Document:

LOCKBOX AND ACCOUNT CONTROL
AGREEMENT

    

    

    THIS LOCKBOX AND ACCOUNT CONTROL
AGREEMENT (this “Agreement”) is made as of January 21, 2011, by and among Lightyear Network Solutions,
LLC (the “Depositor”), Fifth Third Bank, an Ohio
banking corporation (the “Bank”), and First Savings Bank, F.S.B.
(the “Factor”).

     

    RECITALS

     

    WHEREAS, the Factor has made financial
accommodations to the Depositor, which are secured by, among other things, the
proceeds of the Depositor’s accounts receivable; and

     

    WHEREAS,
the Factor and the Depositor have advised the Bank that the Factor is making or
has made financial accommodations to Lightyear Network Solutions,
Inc., a Nevada corporation (hereinafter referred to as the “Borrower”),
which financial accommodations are of direct or indirect benefit to the
Depositor, and which financial accommodations are secured by, among other
things, the proceeds of the Depositor’s accounts receivable; and

     

    WHEREAS, at the Factor’s request the
Depositor has established a special account at the Bank (as described below, the
“Limited Access Lockbox Account”); and

     

    WHEREAS, the Factor and the Depositor
have agreed that the transfer of funds out of the Limited Access Lockbox Account
shall be restricted as set forth below.

     

    NOW, THEREFORE, in consideration of the
foregoing premises and for other valuable consideration the receipt of which is
hereby acknowledged, the parties agree as follows:

     

    AGREEMENT

     

    1.
 
The
Limited Access Lockbox Account.  The Limited
Access Lockbox Account is Account No. XXXXXX4745 and the title of the Limited
Access Lockbox Account shall be: “Lightyear Network Solutions, LLC
for the Benefit of First Savings Bank, F.S.B., as Factor, Lockbox
Account.”

     

    The Depositor and the Factor agree to
promptly provide the Bank with any documents, resolutions, and/or instructions
needed to establish or maintain the Limited Access Lockbox Account and the
Lockbox (as such term is defined below).  The Depositor hereby agrees
to abide by and be bound by the terms of the Lockbox Terms and Conditions as set
forth in the Fifth Third Treasury Management Terms and Conditions as established
by the Bank from time to time and incorporated herein by reference (“Lockbox
Agreement”).

     

    2.
 
Accounts;
Payment of Account Charges and Service Charges.  The Depositor
shall open and maintain, or has opened and maintained, at the Bank an account,
titled in its own name bearing Account No. XXXXXX4950 (the “Operating Account”)
that the Bank may debit for any fees, charges or expenses owed to the Bank
(collectively, the “Account Charges”) and from which the Bank may obtain
reimbursement for any deposit items that are posted or transferred in error or
returned to the Limited Access Lockbox Account or the Operating Account, for any
overdrafts created on the Limited Access Lockbox Account or the Operating
Account, and for any reversals or cancellations of payment orders and other
electronic funds transfers arising in the Limited Access Lockbox Account or the
Operating Account (collectively, the “Adjustments”).

     

    The Depositor and Factor acknowledge
that in order for the Bank to provide the services contemplated in this
Agreement, the Bank may, from time to time, use other internal Bank services and
products (collectively, the “Other Services”).  The Factor and the
Depositor agree that the Depositor may be required to purchase such Other
Services and pay to the Bank the Bank’s customary charges for the Other
Services.

     

    At all time, the Depositor shall keep
no less than $50,000 in funds in the Operating Account to pay the Account
Charges and Adjustments (the “Minimum Funding Balance”).

     

    3.
 
Lockbox.  For the purpose
of receipt of funds into the Limited Access Lockbox Account, the Depositor has
established a lockbox, under the Lockbox Agreement, into which the Bank will
accept remittances, such lockbox commonly known as the “Lockbox”.

     

    4.   Notices;
Delivery of Statements; Authorization.  Any notices
required under this Agreement shall be directed as set forth below and
effective:  (a) when received if delivered via U.S. Mail, postage
prepaid, or overnight courier; and (b) when confirmed received by the
recipient if delivered via facsimile transmission.

     

    
      	
               
      

            	
              If
      to the Bank:

            	
              Fifth
      Third Bank

            

    

    5050
Kingsley Drive

    MD 1MOC2Q

    Cincinnati,
OH  45263

    
      
        Attention:
MICHAEL CHEETHAM

      

    

    
      
        OR
Depositor Services

      

    

    
      
        Fax:
(513) 358-1279

      

    

    

    AND

    

    Fifth
Third Bank

    250 W
Main St, Suite 100

    MD
735911

    Lexington,
KY  40507

    ATTN:
Mary-Alicha Weldon, RM

    Fax:
859-455-5404

    

    AND

     

    Fifth Third Bank

    250 W
Main St, Suite 100

    MD 735911

    Lexington,
KY  40507

    ATTN: Tim Sprague, TMO

    Fax:
859-455-5418

    

    
      	
            	
              If
      to Depositor: 

            	
              Lightyear
      Network Solutions, LLC

            

    

    1901
Eastpoint Parkway

    Louisville,
KY 40223

    Attn:           John
Greive

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
            	
              If
      to the Factor: 

            	
              First
      Savings Bank, F.S.B.

            

    

    501 East
Lewis and Clark Parkway

    Clarksville,
Indiana  47129

    Attn:  Don
Allen

    

    The Depositor authorizes the Bank to
release any and all information about the Limited Access Lockbox Account and the
Lockbox to the Factor upon the Factor’s request.  The Depositor and
the Factor instruct the Bank to send an original or a copy of the periodic
account statement related to the Limited Access Lockbox Account to the notice
addresses for Factor and Depositor set forth in this paragraph.  Bank
shall provide Factor with such information relating to the Restricted Access
Lockbox Account as Factor shall reasonably request, including, without
limitation, the ability to access such information online.

     

    5.
 
Restrictions
on Depositor.  Without further
consent from the Depositor, the Depositor irrevocably authorizes and instructs
the Bank to comply with the Factor’s instructions to transfer funds from the
Limited Access Lockbox Account to Factor or an account maintained by Factor, as
directed by Factor in its sole discretion.  The Depositor waives its
authority to transfer, withdraw, or otherwise disburse funds from the Limited
Access Lockbox Account and acknowledges that the Factor shall have exclusive
control of funds credited to the Limited Access Lockbox Account.  The
Depositor waives its authority to modify or terminate this Agreement, the
Limited Access Lockbox Account or the Lockbox Agreement, documents, resolutions,
and account instructions, without the Factor’s express written
permission.

     

    6.
 
Security Interest;
Control.  Depositor hereby grants a security interest and lien
to, and control in favor of, Factor in the Limited Access Lockbox Account and
Lockbox.  This Agreement constitutes notice to Bank of Factor’s
security interest and lien in (a) the Lockbox and the Limited Access Lockbox
Account; (b) all contract rights and claims in respect of the Lockbox and the
Limited Access Lockbox Account; and, (c) all cash, checks, money orders and
other items of value payable to Depositor now or hereafter paid, deposited,
credited, held (whether for collection, provisionally or otherwise) or otherwise
in the possession or under the control of Bank or any agent, bailee or custodian
of Bank, including, without limitation, contained or deposited into the Lockbox
or the Limited Access Lockbox Account, and all proceeds of the foregoing
(collectively, “Receipts”).  Without limiting the forgoing, but
subject to Section 7, as collateral security for the payment of all obligations
and liabilities of Depositor to Factor, Depositor hereby assigns, pledges and
transfers to and grants exclusive control over to Factor all of Depositor’s
rights, title and interest in and to the Limited Access Lockbox Account and the
Lockbox, and all sums now or hereafter on deposit in or payable or withdrawable
from the Limited Access Lockbox Account, and/or the Lockbox, and any interest
accrued or payable thereon, and grants to Factor a security interest
therein.  Bank acknowledges that this Agreement constitutes notice of
Factor’s security interest in the Limited Access Lockbox Account, the Lockbox
and the Receipts and the proceeds thereof and that this Agreement is a control
agreement for the purpose of perfecting Factor’s security interest in the
Limited Access Lockbox Account.  Subject to Section 7, Depositor
hereby agrees that Bank, on behalf of Factor, shall be entitled to exercise,
upon the written instructions of Factor, any and all rights that Factor may have
under its loan documents with Depositor or under applicable law with respect to
the Lockbox, the Limited Access Lockbox Account, and all Receipts and the
proceeds thereof.  Subject to Section 7, Depositor hereby authorizes
and irrevocably appoints Factor as Depositor’s
attorney-in-fact.  Subject to Section 7, Factor may take any action
which Factor deems necessary or appropriate to preserve or protect Factor’s
assignment of, pledge of, and security interest in and control of the Limited
Access Lockbox Account and the Lockbox, including, without limitation, the
transfer of the Limited Access Lockbox Account and/or the Lockbox to Factor’s
own name or the name of any designee.  Subject to Section 7, Depositor
agrees that Factor shall have exclusive possession and control of the Limited
Access Lockbox Account and, at its option by providing written notice to the
Bank, exclusive control over the Lockbox.  Subject to Section 7,
Depositor hereby agrees with Factor and Bank that only payments to Factor’s
order may be drawn under the Limited Access Lockbox Account.  Subject
to Section 7, without further consent by the Depositor, only Factor shall have
the right, power and authority (which right, power and authority is
irrevocable), to demand, collect, withdraw, receipt for or sue for all amounts
that enter any of the Limited Access Lockbox Account and Lockbox, and the
Limited Access Lockbox Account and the Lockbox shall each be deemed to be
blocked in favor of and controlled by Factor and the Lockbox and the Limited
Access Lockbox Account shall be under the sole dominion and control of
Factor.  Subject to Section 7, Depositor shall not have any control
over the use of or any right to withdraw any amount from the Limited Access
Lockbox Account or the Lockbox.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    7.
 
Trigger
Events.  Notwithstanding any provision of this Agreement to the
contrary (including without limitation, Sections 5 and 6), unless and until the
Factor has notified the Bank in writing (including by e-mail or fax) that an
“Event of Default” has occurred under any agreement between the Factor and the
Borrower or the Factor and the Depositor, (a) the Depositor shall have the right
(without any consent from the Factor) to access, transfer, withdraw or otherwise
disburse funds from the Limited Access Lockbox Account and the Lockbox, and (b)
the Factor shall not exercise its right to exercise exclusive control over the
Limited Access Lockbox Account or the Lockbox.

     

    8.
 
Bank’s
Setoff Waiver.  The Bank waives
any right of setoff that it may have with respect to funds credited to, deposit
it or otherwise contained in the Limited Access Lockbox Account or the
Lockbox.  The parties agree that this setoff waiver will not affect
the Bank’s rights or ability to debit the Operating Account for any Account
Charges and Adjustments and to maintain the Minimum Funding
Balance.

     

    9.
  Duty to
Inspect.  The Factor and
the Depositor will use their respective commercially reasonable efforts to
inspect all Limited Access Lockbox Account statements and reports when received,
and immediately notify the Bank of any errors.  The Factor or the
Depositor must notify the Bank within sixty (60) calendar days after receipt of
the statement or report containing or reflecting an error.  Except to
the extent required by law or except for manifest errors, the failure by the
Factor or the Depositor to notify the Bank of errors within this time limit will
relieve the Bank of any and all liability with respect to such an
error.

     

    10.  Deposit
Account Terms.  The Depositor
agrees to comply with the terms applicable to the Other Services and the deposit
accounts described herein as established by the Bank from time to
time.  If there is any inconsistency between the terms of this
Agreement and the agreements applicable to the deposit accounts and Other
Services or the Lockbox Agreement, the terms of this Agreement shall
prevail.

     

    11.  Force
Majeure.  The Bank shall
not be responsible for actions or omissions caused by events beyond its control,
including without limitation fire, casualty, breakdown in equipment or failure
of telecommunications or data processing services, lockout, strike, unavoidable
accidents, acts of God, riot, war, or the issuance or operation of any adverse
governmental law, ruling, regulation, order or decree, or an emergency that
prevents the Bank from operating normally.

     

    12.  Indemnification
of the Bank.  Provided the Bank
has not engaged in willful misconduct or been grossly negligent, the Depositor
agrees to indemnify and hold the Bank harmless from and against any and all
claims, demands, losses, liabilities, actions, causes of action and expenses
(including without limitation attorneys fees (which may include the allocable
cost of the Bank’s Legal Department) and court costs), incurred by the Bank in
connection with the Limited Access Lockbox Account, the Operating Account, and
this Agreement.  This indemnity shall survive the termination of this
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    13.  Limits on
the Bank’s Liability to the Factor.  The Factor agrees
that the Bank’s liability to Factor for failing to perform in accordance with
the terms of this Agreement for a single claim shall be limited to the actual,
direct damages, proximately caused by the Bank’s error or
omission.  The Bank shall not be liable in any event to the Factor for
any special, incidental or consequential damages which the Factor may incur or
suffer in connection with this Agreement, regardless of whether the Bank knew of
the likelihood of such loss or damage, and regardless of the basis, theory, or
nature of the delays resulting from computer malfunction, systems failures,
interruption of communications facilities, or other causes not reasonably within
the Bank’s control.  This paragraph shall survive the termination of
this Agreement.

     

    14.  Termination
of Agreement.  Except as
otherwise stated, the parties agree that this Agreement, the Factor’s authority
to control the Limited Access Lockbox Account and the Lockbox, and the Bank’s
obligations to the Factor and the Depositor pursuant to this Agreement, will
only terminate:  (a) after the Bank receives the Factor’s
instructions (as provided in paragraph 4) to terminate this Agreement and turn
control of the Limited Access Lockbox Account to the Factor; (b) upon
thirty (30) calendar days notice by the Bank (as provided in paragraph 4) to the Depositor and the Factor; or
(c) twenty (20) calendar days following notice from Bank to Factor and
Depositor that Factor and/or Depositor are in default or breach of the terms of
this Agreement or any other agreement with the Bank and such default has not
been cured within such twenty (20) calendar day period.  Upon
termination of this Agreement for any reason, the Limited Access Lockbox Account
shall be transferred into Factor’s name, and disbursement of the remaining
Limited Access Lockbox Account funds shall be made to the Factor, and Bank
agrees to continue for sixty (60) calendar days to forward all collections in
the Lockbox to Factor.  The Depositor may not unilaterally instruct
the Bank to terminate this Agreement or close the Limited Access Lockbox Account
or the Lockbox.

     

    15.  Headings;
Severability.  The headings of
the paragraphs of this Agreement are for convenience only and shall not be
construed as adding meaning to the provisions.  If a court determines
that any part of this Agreement is unenforceable, the parties agree that only
the portion of this Agreement that is so determined to be unenforceable and
shall be stricken and that the remaining parts shall be unaffected.

     

    16.  Choice of
Law; Venue.  The parties agree
that:  (a) this Agreement shall be governed by, and interpreted
in accordance with, the laws of the State of Ohio (the “Governing State”); and
(b) that the venue for any action related to this Agreement shall be; State
Court - Any state or local court of the Governing State, Federal
Court - United States District Court for the District of the Governing
State, or at the option of the Bank, any court in which the Bank shall initiate
legal or equitable proceedings and which has subject matter jurisdiction over
the matter in controversy, shall have exclusive jurisdiction to hear and
determine any claims or disputes among the parties pertaining directly or
indirectly to this Agreement or to any matter arising in connection with this
Agreement.

     

    17.  Independent
Contractor.  The Factor and
the Depositor agree that in performing the services under this Agreement, the
Bank will be acting as an independent contractor and not as an employer,
employee, partner, or agent of the Factor or the Depositor.

     

    18.  Financial
Information.  Depositor agree
to promptly furnish to the Bank, from time to time financial statements and such
other information regarding its operations, assets, business affairs, and
financial condition, as Bank may reasonably request.

     

    19.  Rights in
Limited Access Lockbox Account. (a) Subject to Section
7, Depositor cannot, and will not, withdraw any monies from the Limited Access
Lockbox Account and Lockbox until such time as Factor advises Bank in writing
that Factor no longer claims any interest in the Limited Access Lockbox Account
and the Lockbox and the monies deposited and to be deposited in the Limited
Access Lockbox Account; and (b) Depositor will not permit the Limited Access
Lockbox Account or the Lockbox to become subject to any other pledge,
assignment, lien, charge or encumbrance of any kind, nature or description,
other than Factor’s security interest referred to herein.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    20.  Representations.  Depositor
represents, warrants and covenants that (i) at no time shall either the Limited
Access Lockbox Account or the Lockbox be pledged or assigned to or control given
to any person or entity other than the Factor, and (ii) it has not assigned or
granted a security interest in or control of the Limited Access Lockbox Account
or the Lockbox or any funds now or hereafter deposited in the Limited Access
Lockbox Account or the Lockbox to any person or entity other than the Factor,
excepting that certain Lockbox and Account Control Agreement dated as of March
17, 2010, by and between the Depositor, the Bank, and the Factor.

     

    21.  Bank
Acknowledgements. Bank agrees that the Limited Access Lockbox Account and
the Lockbox is held in the name of the Depositor and that, to the best of its
knowledge, no other person or entity is shown by its records to have an interest
in the Limited Access Lockbox Account or the Lockbox.  To the best of
its knowledge, Bank has not executed any document or otherwise agreed to block
the Limited Access Lockbox Account or the Lockbox in favor of any person other
than Factor, or acknowledge a lien or security interest of or control by any
person other than Factor in the Limited Access Lockbox Account and the
Lockbox.  Bank agrees that it will not execute any document or
otherwise agree to block the Limited Access Lockbox Account or the Lockbox in
favor of any person other than Factor, or acknowledge a lien or security
interest of or control by any person other than Factor in the Limited Access
Lockbox Account or the Lockbox.

     

    22.     Miscellaneous.  This
Agreement may be amended only by a writing signed by Depositor, Factor and
Bank.  This Agreement may be executed in counterparts; all such
counterparts shall constitute but one and the same agreement.  This
Agreement controls in the event of any conflict between this Agreement and any
other document or written or oral statement.  This Agreement
supersedes all prior understandings, writings, proposals, representations and
communications, oral or written, of any party relating to the subject matter
hereof.  To the extent that the terms of any agreement governing the
Account or the Lockbox are inconsistent with the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall be deemed to be
controlling.  The Recitals to this Agreement to this Agreement are
incorporated herein and a part of this Agreement.

     

    23.   WAIVER OF JURY
TRIAL.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE
WAIVED, EACH PARTY HERETO HEREBY ABSOLUTELY, IRREVOCABLY AND UNCONDITIONALLY
WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT
OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE,
CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS
AGREEMENT OR THE SUBJECT MATTER HEREOF, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING OR WHETHER IN CONTRACT OR TORT OR OTHERWISE.  EACH
PARTY HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO
THAT THE PROVISIONS OF THIS SECTION CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH
THE OTHER PARTIES HAVE RELIED, ARE RELYING AND WILL RELY IN ENTERING INTO THIS
AGREEMENT, THE PARTIES HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF SUCH OTHER PARTY TO
THE WAIVER OF ITS RIGHTS TO TRIAL BY JURY.

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    SIGNATURE
PAGE TO FOLLOW

     

    

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the parties have
executed this Agreement to be executed, as a sealed instrument, on the date set
forth above.

     

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 
      	
                                          LIGHTYEAR
      NETWORK SOLUTIONS, LLC

                                        	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                          By:

                                        	
                                          /S/
      J. Sherman Henderson, III

                                        	 
	 
      	 
      	
                                          Name:

                                        	
                                          J.
      Sherman Henderson, III

                                        	 
	 
      	 
      	
                                          Title:

                                        	
                                          CEO

                                        	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                          FIFTH
      THIRD BANK

                                        	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                          By:

                                        	
                                          /S/
      Timothy P. Sprague

                                        	 
	 
      	 
      	
                                          Name:

                                        	
                                          Timothy
      P. Sprague

                                        	 
	 
      	 
      	
                                          Title:

                                        	
                                          AVP/TMO

                                        	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                          FIRST
      SAVINGS BANK, F.S.B.

                                        	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
	 
      	
                                          By:

                                        	
                                          /S/
      Don Allen

                                        	 
	 
      	 
      	
                                          Don
      Allen, Vice PresidentSTOCK
PLEDGE AGREEMENT

    

    THIS
STOCK PLEDGE AGREEMENT (hereinafter referred to as this “Agreement”) is made
this 21st day of
January, 2011, by LY HOLDINGS, LLC, a Kentucky limited liability company
(hereinafter referred to as “Pledgor”) in favor of FIRST SAVINGS BANK, F.S.B.
(hereinafter referred to as “Creditor”).

    

    RECITALS

    

    WHEREAS,
Pledgor is the owner of up to and at least Two Million (2,000,000) of shares of
Convertible Preferred Stock of Lightyear Network Solutions, Inc., a Nevada
corporation (hereinafter referred to as “Debtor”); and

    

    WHEREAS,
the Debtor has applied to Creditor for a loan in the amount of Two Million and
00/100 Dollars ($2,000,000.00)(hereinafter referred to as the “Loan”);
and

    

    WHEREAS,
the Loan is to be evidenced by and repaid with interest in accordance with the
provisions of a certain Promissory Note of even date herewith from Debtor
payable to Creditor in the principal amount of the Loan; and

    

    WHEREAS,
to induce Creditor to extend the Loan, Creditor has required that Pledgor pledge
and assign the Shares (as defined below) to Creditor to secure the Loan and to
execute this Agreement; and

    

    WHEREAS,
Debtor’s receipt of the proceeds of the Loan will be of significant and
substantial direct or indirect benefit to Pledgor.

    

    NOW,
THEREFORE, in consideration of the premises and intending to be legally bound
thereby, Pledgor hereby agrees as follows:

    

    1.           Pledge of
Collateral.  Pledgor hereby pledges, transfers, assigns and
grants to Creditor a security interest in and to Two Million (2,000,000) shares
of Convertible Preferred Stock in Debtor (hereinafter referred to as the
“Shares”), Stock Certificate No. 102 (and all property subsequently deposited
pursuant hereto in addition to or in substitution for any such property),
together with all cash and non-cash proceeds thereof (all of the foregoing is
herein collectively referred to as the “Collateral”) to secure the following
which hereafter are referred to as the “Obligations”: (a) the prompt payment of
the Loan, and to the fullest extent permitted by applicable law, all costs and
expenses (including reasonable attorney’s fees) incurred by Creditor in the
collection of the Loan, and (b) the performance of all of the terms, conditions
and provisions of this Agreement and of any other agreement or document now or
hereafter executed and delivered by Debtor, Pledgor, or any other person in
connection with the Loan (hereinafter referred to as the “Loan
Documents”).

    

    2.           Representations and
Warranties.  Pledgor represents and warrants to Creditor that:
(a) Pledgor has full power and authority to enter into this Agreement; (b) any
consent or approval which is required as a condition to the validity of this
Agreement has been obtained; (c) this Agreement constitutes the valid and
legally binding agreement of Pledgor in accordance with its terms and does not
constitute a prohibited transfer under any law, statute, regulation or
ordinance, including the Securities Act of 1933; (d) there is no provision of
any existing mortgage, indenture, contract, subscription agreement, or other
agreement binding on Pledgor or affecting its property which would conflict with
or in any way prevent the execution, delivery or carrying-out of the terms of
this Agreement; (e) Pledgor has good title to the Collateral and the Collateral
is owned free and clear of liens and encumbrances; (f) there are no proceedings
pending or, so far as Pledgor knows, threatened before any court or
administrative agency which, in the opinion of Pledgor, will adversely affect
the financial condition or operation of Pledgor, or the authority of Pledgor to
enter into, or the validity or enforceability of, this Agreement or any of the
Loan Documents; (g) Pledgor will not create, incur, assume or suffer to exist
any mortgage, pledge, lien or other encumbrance of any kind, or any security
interest in any of the Collateral now owned or hereafter acquired, without the
prior written consent of Creditor; (h) Pledgor will immediately notify Creditor
in writing of any event which materially adversely affects the value of the
Collateral or the rights and remedies of Creditor in relation thereto; (i)
Pledgor has delivered to Creditor any and all certificates evidencing the
Collateral, together with any necessary powers or endorsements; and (j) the
Lightyear Network Solutions, Inc. Convertible Preferred Stock statement attached
hereto as Exhibit “A” (hereinafter referred to as the “Stock Statement”) truly
and accurately states and reflects the rights of owners of Convertible Preferred
Stock in Debtor to which rights Creditor may succeed pursuant to the terms
hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           Other
Documents.  Pledgor will execute and deliver to Creditor all
assignments, endorsements, powers, hypothecations and other documents required
at any time and from time to time by Creditor with respect to the Collateral.
Pledgor shall, at its expense, do, make, procure and execute and deliver all
acts, things, writings and assurances as Creditor may at any time request to
protect, assure or enforce its rights, interests and remedies created by,
provided in or emanating from this Agreement. Pledgor authorizes Creditor to
file financing statements covering the Collateral and containing such legends as
Creditor shall deem necessary or desirable to protect Creditor’s interest in the
Collateral.  Pledgor agrees to pay all taxes, fees and costs
(including attorneys’ fees) paid or incurred by Creditor in connection with the
preparation, filing or recordation thereof.  Pledgor shall not file
any amendments, correction statements or termination statements concerning the
Collateral without the prior written consent of Creditor.

    

    4.           Continued Possession of
Collateral.  Creditor shall hold possession of the Collateral
so long as any of the Obligations are outstanding.  Upon the
satisfaction in full of all of the Obligations, Creditor shall release any
remaining Collateral to Pledgor.

    

    5.           Rights of the
Pledgor.  Prior to the occurrence of an Event of Default under
the Note or any of the other Loan Documents, the Pledgor shall have all voting
and other rights, powers, privileges and preferences pertaining to the
Collateral, subject to the terms of this Agreement and the other Loan Documents,
and Lender shall not be entitled to any of such rights by reason of its
possession of the Collateral.

     

    6.           Covenants of
Pledgor.  Pledgor agrees that, so long as Creditor holds
possession of the Collateral, Pledgor will not, without Creditor’s prior written
consent, withdraw, sell, assign, transfer, pledge, or otherwise encumber the
Collateral or any part thereof.  If Pledgor at any time becomes
entitled to receive any cash, stock, or other property as additions to, in
substitution of or in exchange for any of the Collateral, Pledgor shall accept
the same as Creditor’s agent and shall promptly deliver them to Creditor in the
exact form received, with all necessary transfer instruments or stock powers, to
be held as further security for the Obligations, subject to the terms
hereof.

    

    7.           Care of
Collateral.  Creditor shall have no liability or duty beyond
the safe custody of such of the Collateral as may come into the possession of
Creditor, either before or after the occurrence of an Event of Default, on
account of loss of or damage to, to collect or enforce any of its rights
against, the Collateral, to collect any income accruing on the Collateral, or to
preserve rights against other parties, except for liability arising out of the
gross negligence or actual bad faith of Creditor.  If Creditor
actually receives any notices requiring action with respect to Collateral in
Creditor’s possession, Creditor shall take reasonable steps to forward such
notices to Pledgor. Pledgor is responsible for responding to notices concerning
the Collateral.  Creditor’s sole responsibility is to take such action
as is reasonably requested by Pledgor in writing; however, Creditor is not
responsible to take any action that, in Creditor’s sole judgment, would
adversely affect the value of the Collateral as security for the
Obligations.  While Creditor is not required to take certain actions,
if action is needed, in Creditor’s sole discretion, to preserve and maintain the
Collateral, Pledgor authorizes Creditor to take such actions, but Creditor is
not obligated to do so.

     

    8.           Assignment of
Collateral.  In addition to all other rights available to it
under applicable laws or otherwise, should Creditor assign, pledge, or transfer
the Loan, Creditor shall have the right to assign therewith Creditor’s rights in
any of the Collateral, and any assignee, pledge, or transferee shall have the
rights of Creditor hereunder with respect to the Collateral so assigned,
pledged, or transferred, and Creditor shall be thereafter relieved from all
duties with respect to any such Collateral.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    9.           Event of
Default.  The occurrence of any one or more of the following
events shall constitute an event of default (hereinafter referred to as an
“Event of Default”) under this Agreement: (a) an Event of Default under the
other Loan Documents; (b) failure of Pledgor and/or Debtor to perform, observe,
or comply with any of the provisions of the Loan Documents; (c) if any
information contained in any financial statement, application, schedule, and/or
report in connection with the Loan or any other document given by Pledgor,
Debtor, and/or any other person is not in all material respects true and
accurate or if Pledgor, Debtor, and/ or such person in connection with the Loan
omitted to state any material fact or any fact necessary to make such
information not misleading; (d) if Pledgor and/or Debtor is not paying debts as
such debts become due; (e) the filing of any petition for relief under
Bankruptcy Code or any similar federal or state statute by or against Pledgor
and/or Debtor; (f) an application for the appointment of a receiver for, the
making of a general assignment for the benefit of creditors by, or the
insolvency of Pledgor and/or Debtor; (g) the death of Pledgor and/or Debtor; (h)
the dissolution, whether voluntary, involuntary, or administrative, of Pledgor
and/or Debtor; (i) there is a substantial change in the existing or prospective
financial condition of Pledgor and/or Debtor which Creditor in good faith
determines to be materially adverse; and/or (j) if at any time or for any reason
Creditor reasonably deems itself to be insecure.

    

    10.         Remedies.

    

    (a)           Upon
the occurrence of an Event of Default hereunder, Creditor may, at its option,
proceed to enforce this Agreement and in connection therewith may (i) declare
all or any part of the unpaid Loan, together with all accrued and unpaid
interest thereon, to be immediately due and payable, (ii) retain or sell all or
any portion of the Collateral and apply such Collateral or the proceeds thereof
against the Loan up to the limits expressly provided herein, (iii) exercise any
remedies available to it under the Loan Documents, and (iv) otherwise exercise
all of the rights and remedies of a secured party under the Indiana Uniform
Commercial Code and under other applicable laws.  Without limiting the
foregoing, Creditor shall have the right to:  (i) transfer the whole
or any part of the Collateral into the name of Creditor or its nominee; (ii)
notify any person obligated on any of the Collateral to make payment directly to
Creditor or its nominee of any amounts due or to become due thereon; (iii) vote
the Collateral; and/or (iv) convert the Collateral to shares of “common stock”
pursuant to the terms of the Stock Statement.

    

    (b)           Any
written notice of the sale, disposition or other intended action by Creditor
with respect to the Collateral which is sent by certified mail, return receipt
requested or by overnight courier to Pledgor at Pledgor’s address specified
below, or such other address of Pledgor which may from time to time be shown on
Creditor’s records, at least five (5) days prior to such sale, disposition or
action, shall constitute reasonable notice to Pledgor, unless applicable law
requires a longer period. However, this provision shall not be construed to
impose any obligation on Creditor to notify Pledgor of Creditor’s intent to
sell, dispose of, or take other action with respect to the Collateral, except to
the extent applicable law requires such notice.

    

    (c)           Pledgor
recognizes that Creditor may be unable to effect a public sale of all or a part
of the Collateral by reason of certain prohibitions contained in the Securities
Act of 1933, as amended, and applicable state securities laws, but may be
compelled to resort to one or more private sales to a restricted group of
purchasers who will be obliged to agree, among other things, to acquire all or a
part of the Collateral for their own account, for investment and not with a view
to the distribution or resale thereof.  Pledgor acknowledges and
agrees that any private sale so made may be at prices and on other terms less
favorable to the seller than if such Collateral were sold at public sale, and
that Creditor has no obligation to delay the sale of such Collateral for the
period of time necessary to permit registration of such Collateral for public
sale under any securities laws.  Pledgor agrees that a private sale or
sales made under the foregoing circumstances shall be deemed to have been made
in a commercially reasonable manner.  If any consent, approval or
authorization of any federal, state, municipal or other governmental department,
agency or authority should be necessary to effectuate any sale or other
disposition of the Collateral, or any partial sale or other disposition of the
Collateral, Pledgor will execute all such applications and other instruments as
may be required in connection with securing any such consent, approval or
authorization, and will otherwise use its best efforts to secure the
same.

    

    (d)           All
costs and expenses, including, without limitation, attorneys’ fees and expenses,
incurred by or on behalf of Creditor in connection with the taking, holding,
preparing for sale or other disposition, selling, managing, collecting, or
otherwise disposing of the Collateral, together with interest thereon at a per
annum rate of interest which is equal to the then highest rate of interest
charged on the principal of the Loan from the date of payment until repaid in
full, and such costs and expenses as Creditor shall incur to collect and enforce
the Obligations (hereinafter referred to as the “Liquidation Costs”), shall be
paid by Pledgor to Creditor on demand and shall constitute and become a part of
the Obligations secured hereby.  Any retained Collateral and any
proceeds of sale or other disposition of the Collateral will be applied by
Creditor to the payment of the Liquidation Costs, and the balance of such
proceeds (if any) will be applied by Creditor toward the payment of the Loan
(whether then due or not) at such time or times and in such order and manner of
application as Creditor may from time to time in its sole discretion
determine.  Except as may be otherwise specifically provided in this
Agreement, all Collateral and proceeds of Collateral coming into Creditor’s
possession may be applied by Creditor to any of the Obligations, whether matured
or unmatured, as Creditor shall determine in its sole but reasonable discretion.
Creditor may defer the application of non-cash proceeds of Collateral to the
Obligations until cash proceeds are actually received by
Creditor.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (e)           Each
right, power, and remedy of Creditor as provided for in this Agreement, or in
the other Loan Documents or now or hereafter existing at law or in equity or by
statute or otherwise shall be cumulative and concurrent and shall be in addition
to every other right, power or remedy provided for in this Agreement or in the
other Loan Documents or now or hereafter existing at law or in equity or by
statute or otherwise, and the exercise or beginning of the exercise by Creditor
of any one or more such rights, powers, or remedies shall not preclude the
simultaneous or later exercise by Creditor of any or all such other rights,
powers or remedies.

    

    (f)           No
failure or delay by Creditor to insist upon the strict performance of any term,
condition, covenant, or agreement of this Agreement or of the Loan Documents, or
to exercise any right, power or remedy consequent upon a breach thereof, shall
constitute or be deemed to constitute a waiver of any such term, condition,
covenant or agreement or of any such breach, or preclude Creditor from
exercising any such right, power or remedy at any later time or
times.

    

    11.         Power of
Attorney.  Pledgor hereby appoints and constitutes Creditor its
agent and true and lawful attorney, with full power of substitution, with full
power and authority to:  (i) prepare, execute, and deliver on behalf
of Pledgor any and all such instruments, assignments, stock powers,
certificates, and other documents as Creditor deems necessary in order to
perfect and protect its interests in the Collateral; (ii) endorse Pledgor’s name
on requests to other secured parties of Pledgor for accountings, confirmations
of collateral, and confirmations of statements of account; and (iii) upon the
occurrence of the Event of Default hereunder, (A) to liquidate any Collateral
and apply the proceeds thereof directly to the Obligations, (B) to transfer
ownership of any Collateral to an account designated by Creditor, and (c) to
take such other actions with respect to the Collateral as Creditor, in its sole
discretion, shall deem necessary or appropriate in order to protect its interest
in the Collateral.  This appointment of agency and power of attorney
is coupled with an interest and may not be revoked or canceled before all of the
Obligations have been paid or otherwise satisfied.

    

    12.         Miscellaneous.  Neither
this Agreement nor any term, condition, covenant, or agreement hereof may be
changed, waived, discharged, or terminated orally, but only by an instrument in
writing signed by the party against whom enforcement of the change, waiver,
discharge or termination is sought.  This Agreement shall be governed
by the internal laws of the State of Indiana and shall be binding upon the
heirs, personal representatives, successors, and assigns of Pledgor and shall
inure to the benefit of the successors and assigns of Creditor.  As
used herein the singular number shall include the plural, the plural the
singular, and the use of the masculine, feminine, or neuter gender shall include
all genders as the context may require, and the term “person” shall include an
individual, a corporation, an association, a partnership, a trust, a limited
liability company, an organization, a government, or political subdivision
thereof and a governmental agency.  Unless varied by this Agreement,
all terms used herein which are defined by the Indiana Uniform Commercial Code
shall have the same meanings hereunder as assigned to them by the Indiana
Uniform Commercial Code, as in effect on the date hereof.

    

    13.         Waiver of Jury
Trial.  Pledgor and Creditor, after consulting or having had
the opportunity to consult with counsel, knowingly, voluntarily, and
intentionally waive any right either of them may have to a trial by jury in any
litigation based upon or arising out of this Agreement, the Loan Documents, or
any related instrument or agreement or any of the transactions contemplated by
this Agreement or any course of conduct, dealing, statements, whether oral or
written, or actions of either of them.  Neither Pledgor nor Creditor
shall seek to consolidate, by counterclaim or otherwise, any action in which a
jury trial has been waived with any other action in which a jury trial cannot be
or has not been waived.

    

    [SPACE
INTENTIONALLY BLANK; SIGNATURES ON FOLLOWING PAGE]

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    The
signature of Pledgor is subscribed to this Agreement as of the day and year
first written above.

    

    
      
        
          
            	
                    “PLEDGOR”

                  
	 
      
	
                    LY
      HOLDINGS, LLC, a Kentucky limited liability company

                  
	 
      	 
      
	
                    By:

                  	
                    /S/  J. Sherman Henderson.
      III

                  
	
                    Printed
      Name:

                  	
                    J. Sherman Henderson

                  
	
                    Title:

                  	
                    Manager

                  

          

        

      

    

    

    
      
        	
                COMMONWEALTH
      OF KENTUCKY

              	
                )

              
	 
      	
                )  SS:

              
	
                COUNTY
      OF ____________________

              	
                )

              

      

    

    

    Before
me, a Notary Public in and for the above county and state, on this the ___ day
of January, 2011, personally appeared _________________________, as
_____________________ of LY Holdings, LLC, a Kentucky limited liability company,
and acknowledged the execution of the foregoing Stock Pledge Agreement on behalf
of said company.

    

    WITNESS my hand and notarial
seal.

    

    
      
        
          
            
              
                
                  	 
      	 
      	 
      	 
	
                          My
      Commission expires:

                        	 
      	
                          Notary
      Public

                        	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	
                          Printed
      Name

                        	 

                

              

            

          

        

      

    

    

    Prepared
by:

    

    Keith D.
Mull

    MULL
& HEINZ, LLC

    2867
Charlestown Road

    New
Albany, Indiana  47150

    (812)
206-2315

    
      
         

      

      
        S-1

        
          

        

      

      
         

      

    

    IRREVOCABLE STOCK
POWER

    

    FOR VALUE
RECEIVED, the undersigned does hereby sell, assign, and transfer to FIRST
SAVINGS BANK, F.S.B., Two Million (2,000,000) shares of the Convertible
Preferred Stock of LIGHTYEAR NETWORK SOLUTIONS, INC., a Nevada corporation,
represented by Stock Certificate No. 102, standing in the name of the
undersigned on the books of said entity.  The undersigned does hereby
irrevocably constitute and appoints First Savings Bank, F.S.B., as its agent and
attorney-in-fact, to transfer said stock on the books of said entity, with full
power of substitution of the premises.

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	 
      	
                              LY
      HOLDINGS, LLC, a Kentucky limited liability company

                            
	 
      	 
      	 
      	 
      
	
                              Date:
      ____________________

                            	 
      	
                              By:

                            	 
      
	 
      	 
      	
                              Printed
      Name:

                            	 
      
	 
      	 
      	
                              Title:

                            	 
      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                COMMONWEALTH
      OF KENTUCKY

              	
                )

              
	 
      	
                )  SS:

              
	
                COUNTY
      OF ___________________

              	
                )

              

      

    

    

    Before me, a Notary Public in and for
the above county and state, on this the ___ day of _______________, 20___,
personally appeared _______________________, as ________________ of LY Holdings,
LLC, a Kentucky limited liability company, and acknowledged the execution of the
foregoing Irrevocable Stock Power on behalf of said company.

    

    WITNESS my hand and notarial
seal.

    

    
      
        
          
            
              	 
      	 
      	 
      	 
	
                      My
      Commission expires:

                    	 
      	
                      Notary
      Public

                    	 
	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
	 
      	 
      	
                      Printed
      Name

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