Document:

ex10_4.htm

    
      
Exhibit
10.4

     

    MANAGEMENT
SERVICES AGREEMENT

    

    This
Management Services Agreement (this “Agreement”) is made and entered into as of
this ___ day of March, 2008 (the “Effective Date”), by and among iBroadband,
Inc., a Nevada corporation (“iBroadband”), iBroadband Networks, Inc., a Texas
corporation (“iBN”), iBroadband of Texas, Inc., a Delaware corporation (“iBT”)
and Rapid Link, Incorporated, a Delaware corporation (“Rapid
Link”).  iBroadband, iBN, iBT and Rapid Link are hereinafter sometimes
each individually referred to as a “Party” and collectively as the
“Parties”.

    

    WHEREAS,
iBroadband is a holding company owning one hundred percent (100%) and
ninety-eight percent (98%) of the outstanding shares of iBN and iBT,
respectively;

    

    WHEREAS,
iBN and iBT provide telecommunications services to customers in the State of
Texas (the “Business”) and in the case of iBN such services are being provided
pursuant to a Service Provider Certificate of Operating Authority issued by the
Texas  Public Utility Commission (“Texas PUC”) to iBN (the “iBN
SPCOA”);

    

    WHEREAS,
Rapid Link or one of its wholly-owned subsidiaries is contemplating the purchase
of substantially all of the assets of iBN and iBT in connection with a secured
party sale under the Uniform Commercial Code to be conducted by the secured
lenders to iBroadband, iBN and iBT (the “Secured Party Sale”);

    

    WHEREAS,
Rapid Link or one of its wholly-owned subsidiaries is applying to the Texas PUC
for a Service Provider Certificate of Operating Authority for itself (the “Buyer
SPCOA”) in order to provide telecommunications services to iBN’s customers and
is applying to the Federal Communications Commission (“FCC”) for approval of the
assignment of the assets of iBN and iBT (the “FCC
Approval”);  and

    

    WHEREAS,
Rapid Link desires to operate the Business during the Term (as hereafter
defined) pursuant to the terms and conditions of this Agreement.

    

    NOW,
THEREFORE, in consideration of the above recitals and mutual promises and other
good and adequate consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, hereby covenant and
agree as follows:

    

    1.  
         Appointment.  iBN
and iBT hereby engage Rapid Link, on the terms and conditions set forth herein
and during the Term, to provide management services to iBN and iBT in the
operation of the Business.

    

    2.  
         Term.  This
Agreement shall become effective upon the Effective Date and shall expire (the
“Term”) automatically on the earlier of (a) at 12:01 A.M (Texas time) on
September 30, 2008 and (b) the date on which each of the following conditions
have been satisfied: (i) the completion of the Secured Party Sale; (ii) the
obtaining of the Buyer SPCOA and the FCC Approval; (iii) Rapid Link or one of
its wholly-owed subsidiaries enters into an interconnection agreement with
United Telephone Company of Texas, Inc. d/b/a Embarq; and (iv) the expiration
date of any Texas PUC and FCC notice requirements to iBN’s customers (the
“Expiration Date”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.   
         Management
Fee.  On the Effective Date, iBN shall pay to Rapid Link a
management fee in the amount of $20,000.

    

    4.    
        Management
Services.

    

    During
the Term, Rapid Link shall designate those employees of Rapid Link or one of its
wholly owned subsidiaries that will be responsible for participating in the
management services described herein on behalf of, and under the direction of,
iBN and iBT.  Rapid Link or its wholly owned subsidiary, in its
discretion, may assign additional employees of Rapid Link to perform management
responsibilities at iBN and iBT  Management responsibilities shall
include, but not necessarily be limited to:

    

    (a)           collection
of all accounts receivable and all cash generated from operation of the Business
received by iBN and iBT which collections shall be deposited in the Bank
Accounts (as defined below) and applied to the continued operation of the
Business as directed by iBN and iBT;

    

    (b)           as
directed by iBN and iBT, to pay when due all actual costs and expenses accruing
from and after the Effective Date in connection with the ongoing operation of
the Business;

    

    (c)           utilizing
for the Term the existing iBN and iBT bank accounts for all funds received by
and collected on behalf of iBN and iBT (the “Bank Accounts”) and deposit therein
on behalf of iBN and iBT all cash from the operation of the Business, including
all cash from iBN’s and iBT’s accounts receivable, and withdrawing funds from
the Bank Accounts as directed by iBN and iBT for the continued operation of the
Business during such period;

    

    (d)           using
commercially reasonable efforts to collect, receive payment, and delivering the
proceeds of all of iBN’s and iBT’s accounts receivable or other rights to
payment accruing to iBN or iBT, and providing a monthly accounting of same to
iBN and iBT;

    

    (e)           cooperating
in the timely filing of all tax returns, state and federal, for iBN and iBT
covering any and all time periods up to and including the Expiration
Date;

    

    (f)           reporting
to iBroadband regarding its management of the Business; and

    

    (g)           providing
reasonable level of care to the customers of the Business.

     

    All
services to be provided under this Agreement shall be provided in a professional
manager and in accordance with all applicable professional or industry standards
and in compliance with all applicable state and federal laws, rules and
regulations.

    

    5. 
           Limitations.  During
the Term, iBN and iBT will retain ownership, control and full right of access to
all customer lines covered by this Agreement.  In addition, iBN and
iBT will retain ultimate control to direct the management activities of Rapid
Link and make policy decisions regarding the Business (subject to the terms
hereof).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    6.    
        Restrictive Covenants of
iBroadband, iBN and iBT.  Rapid Link shall provide the
management services described herein have the right to manage the Business
during the term of this Agreement subject to iBN’s oversight, review and
ultimate control; provided, however, that iBroadband, iBN and iBT shall not,
during the term of this Agreement, take any action outside the ordinary course
of business without the express written consent of Rapid Link.  Action
outside the ordinary course of business shall include but not necessarily be
limited to:

    

    (a)           the
sale of any material assets of iBN and iBT;

    

    (b)           contracts
for capital improvements or capital expenditures by iBN or iBT in excess of
$5,000;

    

    (c)           the
execution or amendment of any contract of employment or the adjustment of any
salary of existing officers and employees of iBN or iBT;

     

    (d)           the
voluntary commencement of any proceedings under the United States Bankruptcy
Code or the voluntary commencement of any insolvency or receivership proceedings
by iBroadband, iBN or iBT;

    

    (e)           a
change in control of the board of directors of iBN or iBT; or

    

    (f)           the
election of new officers of iBN or iBT

    

    7.   
         Compliance with Applicable
Law.

    

    (a)           The
Parties desire and agree that this Agreement and the obligations performed
hereunder shall be in full compliance with (i) the terms and conditions of the
iBN SPCOA; (ii) any licenses issued by the Federal Communications Commission
(the “FCC Licenses”), (iii) existing designations as an Eligible
Telecommunications Carrier and an Eligible Telecommunications Provider, and (iv)
all Federal, State and local laws or regulations, including, without limitation,
the Texas Public Utility Regulatory Act of 2005 (the “Texas PURA”) and the
Federal Communications Act of 1934, as amended (the “Communications
Act”).  It is expressly understood by the Parties that nothing in this
Agreement is intended to give Rapid Link any right which would be deemed to
violate the iBN’s SPCOA, any FCC License or any Federal, State or local law,
regulation, rule, or order, or which would transfer control of, or result in the
assignment of assets of iBN or iBT.

    

    (b)           If
any body of competent jurisdiction determines that any provision of this
Agreement violates any law, rule, regulation, or order that would cause this
Agreement to be invalid, the Parties shall make reasonable efforts immediately
to bring this Agreement into compliance consistent with the terms of this
Agreement.

    

    (c)           Rapid
Link acknowledges and agrees that iBN has an obligation to comply with the Texas
PURA and the Communications Act and all rules, regulations, and orders of the
Texas PUC and Federal Communications Commission, and Rapid Link’s management of
the Business under this Agreement is not intended to interfere with iBN’s
ability to comply with Texas PURA and the Communications Act or with the rules,
regulations, and orders of the Texas PUC and Federal Communications Commission
or to result in Rapid Link obtaining control of the operation of the Business
prior to the Secured Party Sale.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (d)           At
its discretion and at its expense, iBN may conduct periodic audits during normal
business hours, upon reasonable notice in order to ensure compliance in all
material respects with this Agreement and all applicable government rules and
regulations.

    

    (e)           Rapid
Link shall manage the Business during the Term in compliance with all applicable
laws, ordinances, rules, regulations, and restrictions, including, but not
limited to, the Texas PURA and the Communications Act, as well as the rules,
regula­tions, and orders of the Texas PUC and the Federal Communications
Commission, as well as all policies, local ordinances, and state
regulations.  Rapid Link recognizes that iBN remains ultimately
responsible for ensuring that the Business is operated in compliance with the
applicable rules, regulations, and policies of applicable Federal, State, and
local, government authorities and shall cooperate fully with iBN by providing
information regarding the Business and shall pay the reasonable and actual
administrative costs incurred in complying with such obligations.

    

    (f)           During
the term of this Agreement, iBN shall be responsible for the filing of all
applications, reports, correspondence and other documentation with the Texas PUC
and the Federal Communications Commission relating to the operation of the
Business; provided that Rapid Link shall cooperate with such filings and shall
provide upon iBN’s reasonable request any information that will enable it to
prepare any such applications, records and reports; and provided further that
iBN shall consult with Rapid Link and the Parties shall mutually agree as to the
most effective and efficient means of preparing such filings and in the
selection of any outside professionals or consultants retained by Rapid Link to
assist in such filings, and Rapid Link shall reimburse iBN for all reasonable
and actual out-of-pocket legal fees and expenses in connection with such
applications, correspondence and other related matters.

    

    8.  
          Amendment and
Modification.  This Agreement may be amended, modified or
supplemented only by written agreement signed by each Party.

    

    9.     Waiver of Compliance;
Consents.  Except as otherwise provided in this Agreement, any
failure of any Party to comply with any obligation, covenant or condition herein
may be waived by the Party entitled to the benefits thereof only by a written
instrument signed by the Party granting such waiver, but such waiver or failure
to insist upon strict compliance with such obligation, covenant, or condition
shall not operate as a waiver of or estoppel with respect to any subsequent or
other failure.

    

    10.           Indemnification.  iBroadband,
iBN and iBT, jointly and severally, hereby agree to indemnify and hold Rapid
Link harmless of and from any and all claims, actions, causes of action,
liability, damages, costs, including reasonable attorney’s fees, of any nature
arising out of or resulting from the performance by Rapid Link of its duties and
responsibilities pursuant to this Agreement except for those claims, actions,
liabilities, damages and costs arising from the gross negligence or willful
misconduct of Rapid Link.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    11.           Notices.  All
notices and other communications hereunder shall be in writing and shall be
deemed given (i) when personally sent/delivered, by facsimile transmission (with
hard copy to follow) or sent by reputable express courier (charges prepaid), or
(ii) three (3) days following mailing by registered or certified mail, postage
prepaid and return receipt requested.  Unless another address is
specified in writing, notices, demands and communications to any Party shall be
sent to the addresses indicated below:

     

    
      	
              To
      Rapid Link:

            	
              Rapid
      Link Communications, Inc.

            
	
               
      

            	
              5408
      N. 99th
      Street

            
	 
      	
              Omaha,
      Nebraska  68134

            
	 
      	
              Facsimile:  970-547-8165

            
	 
      	
              Telephone:
      420-392-7545

            
	 
      	
              Email:
      chrisc@rapidlink.com

            
	 
      	 
      
	 
      	 
      
	
              To
      iBroadband:

            	
              Bruce
      Heidecke, President

            
	 
      	
              iBroadband
      Networks, Inc.,

            
	 
      	
              14286
      Gillis Road

            
	 
      	
              Dallas,
      Texas  75244

            
	 
      	
              Facsimile:  972-458-0908

            
	 
      	
              Telephone:  972-458-0909

            
	 
      	
              Email:  bruce@ibroadband.com

            

    

    

    12.           Non-Assignment.  This
Agreement shall be binding upon and inure to the benefit of the Parties hereto,
and except as otherwise expressly provided herein, no other person shall have
any right, benefit or obligation hereunder.  Any assignment of this
Agreement or any of the rights, interests or obligations hereunder in
contravention of this Section 10 shall be null and void and shall not bind or be
recognized by either Party except that Rapid Link may assign its rights and
obligations under this Agreement to a wholly-owned subsidiary of Rapid
Link..

    

    13.           Third-Party
Beneficiaries.  Nothing in this Agreement shall be construed as
giving any person other than the Parties hereto any legal or equitable right,
remedy or claim under or with respect to this Agreement.

    

    14.           Severability.  If
any provision of this Agreement is invalid, illegal or incapable of being
enforced by any rule of law or public policy, all other terms, conditions and
provisions of this Agreement shall nevertheless remain in full force and effect
so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to any
Party.  Upon such determination that any term or other provision in
invalid, illegal or incapable of being enforced, the Parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the Parties as closely as possible in a mutually acceptable manner in
order that the transactions contemplated hereby be consummated as originally
contemplated to the fullest extent possible.

    

    15.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas (without giving effect to the
principles of conflicts of law thereof) as to all matters, including, but not
limited to, matters of validity, construction, effect, performance and
remedies.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    16.           Submission to
Jurisdiction.  The Parties hereto irrevocably submit to the
exclusive jurisdiction of the state or federal courts of the State of Texas over
any dispute arising out of or relating to this Agreement or any other agreement
or instrument contemplated hereby or entered into in connection herewith or any
of the transactions contemplated hereby or thereby.  Each Party hereby
irrevocably agrees that all claims in respect of such dispute or proceedings may
be heard and determined in such courts.  The Parties hereby
irrevocably waive, to the fullest extent permitted by applicable law, any
objection which they may now or hereafter have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient forum in
connection therewith.

    

    17.           Counterparts.  This
Agreement may be executed and delivered (including by facsimile transmission) in
one or more counterparts, and by the Parties hereto in separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original
but all of which taken together shall constitute one and the same
agreement.

    

    18.           Entire
Agreement.  This Agreement constitutes the entire agreement
among the Parties with respect to the subject matter hereof and supersede all
prior agreements and understandings, whether written or oral, among the Parties
with respect thereto.

    

    19.           Headings.  The
descriptive headings contained in this Agreement are included for convenience of
reference only and shall not affect in any way the meaning or interpretation of
this Agreement.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    20.           Remedies.  The
Parties hereby acknowledge and agree that money damages may not be an adequate
remedy for any breach or threatened breach of any of the provisions of this
Agreement and that, in such event, each Party or its permitted successors or
assigns, in addition to any other rights and remedies existing in its favor, may
seek specific performance, injunctive and/or other relief in order to enforce or
prevent any violations of this Agreement.

    

    21.           No Partnership or Joint
Venture Created.  Nothing in this Agreement shall be construed
or interpreted to make any Party partners or joint venturers, or to make one an
agent or representative of the other, or to afford any rights to any third party
other than as expressly provided herein.  No Party is authorized to
bind any other Party to any contract, agreement or understanding.

    

    
      	
              RAPID
      LINK, INCORPORATED

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      Chris Canfield

            	 
      
	 
      	
              Name:

            	
              Chris
      Canfield

            	 
      
	 
      	
              Title:

            	
              CFO

            	 
      
	 
      	 
      	 
      	 
      
	
              iBROADBAND,
      INC.

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/Bruce
      A. Heidelke

            	 
      
	 
      	
              Name:

            	
              Bruce
      A. Heidelke

            	 
      
	 
      	
              Title:

            	
              President
      & CEO

            	 
      
	 
      	 
      	 
      	 
      
	
              iBROADBAND
      NETWORKS, INC.

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      Bruce A. Heidelke

            	 
      
	 
      	
              Name:

            	
              Bruce
      A. Heidelke

            	 
      
	 
      	
              Title:

            	
              President
      & CEO

            	 
      
	 
      	 
      	 
      	 
      
	
              iBROADBAND
      OF TEXAS, INC.

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/
      Bruce A. Heidelke

            	 
      
	 
      	
              Name:

            	
              Bruce
      A. Heidelke

            	 
      
	 
      	
              Title:

            	
              President
      & CEO

            	 
      

    

    

     

    
      SIGNATURE
PAGE TO

      TRANSITION
SERVICES AGREEMENTex10_5.htm

    
      

    

    

    Exhibit
10.5

    

    EXTENSION
AGREEMENT

    

    This
EXTENSION AGREEMENT (“Agreement”) is
entered into effective as of March 8, 2008 (the “Effective Date”), by and
between Trident Growth Fund,
L.P., a Delaware limited partnership (“Trident” or “Lender”) and Rapid Link Incorporated, a
Delaware corporation (“Rapid Link” or the “Company”).

    

    R E C  I T A L S:

    

    
      	
               
      

            	
              A.

            	
              Rapid
      Link executed and delivered to Lender that certain 10% Secured Convertible
      Debenture (the “Debenture”) dated March 8, 2006, payable to the order of
      Lender in the principal amount of $600,000;
and

            

    

    

    
      	
               
      

            	
              B.

            	
              Lender
      and Rapid Link executed that certain Security Agreement (the “Security
      Agreement”) dated of even date with the Debenture, to secure the payment
      of the Debenture and performance by Rapid Link of the other obligations
      set forth in the the Debenture; and

            

    

    

    
      	
               
      

            	
              C.

            	
              Rapid
      Link executed and delivered to Lender that certain Common Stock Purchase
      Warrant (the “Warrant”) dated March 8, 2006, whereby Lender became
      entitled, for a term of five (5) years, to subscribe for and purchase from
      Rapid Link shares of common stock (the “Warrant Shares”) upon the terms
      and subject to the conditions set forth in the Warrant;
  and

            

    

    

    
      	
               
      

            	
              D.

            	
              Lender
      and Rapid Link executed that certain Securities Purchase Agreement (the
      “Securities Purchase Agreement”) dated of even date with the Debenture and
      the Warrant, whereby Rapid Link sold to Lender the Debenture and the
      Warrant for an aggregate amount of SIX HUNDRED THOUSAND and NO/100 DOLLARS
      ($600,000.00); and

            

    

    

    
      	
               
      

            	
              E.

            	
              Lender,
      Rapid Link, and Charger Investments, LLC (“Charger” or the “Subordinate
      Lender”), executed that certain Subordination Agreement (the
      “Subordination Agreement”) dated of even date with the Debenture and
      Warrant, whereby the obligations created in the Subordinate Loan Documents
      (as defined in the Subordination Agreement) were subordinated to the
      obligations created by the Loan Documents (as defined below);
      and

            

    

    

    
      	
               
      

            	
              F.

            	
              All
      of the above documents are hereinafter collectively referred to herein as
      the “Loan Documents”; and

            

    

    

    
      	
               
      

            	
              G.

            	
              Rapid
      Link and Lender have agreed to extend the maturity date of the Debenture
      by one year (the “Extension”) upon and subject to the satisfaction of the
      terms and conditions contained herein;
and

            

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    NOW,
THEREFORE, for and in consideration of the premises and the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Lender and Rapid Link
hereby agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Recitals.  The
      above recitals serve as the basis for this Agreement, and are incorporated
      herein and made a part hereof for all purposes.  Rapid Link and
      Lender each hereby acknowledge the above recitals to be true and correct
      as of the date hereof and are incorporated herein and made a part hereof
      for all purposes.  The recitals are a substantive, contractual
      part of this Agreement.

            

    

    

    
      	
               
      

            	
              2.

            	
              Extension of
      Terms. Effective as of the Effective Date, the following
      modifications shall be deemed made to the Loan
  Documents:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Maturity Date of the Debenture, as that term is defined in the Debenture,
      shall be extended to the earlier of (i) June 30, 2011; or (ii) the
      consummation of a Change of Control Transaction, as that term is defined
      in the Loan Documents (the “New Maturity Date”);
  and

            

    

    

    
      	
               
      

            	
              3.

            	
              Additional Warrant
      Shares. In consideration of the Extension, Rapid Link shall grant
      to Lender additional warrant shares (the “Additional Warrant Shares”) in
      accordance with the terms and conditions of the Common Stock Purchase
      Warrant attached hereto as Exhibit “A” (the “New Warrant”). The Additional
      Warrant Shares will be 60,000 warrants priced at $0.09.  All
      other warrants earned as of this extension will be fully vested and no
      further warrants will be earned throughout the extension contemplated in
      this note and extension.

            

    

     

    
      	
               
      

            	
              4.

            	
              Affirmation of
      Security.  Rapid Link hereby renews, but does not
      extinguish, the security interests created and evidenced by the Security
      Agreement and the other Loan Documents. Rapid Link covenants to observe,
      comply with and perform each of the terms and provisions of the Loan
      Documents, as modified hereby.

            

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              5.

            	
              Acknowledgment by
      Rapid Link.  Except as otherwise specified herein, the
      terms and provisions hereof shall in no manner impair, limit, restrict or
      otherwise affect the obligations of Rapid Link to Lender, as evidenced by
      the Loan Documents.  Rapid Link hereby acknowledges, agrees and
      represents that (i) Lender has extended the term of the Debenture and
      Rapid Link is indebted to Lender pursuant to the terms of the Debenture
      for the extended term, which ends on the New Maturity Date; (ii) Rapid
      Link has agreed, in consideration of the Extension, to grant to Lender the
      Additional Warrant Shares in accordance with the terms of the New Warrant,
      (iii) the security interests created and evidenced by the Loan Documents
      are valid and subsisting security interests of the respective dignity and
      priority recited in the Loan Documents; (iv) there are no claims or
      offsets against, or defenses or counterclaims to, the terms or provision
      of the Loan Documents, and the other obligations created or evidenced by
      the Loan Documents, as modified hereby; (v) Rapid Link has no claims,
      offsets, defenses or counterclaims arising from any Lender’s acts or
      omissions with respect to the Loan Documents or Lender’s performance under
      the Loan Documents; (vi) the representations and warranties contained in
      the Loan Documents are true and correct representations and warranties of
      Rapid Link, as of the date hereof; (vii) Lender is not in default and no
      event has occurred which, with the passage of time, giving of notice, or
      both, would constitute a default by Lender of Lender’s obligations under
      the terms and provisions of the Loan Documents; and (viii) Lender has no
      obligation to advance any additional funds to Rapid Link or any other
      party pursuant to the Loan Documents.  To the extent Rapid Link
      now has, or in the future possesses, any claims, offsets, defenses or
      counterclaims against Lender for the repayment of all or a portion of the
      Debenture, whether known or unknown, fixed or contingent, same are hereby
      forever irrevocably waived and released in their
  entirety.

            

    

    

    
      	
               
      

            	
              6.

            	
              No Waiver of
      Remedies.  Except as may be expressly set forth herein,
      nothing contained in this Agreement shall prejudice, act as, or be deemed
      to be a waiver of any right or remedy available to Lender by reason of the
      occurrence or existence of any fact, circumstance or event constituting a
      default under the Loan Documents.

            

    

    

    
      	
               
      

            	
              7.

            	
              Additional
      Documentation.  From time to time, Rapid Link shall
      execute or procure and deliver to Lender such other and further documents
      and instruments evidencing, securing or pertaining to the Loan Documents
      as shall be reasonably requested by Lender so as to evidence or effect the
      terms and provisions hereof.  Upon Lender’s request, Rapid Link
      shall cause to be delivered to Lender an opinion of counsel, satisfactory
      to Lender as to form, substance and rendering attorney, opining to (i) the
      validity and enforceability of this Agreement and the terms and provisions
      hereof, and any other agreement executed in connection with the
      transaction contemplated hereby; (ii) the authority of Rapid Link, and any
      constituents of Rapid Link, to execute, deliver and perform its or their
      respective obligations under the Loan Documents, as hereby modified; and
      (iii) such other matters as reasonably requested by
  Lender.

            

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              8.

            	
              Effectiveness of the
      Loan Documents.  Except as expressly modified by the
      terms and provisions hereof, each of the terms and provisions of the Loan
      Documents are hereby ratified and shall remain in full force and effect,
      as modified hereby.

            

    

    

    
      	
               
      

            	
              9.

            	
              Governing
      Law.  THE TERMS AND
      PROVISIONS HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
      THE LAWS OF THE STATE OF TEXAS, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
      HEREIN.

            

    

    

    
      	
               
      

            	
              10.

            	
              Time.  Time
      is of the essence in the performance of the covenants contained herein and
      in the Loan Documents.

            

    

    

    
      	
               
      

            	
              11.

            	
              Binding
      Agreement.  This Agreement shall be binding upon the
      heirs, executors, administrators, personal representatives, successors and
      assigns of the parties hereto.

            

    

    

    
      	
               
      

            	
              12.

            	
              Headings.  The
      section headings hereof are inserted for convenience of reference only and
      shall in no way alter, amend, define or be used in construction or
      interpretation of the text of such
section.

            

    

    

    
      	
               
      

            	
              13.

            	
              Construction.  Whenever
      the context hereof so requires, reference to the singular shall include
      the plural and likewise, the plural shall include the singular; words
      denoting gender shall be construed to mean the masculine, feminine or
      neuter, as appropriate; and specific enumeration shall not exclude the
      general, but shall be construed as cumulative of the general
      recitation.

            

    

    

    
      	
               
      

            	
              14.

            	
              Severability.  If
      any clause or provision of this Agreement is or should ever be held to be
      illegal, invalid or unenforceable under any present or future law
      applicable to the terms hereof, then and in that event, it is the
      intention of the parties hereto that the remainder of this Agreement shall
      not be affected thereby, and that in lieu of each such clause or provision
      of this Agreement that is illegal, invalid or unenforceable, such clause
      or provision shall be judicially construed and interpreted to be as
      similar in substance and content to such illegal, invalid or unenforceable
      clause or provision, as the context thereof would reasonably suggest, so
      as to thereafter be legal, valid and
  enforceable.

            

    

    

    
      	
               
      

            	
              16.

            	
              Counterparts.  To
      facilitate execution, this Agreement may be executed in as many
      counterparts as may be convenient or required.  It shall not be
      necessary that the signature and acknowledgment of, or on behalf of, each
      party, or that the signature and acknowledgment of all persons required to
      bind any party, appear on each counterpart.  All counterparts
      shall collectively constitute a single instrument.  It shall not
      be necessary in making proof of this Agreement to produce or account for
      more than a single counterpart containing the respective signatures and
      acknowledgment of, or on behalf of, each of the parties
      hereto.  Any signature and acknowledgment page to any
      counterpart may be detached from such counterpart without impairing the
      legal effect of the signatures and acknowledgments thereon and thereafter
      attached to another counterpart identical thereto except having attached
      to it additional signature and acknowledgment
  pages.

            

    

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              17.

            	
              Notice
      of Final Agreement.  THIS EXTENSION AND
      THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE
      PARTIES HERETO AND THERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS,
      AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
      RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE
      CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
      SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO OR
      THERETO.  THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO
      OR THERETO.  THE PROVISIONS OF THIS MODIFICATION AND THE OTHER
      LOAN DOCUMENTS MAY BE AMENDED OR WAIVED ONLY BY AN INSTRUMENT IN WRITING
      SIGNED BY THE RESPECTIVE PARTIES TO SUCH
  DOCUMENTS.

            

    

     

     

    {See next
page for signature pages}

     

    Common
Stock Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
2

          
            

          

        

        
           

        

      

    

    

    EXECUTED
effective as of the date first above written:

    

    
      	 
      	
              LENDER:

            
	 
      	 
      	 	 
      
	 
      	
              TRIDENT
      GROWTH FUND, L.P.

            
	 
      	 
      	 	 
      
	 
      	
              By:

            	 	
              TRIDENT
      MANAGEMENT, LLC,

            
	 
      	 
      	 	
              GENERAL
      PARTNER

            
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	 
      	
              By:

            	 	 
      
	 
      	Name:    
      Scott Cook
	 
      	Title:    
      Authorized
      Signatory
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	 
      	
              RAPID
      LINK:

            
	 
      	 
      	 	 
      
	 
      	
              RAPID
      LINK INCORPORATED

            
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	 
      	
              By:

            	 	 
      
	 
      	
              Name:

            	 	
              John
      Jenkins

            
	 
      	
              Title:

            	 	
              Chief
      Executive Officer

            

    

     

    Common Stock Purchase Warrant
No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
3

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
“A”

    

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES AS PERMITTED BY LAW AND THE SECURITIES
PURCHASE AGREEMENT PURSUANT TO WHICH THE SECURITIES WERE ISSUED.

     

    
      	 	
              COMMON
      STOCK PURCHASE WARRANT

            	
              NO.
      2

            

    

    

    To
Purchase Shares of Common Stock of

     

    RAPID
LINK INCORPORATED

     

    This
COMMON STOCK PURCHASE WARRANT (this “Warrant”)
certifies that, for value received, TRIDENT GROWTH FUND, L.P., a Delaware
limited partnership (the “Holder”),
is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof, March
8, 2007 (the “Initial
Exercise Date”), and on or prior to the close of business on the fifth
anniversary of the Initial Exercise Date (the “Termination
Date”), to subscribe for and purchase from RAPID LINK INCORPORATED, a
Delaware corporation (the “Company”),
such number of shares of common stock, par value $001 per share, of the Company
(the “Common
Stock”), subject to adjustment herein (the “Warrant
Shares”) as follows:

     

    
      	
               
      

            	
              a)

            	
              60,000
      at an Exercise Price equal to $.09;
plus

            

    

     

    Section
1.              Definitions.  Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase
Agreement”), dated March 8, 2006, entered into by and among the Company
and the Holder.

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
4

          
            

          

        

        
           

        

      

    

    

    
      Section
2.        
       Exercise.

    

     

    a)     
       Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made at any time or times on or after the Initial Exercise Date
and on or before the Termination Date (each, an “Exercise
Date”) by delivery to the Company of a duly executed facsimile copy of
the Notice of Exercise Form annexed  hereto (or such other office or
agency of the Company as it may designate by notice in writing to the registered
Holder at the address of such Holder appearing on the books of the Company);
provided, however,
within five Business Days of the date said Notice of Exercise is delivered to
the Company, the Holder shall have surrendered this Warrant to the Company and
the Company shall have received  payment of the aggregate Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check drawn
on a United States bank.

     

         Exercise Price.  The
Exercise
Price (so called herein) of each share of Common Stock under this Warrant
shall be equal to the amount set forth above in the paragraph immediately
preceding Section 1.  Any reference to the Exercise Price herein shall
relate to the Exercise Price relevant to such Warrant Shares as described
above.

     

    b)      
      Cashless
Exercise.  If at any time after one year from the date of
issuance of this Warrant there is no effective Registration Statement
registering the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised at such time by means of a “cashless exercise” in which
the Holder shall be entitled to receive a certificate for the number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A),
where:

     

    
      	
               
      

            	
              (A)
      = the price of said Common Stock determined by reference to the last
      reported sale price for the Common Stock on such day on the principal
      securities exchange on which the Common Stock is listed or admitted to
      trading or if no such sale takes place on such date, the average of the
      closing bid and asked prices thereof as officially reported, or, if not so
      listed or admitted to trading on any securities exchange, the last sale
      price for the Common Stock on the National Association of Securities
      Dealers national market system on such date, or, if there shall have been
      no trading on such date or if the Common Stock shall not be listed on such
      system, the average of the closing bid and asked prices in the
      over-the-counter market as furnished by any NASD member firm selected from
      time to time by the Company for such purpose or, if the Common Stock is
      not traded, then such price as is reasonably determined by the Company’s
      Board of Directors (the “Market
      Value”);

            

    

    

    
      	
               
      

            	
              (B)
      = the Exercise Price of this Warrant, as adjusted;
  and

            

    

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
5

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (X)
      = the number of Warrant Shares issuable upon exercise of this Warrant in
      accordance with the terms of this Warrant by means of a cash exercise
      rather than a cashless exercise.

            

    

    

    Notwithstanding
anything herein to the contrary, on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section
2(c).

    

    c)          
  Exercise
Limitations.  The Holder shall not have the right to exercise
any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent
that after giving effect to such issuance after exercise, the Holder (together
with the Holder’s affiliates), as set forth on the applicable Notice of
Exercise, would beneficially own in excess of 4.99% (or as applicable, 9.99%) of
the number of shares of the Common Stock outstanding immediately after giving
effect to such issuance.  For purposes of the foregoing determination, the
number of shares of Common Stock beneficially owned by the Holder and its
affiliates shall include the number of shares of Common Stock issuable upon such
exercise of this Warrant less the number of shares of Common Stock which would
be issuable upon (A) exercise of the remaining, nonexercised portion of this
Warrant and (B) exercise or conversion of the unexercised or unconverted portion
of any other Securities (including, without limitation, any other Debentures or
Warrants) subject to a limitation on conversion or exercise analogous to the
limitation contained herein beneficially owned by the Holder.  Except as
set forth in the preceding sentence, for purposes of this Section 2(c),
beneficial ownership shall be calculated in accordance with Section 13(d) of the
Exchange Act.  To the extent that the limitation contained in this
Section 2(c) applies, the determination of whether this Warrant is exercisable
(in relation to other securities owned by the Holder) and of which a portion of
this Warrant is exercisable shall be in the sole discretion of such
Holder.  For purposes of this Section 2(c), in determining the number
of outstanding shares of Common Stock, the Holder may rely on the number of
outstanding shares of Common Stock as reflected in (x) Schedule 3.1(g) to
the Purchase Agreement, (y) a more recent public announcement by the Company,
including the most recent annual or quarterly report of Form 10-KSB or 10-QSB
filed with the Commission; or (z) any other notice by the Company or the
Company’s transfer agent setting forth the number of shares of Common Stock
outstanding.  Upon the written or oral request of the Holder, the Company
shall within two Business Days confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding.  The provisions of this
Section 2(c) may be waived by the Holder upon, at the election of the Holder,
not less than 61 days’ prior notice to the Company, and the provisions of this
Section 2(c) shall continue to apply until such 61st day (or such later date, as
determined by the Holder, as may be specified in such notice of
waiver).

     

    
      	
               
      

            	
              d)

            	
              Mechanics of
      Exercise.

            

    

     

    i.           
Authorization of
Warrant Shares.  The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and non-assessable and free from
all taxes, liens and charges in respect of the issuance thereof (other than
taxes in respect of any transfer occurring contemporaneously with such
issuance).  The Company covenants that during the period the Warrant
is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares
upon the exercise of any purchase rights under this Warrant.  The
Company further covenants that its issuance of this Warrant shall constitute
full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this
Warrant.  The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of
the Trading Market upon which the Common Stock may be listed.

     

    Common Stock
Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
6

          
            

          

        

        
           

        

      

    

    

    ii.           Delivery of Certificates
Upon Exercise.  Certificates for shares purchased hereunder
shall be transmitted by the transfer agent of the Company to the Holder by
crediting the account of the Holder’s prime broker with the Depository Trust
Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the
Company is a participant in such system and if the certificates may be issued
without a restrictive legend in accordance with applicable federal securities
laws, and otherwise by physical delivery to the address specified by the Holder
in the Notice of Exercise within two (2) Business Days from the delivery to the
Company of the Notice of Exercise Form, surrender of this Warrant and payment of
the aggregate Exercise Price as set forth above (“Warrant
Share Delivery Date”).  This Warrant shall be deemed to have
been exercised on the date the Exercise Price is received by the
Company.  The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be deemed to
have become a holder of record of such shares for all purposes, as of the date
the Warrant has been exercised by payment to the Company of the Exercise Price
and all taxes required to be paid by the Holder, if any, pursuant to Section
2(d)(vii) prior to the issuance of such shares, have been paid.

     

    iii.          Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the time of delivery of the certificate or
certificates representing Warrant Shares, deliver to Holder a new Warrant
evidencing the rights of Holder to purchase the unpurchased Warrant Shares
called for by this Warrant, which new Warrant shall in all other respects be
identical with this Warrant.

     

    iv.          Rescission
Rights.  If the Company fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to this Section 2(d)(iv) by the Warrant Share Delivery Date,
then the Holder will have the right to rescind such exercise.

     

    Common Stock
Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
7

          
            

          

        

        
           

        

      

    

    

    v.        
   Failure to Timely Deliver
Certificates Upon Exercise.  In addition to any other rights
available to the Holder, if the Company or the Company’s transfer agent fails to
cause delivery to the Holder of a certificate or certificates representing the
Warrant Shares or if the Company or its transfer agent fails to deliver such
certificates without the restrictive legend (if applicable) on or before the
Warrant Share Delivery Date, the Company shall pay to Purchaser, in cash, as
partial liquidated damages and not as a penalty, the greater of (i) $500 for
each Business Day after the Warrant Share Delivery Date until such certificate
is delivered with an appropriate legend or without a restrictive legend, as the
case may be; and (ii) the difference in the Market Value of the Warrant Shares
on the Warrant Share Delivery Date and the date such shares are actually
received by the Holder.  Nothing herein shall limit Purchaser’s right
to pursue actual damages for the Company’s failure to deliver certificates
representing any Securities as required herein, and Purchaser shall have the
right to pursue all remedies available to it at law or in equity including,
without limitation, a decree of specific performance and/or injunctive
relief.

     

    vi.           No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall round such fractional share up to the next
whole number.

     

    vii.          Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder for any issue or transfer tax or other
incidental expense in respect of the issuance of such certificate, all of which
taxes and expenses shall be paid by the Company, and such certificates shall be
issued in the name of the Holder or in such name or names as may be directed by
the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
and the Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

     

    viii.          Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    Common Stock
Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
8

          
            

          

        

        
           

        

      

    

     

    
      Section
3.              Certain
Adjustments.

    

     

    a)          
  Stock
Dividends and Splits. If the Company, at any time while this Warrant is
outstanding: (A) pays a stock dividend or otherwise make a distribution or
distributions on shares of its Common Stock or any other equity or equity
equivalent securities payable in shares of Common Stock (which, for avoidance of
doubt, shall not include any shares of Common Stock issued by the Company
pursuant to this Warrant), (B) subdivides outstanding shares of Common Stock
into a larger number of shares, (C) combines (including by way of reverse stock
split) outstanding shares of Common Stock into a smaller number of shares, or
(D) issues by reclassification of shares of the Common Stock any shares of
capital stock of the Company, then in each case the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding after such event and the number of shares issuable upon exercise of
this Warrant shall be proportionately adjusted.  Any adjustment made
pursuant to this Section 3(a) shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or
re-classification.

     

    b)        
    Subsequent Equity
Sales. If the Company at any time while this Warrant is outstanding,
shall offer, sell, grant any option to purchase or offer, sell or grant any
right to reprice its securities, or otherwise dispose of or issue  any
Common Stock or Common Stock Equivalents entitling any Person to acquire shares
of Common Stock, at an effective price per share less than the then Exercise
Price (such lower price, the “Base
Share Price” and such issuances collectively, a “Dilutive
Issuance”), as adjusted hereunder (if the holder of the Common Stock or
Common Stock Equivalents so issued shall at any time, whether by operation of
purchase price adjustments, reset provisions, floating conversion, exercise or
exchange prices or otherwise, or due to warrants, options or rights per share
which is issued in connection with such issuance, be entitled to receive shares
of Common Stock at an effective price per share which is less than the Exercise
Price, such issuance shall be deemed to have occurred for less than the Exercise
Price), then, the Exercise Price shall be reduced to equal the Base Share
Price.  Such adjustment shall be made whenever such Common Stock or
Common Stock Equivalents are issued.  The Company shall notify the
Holder in writing, no later than the Business Day following the issuance of any
Common Stock or Common Stock Equivalents subject to this section, indicating
therein the applicable issuance price, or of applicable reset price, exchange
price, conversion price and other pricing terms (such notice the “Dilutive
Issuance Notice”).  For purposes of clarification, whether or
not the Company provides a Dilutive Issuance Notice pursuant to this Section
3(b), upon the occurrence of any Dilutive Issuance, after the date of such
Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares
based upon the Base Share Price regardless of whether the Holder accurately
refers to the Base Share Price in the Notice of Exercise.

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
9

          
            

          

        

        
           

        

      

    

    

    c)         
   Pro
Rata Distributions.  If the Company, at any time prior to the
Termination Date, shall distribute to all holders of Common Stock (and not to
Holders of the Warrants) evidences of its indebtedness or assets or rights or
warrants to subscribe for or purchase any security other than the Common Stock
(which shall be subject to Section 3(b)), then in each such case the Exercise
Price shall be adjusted by multiplying the Exercise Price in effect immediately
prior to the record date fixed for determination of stockholders entitled to
receive such distribution by a fraction of which the denominator shall be the
closing bid price of the Common Stock on the then principal Trading Market
determined as of the record date mentioned above (if the closing bid price of
the Common Stock on the then principal Trading Market shall then be determinable
and otherwise the fair market value per share as determined by the Board of
Directors in good faith, and of which the numerator shall be such closing bid
price of the Common Stock on the then principal Trading Market on such record
date less the then per share fair market value at such record date of the
portion of such assets or evidence of indebtedness so distributed applicable to
one outstanding share of the Common Stock as determined by the Board of
Directors in good faith.  In either case the adjustments shall be
described in a statement provided to the Holders of the portion of assets or
evidences of indebtedness so distributed or such subscription rights applicable
to one share of Common Stock.  Such adjustment shall be made whenever
any such distribution is made and shall become effective immediately after the
record date mentioned above.

     

    d)          
  Fundamental
Transaction. If, at any time while this Warrant is outstanding, there
occurs a Fundamental Transaction, then, upon any subsequent conversion of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that
would have been issuable upon such exercise absent such Fundamental Transaction,
at the option of the Holder, (a) upon exercise of this Warrant, the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and Alternate Consideration
receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
event or (b) if the Company is acquired in an all cash transaction, cash equal
to the value of this Warrant as determined by the difference between the
applicable Exercise Price and the amount of cash paid per share to the
shareholders of the Company (the “Alternate
Consideration”).  For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to
such Alternate Consideration based on the amount of Alternate Consideration
issuable in respect of one share of Common Stock in such Fundamental
Transaction, and the Company shall apportion the Exercise Price among the
Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration.  If holders
of Common Stock are given any choice as to the securities, cash or property to
be received in a Fundamental Transaction, then the Holder shall be given the
same choice as to the Alternate Consideration it receives upon any exercise of
this Warrant following such Fundamental Transaction.  To the extent
necessary to effectuate the foregoing provisions, any successor to the Company
or surviving entity in such Fundamental Transaction shall issue to the Holder a
new warrant consistent with the foregoing provisions and evidencing the Holder’s
right to exercise such warrant into Alternate Consideration. The terms of any
agreement pursuant to which a Fundamental Transaction is effected shall include
terms requiring any such successor or surviving entity to comply with the
provisions of this Section 3(d) and insuring that this Warrant (or any such
replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction.

     

    Common Stock
Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
10

          
            

          

        

        
           

        

      

    

    

    e)          
   Exempt Issuance.
Notwithstanding the foregoing, no adjustments, Alternate Consideration, nor
notices shall be made, paid, or issued under this Section 3 in respect of an
Exempt Issuance.

     

    f)              Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the
nearest 1/100th of a share, as the case may be. The number of shares of Common
Stock outstanding at any given time shall not includes shares of Common Stock
owned or held by or for the account of the Company, and the description of any
such shares of Common Stock shall be considered on issue or sale of
Common  Stock.  For purposes of this Section 3, the number
of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

     

    g)          
  Voluntary
Adjustment By Company. The Company may at any time during the term of
this Warrant reduce the then current Exercise Price to any amount and for any
period of time deemed appropriate by the Board of Directors of the
Company.

     

    
      	
               
      

            	
              h)

            	
              Intentionally
      Omitted.

            

    

     

    
      	
               
      

            	
              i)

            	
              Notice to
      Holders.

            

    

     

    i.           
Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to this Section
3, the Company shall promptly mail to each Holder a notice setting forth the
Exercise Price after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. If the Company issues a variable rate security,
the Company shall be deemed to have issued Common Stock or Common Stock
Equivalents at the lowest possible conversion or exercise price at which such
securities may be converted or exercised in the case of a Variable Rate
Transaction (as defined in the Purchase Agreement), or the lowest possible
adjustment price in the case of an MFN Transaction.  The term “MFN
Transaction” shall mean a transaction in which the Company issues or
sells any securities in a capital raising transaction or series of related
transactions which grants to an investor the right to receive additional shares
based upon future transactions of the Company on terms more favorable than those
granted to such investor in such offering.

     

    ii.           Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution) on the Common Stock; (B) the Company shall declare a special
nonrecurring cash dividend on or a redemption of the Common Stock; (C) the
Company shall authorize the granting to all holders of the Common Stock rights
or warrants to subscribe for or purchase any shares of capital stock of any
class or of any rights; (D) the approval of any stockholders of the Company
shall be required in connection with any reclassification of the Common Stock,
any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least 20 calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided,
however that the failure to mail such notice or any defect therein or in
the mailing thereof shall not affect the validity of the corporate action
required to be specified in such notice.  The Holder is entitled to
exercise this Warrant during the 20-day period commencing the date of such
notice to the effective date of the event triggering such notice.

     

    Common Stock
Purchase Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
11

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              Section
      4.

            	
              Transfer of
      Warrant.

            

    

     

    a)          
  Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Sections 5(a) and 4(d) hereof and to the provisions of Section 4.1 of the
Purchase Agreement, this Warrant and all rights hereunder are transferable, in
whole or in part, upon surrender of this Warrant at the principal office of the
Company, together with a written assignment of this Warrant substantially in the
form attached hereto duly executed by the Holder or its agent or attorney and
funds sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled.  A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
12

          
            

          

        

        
           

        

      

    

    

    b)        
   New
Warrants. This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are
to be issued, signed by the Holder or its agent or attorney.  Subject
to compliance with Section 4(a), as to any transfer which may be involved in
such division or combination, the Company shall execute and deliver a new
Warrant or Warrants in exchange for the Warrant or Warrants to be divided or
combined in accordance with such notice.

     

    c)     
      Warrant Register. The
Company shall register this Warrant, upon records to be maintained by the
Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to
time.  The Company may deem and treat the registered Holder of this
Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice
to the contrary.

     

    d)        
   Transfer
Restrictions. If, at the time of the surrender of this Warrant in connection with
any transfer of this Warrant, the transfer of this Warrant shall not be
registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities Act and under applicable state securities
or blue sky laws, (ii) that the holder or transferee execute and deliver to the
Company an investment letter in form and substance acceptable to the Company and
(iii) that the transferee be an “accredited
investor” as defined in Rule 501(a) of Regulation D promulgated under the
Securities Act or a qualified institutional buyer as defined in Rule 144A(a)
under the Securities Act.

     

    
      	
            	
              Section
      5.

            	
              Covenants.

            

    

     

    (a)           Negative Covenants.
So long as any portion of this Warrant is outstanding, without the prior written
consent of the Holder, which consent may be withheld in the sole discretion of
the Holder, the Company will not and will not permit any of its Subsidiaries to
directly or indirectly:

     

    i.          Sale of Assets, Dissolution,
Etc.  Transfer, sell, assign, lease or otherwise dispose of all
or substantially all of its properties or assets, or any assets or properties
necessary or desirable for the proper conduct of its business, or transfer,
sell, assign or otherwise dispose of any of its accounts, or contract rights to
any person or entity, or change the nature of its business, wind-up, liquidate
or dissolve, or agree to any of the foregoing, other than in the ordinary course
of business;

     

    ii.         No Further Issuance of
Securities.  Other than in accordance herewith or with respect
to an Exempt Issuance, create, issue or permit the issuance of any additional
securities of the Company or of any of its Subsidiaries (including with respect
to any Qualifying Transaction), if any, or any rights, options or warrants to
acquire any such securities; provided,
however, that in the event that Company desires to issue securities with
preferences or rights greater than that which the Common Stock has and the
Holder consents to same, the Holder will then have the option of converting all
or any part of this Debenture into such stock in lieu of the Common
Stock;;

    
Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
13

          
            

          

        

        
           

        

      

    

    

    iii.        Agreement.  Enter
into any agreement obligating the Company to undertake any of the matters set
forth in this Section 5(a).

     

    (b)           Affirmative
Covenants.  So long as any portion of this Warrant is
outstanding and unless the Holder otherwise consents in writing, which consent
may be withheld in the sole discretion of the Holder, the Company
will:

     

    i.         True
Books.  Keep true books of record and account in which full,
true and correct entries will be made of all of its dealings and transactions,
and set aside on its books such reserves as may be required by GAAP,
consistently applied, with respect to all taxes, assessments, charges, levies
and claims referred to in (a) above, and with respect to its business in
general, and include such reserves in interim as well as year-end financial
statements; and

     

    ii.        Right of
Inspection.  Permit any person designated by the Holder, at the
Holder’s expense, to visit and inspect any of the properties, books and
financial reports of the Company, all at such reasonable times upon three (3)
Business Days prior notice to the Company, and as often as the Holder may
reasonably request, provided the Holder does not unreasonably interfere with the
daily operations of the Company and Holder executes a confidentiality
agreement.

     

    
      	
               
      

            	
              Section
      6.

            	
              Miscellaneous.

            

    

     

    a)          
  Title to
Warrant.  Prior to the Termination Date and subject to
compliance with applicable laws and Section 4 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed.  The transferee shall sign an investment letter in
form and substance reasonably satisfactory to the Company.

     

    b)         
   No
Rights as Shareholder Until Exercise.  This Warrant does not
entitle the Holder to any voting rights or other rights as a shareholder of the
Company prior to the exercise hereof.  Upon the surrender of this
Warrant and the payment of the aggregate Exercise Price (or by means of a
cashless exercise), the Warrant Shares so purchased shall be and be deemed to be
issued to such Holder as the record owner of such shares as of the close of
business on the later of the date of such surrender or payment.

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
14

          
            

          

        

        
           

        

      

    

    

    c)            
Loss, Theft,
Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company
will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock
certificate.

     

    d)          
  Saturdays,
Sundays, Holidays, etc.  If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

     

    e)         
   Authorized
Shares.

     

    The
Company covenants that during the period the Warrant is outstanding, it will
reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of
any purchase rights under this Warrant.  The Company further covenants
that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to
execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant.  The Company will
take all such reasonable action as may be necessary to assure that such Warrant
Shares may be issued as provided herein without violation of any applicable law
or regulation, or of any requirements of the Trading Market upon which the
Common Stock may be listed.

     

    Except
and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all
such terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant against
impairment.  Without limiting the generality of the foregoing, the
Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this
Warrant.

    
Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
15

          
            

          

        

        
           

        

      

    

    

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    f)           
  Jurisdiction. All
questions concerning the construction, validity, enforcement and interpretation
of this Warrant shall be determined in accordance with the provisions of the
Purchase Agreement.

     

    g)        
    Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    h)         
   Expenses.  If
the Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall
pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     

    i)          
   Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    j)            
 Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     

    k)         
   Remedies.  Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive the defense in any
action for specific performance that a remedy at law would be
adequate.

     

    l)            
 Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant
Shares.

    
Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
16

          
            

          

        

        
           

        

      

    

    

    m)           
Amendment and
Waiver.  This Warrant may be modified or amended only with the
written consent of the Company and the Holder.  No course of dealing
or any delay or failure to exercise any right hereunder on the part of Holder
shall operate as a waiver of such right or otherwise prejudice Holder’s rights,
powers or remedies, notwithstanding the fact that all rights hereunder terminate
on the Termination Date.

     

    n)          
  Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    o)       
     Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    p)       
     Registration Rights.
The Holder has certain rights with respect to the registration of the Warrant
Shares upon exercise of this Warrant, such rights being specifically set forth
in the Purchase Agreement entered into by and between Holder and the Company on
the date hereof.

     

    

    [Signature Page
Follows]

     

    Common Stock Purchase
Warrant No. 2 (Rapid Link Incorporated),

    
      
        
           

        

        
          Page
17

          
            

          

        

        
           

        

      

    

     

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

     

     

    
      	 
      	
              RAPID
      LINK INCORPORATED

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 	 
      
	 
      	
              Name:

            	 	
              John
      Jenkins

            
	 
      	
              Title:

            	 	
              Chief
      Executive Officer

            

    

    
       

      Common
Stock Purchase Warrant No. 1 (Rapid Link Incorporated), Signature
Page

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    NOTICE
OF EXERCISE

    

    TO:           BPK
RESOURCES, INC.

    

    (1) 
The undersigned hereby elects to purchase ________ Warrant Shares of Rapid Link
Incorporated pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     

    (2)  Payment
shall take the form of (check applicable box):

     

     ̈ in lawful money of the
United States; or

     

     ̈ the cancellation of
such number of Warrant Shares as is necessary, in accordance with the formula
set forth in subsection 2(c), to exercise this Warrant with respect to the
maximum number of Warrant Shares purchasable pursuant to the cashless exercise
procedure set forth in subsection 2(c).

     

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

     

    
      	 
      	
               

            	 
      

    

    

    

    The
Warrant Shares shall be delivered to the following:

    

    
      	 
      	
               

            	 
      

    

    

    
      	 
      	
               

            	 
      

    

    

    
      	 
      	
               

            	 
      

    

    

    (4)  Accredited
Investor.  The undersigned, and, if applicable, the person or
entity identified in subsection 3 above, is an “accredited investor” as defined
in Regulation D promulgated under the Securities Act of 1933, as
amended.

    

    [SIGNATURE
OF HOLDER]

    

    
    

    
      
        	
                Name
      of Investing Entity:

              	 
      

      

      

      
        	
                Signature of Authorized
      Signatory of Investing Entity:

              	 
      

      

      

      
        	
                Name
      of Authorized Signatory:

              	 
      

      

      

      
        	
                Title
      of Authorized Signatory:

              	 
      

      

      

      
        	
                Date:

              	 
      

      

    

    
    

    
       

      Common
Stock Purchase Warrant No. 1 (Rapid Link Incorporated), Signature
Page

    

    
    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    ASSIGNMENT
FORM

     

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    

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

     

    

    _______________________________________________
whose address is

    

    _______________________________________________________________.

    

    

    _______________________________________________________________

    

    
      	 
      	
              Dated:  ______________,
      _______

            

    

    

    

    
      	 
      	
              Holder’s
      Signature:

            	
              _____________________________

            
	 
      	
               
      

            	 
      
	 
      	
              Holder’s
      Address:

            	
              _____________________________

            
	 	 	 
	 	 	
              _____________________________

            

    

    

    

    
      	
              Signature
      Guaranteed:

            	
              ___________________________________________

            

    

    

    

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

     

     

    Common
Stock Purchase Warrant No. 1 (Rapid Link Incorporated), Signature
Page

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