 shares of which
      were
      designated as Series&#160;A Convertible Preferred Stock (the &#8220;Series&#160;A
      Preferred Stock&#8221;) and 100,000 shares of which were designated as Series&#160;B
      Convertible Preferred Stock (the &#8220;Series&#160;B Preferred Stock&#8221;), and filed
      such Articles of Amendment to its Articles of Incorporation designating the
      Series&#160;A Preferred Stock and the Series B Preferred Stock with the Florida
      Department of State. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      the
      amendment of Article III of the Company&#8217;s Articles of Incorporation to increase
      the maximum number of shares of common stock outstanding at any one time to
      at
      least 50,000,000, all shares of Preferred Stock then held by each holder of
      Preferred Stock shall be automatically converted (a &#8220;Mandatory Conversion&#8221;): (i)
      with respect to the Series A Preferred Stock, into shares of common stock equal
      to the number of shares of common stock equal to the product of the number
      of
      shares of Series A Preferred Stock held by each holder of Series&#160;A
      Preferred Stock times the Series A Conversion Rate (as defined below) in effect
      at the time, and (ii) with respect to the Series B Preferred Stock, into shares
      of common stock equal to the number of shares of common stock equal to the
      product of the number of shares of Series B Preferred Stock held by each holder
      of Series&#160;B Preferred Stock times the Series B Conversion Rate (as defined
      below) in effect at the time. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      share of Series&#160;A Preferred Stock is convertible, pursuant to a Mandatory
      Conversion, into shares of common stock at a rate of 1111.11 shares of common
      stock for each share of Series&#160;A Preferred Stock, subject to adjustment
      (the &#8220;Series A Conversion Rate&#8221;). Each share of Series&#160;B Preferred Stock is
      convertible, pursuant to a Mandatory Conversion, into shares of common stock,
      at
      a rate of 1470.59 shares of common stock for each share of Series&#160;B
      Preferred Stock, subject to adjustment (the &#8220;Series B Conversion
      Rate&#8221;).</font></div>
    <div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        foregoing description of the Articles of Amendment does not purport to be
        complete and is qualified in its entirety by reference to and incorporates
        herein by reference the full text of the Articles of Amendment, which are
        attached hereto as Exhibit 3.1.</font></div>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      8.01 </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
      Events</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 12, 2006, the Company issued a press release announcing the 20/20
      Acquisition, which press release is attached hereto and incorporated herein
      by
      reference as Exhibit 99.1.&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 14, 2006, the Board awarded warrants to purchase shares of the
      Company&#8217;s common stock with an exercise price of $0.70 per share in recognition
      for the service to the Board. Board members were awarded 75,000 warrants per
      each year of service. Additionally, the Board approved warrants to each of
      Douglas Stukel and Lee Wiskowski in the amount of 250,000 <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      the Company&#8217;s common stock with an exercise price of $0.70 per share</font>, in
      recognition for service as</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;officers
      of the Company over the past two years, and an additional 225,000 warrants
      to
      purchase shares of Company common stock to Robert Geras for his serving as
      Chairman of the Board Chairman of each of the Audit Committee and Compensation
      Committee for each of the past three years.</font></div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      September 13, 2006, the Company terminated its previously announced letter
      of
      intent with&#160;Cirond Corporation with respect to a potential acquisition
      thereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01 Financial Statements and Exhibits</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -72pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;</font></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
            </td>
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 63pt;">
              </td>
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                  of Amendment to the Articles of Incorporation of Capital Growth
                  Systems,
                  Inc., dated September 8,
                  2006.</font></div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 63pt;">
            </td>
            <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                Release dated September 12, 2006, Announcing Acquisition of 20/20
                Technologies, Inc.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Page
          8 of
          10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">CAPITAL
              GROWTH
              SYSTEMS, INC.</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;/s/
              Derry
              L. Behm</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font size="2">Derry
              L. Behm,</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Chief
              Financial and Accounting Officer</font></td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
      September 14, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">Page&#160;9
            of 10</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          </div>
        </div>
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          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">EXHIBIT
        INDEX</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 36pt;">
              </td>
              <td align="left" style="width: 27pt;">&#160;</td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

              <tr valign="top" style="line-height: 1.25;">
                <td style="width: 63pt;">
                </td>
                <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></td>
                <td align="left">
                  <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                    of Amendment to the Articles of Incorporation of Capital Growth
                    Systems,
                    Inc., dated September 8,
                    2006.</font></div>
                </td>
              </tr>

          </table>
        </div>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

            <tr valign="top" style="line-height: 1.25;">
              <td style="width: 63pt;">
              </td>
              <td align="left" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></td>
              <td align="left">
                <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated September 12, 2006, Announcing Acquisition of 20/20
                  Technologies, Inc.</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
      of
      Report (Date of earliest event reported): September 8, 2006
Capital
      Growth Systems, Inc.
(Exact
      Name of Registrant as Specified in Its Charter)
Florida
0-30831
65-0953505
(State
                or other jurisdiction of
incorporation)
(Commission
                File
Number)
(I.R.S.
                Employer Identification
No.)
50
      East
      Commerce Drive, Suite A, Schaumburg, Illinois 60173
(Address
      of Principal Executive Offices, Including Zip Code)
(630)
      872-5800
(Registrant's
      Telephone Number, Including Area Code)
Not
      Applicable
(Former
      Name or Former Address, if Changed Since Last Report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions:
o
Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
      pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
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          1 of 10
TABLE
      OF CONTENTS
Item
                  1.01
Entry
                  into a Material Definitive Agreement
3
Item
                  2.01
Completion
                  of Acquisition or Disposition of Assets
6
Item
                  2.03
Creation
                  of a Direct Financial Obligation or an Obligation under an
                  Off-Balance
Sheet
                  Arrangement of a Registrant
6
Item
                  3.02
Unregistered
                  Sales of Equity Securities
6
Item
                  5.02
Departure
                  of Directors or Principal Officer; Election of Directors; Appointment
                  of
Principal
                  Officers
7
Item
                  5.03
Amendments
                  to Articles of Incorporation or Bylaws; Change in Fiscal
                  Year
8
Item
                  8.01
Other
                  Events
8
Item
                  9.01
Financial
                  Statements and Exhibits
8
Signature
      Page
Page
          2 of 10
Item
      1.01 Entry into a Material Definitive Agreement
Agreement
      to Acquire 20/20 Technologies, Inc.
On
      September 8, 2006, Capital Growth Systems, Inc., a Florida corporation (the
      "Company"), entered into an Agreement and Plan of Merger (the "20/20 Merger
      Agreement") by and among the Company, 20/20 Merger Sub, Inc., a Delaware
      corporation and a wholly owned subsidiary of the Company ("20/20 Mergeco"), and
      20/20 Technologies, Inc., a Delaware corporation ("20/20"). Also party to the
      Agreement for the specific purposes called for therein was 20/20 Representative,
      Inc. ("20/20 Representative"). The transactions contemplated pursuant to the
      20/20 Merger Agreement (the "20/20 Acquisition") were consummated on September
      8, 2006 (the "Closing Date").
Pursuant
      to the terms of the 20/20 Merger Agreement, the Company agreed to acquire all
      of
      the capital stock of 20/20 in exchange for certain cash, stock consideration
      and
      the assumption of certain indebtedness. The Company and 20/20 effected the
      transaction through a reverse triangular merger whereby 20/20 Mergeco was
      merged with 20/20, and 20/20 was the surviving corporation (the
"Merger").
The
      aggregate consideration paid to 20/20 in connection with the Merger was
      $13,000,000, comprised of cash consideration in the amount of $3,559,416, the
      assumption of additional indebtedness in the amount $4,137,516, and stock
      valued at $5,303,068 and comprised of 3,899,315 shares of the Company's common
      stock, par value of $0.0001 ("Common Stock") and 2,651.53 shares of the
      Company's Series B preferred stock, par value $.0001 (the "Series B Preferred
      Stock", and collectively with the shares of Common Stock, the "Transaction
      Shares"). The value of the Transaction Shares was based on the average closing
      price of the Company's Common Stock for the ten trading days immediately
      preceding the Closing Date and was equal to $0.68 per share.
The
      Series B Preferred Stock, by its terms will automatically convert into an
      additional 3,899,315 shares of common stock upon the filing of articles of
      amendment to the Company's articles of incorporation authorizing the issuance of
      not less than 50,000,000 shares of common stock, and it enjoys a liquidation
      preference prior to conversion equal to $0.68 per share.
The aggregate
      consideration to be paid is subject to a net asset adjustment with respect
      to
      20/20 which is anticipated to be completed by October 8, 2006. This adjustment
will
      be
      based upon a true up of the outstanding indebtedness of 20/20 as of the Closing
      Date and the outstanding cash and receivables as of the Closing Date (with
      an
      adjustment in the share issuance up or down to the extent the net indebtedness
      of 20/20 was greater or less than the amounts specified above).
A portion
      of the Transaction Shares have been held back as security in connection with
      certain indemnification obligations of 20/20 and its stockholders.
The
      Company has also agreed to take all reasonable steps to adopt an option
      plan in which all employees of the Company, including any wholly-owned
      subsidiaries thereof, including 20/20, shall be eligible to participate and
      which shall allow for the issuance of up to no less than 5,000,000 shares of
      the
      Company's common stock, provided that prior to the adoption of an amendment
      to its Articles of Incorporation authorizing the issuance of not less than
      50,000,000 shares of Common Stock, said plan may provide for the issuance of
      not
      less than 5,000 shares of Series A preferred stock of the Company.
The
      Transaction Shares will be unregistered, restricted stock, and shall be subject
      to piggyback registration rights in connection with the registration rights
      granted to the investors (subject to placement agent cutback to the extent
      determined necessary by the placement agent) in the next equity financing
      transaction which the Company intends to pursue with minimum net proceeds of
      $6,000,000 (the "Next Equity Financing").
The
      Company's Chairman, Mr. Robert T. Geras, was an indirect debt holder of 20/20
by
      virtue of ownership of 90% of an entity which had advanced funds to 20/20 and
      was also a holder of preferred stock of 20/20
. Prior to serving as the
      Company's Chief Executive Officer, Mr. Thomas G. Hudson, served as the Chairman
      of the Board of Directors of 20/20. Prior to the closing of the 20/20
      Acquisition, Mr. Hudson held common stock in 20/20 and had also advanced
      funds to 20/20.
In
      connection with the closing of the 20/20 Acquisition, Patrick C. Shutt and
      George King, former executives of 20/20, have entered into employment agreements
      with the Company containing customary terms and conditions as discussed further
      below. In addition, the employment agreement of Mr. Hudson was amended as
      discussed below.
The
        Merger Agreement contained certain conditions to closing including the
        obligation of 20/20 to deliver signed creditor agreements on terms satisfactory
        to the Company with respect to past due indebtedness. This condition was
        waived
        by the Company as part of the closing conditions, and it is in the process
        of
        negotiating with the holders of past due notes issued by 20/20 and its
        subsidiaries for establishment of a payment program to satisfy this
        indebtedness. The holders of two of the notes aggregating $310,000 in original
        principal amount have made demand for payment of their notes and the Company
        is
        in the process of seeking to establish a payment program with those holders.
        The
        Company is also in dialogue with the three holders of an additional $1,050,000
        of principal amount of past due notes issued by 20/20 and its subsidiaries
        regarding a payment program for their notes, for which no demand for payment
        has
        been made to date. All of the aforesaid notes were issued at varying times
        in
        2005 and bear simple interest at 8% per annum through maturity. The Company
        has
        entered into deferred payment programs with the holders of a substantial
        majority of the outstanding trade debt of 20/20 and subsidiaries but not
        with
        100% of those creditors. The Company expects but cannot guarantee that it
        will
        be able to manage the payment of the indebtedness referenced above from its
        current resources and future fund raising efforts. Should it be unsuccessful
        in
        the foregoing this could have a material adverse impact on the Company and
        its
        subsidiaries.
Shutt
      Employment and Option Agreements
Effective
      on September 8, 2006, the Company entered into an employment agreement, a stock
      option agreement and a performance option agreement with Patrick C. Shutt,
      upon
      Mr. Shutt's appointment as the Company's President and a member of the Board of
      Directors ("Board"). Each agreement was approved by the Company's
      Board.
Page
          3 of 10
Mr.
      Shutt's appointment as President was pursuant to an employment agreement ("Shutt
      Employment Agreement"), the material terms of which are briefly summarized here.
      Mr. Shutt has been appointed to the position of President of the Company,
      subject to the power of the CEO and Board to limit such duties, responsibilities
      and authority. The term of the Shutt Employment Agreement is for a period of
      two
      (2) years, subject to either party terminating it prior to the expiration of
      such two (2) year term. The term shall continue for additional one (1) year
      terms if neither party terminates the Shutt Employment Agreement prior to the
      expiration of the original two (2) year term and each subsequent extension.
      Mr.
      Shutt's annual base salary shall be equal to $200,000 with the possibility of an
      annual performance bonus as determined by the Board. Mr. Shutt will also be
      entitled to participate in all other benefits, perquisites, vacation days,
      benefit plans or programs of the Company which are available generally to other
      Company executives. In addition, the Company granted Mr. Shutt an option to
      acquire up to 1,500,000 shares of common stock of the Company at a strike price
      of $.70 per share (the "Employee Options"). In accordance with the option
      agreement (i) 25% of the Employee Options vested upon approval by the Board,
      and
      (ii) 25% shall thereafter vest on each anniversary of the Agreement over
      the next three (3) years. The Employee Options are governed by an option
      agreement between Mr. Shutt and the Company, reflecting such terms.
Mr.
      Shutt's Employment Agreement also includes a grant of an option to acquire up
      to 1,000,000 shares of the Company's common stock (the "Performance
      Options") for a strike price equal to $.70, as an incentive to attain certain
      revenue objectives. The Performance Options shall vest on the following
      basis:  upon each realization by the Company of an incremental $20 million
      of third party service and/or maintenance revenue from new or existing
      customers, with gross margins in excess of 30%, pursuant to an agreement of
      one
      year or more, Mr. Shutt shall vest in 50% of the Performance Options; the
      remaining options vest upon realization by the Company of a second $20 million
      of third party service and/or maintenance revenue from new or existing
      customers, with gross margins in excess of 30%. The Performance Options are
      governed by an option agreement between Mr. Shutt and the Company, reflecting
      such terms.
The
      Shutt
      Employment Agreement provides for customary severance and an acceleration of
      unvested Employee Options and Performance Options in the event the Company
      terminates Mr. Shutt's employment without cause or if Mr. Shutt terminates for
"good reason." Additionally, the Employee Options and Performance Options
      immediately vest and become exercisable in the event of a "change of control" as
      follows: (i) 50% will vest immediately if at any time after the occurrence
      of a
      change in control or the announcement of a change in control the Company's per
      share common stock price equals or exceeds $1.80; and (ii) 100% will vest
      immediately if at any time after the occurrence of a change in control or the
      announcement of a change in control the Company's per share common stock price
      equals or exceeds $2.35, in the event the unvested options are not substituted
      or continued by the acquirer. Finally, the Shutt Employment Agreement provides
      for additional payments to Mr. Shutt in the event of a change of control or
      if
      some of the compensation payable to Mr. Shutt upon a change of control exceeds
      certain limitations contained in the Internal Revenue Code of 1986, as amended.
King
      Employment and Option Agreements
Effective
      on September 8, 2006, the Company entered into an employment agreement, a stock
      option agreement and a performance option agreement with George A. King, upon
      appointment of Mr. King as the Company's President Global Operations and
      Development. Each agreement was approved by the Company's Board.
Mr.
      King's appointment as President Global Operations and Development was pursuant
      to an employment agreement ("King Employment Agreement"), the material terms of
      which are briefly summarized here. Mr. King has been appointed to the position
      of President Global Operations and Development, responsible for knowledge
      database, carrier and channel partnerships and corporate business development,
      subject to the power of the CEO and Board to limit such duties, responsibilities
      and authority. The term of Mr. King's Agreement shall be for a period of two (2)
      years, subject to either party terminating it prior to the expiration of such
      two (2) year term. The term shall continue for additional one (1) year term
      if
      neither party terminates the Agreement prior to the expiration of the original
      two (2) year term and each subsequent extension. Mr. King's annual base salary
      shall be equal to $200,000 with the possibility of an annual performance bonus
      as determined by the Board. Mr. King will also be entitled to participate in
      all
      other benefits, perquisites, vacation days, benefit plans or programs of the
      Company which are available generally to other Company executives. In addition,
      the Company granted Mr. King an option to acquire up to 1,500,000 shares of
      common stock of the Company at a strike price equal to $.70 per share ("Employee
      Options"). In accordance with the option agreement (i) 25% of the Employee
      Options vested upon approval of the option agreement by the Board, and (ii)
      25%
      shall thereafter vest on each yearly anniversary of Mr. King's Agreement over
      the next three (3) years. The Employee Options are governed by an option
      agreement between Mr. King and the Company, reflecting such terms.
Page
          4 of 10
Mr.
      King's Employment Agreement also includes a grant of an option to acquire up to
      1,000,000 shares of the Company's common stock (the "Performance Options") for a
      strike price equal to $0.70 per share. The Performance Options shall vest on
      the
      following basis:  upon each realization by the Company of an incremental
      $20 million of third party service and/or maintenance revenue from new or
      existing customers, with gross margins in excess of 30%, pursuant to an
      agreement of one year or more, Mr. King shall vest in 50% of the Performance
      Options; the remaining options vest upon realization by the Company of a second
      $20 million of third party service and/or maintenance revenue from new or
      existing customers, with gross margins in excess of 30%. The Performance Options
      are governed by an option agreement between Mr. King and the Company,
      reflecting such terms.
The
      King
      Employment Agreement provides for customary severance and an acceleration of
      unvested Employee Options and Performance Options in the event the Company
      terminates Mr. King's employment without cause or if Mr. King terminates for
"good reason." Additionally, the Employee Options and Performance Options
      immediately vest and become exercisable in the event of a "change of control" as
      follows: (i) 50% will vest immediately if at any time after the occurrence
      of a
      change in control or the announcement of a change in control the Company's per
      share common stock price equals or exceeds $1.80; and (ii) 100% will vest
      immediately if at any time after the occurrence of a change in control or the
      announcement of a change in control the Company's per share common stock price
      equals or exceeds $2.35, in the event the unvested options are not substituted
      or continued by the acquirer in the event the unvested options are not
      substituted or continued by the acquirer. Finally, the King Employment Agreement
      provides for additional payments to Mr. King in the event of a change in control
      or if some of the compensation payable to Mr. King upon a change of control
      exceeds certain limitations contained in the Internal Revenue Code of 1986,
      as
      amended.
Amendment
      to Hudson Employment Agreement and Option Agreements
Effective
      on September 8, 2006, the Company entered into an amendment of the employment
      agreement, a stock option agreement and a performance option agreement with
      Thomas G. Hudson, the Company's CEO. Each agreement and amendment was approved
      by the Company's Board.
Pursuant
      to the terms of the amendment to the employment agreement (the "Amendment"), Mr.
      Hudson surrendered 1,993,985 of his previously-granted 2,993,985 performance
      options (the "Performance Options") so that the Company could use such options
      to attract additional highly-qualified executives. Mr. Hudson retained the
      right
      to purchase 1,000,000 Performance Options pursuant to an amended option
      agreement whereby Mr. Hudson's right was adjusted to the right to acquire up
      to
      1,000,000 shares of the Company's common stock at a strike price equal to $0.70
      per share. The Performance Options shall vest on the following basis:  upon
      each realization by the Company of an incremental $20 million of third party
      service and/or maintenance revenue from new or existing customers, with gross
      margins in excess of 30%, pursuant to an agreement of one year or more, Mr.
      Hudson shall vest in 50% of the Performance Option Shares; the remaining options
      vest upon realization by the Company of a second $20 million of third party
      service and/or maintenance revenue from new or existing customers, with gross
      margins in excess of 30%.
In
      addition, the Company granted Mr. Hudson an additional option to acquire shares
      up to 303,307 additional shares of the Company's common stock (bringing the
      options under this agreement as amended to purchase up to an aggregate of
      1,800,000 shares at a strike price equal $.70 per share ("Employee Options"). In
      accordance with the option agreement (i) 25% of the Employee Options will vest
      immediately, and (ii) 25% shall thereafter vest on each anniversary of the
      Amendment over the next three (3) years. Further, the Employee Options are
      governed by an option agreement between Mr. Hudson and the Company, reflecting
      such terms.
The
      terms
      of the Amendment provide for vesting of options in the event of a "change of
      control" of the Company (as defined in Mr. Hudson's Employment Agreement, as
      amended). The Employee Options will vest immediately and become exercisable
      in
      the event of a change of control if the unvested Employee Options are not
      substituted or continued by the acquirer. Additionally, in the event of a change
      of control of the Company, the Performance Options will vest as follows: (i)
      50%
      will vest immediately if at any time after the occurrence of a change in control
      or the announcement of a change in control the Company's per share common stock
      price equals or exceeds $1.80; and (ii) 100% will vest immediately if at any
      time after the occurrence of a change in control or the announcement of a change
      in control the Company's per share common stock price equals or exceeds $2.35,
      in the event the unvested options are not substituted or continued by the
      acquirer in the event the unvested options are not substituted or continued
      by
      the acquirer. Upon the completion of a change in control, all remaining unvested
      Performance Options will expire.
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          5 of 10
Secured
      Note Purchase Agreement
On
      July
      23, 2006, the Company commenced an offering pursuant to a form of "Secured
      Note
      Purchase Agreement" with a limited number of accredited investors, of up to
      $6,000,000 of units comprised of secured bridge notes plus detachable warrants,
      with closing contingent upon the sale of not less than $5,000,000 of the units.
      The proceeds of the offering were intended to fund the cash component of the
      Company's proposed acquisition of 20/20, as well as to provide the Company
      with
      additional working capital. The Company effected the initial closing on the
      offering upon the placement of an aggregate of $5,432,367 of principal amount
      of
      secured bridge notes on September 8, 2006, at which time the Company closed
      our
      purchase of 20/20 through a reverse triangular merger. The notes are secured
      by
      a collateral assignment of the secured promissory notes that had been issued
      by
      20/20 to it secured lenders (with an original principal amount of approximately
      $3,200,000), as well as a first lien on the assets of our subsidiary, Nexvu
      Technologies, LLC.,
and
      are
      enforceable pursuant to a form of note administration and security agreement
      whereby an administrative agent has been appointed to act on behalf of all
      the
      note holders as a class.
Each note has a term of
      120 days, bears simple interest (due on maturity) of 18% per annum, payable
      at
      maturity and may be prepaid in whole or part without penalty. The secured bridge
      notes are subject to mandatory prepayment with 25% of all net proceeds raised
      by
      the Company in its Next Equity Financing above $5,000,000 of proceeds,
      which prepayment percentage increases to 50% of all net equity proceeds raised
      in excess of $10,000,000.
The
      unpaid principal amount of each note is convertible into investment units in
      the
      Next Equity Financing, while the note is outstanding and for a period of 30
      days
      following the date of payment of the principal back to the holder of the
      note.
The
        warrants included in the secured bridge financing units provide the right
        to
        acquire 37,500 shares of the Company's common stock for each $100,000 of
        principal amount invested; provided however, due to the Company's need to
        authorize additional common stock in order to be able to fund subsequent
        equity
        issuances,
the
        Company has established a class of Series A Convertible Preferred Stock which
        automatically converts into common stock upon its effecting the necessary
        amendment to its Articles of Incorporation to authorize at least 50,000,000
        shares of common stock, and pending the effecting of such amendment the warrants
        are exercisable for an amount of Series A Preferred Stock which is substantially
        the functional equivalent of 37,500 shares of the common stock. Each warrant
        has
        a term expiring December 31, 2011, subject to a call provision in favor of
        the
        Company at any time that its common stock has achieved a level of $4.00 per
        share or greater for 20 consecutive trading days, whereupon on delivery of
        the
        call notice within 10 business days thereafter, if not exercised within 30
        days
        thereafter, the warrant lapses. Each warrant is exercisable at the lesser
        of
        $0.90 per share or the effective per share price (on an as converted to
        common stock basis if the offering is not of common stock, without providing
        any
        value in the offering to warrants if any as part of units included with the
        capital stock) of the next equity financing of the Company of not less than
        $5,000,000.
Item
      2.01 Completion of Acquisition or Disposition of Assets
As
      set
      forth in Item 1.01 and incorporated herein by reference, on September 8, 2006,
      the Company consummated the acquisition of 20/20 pursuant to the 20/20 Merger
      Agreement. The aggregate consideration paid to 20/20 in connection with the
      Merger was $13,000,000, comprised of cash consideration in the amount of
      $3,559,416, the assumption of additional liabilities in the amount $4,137,516,
      and 3,899,315 shares of the Company's Common Stock and 2,651.53 shares of the
      Company's Series B Preferred Stock.
Item
      2.03 Creation of a Direct Financial Obligation or an Obligation under an
      Off-Balance Sheet Arrangement of a Registrant
As
      set
      forth in Item 1.01 and incorporated herein by reference, on September 8, 2006,
      the Company entered into a Secured Note Purchase Agreement, and incurred
      indeptedness
in
      connection with the issuance of such convertible notes in the
initial
      principal amount of $5,432,367.
Item
      3.02 Unregistered Sales of Equity Securities
With
      respect to each issuance outlined in this Item 3.02, unless otherwise stated,
      the Company relied upon exemptions contained in Regulation D promulgated under
      the Securities Act of 1933, as amended, to make such issuance.
As
      set
      forth in Item 2.01, on September 8, 2006, the Company issued to the shareholders
      of 20/20 an aggregate of 3,899,315 shares of the Company's Common Stock and
      2651.53 shares of the Company's Series B Preferred Stock.
Mr.
      Geras, the Company's Chairman, and Mr. Hudson, the Company's CEO, were
      stockholders and debt holders of 20/20 at such time.
On
        September 8, 2006, the Board of the Company authorized the issuance to certain
        previous lenders to the Company, warrants to purchase shares of the Company's
        common stock in the following amounts, all with an exercise price of $0.70
        per
        share: David Beamish, 25,700 shares;
Momentum
        Capital, LLC (an affiliate of Lee Wiskowski and Douglas Stukel), 15,000
        shares;
Albert
        Pick 15,000
shares;
Douglas
        Stukel 25,700
shares;
Michael
        Balkin 25,700 shares; Lou Orenstein 187,500 shares; and
Albert
        Pick 30,000
shares.
Messrs.
        Beamish, Stukel and Wiskowski are members of the Company's board of
        directors.
Page
          6 of 10
On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase
135
shares
      of
      the Company's Series A Preferred Stock (convertible into 150,000 shares of
      Company common stock) to Mellon Enterprises, L.P. with an exercise price equal
      to the common stock equivalent price in the Next Equity Financing.
On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 250,000 shares of the Company's common stock to Mellon Enterprises,
      L.P. with an exercise price equal to the common stock equivalent price in the
      Next Equity Financing.
On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 90,000 shares of the Company's common stock to LaSalle 20/20 Lender,
      LLC (the "LaSalle Lender") with an exercise price equal to the common stock
      equivalent price in the Next Equity Financing. Mr. Geras, the Company's Chairman
      of the Company's Board, is a principal in LaSalle Lender.
On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase
379.6875
shares
      of
      the Company's Series A Preferred Stock to Venture Equities Management, Inc.
      (convertible into 421,875 shares of common stock with an exercise price equal
      to
      the common stock equivalent in the Next Equity Financing).
On
      September 8, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 1,833.43 shares of the Company's Series A Preferred Stock
      (convertible into 2,037,138 shares of common stock) to various lenders in
      connection with the Secured Bridge Note Purchase Agreement with an exercise
      price equal to the common stock equivalent price in the Next Equity
      Financing.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 450,000 shares of the Company's common stock to Robert Geras, with
      an exercise price of $0.70 per share. Mr. Geras is the Company's
      Chairman.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 715,000 shares of the Company's common stock to Lee Wiskowski,
      with an exercise price of $0.70 per share. Mr. Wiskowski is an officer and
      director of the Company.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 715,000 shares of the Company's common stock to Douglas Stukel,
      with an exercise price of $0.70 per share. Mr. Stukel is an officer and director
      of the Company.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 shares of the Company's common stock to Phil Kenny, with an
      exercise price of $0.70 per share. Mr. Kenny is a director of the
      Company.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 of the Company's common stock to David Beamish, with an
      exercise price of $0.70 per share. Mr. Beamish is a director of the
      Company.
On
      September 14, 2006, the Board of the Company authorized the issuance of warrants
      to purchase 150,000 of the Company's common stock to Skip Behm, with an exercise
      price of $0.70 per share. Mr. Behm is an officer of the
      Company
On
        September 14, 2006, the Board of the Company authorized the issuance of warrants
        to purchase 100,000 of the Company's common stock to Steve Blaes, with an
        exercise price of $0.70 per share.
Item
      5.02
Departure
      of Directors or Principal Officer; Election of Directors; Appointment of
      Principal Officers
The
      Board
      of Directors of the Company appointed Patrick C. Shutt as a Director of the
      Company, effective September 14, 2006. Mr. Shutt's appointment to the Board was
      to fill an existing vacancy therein.
Mr.
      Shutt
      was appointed President of the Company, effective September 8,
      2006.
Prior to joining the Company, Mr. Shutt most recently served
      as a
Director
      and Chief Executive Officer of 20/20 Technologies, Inc. and Director and the
      CEO
      of Magenta net-Logic, Ltd., a wholly-owned subsidiary of 20/20. Prior to 20/20,
      Mr. Shutt served as Director, Chairman, Chief Executive Officer and President
      at
      Universal Access, Inc. from 1997 to November 2002.
The
        Board
        of Directors of the Company appointed George King as its President Global
        Operations and Development, effective September 8, 2006.
Prior
        to
        joining the Company, Mr. King served as
Vice
        Chairman of 20/20 Technologies, Inc. and a Director of Magenta net-Logic,
        Ltd.,
        a wholly owned subsidiary of 20/20. Prior to 20/20, Mr. King served as a
        Director, Chief Development Officer and in several operating roles at Universal
        Access, Inc. from 1997 to November 2002.
Page
          7 of 10
The
      appointments of Mr. Shutt to the position of President of the Company and Mr.
      King to the position of President Global Operations and Development were
      pursuant to employment agreements, more fully described in Item 1.01 above
      which
      is incorporated herein by reference.
None
      of
      Mr. Shutt's or Mr. King's family members hold an executive office or a seat on
      the Board. Neither Mr. Shutt nor Mr. King serve as a director for any other
      reporting company. Each of Mr. Shutt and Mr. King were formerly
      shareholders, and officers and directors of 20/20, and Mr. Shutt was also a
      debtholder.
Item
      5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
      Year
On
      September 8, 2006, the Company classified and designated 200,000 shares of
      its
      authorized but unissued shares of preferred stock, 100,000 shares of which
      were
      designated as Series A Convertible Preferred Stock (the "Series A
      Preferred Stock") and 100,000 shares of which were designated as Series B
      Convertible Preferred Stock (the "Series B Preferred Stock"), and filed
      such Articles of Amendment to its Articles of Incorporation designating the
      Series A Preferred Stock and the Series B Preferred Stock with the Florida
      Department of State.
Upon
      the
      amendment of Article III of the Company's Articles of Incorporation to increase
      the maximum number of shares of common stock outstanding at any one time to
      at
      least 50,000,000, all shares of Preferred Stock then held by each holder of
      Preferred Stock shall be automatically converted (a "Mandatory Conversion"): (i)
      with respect to the Series A Preferred Stock, into shares of common stock equal
      to the number of shares of common stock equal to the product of the number
      of
      shares of Series A Preferred Stock held by each holder of Series A
      Preferred Stock times the Series A Conversion Rate (as defined below) in effect
      at the time, and (ii) with respect to the Series B Preferred Stock, into shares
      of common stock equal to the number of shares of common stock equal to the
      product of the number of shares of Series B Preferred Stock held by each holder
      of Series B Preferred Stock times the Series B Conversion Rate (as defined
      below) in effect at the time.
Each
      share of Series A Preferred Stock is convertible, pursuant to a Mandatory
      Conversion, into shares of common stock at a rate of 1111.11 shares of common
      stock for each share of Series A Preferred Stock, subject to adjustment
      (the "Series A Conversion Rate"). Each share of Series B Preferred Stock is
      convertible, pursuant to a Mandatory Conversion, into shares of common stock,
      at
      a rate of 1470.59 shares of common stock for each share of Series B
      Preferred Stock, subject to adjustment (the "Series B Conversion
      Rate").
The
        foregoing description of the Articles of Amendment does not purport to be
        complete and is qualified in its entirety by reference to and incorporates
        herein by reference the full text of the Articles of Amendment, which are
        attached hereto as Exhibit 3.1.
Item
      8.01
Other
      Events
On
      September 12, 2006, the Company issued a press release announcing the 20/20
      Acquisition, which press release is attached hereto and incorporated herein
      by
      reference as Exhibit 99.1.
On
      September 14, 2006, the Board awarded warrants to purchase shares of the
      Company's common stock with an exercise price of $0.70 per share in recognition
      for the service to the Board. Board members were awarded 75,000 warrants per
      each year of service. Additionally, the Board approved warrants to each of
      Douglas Stukel and Lee Wiskowski in the amount of 250,000
shares
      of
      the Company's common stock with an exercise price of $0.70 per share
, in
      recognition for service as
officers
      of the Company over the past two years, and an additional 225,000 warrants
      to
      purchase shares of Company common stock to Robert Geras for his serving as
      Chairman of the Board Chairman of each of the Audit Committee and Compensation
      Committee for each of the past three years.
On
      September 13, 2006, the Company terminated its previously announced letter
      of
      intent with Cirond Corporation with respect to a potential acquisition
      thereof.
Item
      9.01 Financial Statements and Exhibits
(b)
Exhibits
3.1
Articles
                  of Amendment to the Articles of Incorporation of Capital Growth
                  Systems,
                  Inc., dated September 8,
                  2006.
99.1
Press
                Release dated September 12, 2006, Announcing Acquisition of 20/20
                Technologies, Inc.
Page
          8 of
          10
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
CAPITAL
              GROWTH
              SYSTEMS, INC.
By: /s/
              Derry
              L. Behm
Derry
              L. Behm,
Chief
              Financial and Accounting Officer
Dated:
      September 14, 2006
Page 9
            of 10
EXHIBIT
        INDEX
Exhibits
3.1
Articles
                    of Amendment to the Articles of Incorporation of Capital Growth
                    Systems,
                    Inc., dated September 8,
                    2006.
99.1
Press
                  Release dated September 12, 2006, Announcing Acquisition of 20/20
                  Technologies, Inc.
Page 10
              of 10