Document:

ABSOLUTE
CONTINUING GUARANTY AGREEMENT

    

    This undertaking and agreement
(hereinafter referred to as this “Guaranty”) is made by LIGHTYEAR NETWORK
SOLUTIONS, LLC, a Kentucky limited liability company (hereinafter referred to as
“Guarantor,” whether one or more) in favor of FIRST SAVINGS BANK, F.S.B.
(hereinafter referred to as “Lender”) in consideration of the credit
accommodations described in this Guaranty made or to be made by Lender to
LIGHTYEAR NETWORK SOLUTIONS, INC., a Nevada corporation (hereinafter referred to
as “Borrower”).  This Guaranty has the following terms:

    

    1.           Credit Agreement –
Consideration.  Borrower has executed a promissory note
(hereinafter referred to as the “Note”) in the original principal amount of
$2,000,000.00, dated January 21, 2011, as Loan No.
407010128651.  Lender has agreed to extend the loan evidenced by the
Note (hereinafter referred to as the “Loan”) to Borrower, subject to the
execution by Guarantor and delivery to Lender of this Guaranty.  This
guaranty is made by Guarantor in consideration of Lender’s agreement to extend
the Loan together with certain collateral documents securing same (hereinafter
referred to, collectively, as the “Credit Documents”).

    

    2.           Certain
Definitions.  The terms “Commitment”, “Event of Default”, and
“Maturity Date” are used in this Guaranty as those terms are defined in the
Credit Documents.  The term “Obligations” is used in this Guaranty to
mean all of the indebtedness and other obligations of Borrower in favor of
Lender of every type and description under the Loan, whether direct or indirect,
absolute, or contingent, due or to become due, now existing or hereafter
arising, including but not limited to Borrower’s obligations (i) to repay the
principal of the Loan, (ii) to pay the accrued interest on the Loan, and (iii)
to pay the reasonable attorney’s fees plus the other costs and expenses of
Lender relating in any manner to the Loan after an Event of Default has
occurred, and this term also includes (A) any advances under the Note which were
made after the Maturity Date and (B) all other Obligations arising under the
Loan incurred pursuant to the terms of any Credit Documents, regardless of
whether any such Obligations arose on account of any renewal, extension or
restructuring of the Loan or on account of any amendment to or modification of
any Credit Documents.

    

    3.           Amount of Liability Under
the Guaranty.  Guarantor unconditionally guarantees the full
and prompt payment when due, whether at scheduled maturity or at maturity by
virtue of acceleration on account of an Event of Default, of the principal of
and interest on and all other sums payable with respect to the Note of Borrower,
including but not limited to, costs of collection and expenses advanced with
respect to any collateral securing the Loan, made by Borrower to Lender, dated
of even date herewith, in the principal sum of $2,000,000, with interest at the
rate set forth in the Note (such Note, and the interest thereon and all other
sums payable with respect thereto are hereinafter collectively called the
“Obligations”). This Guaranty
specifically includes interest thereon after maturity at the post-maturity rate
or rates specified in the Credit Documents.  Interest at the
post-maturity rate or rates described in the immediately preceding sentence
shall be payable under this Guaranty until all Obligations have been paid and
satisfied in full, even if a petition in bankruptcy involving Borrower has been
filed and such interest is not recoverable from Borrower’s bankruptcy
estate.  Guarantor further agrees to pay to Lender an amount equal to
all reasonable attorney’s fees plus all other costs and expenses paid or
incurred by Lender after the occurrence of an Event of Default in endeavoring to
enforce this Guaranty, whether or not successful.  Notwithstanding any
other provision herein to the contrary, Lender expressly understands and agrees
that, between Guarantor and Ronald L. Carmicle (hereinafter referred to as
“Carmicle”), this Guaranty shall be primary to that certain Absolute Continuing
Guaranty Agreement with respect to the Loan executed by Carmicle, such that
Carmicle shall be secondarily liable to Lender for the obligations under the
Loan with respect to Guarantor and Guarantor shall be primarily liable to Lender
for the obligations under the Loan with respect to Carmicle.  However,
such arrangement between Guarantor and Carmicle shall not affect, prevent, or
otherwise impair Lender in seeking recovery against Guarantor and Carmicle,
together or separately, to recover any amount due under the
Loan.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Guaranty Absolute and
Continuing:  Certain Prospective Consents and
Waivers.  This Guaranty shall be an absolute and unconditional
guaranty of prompt payment, and shall continue as to all Obligations hereafter
arising without any further action on the part of Lender, Borrower, or
Guarantor.  This guaranty shall remain in full force and effect until
all of the Obligations have been satisfied in full, at which time Lender shall
terminate this Guaranty.  Guarantor’s liability under this Guaranty
shall not be limited or otherwise affected by any limitation on Borrower’s
liability for any of the Obligations contained in any Credit Documents or that
is effective by operation of law or otherwise.  Guarantor hereby
waives all set-offs, claims, counterclaims (whether compulsory or permissive),
and defenses of every kind and nature that could be asserted by either Borrower
or Guarantor, whether now existing or hereafter arising.  Guarantor’s
obligations under this Guaranty shall not be affected or impaired by any
irregularity, invalidity, or unenforceability of any Credit Documents or by any
failure, negligence, or omission on the part of Lender to (i) perfect, continue
perfection, protect, or realize upon any collateral securing any of the
Obligations or (ii) to elect or exhaust any other remedy available to Lender
following the occurrence of an Event of Default.  Guarantor hereby
consents prospectively and agrees that Lender may from time to time, without
notice to Guarantor and without affecting Guarantor’s liability under this
guaranty:

    

    a.           obtain
a lien, security interest, or other encumbrance in any property to secure any of
the Obligations;

    

    b.          obtain
the primary or secondary liability of any persons and any entities in addition
to Borrower and Guarantor with respect to any of the Obligations;

    

    c.           extend
or renew any of the Obligations for any number of periods beyond their original
due dates;

    

    d.          release
or compromise the liability of Borrower and any other persons and entities which
are now or which may hereafter become primarily or secondarily liable with
respect to any of the Obligations, whether or not Lender explicitly reserves its
rights against Guarantor or under this Guaranty;

    

    e.           release
or impair, and permit Borrower to release or impair, any lien, security interest
or other encumbrance which Lender now has or may hereafter obtain in any
property securing any of the Obligations, and Lender may also permit any
substitution or exchange of any such property;

    

    f.           proceed
against Guarantor for payment of the Obligations, whether or not Lender shall
have attempted to liquidate or sell any collateral securing any of the
Obligations or shall have proceeded against Borrower or any other person or
entity primarily or secondarily liable with respect to any of the
Obligations;

    

    g.          apply
amounts received by Lender to the Obligations in such order as Lender may choose
in its sole discretion;

    

    h.          amend,
alter, or modify the terms of the Credit Documents from time to time in any
material particulars, including but not limited to increasing the interest rate
and the amount of the monthly installment required for any Obligation;
and

    

    i.      
     extend loans and other credit accommodations to
Borrower in addition to the Loan and increase the maximum amount which may be
loaned to Borrower under the Loan.

    
 

    5.          Waiver of Guarantor’s
Equitable Rights.  Until all of the Obligations have been paid
and satisfied in full:

    

    a.           Guarantor
shall have no right of exoneration, indemnity, reimbursement, or contribution
from Borrower or any other person or entity primarily or secondarily liable with
respect to any of the Obligations (any such other person or entity is referred
to in this Guaranty as a “Co-Obligor”) or from the property of Borrower or any
Co-Obligor; and

    

    b.           Guarantor
waives any right of subrogation to the rights of Lender against Borrower and
against any Co-Obligor or the property of Borrower or any Co-Obligor which would
otherwise arise by virtue of any payment made by Guarantor to Lender on account
of this Guaranty;

    
      
         

      

      
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    whether
any such right of exoneration, indemnity, reimbursement, contribution or
subrogation would otherwise arise by virtue of contract or as a matter of law or
equity.  Guarantor agrees that (i) until all of the Obligations have
been paid and satisfied in full and the Commitment shall have expired, Guarantor
will not attempt to exercise or accept the benefits of any such right and (ii)
should Guarantor receive any payment or distribution of money or other property
on account of any such right despite the provisions of this Section 5, such
money or other property shall be held in trust by Guarantor for the benefit of
Lender and shall immediately be delivered to Lender in the same form as
received, with the addition only of such endorsements or assignments as may be
necessary to perfect the title of this Lender thereto, for application to the
Obligations.  The provisions of this Section 5 will be effective even
though Guarantor may have paid to Lender the maximum amount for which Guarantor
is liable under the terms of this Guaranty.

    

    6.           Additional Prospective
Waivers.  Guarantor waives:  (i) notice of the
acceptance of this Guaranty by Lender, (ii) notice of the existence and creation
of all or any of the Obligations and any limitations on Borrower’s liability for
such Obligations, (iii) notice of nonpayment of any of the Obligations or of the
occurrence of any other Event of default, (iv) the waiver of any Event of
Default and any forbearance of every kind which may be granted by Lender in its
sole discretion, (v) demand for payment by Lender upon Borrower, (vi) the filing
of any action or proceeding of any kind involving Borrower or any Co-Obligor or
any part of their respective property with respect to the Obligations, as well
as any diligence by Lender in the collection of the Obligations or in the
protection of or realization upon any collateral for the Obligations, (vii)
presentment for payment, protest, or notice of protest for any Obligation, as
well as notice thereof, (viii) notice of non-performance under the Note
evidencing the Obligation, (ix) notice of changes in Borrower’s financial
condition or the status of any of the Obligations, and (x) disposal of any of
the collateral in a commercially reasonable manner.

    

    7.           Representations of Guarantor
as to Material Facts:  Disclaimer of
Lender.  Guarantor represents to Lender that Guarantor has had
an opportunity to make sufficient inquires of Borrower and its management and
that Guarantor has had an opportunity to have unfettered access to review all of
the material facts related to Borrower, the Obligations, and the Credit
Documents and other documents and instruments providing security or support for
any of the Obligations.  Based on such representations, Guarantor
agrees that Lender does not and shall not have any responsibility to disclose to
Guarantor any fact which is known by Lender and which may or may not be actually
known by Guarantor, even if any such fact might materially increase Guarantor’s
risk of liability under this Guaranty.

    

    8.           Reinstatement of Liability
Under this Guaranty.  If any amount is paid to Lender by
Borrower, any Co-Obligor, or by any other person or entity and is applied by
Lender to the satisfaction of any of the Obligations, but subsequently is
returned by Lender to Borrower, such Co-Obligor or such other person or entity
(including but not limited to a trustee in bankruptcy or other legal
representative of Borrower, such Co-Obligor or such other party) by virtue of a
claim that such payment constituted an avoidable preference or fraudulent
transfer under the Bankruptcy Code, the IUFTA, or under any Other Applicable
Law, whether such amount is returned by Lender under court order or pursuant to
settlement of the preference or fraudulent transfer claim involving such amount,
then this Guaranty shall be automatically and irrevocably reinstated in an
amount equal to the amount returned by Lender as though such payment to Lender
had never been made.  The provisions of this Section 8 shall apply in
all such cases, notwithstanding any intervening revocation, termination or
cancellation of this Guaranty, or the return of any Credit Documents or any
other instrument or agreement evidencing any of the reinstated
Obligations.

    

    9.           Revocation Survival of
Pre-Revocation Consents and Waivers.  Guarantor may not revoke
this Guaranty for any reason, and this Guaranty shall not terminate because of
the death, incompetence, or dissolution of Guarantor, until Lender has actually
received a written notice of revocation executed by Guarantor or its duly
authorized representative or Lender has actually received a written notice or
termination executed by the duly authorized personal representative of Guarantor
which, in either case, must be delivered to Lender in strict compliance with the
notice requirements contained in Section 14.  Any such written notice
of revocation or termination shall be effective upon its receipt by Lender as to
new credit facilities extended by Lender to Borrower after such receipt, but
such notice shall not be effective as to any Obligations that are in existence
on the date of Lender’s receipt of any such notice (hereinafter referred to,
collectively, as the “Existing Obligations”).  The guaranty of all
Existing Obligations under the terms of this Guaranty shall continue unaffected
by any such notice and Lender may make additional advances permitted under any
Credit Documents for Existing Obligations prior to the maturity of the Loan,
which advances shall also become part of the Obligations guaranteed by this
Guaranty.  Each consent and each waiver contained in this Guaranty
shall survive the revocation or termination hereof with respect to all Existing
Obligations and Lender shall continue to have the right to rely upon all such
consents and all such waivers with respect to all Existing Obligations
(including but not limited to all renewals, extensions and material
modifications thereof subsequent to the date of revocation) as though no
revocation or termination had occurred.  Guarantor understands and
agrees that a notice of revocation or termination under this Section 9 may
constitute an Event of Default, entitling Lender to accelerate all Obligations
and then demand payment under this Guaranty.

    
      
         

      

      
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    10.           Financial
Information.  So long as this
Guaranty is in effect, Guarantor shall furnish promptly to
Lender:  (a) annual financial statements, signed and certified by
Guarantor, within ninety (90) days of the end of the calendar year; and (b)
copies of executed 2009 tax returns within thirty (30) days of the completion
thereof.

    

    11.           Terms Binding on
Representatives and Successors:  Assignments and
Participations.  All of the terms of this Guaranty shall be
binding upon Guarantor and upon Guarantor’s legal representatives and
successors, including without limitation, the survival of all prospective
consents and waivers after revocation or termination of this Guaranty as
provided in Section 9.  All of the terms of this guaranty shall inure
to the benefit of Lender’s successors, assigns and
transferees.  Lender may, without notice to Borrower or Guarantor,
sell, assign, or otherwise transfer (each hereinafter referred to as a
“Transfer”) all or any portion of the Obligations and any participations
therein.  Upon any Transfer, the transferee of Lender shall have the
right to enforce this Guaranty directly against Guarantor to the extent of the
transferee’s interest as fully as if the transferee were specifically named in
this Guaranty, but Lender shall have the superior and unimpaired right to
enforce this Guaranty directly against Guarantor, except to the extent that
Lender has expressly relinquished such right in the Transfer.

    

    12.           Representations and
Warranties.  In order to induce Lender to accept this Guaranty
and to make the Loan to Borrower, Guarantor represents and warrants to Lender
that:  (i) Guarantor resides in Jefferson County, Kentucky, (ii) this
Guaranty is the legal, valid, and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms, (iii) there are no conditions precedent to the
validity and enforceability of this Guaranty, and
(iv) the person delivering this
Guaranty to Lender is duly authorized to do
so.

    

    13.           Waiver –
Amendments.  No delays on the part of Lender in the exercise of
any right, power or remedy relating to this Guaranty shall operate as a waiver
thereof, nor shall any single or partial exercise by Lender of any right, power
or remedy preclude any other or further exercise thereof, or the exercise of any
other right, power or remedy.  No amendment or modification of any of
the provisions of this Guaranty, nor any waiver or consent with respect to any
of Lender’s rights or Guarantor’s obligations to Lender under this guaranty,
shall be effective unless such amendment, modification, or waiver is in writing
and is signed by Lender and Guarantor.

    

    14.           Notices.  Any
notice given under or with respect to this Guaranty to Guarantor or Lender shall
be in writing and, if delivered by had or sent by overnight courier service,
shall be deemed to have been given when delivered and, if mailed, shall be
deemed to have been given five (5) days after the date when sent by registered
or certified mail, postage prepaid, and addressed to Guarantor or Lender at its
address shown below, or at such other address as Guarantor or Lender may, by
written notice to the other party to this Guaranty, have designated as its
address for such purpose.  The addresses referred to are as
follows:

    

     As
to
Guarantor:                Lightyear
Network Solutions, LLC

    1901 Eastpoint Parkway

    Louisville, Kentucky
40223

    Attn.: J. Sherman Henderson, III,
CEO

    

    As to
Lender:                      First
Savings Bank, F.S.B.

    501 East Lewis & Clark
Parkway

    Clarksville,
Indiana  47129

    Attn.:  Mr. Don
Allen

    

    15.           Severability.  If
any provision of this Guaranty is determined to be illegal or unenforceable,
such provision shall be deemed to be severable from the balance of the
provisions of this Guaranty and the remaining provisions shall be enforceable in
accordance with their terms.

    
      
         

      

      
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    16.           Waiver of Jury
Trial.  Guarantor and Lender, after consulting or having had
the opportunity to consult with counsel, knowingly, voluntarily, and
intentionally waive any right either of them may have to a trial by jury in any
litigation based upon or arising out of this Guaranty or any related instrument
or agreement or any of the transactions contemplated by this Guaranty or any
course of conduct, dealing, statements, whether oral or written, or actions of
either of them.  Neither Guarantor nor Lender shall seek to
consolidate, by counterclaim or otherwise, any action in which a jury trial has
been waived with any other action in which a jury trial cannot be or has not
been waived.  These provisions shall not be deemed to have been
modified in any respect or relinquished by either Guarantor or Lender except by
a written instrument executed by both of them.

     

    17.           Governing Law – Consent to
Jurisdiction.  This Guaranty is made under and will be governed
in all cases by the substantive laws of the State of Indiana, notwithstanding
the fact that Indiana conflicts of law rules might otherwise require the
substantive rules of law of another jurisdiction to apply.  Guarantor
consents to the jurisdiction of any state or federal court located within Clark
or Floyd County, Indiana, and waives personal service of any and all process
upon Guarantor.  All service of process may be made by messenger, by
certified mail, return receipt requested, or by registered mail directed to
Guarantor at the address stated in Section 14.  Guarantor waives any
objection which Guarantor may have to any proceeding commenced in a federal or
state court located within Clark or Floyd County, Indiana, based upon improper
venue or forum non
conveniens.  Nothing contained in this Section shall affect the
obligation of Lender to serve legal process in any manner permitted by law or
the right of Lender to bring any action or proceeding against Guarantor or its
property in the courts of any other jurisdiction.

    

    18.           Superseding of Prior
Agreements.  This Guaranty supersedes all previous agreements
and commitments made by Lender and Guarantor with respect to the Obligations and
all other subjects of this Guaranty, including, without limitation, any oral or
written proposals or commitments made or issued by Lender.

    

    19.           Multiple
Guarantors.  If more than one individual signs this Guaranty,
or any other individual signs any other Guaranty in connection with the Note or
the Loan, the liability of all individuals who sign shall be joint and several
as to all of the Obligations.

    

    [SPACE
INTENTIONALLY BLANK; SIGNATURES ON FOLLOWING PAGE]

    
      
         

      

      
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    IN
WITNESS WHEREOF, Guarantor hereby executes and delivers this Absolute Continuing
Guaranty Agreement to Lender effective on this 21st day of
January, 2011.

    

    
      
        	
                LIGHTYEAR
      NETWORK SOLUTIONS, LLC,

              
	
                a
      Kentucky limited liability company

              
	 
      	 
      
	
                By:

              	
                /S/ J. Sherman Henderson,
    III

              
	 
      	
                J.
      Sherman Henderson, III, CEO

              

      

    

    

    
      
        	
                STATE
      OF INDIANA

              	
                )

              
	 
      	
                )  SS:

              
	
                COUNTY
      OF FLOYD

              	
                )

              

      

    

    

    BEFORE ME, the undersigned, a Notary
Public in and for the above-named County and State, this 21st  day
of January, 2011, personally appeared J. Sherman Henderson, III, as CEO of
Lightyear Network Solutions, LLC, a Kentucky limited liability company, and
acknowledged the execution of the foregoing Absolute Continuing Guaranty
Agreement on behalf of said company, and affirmed, under oath, that the
representations contained herein are true.

     

    WITNESS my hand and notarial
seal.

    

    
      
        
          
            
              
                
                  
                    
                      	 
      	 	 
      	 
	
                              My
      Commission expires:

                            	 	
                              Notary
      Public

                            	 
	 
      	 	 
      	 
	 
      	 	 
      	 
	
                               

                            	 	

                              Printed
      Name

                            	 

                    

                  

                

              

            

          

        

      

    

    

    Prepared
by:

    Keith D.
Mull

    MULL
& HEINZ, LLC

    2867
Charlestown Road

    New
Albany, Indiana 47150

    (812)
206-2315

    
      
         

      

      
        S-1SECURITY
AGREEMENT

    

    This Security Agreement (hereinafter
referred to as the “Agreement”) is made this 21st day of
January, 2011, 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 “Pledgor”),
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 Pledgor, 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 Pledgor, 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 Pledgor 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 promissory note dated January 21, 2011, in the principal amount of
$2,000,000.00, maturing on January 21, 2013, executed and delivered by Lightyear
Network Solutions Inc., a Nevada corporation (hereinafter referred to as
“Debtor”) to Secured Party (hereinafter referred to as the “Note”);

    

    2.           Those
certain guaranties from Pledgor, 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 Note and/or Guaranty identified above
and any other instrument securing payment of the Note 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
Debtor and/or Pledgor to Secured Party or any of its affiliates up to a maximum
aggregate indebtedness of $2,000,000.00; 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 by, inter alia,
(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 Pledgor, 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 “Security
Documents”).

    

    In addition to the above-described
Indebtedness, this Agreement shall further secure (i) the performance of all of
the covenants of Debtor and/or Pledgor and the payment of all sums payable by
Debtor and/or Pledgor, under the terms of this Agreement, the Indebtedness,
and/or the Security Documents; (ii) the repayment of all sums advanced by
Secured Party to protect its interest in the Collateral or to perform any
covenants of Pledgor hereunder which Pledgor 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 and/or Pledgor 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 under the Note 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.

    
      
         

      

      
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    GRANT

    

    NOW,
THEREFORE, for and in consideration of Secured Party making the loan described
in the Indebtedness to or for the benefit of Debtor, which loan is also of
direct or indirect benefit to Pledgor, and for the purpose of securing the
Indebtedness and the Liabilities and the performance by Debtor and/or Pledgor of
their 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 Pledgor, PLEDGOR HEREBY WARRANTS,
CONVEYS, GRANTS, AND ASSIGNS TO THE SECURED PARTY AND ITS SUCCESSORS AND ASSIGNS
FOREVER A CONTINUING SECURITY INTEREST IN AND TO ALL OF THE
COLLATERAL.  Notwithstanding anything to the contrary contained in
this Agreement, upon payment in full of the Indebtedness and performance of all
obligations under the Loan Documents, this Agreement shall terminate and be of
no further force and effect and the Secured Party shall thereupon terminate its
security interest in the Collateral.

     

    COVENANTS AND AGREEMENTS OF
PLEDGOR

    

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

    

    1.           Title.  Pledgor
has or will acquire, and will maintain full and absolute title in Pledgor to the
Collateral, except for the lien created hereby, and the lien created by that
certain Security Agreement dated March 17, 2010, by and between Pledgor and
Secured Party and that certain Lockbox and Account Control Agreement dated as of
March 17, 2010, by and between Pledgor, Secured Party, and Fifth Third Bank, and
Pledgor 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 Pledgor and Secured Party, Pledgor 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
Pledgor, 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.  Pledgor shall not, without the prior written
consent of Secured Party, sell, assign, transfer, or otherwise dispose of any of
the Collateral or any of Pledgor’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, Pledgor 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 Pledgor 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.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    4.           Financing Statements,
Certificates, Etc.  Pledgor 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.  Pledgor authorizes
Secured Party, at the expense of Pledgor, to sign and file, without Pledgor’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.  Pledgor 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, preserve and protect its security interest in the
Collateral.  Pledgor 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.  Pledgor, 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.  Pledgor agrees to pay promptly when due all
taxes, assessments, and governmental charges upon or against Pledgor 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 Pledgor has established
adequate reserves.

    

    6.           Other Obligations and
Costs.  In the event Pledgor fails to pay any taxes,
assessments, charges, or other costs or expenses which Pledgor 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 Pledgor’s
behalf.  Secured Party may also, but shall have no duty to, perform on
behalf of Pledgor any agreement or obligation of Pledgor hereunder which Pledgor
shall have failed to perform.  Pledgor 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 and/or Pledgor, shall be secured hereby and shall bear
interest at the Default Rate.

    
      
         

      

      
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    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 and/or Pledgor fails to pay when due any
amount payable under the notes comprising the Indebtedness, the Security
Documents, or any agreement evidencing the Indebtedness; (2) Debtor and/or
Pledgor (a) fails to observe or perform any other agreement evidencing or
securing the Indebtedness, including, but not limited to the Note comprising the
Indebtedness, the Security Documents or (b) make any materially incorrect or
misleading representation in any financial statement or other information
delivered to the Secured Party; (3) Debtor and/or Pledgor defaults under the
terms of the Note comprising the Indebtedness, Security Documents, 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 and/or Pledgor 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 and/or Pledgor
becomes insolvent or unable to pay its debts as they become due; (6) Debtor
and/or Pledgor (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
and/or Pledgor 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 and/or Pledgor consents to such
appointment; (8) proceedings are commenced against Debtor and/or Pledgor under
any bankruptcy, reorganization, liquidation, or similar laws of any
jurisdiction, and such proceedings remain undismissed for sixty (60) days after
commencement; or Debtor and/or Pledgor consents to the commencement of such
proceedings; (9) any judgment having a material affect on Debtor’s and/or
Pledgor’s assets is entered against Debtor and/or Pledgor, or any attachment,
levy, or garnishment is issued against any property of Debtor and/or Pledgor;
(10) any proceedings are instituted for the foreclosure or collection of any
mortgage, judgment, or lien affecting the Collateral; (11) Debtor and/or Pledgor
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 and/or Pledgor
dies; (13) Debtor and/or Pledgor, 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 and/or Pledgor 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 Security Documents and at any time thereafter, the Secured
Party shall be entitled, without notice to Debtor and/or Pledgor, 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:

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (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.  Pledgor hereby releases Secured Party from any
claims arising from such removal and shall hold Secured Party harmless from any
liability resulting therefrom, except for liability arising or resulting from
Secured Party’s gross negligence or willful intent.

    

    (b)           Secured
Party may notify any person indebted to Pledgor to pay Secured Party directly
any amounts due Pledgor 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 Pledgor.

    

    (c)           Secured
Party may require Pledgor 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 Pledgor 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.  Pledgor stipulates and agrees that
a disposition complying with this subparagraph shall be deemed a commercially
reasonable 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)           Pledgor
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.  Pledgor 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.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    10.           Applicable
Law.  The Uniform Commercial Code as codified in the State of
Indiana at Indiana Code 26-1-1 et seq. (hereinafter referred
to as the “UCC”) shall govern the settlement, perfection and the effect of
attachment and perfection of the Secured Party’s security interest in the
Collateral and the rights, duties and obligations of the Secured Party and the
Pledgor with respect to the Collateral (whether or not the UCC applies to the
Collateral).  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 Pledgor 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 Pledgor 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]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

    

    
      
        
          
            	
                    “PLEDGOR”

                  
	 
      
	
                    LIGHTYEAR
      NETWORK SOLUTIONS, LLC

                  
	
                    a
      Kentucky limited liability company

                  
	 
      	 
      
	
                    By:

                  	
                    /S/ J. Sherman Henderson,
    III,

                  
	 
      	
                    J.
      Sherman Henderson, III,
CEO

                  

          

        

      

    

    

    Prepared
by:

    

    Keith D.
Mull

    MULL
& HEINZ, LLC

    2867
Charlestown Road

    New
Albany, Indiana  47150

    (812)
206-2315

    
      
         

      

      
        S-1

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