Document:

exv10w4

Exhibit 10.4

SECURITY AGREEMENT

     This Security Agreement (hereinafter referred to as the “Agreement”) is made this
17th day of March, 2010, by and between LIGHTYEAR NETWORK SOLUTIONS, LLC, a Kentucky
limited liability company, having an address of 1901 Eastpoint Parkway, Louisville, Kentucky 40223
(hereinafter referred to as “Debtor”), and FIRST SAVINGS BANK, F.S.B., having an address of 501
East Lewis and Clark Parkway, Clarksville, Indiana 47129 (hereinafter referred to as “Secured
Party”).

RECITALS:

     A. The Collateral. For purposes of this Agreement, the term “Collateral” means and
includes the following:

          1. That certain Limited Access Lockbox Account of Debtor, Account No. 7380314745 (hereinafter
referred to as the “Lockbox Account”), held with Fifth Third Bank, an Ohio corporation (hereinafter
referred to as the “Fifth Third”).

          2. That certain business operating account of Debtor, Account No. 7380314950 (hereinafter
referred to as the “Operating Account”), held with Fifth Third.

          3. All goods, instruments, documents, documents of title, policies and certificates of
insurance, general intangibles (including without limitation choses in action, tax refunds and
insurance proceeds) chattel paper, deposits, money, cash or other property of Debtor now owned or
hereafter acquired; including, but not limited to all trade names, trademarks, trade secrets,
goodwill, patents, patent applications, copyrights, deposit accounts, licenses and franchises.

          4. All cash and non-cash proceeds of all the foregoing, all products of the foregoing, and all
substitutions.

     B. Secured Indebtedness and Liabilities. This Agreement secures:

          1. That certain line of credit promissory note dated March 17, 2010, in the principal amount
of $1,000,000.00, maturing on March 17, 2011, executed and delivered by Debtor to Secured Party
(hereinafter referred to as the “Note”);

          2. Those certain guaranties from Ronald L. Carmicle and J. Sherman Henderson (hereinafter
referred to as the “Guarantors”), in favor of Secured Party securing the Note (hereinafter referred
to, collectively, as the “Guaranty”);

          3. All sums payable on or by reason of the promissory notes and/or guaranties identified above
and any other instrument securing payment of said promissory notes and the performance and
observance of all of the provisions hereof or any instrument securing

 

 

payment of said promissory note;

          4. All other present and future, direct and indirect obligations and liabilities of Secured
Party to Secured Party or any of its affiliates up to a maximum aggregate indebtedness of
$1,000,000.00; and

          5. Any extensions, renewals, modifications and replacements of the foregoing, without limit as
to number or frequency

(hereinafter referred to as the “Indebtedness”). The Indebtedness is further secured, inter alia,
by (i) a certain Lockbox and Account Control Agreement dated as of even date herewith (hereinafter
referred to as the “Control Agreement”) covering the Lockbox Account, executed by and between
Debtor, Secured Party, and Fifth Third; (ii) the Guaranty; and (iii) certain other security
instruments which may be executed in connection with, or as security for, the Indebtedness (all of
the above-described being hereinafter referred to as the “Credit Facilities”).

     In addition to the above-described Indebtedness, this Agreement shall further secure (i) the
performance of all of the covenants of Debtor and the payment of all sums payable by Debtor, under
the terms of this Agreement, the Indebtedness, and/or the Credit Facilities; (ii) the repayment of
all sums advanced by Secured Party to protect its interest in the Collateral or to perform any
covenants of Debtor hereunder which Debtor shall have failed to perform and interest at the Default
Rate on such sums advanced by Secured Party; (iii) any and all now existing and future obligations
of Debtor to Secured Party, however created, evidenced or acquired, whether direct or indirect,
absolute or contingent, matured or unmatured, primary or secondary, or with joint, several, or
joint and several liability, including future obligations and advances to the same extent as if
such future obligations and advances were made on the date of execution of this Agreement (it being
understood that Secured Party is not under any obligation to make any future advances except as
specifically set forth in the notes comprising the Indebtedness); (iv) any and all modifications,
extensions, renewals, substitutions and replacements of any Indebtedness or obligation hereinabove
described; and (v) costs of collection of all such sums, including, but not limited to, attorney
fees and court costs. All of the foregoing are sometimes hereinafter called the “Liabilities”.

     “Default Rate”, for purposes of this Agreement, shall mean the interest rate applicable under
the notes comprising the Indebtedness after maturity or the occurrence of an event of default.

GRANT

     NOW, THEREFORE, for and in consideration of Secured Party making the loan described in the
Indebtedness to or for the benefit of Debtor, and for the purpose of securing the Indebtedness and
the Liabilities and the performance by Debtor of its obligations hereunder, and in consideration of
the various agreements contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by Debtor, DEBTOR HEREBY WARRANTS, CONVEYS, GRANTS,
AND ASSIGNS TO THE
SECURED PARTY AND ITS SUCCESSORS AND ASSIGNS FOREVER A CONTINUING

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SECURITY INTEREST IN AND TO ALL OF THE COLLATERAL.

COVENANTS AND AGREEMENTS OF DEBTOR

     To further secure the payment of the Indebtedness and the performance and satisfaction of the
Liabilities, Debtor hereby represents, warrants, covenants, and agrees as follows:

     1. Title. Debtor has or will acquire, and will maintain full and absolute title in
Debtor to the Collateral, except for the lien created hereby, and Debtor has good right to subject
the Collateral to the security interest granted by this Security Agreement. Except for Collateral
in the possession of the Secured Party or in possession of a third party per agreement of Debtor
and Secured Party, Debtor has and will maintain full possession of the Collateral and will defend
it against all adverse claims.

     2. Perfection and Priority. Upon the execution and delivery of this Agreement by
Debtor, and upon the Secured Party filing of appropriate financing statements with the appropriate
governmental agencies and payment of the appropriate recording fees, the execution and delivery of
investment account control agreements, and/or, as applicable, Secured Party’s taking possession or
control of the Collateral, Secured Party will have a perfected security interest in and to the
Collateral having first priority in such Collateral.

     3. Protection and Use of Collateral. Debtor shall not, without the prior written
consent of Secured Party, sell, assign, transfer, or otherwise dispose of any of the Collateral or
any of Debtor’s right, title or interest therein, and shall not otherwise do or permit anything to
be done or occur that may impair the Collateral as security hereunder. Moreover, Debtor shall
maintain, handle, and otherwise deal with the Collateral as provided in, and subject to the
limitations of, the Control Agreement, including any addenda thereto. Said separate Control
Agreement, and the rights of Secured Party and obligations of Debtor provided therein, shall be
deemed to supplement and add to this Agreement. In the event of any conflict between the
provisions of this Agreement and said separate Control Agreement, the terms of said Control
Agreement shall prevail.

     4. Financing Statements, Certificates, Etc. Debtor will do such acts as Secured Party
may deem necessary or appropriate to establish and maintain in Secured Party a valid first lien and
security interest in the Collateral to secure full and prompt performance and payment of the
obligations. Debtor authorizes Secured Party, at the expense of Debtor, to sign and file, without
Debtor’s signature, such financing and continuation statements, amendments, and supplements
thereto, notices to third parties and other documents which Secured Party may from time to time
deem necessary to perfect, preserve and protect its security interest in the Collateral, including,
without limitation, such financing statements as may be necessary or appropriate, in the reasonable
opinion of the Secured Party, to perfect and protect Secured Party’s security interest in such of
the Collateral as may be or be deemed to be or constitute fixtures under Indiana law. Debtor
agrees to execute and deliver to Secured Party any such financing statements and documents and to
furnish and endorse such other instruments, certificates, certificates of title
with Secured Party’s security interest noted thereon or executed applications for said certificates
as Secured Party may from time to time request in order to evidence, perfect,

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preserve and protect
its security interest in the Collateral. Debtor agrees to prepare and execute such notices to
third parties regarding the security interest in the Collateral created by this Agreement as
Secured Party deems advisable to perfect, preserve, and protect the security interest. Debtor,
from time to time, and at any time, upon request by Secured Party, will deliver to Secured Party
certified schedules, in such form as may be specified by Secured Party, identifying the Collateral,
or such part thereof as may be specified by Secured Party, together with such supporting documents
and information as Secured Party reasonably may request.

     5. Taxes and Assessments. Debtor agrees to pay promptly when due all taxes,
assessments, and governmental charges upon or against Debtor for the Collateral, in each case
before the same become delinquent and before penalties accrue thereon, unless and to the extent
that the same are being contested in good faith by appropriate proceedings and for which Debtor has
established adequate reserves.

     6. Other Obligations and Costs. In the event Debtor fails to pay any taxes,
assessments, charges, or other costs or expenses which Debtor is required to pay in order to comply
with the terms hereof, Secured Party may, but shall have not duty to, make expenditures for any and
all such purposes on Debtor’s behalf. Secured Party may also, but shall have no duty to, perform
on behalf of Debtor any agreement or obligation of Debtor hereunder which Debtor shall have failed
to perform. Debtor will forthwith reimburse Secured Party for all costs and expenses of Secured
Party in connection with or relating to any such payment or performance, including reasonable
attorney’s fees, which amounts shall constitute part of the Liabilities due to Secured Party from
Debtor, shall be secured hereby and shall bear interest at the Default Rate.

     7. Events of Default/Acceleration. Upon the occurrence of any of the following
(hereinafter referred to as “Events of Default”), Secured Party shall be entitled to exercise its
remedies under this Agreement or as otherwise provided by law: (1) Debtor fails to pay when due
any amount payable under the notes comprising the Indebtedness, the Credit Facilities, or any
agreement evidencing the Indebtedness; (2) Debtor (a) fails to observe or perform any other
agreement evidencing or securing the Indebtedness, including, but not limited to the notes
comprising the Indebtedness, the Credit Facilities or (b) make any materially incorrect or
misleading representation in any financial statement or other information delivered to the Secured
Party; (3) Debtor defaults under the terms of the notes comprising the Indebtedness, Credit
Facilities, or any other note, loan agreement, mortgage, security agreement, or document executed
as part of the Indebtedness transaction or any guaranty of the Indebtedness becomes unenforceable
in whole or in part, or any guarantor fails to promptly perform under such a guaranty; (4) Debtor
fails to pay when due any amount payable under any note or agreement evidencing debt to Secured
Party or defaults under the terms of any agreement or instrument relating to or securing any debt
for borrowed money owing to Secured Party; (5) Debtor becomes insolvent or unable to pay his debts
as they become due; (6) Debtor (a) makes an assignment for the benefit of creditors, (b) consents
to the appointment of a custodian, receiver, or trustee for itself or for a substantial part of its
assets, or (c) commences any proceeding under any bankruptcy, reorganization, liquidation,
insolvency, or similar laws of any jurisdiction; (7) a
custodian, receiver, or trustee is appointed for Debtor or for a substantial part of his assets
without the consent of the party against which the appointment is made and is not removed within
sixty (60) days after such appointment; or Debtor consents to such appointment; (8)

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proceedings are
commenced against Debtor under any bankruptcy, reorganization, liquidation, or similar laws of any
jurisdiction, and such proceedings remain undismissed for sixty (60) days after commencement; or
Debtor consents to the commencement of such proceedings; (9) any judgment is entered against
Debtor, or any attachment, levy, or garnishment is issued against any property of Debtor; (10) any
proceedings are instituted for the foreclosure or collection of any mortgage, judgment, or lien
affecting the Collateral; (11) Debtor sells, transfers, or hypothecates or attempts to sell,
transfer, or hypothecate all or any part of the Collateral except as provided in this Security
Agreement without the prior written consent of Secured Party; (12) Debtor dies; (13) Debtor, as
applicable, without Secured Party’s written consent, (a) is dissolved or its existence is
terminated, (b) merges or consolidates with any third party, (c) sells a material part of its
assets or business outside the ordinary course of its business, or (d) agrees to do any of the
foregoing; (14) there is a substantial change in the existing or prospective financial condition of
Debtor which Secured Party in good faith determines to be materially adverse; or (15) if at any
time or for any reason Secured Party reasonably and in good faith deems itself insecure.

     8. Remedies Upon Default. Time is of the essence under this Security Agreement. Upon
the occurrence of any Event of Default and the expiration of any applicable grace period provided
in the notes comprising the Indebtedness and/or Credit Facilities and at any time thereafter, the
Secured Party shall be entitled, without notice to Debtor, to declare all of the Indebtedness to be
immediately due and payable, whereupon the same shall become immediately due and payable, without
presentation, demand, protest, notice of protest, or other notice of dishonor of any kind, all of
which are hereby expressly waived. In addition, upon the occurrence of any Event of Default under
this Security Agreement and the expiration of any applicable grace period provided in the notes
comprising the Indebtedness, and at any time thereafter, Secured Party shall have all the remedies
of a secured party under the Indiana Uniform Commercial Code and as otherwise provided by
applicable law, including but not limited to the following:

          (a) Secured Party may take possession of the Collateral and may use it after having done so.
For purposes of taking possession, Secured Party may enter upon any premises on which the
Collateral may be situated without legal process and remove the Collateral. Debtor hereby releases
Secured Party from any claims arising from such removal and shall hold Secured Party harmless from
any liability resulting therefrom.

          (b) Secured Party may notify any person indebted to Debtor to pay Secured Party directly any
amounts due Debtor under an account receivable, general intangible, investment account, instrument
or chattel paper, and Secured Party may enforce payment of the same through legal proceedings, or
otherwise, in its own name or in the name of Debtor.

          (c) Secured Party may require Debtor to assemble the Collateral and make it available at a
place to be designated by Secured Party.

          (d) Unless the Collateral threatens to decline speedily in value or is of a type
customarily sold on a recognized market, Secured Party shall give Debtor at least ten (10) days
prior written notice of the time and place of any public sale thereof or of the time after which
any private sale or any other intended disposition thereof is to be made. Debtor stipulates and
agrees that a disposition complying with this subparagraph shall be deemed a commercially
reasonable

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disposition of the Collateral by Secured Party. The expenses of retaking, holding,
preparing for sale, selling, and the like, and reasonable attorney’s fees and expenses incurred by
Secured Party, may be paid from the proceeds of the disposition.

          (e) Debtor agrees that Secured Party may obtain the appointment of a receiver respecting the
Collateral upon such notice as may be required by applicable law and without notice if permitted by
such law, and may obtain immediate possession thereof in replevin.

All remedies of Secured Party shall be cumulative to the full extent provided by law. Pursuit by
Secured Party of certain judicial or other remedies shall not abate nor bar resort to other
remedies with respect to the Collateral, and pursuit of certain remedies with respect to all or
some of the Collateral shall not bar other remedies with respect to the Indebtedness or the
Liabilities or to other portions of the Collateral. Secured Party may exercise its rights to the
Collateral without resorting or regard to other collateral or sources of security or reimbursement
for the Indebtedness or the Liabilities.

     9. Nonwaiver, Expenses, Proceeds of Collateral. No waiver by Secured Party of any of
its rights or of any Event of Default shall be effective unless in writing, and in no event shall
it operate as a waiver of any other of its rights or any other Event of Default nor of the same
rights or Event of Default on any future occasion. Debtor shall pay to Secured Party on demand any
and all expenses, including reasonable attorney’s fees, incurred or paid by Secured Party in
perfecting, protecting, or enforcing its rights and interests with respect to the Collateral.
After deducting all of said expenses the residue of any proceeds of collection or sale of the
Collateral shall be applied to the payment of the Indebtedness and the Liabilities and Debtor shall
remain fully liable for any deficiency.

     10. Applicable Law. Should applicable law confer any rights or impose any duties
inconsistent with or in addition to any of the provisions of this Security Agreement, the affected
provisions of this Security Agreement shall be considered amended to conform to such law, but all
other provisions hereof shall remain in full force and effect without modification. This Security
Agreement shall be construed under the laws of the State of Indiana.

     11. Successors in Interest. This Security Agreement shall be binding upon and inure
to the benefit of Debtor and Secured Party and their respective successors, assigns, and legal
representatives.

     12. Notices. Any notice required to be given by any party to the other under the
provisions of this Security Agreement or under applicable law shall be given to Debtor and shall be
given to Secured Party, at the address set forth in the initial paragraph of this Agreement.

[SPACE INTENTIONALLY BLANK; SIGNATURES ON FOLLOWING PAGE]

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     IN WITNESS WHEREOF, Debtor has executed and delivered this Agreement the day and date first
written above.

“DEBTOR”

LIGHTYEAR NETWORK SOLUTIONS, LLC

a Kentucky limited liability company

	 	 	 	 	 
	 	 	 
	By:  	/s/  J. Sherman Henderson, III 	 	 
	 	J. Sherman Henderson, III, 

President 	 	 
	 	 	 	 
	 

Prepared by:

Keith D. Mull

MULL & HEINZ, LLC

2867 Charlestown Road

New Albany, Indiana 47150

(812) 206-2315exv10w5

Exhibit 10.5

LOCKBOX AND ACCOUNT CONTROL AGREEMENT

     THIS LOCKBOX AND ACCOUNT CONTROL AGREEMENT (this “Agreement”) is made as of March 17, 2010, 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”).

R E C I T A L S

     WHEREAS, the Factor and the Depositor have advised the Bank that Factor is making or has made
financial accommodations to the Depositor which 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:

A G R E E M E N T

     1. The Limited Access Lockbox Account. The Limited Access Lockbox Account is Account
No. 7380314745 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 at the Bank an account, titled in its own name bearing Account No. 7380314950 (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

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     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

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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 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

4

 

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

5

 

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.

     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]

6

 

     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:  	President 	 
	 

	 	 	 	 	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	/s/ Michael Ash
 	 
	 	 	Name:  	Michael Ash 	 
	 	 	Title:  	Senior Commercial Lender 	 
	 

	 	 	 	 	 
	 	FIRST SAVINGS BANK, F.S.B.

 	 
	 	By:  	/s/ Don Allen 	 
	 	 	Don Allen,

 Vice
President

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