Document:

ex10_2.htm

    
      

    

    Exhibit
10.2

    

    

    REGISTRATION
RIGHTS AGREEMENT

    

    This
Registration Rights Agreement (as amended, modified or supplemented from time to
time, this “Agreement”) is made
and entered into as of March 31, 2008, by and between Rapid Link, Incorporated,
a Delaware corporation (the “Company”), and Valens
Offshore SPV II, Corp. (the “Investor”).

    

    This
Agreement is made pursuant to the Security Agreement, dated as of the date
hereof, by and between the Agent, the Lenders, the Company, the Eligible
Subsidiaries from time to time party thereto (as amended, modified or
supplemented from time to time, the “Security Agreement”)
and pursuant to the Warrants referred to therein.

    

    The
Company and the Investor hereby agree as follows:

    

    61.           Definitions.  Capitalized
terms used and not otherwise defined herein that are defined in the Security
Agreement shall have the meanings given such terms in the Security
Agreement.  As used in this Agreement, the following terms shall have
the following meanings:

    

    “Commission” means the
Securities and Exchange Commission.

    

    “Common Stock” means shares
of the Company’s common stock, par value $0.001 per share.

    

    “Company” has the meaning
given to such term in the Preamble hereto.

    

    “Effectiveness Date” means,
(i) with respect to the initial Registration Statement required to be filed in
connection with the Warrants issued on the date hereof, a date no later than one
hundred eighty (180) days following the date on which Holder exercises its
rights under Section 2(a) hereof and (ii) with respect to each additional
Registration Statement required to be filed hereunder (if any), a date no later
than thirty (30) days following the applicable Filing Date other than an
additional Registration Statement required to be filed pursuant to Section
2(a)(2) hereof, a date no later than seventy-five (75) days following the
applicable Filing Date.

    

    “Effectiveness Period” has
the meaning set forth in Section 2(a).

    

    “Event” has the meaning set
forth in Section 2(b).

    

    “Event Date” has the meaning
set forth in Section 2(b).

    

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended, and any successor
statute.

    

    “Filing Date” means, with
respect to (1) the Registration Statement required to be filed in connection
with the shares of Common Stock issuable to the Holder upon exercise of any
Warrant issued as of the date hereof, the date which is ninety (90) days
following the date on which Holder exercises its rights under Section 2(a)
hereof, (2) the Registration Statement required to be filed in connection with
the shares of Common Stock issuable to the Holder upon exercise of any Warrant
issued after the date hereof, the date which is thirty (30) days after the
issuance of such Warrant and (3) the Registration Statement required to be filed
in connection with the shares of Common Stock issuable to the Holder as a result
of adjustments to the Exercise Price made pursuant to Section 4 of the Warrant
or otherwise, thirty (30) days after the occurrence of such event or the date of
the adjustment of the Exercise Price.

    
      
         

      

      
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    “Holder” or “Holders” means the Investor
or any of its affiliates or transferees to the extent any of them hold
Registrable Securities, other than those purchasing Registrable Securities in a
market transaction.

    

    “Indemnified Party” has the
meaning set forth in Section 5(c).

    

    “Indemnifying Party” has the
meaning set forth in Section 5(c).

    

    “Notes” shall mean the Secured
Term A Notes, to the extent the Revolving Commitment Conditions have been
satisfied, the Secured Revolving Notes and to the extent the Term Loan B
Conditions have been satisfied, the Secured Term B Notes.

    

    “Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an
investigation or partial proceeding, such as a deposition), whether commenced or
threatened.

    

    “Prospectus” means the
prospectus included in a Registration Statement (including, without limitation,
a prospectus that includes any information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A
promulgated under the Securities Act), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by such Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.

    

    “Registrable Securities”
means the shares of Common Stock issuable upon exercise of the
Warrants.

    

    “Registration Statement”
means each registration statement required to be filed hereunder, including the
Prospectus therein, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.

    

    “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

    

    “Rule 415” means Rule 415
promulgated by the Commission pursuant to the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission having substantially the same effect as such
Rule.

    
      
         

      

      
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    “Securities Act” means the
Securities Act of 1933, as amended, and any successor statute.

    

    “Security Agreement” has the
meaning given to such term in the Preamble hereto.

    

    “Trading Market” means any of
the NASD Over The Counter Bulletin Board, NASDAQ Capital Market, the NASDAQ
Global Market, the American Stock Exchange or the New York Stock
Exchange.

    

    “Warrants” means the Common
Stock purchase warrants issued in connection with the Security Agreement,
whether on the date thereof or thereafter.

    

    62.           Registration.

    

    (a)           The
Company covenants and agrees that in the event the Investor or any assignee of
the Investor attempts to sell any Registrable Securities after that date which
is six (6) months following the date hereof and is unable, for any reason, to do
so pursuant to an exemption to registration under Rule 144, then, the Investor
by written demand to the Company may require the Company to file a registration
statement under the Securities Act covering the registration of the Registrable
Securities that have not been registered, whereupon the Company
shall:

    

    (A)           as
soon as practicable, and in any event by the Filing Date, file with the
Commission a Registration Statement covering all Registrable Securities for a
selling stockholder resale offering to be made on a continuous basis pursuant to
Rule 415; and

    

    (B)           use
its best efforts to cause such Registration Statement to be declared effective
by the Commission as promptly as possible after the filing thereof, but in no
event later than the Effectiveness Date.  On or prior to each Filing
Date, the Company shall prepare and file with the Commission a Registration
Statement covering the Registrable Securities for a selling stockholder resale
offering to be made on a continuous basis pursuant to Rule 415.  Each
Registration Statement shall be on Form S-3 (except if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, in which
case such registration shall be on another appropriate form in accordance
herewith).  Notwithstanding the
registration obligations set forth in Section 2(a)(1), in the event the
Commission informs the Company that all of the Registrable Securities cannot, as
a result of the application of Rule 415, be registered for resale as a secondary
offering on a single Registration Statement, the Company agrees to promptly (i)
inform each Investor thereof, (ii) use its best efforts to file amendments to
the initial Registration Statement (“Initial Registration Statement”) as
required by the Commission and/or (iii) withdraw the Initial Registration
Statement and file a new Registration Statement (“New Registration Statement”),
in either case covering the maximum number of Securities permitted to be
registered by the SEC on Form S-3 or such other form available to register for
resale the Securities as a secondary offering, with the number of shares
included on such amendment or the New Registration Statement cut back
proportionally for each Investor.  In the event the Company amends the
Initial Registration Statement or files a New Registration Statement, as the
case may be, under clauses (ii) or (iii) above, the Company will use its
commercially reasonable efforts to file with the SEC, as promptly as allowed by
the SEC, one or more registration statements on Form S-3 or such other form
available to register for resale those Securities that were not registered for
resale on the Initial Registration Statement, as amended, or the New
Registration Statement.  The Company shall cause each
Registration Statement to become effective and remain effective as provided
herein.  The Company shall use its best efforts to cause each
Registration Statement to be declared effective under the Securities Act as
promptly as possible after the filing thereof, but in any event no later than
the Effectiveness Date.  The Company shall use its best efforts to
keep each Registration Statement continuously effective under the Securities Act
until the date which is the earlier date of  (i) when all Registrable
Securities covered by such Registration Statement have been sold, (ii) when all
Registrable Securities covered by such Registration Statement may be sold
immediately without registration under the Securities Act and without volume
restrictions pursuant to Rule 144(b)(1)(i), as determined by the counsel to the
Company pursuant to a written opinion letter to such effect, addressed and
acceptable to the Company’s transfer agent and the affected Holders, or (iii)
the second anniversary of the date on which the SEC declares such Registration
Statement effective (each, an “Effectiveness
Period”).

    
      
         

      

      
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    (b)           If:
(i) the Registration Statement is not filed on or prior to the Filing Date; (ii)
the Registration Statement is not declared effective by the Commission by the
Effectiveness Date; (iii) after the Registration Statement is filed with and
declared effective by the Commission, the Registration Statement ceases to be
effective (by suspension or otherwise) as to all Registrable Securities to which
it is required to relate at any time prior to the expiration of the
Effectiveness Period (without being succeeded immediately by an additional
registration statement filed and declared effective) for a period of time which
shall exceed 45 days in the aggregate per year or more than 30 consecutive
calendar days (defined as a period of 365 days commencing on the date the
Registration Statement is declared effective); or (iv) the Common Stock is not
listed or quoted, or is suspended from trading on any Trading Market for a
period of three (3) consecutive Trading Days (provided the Company shall not
have been able to cure such trading suspension within 30 days of the notice
thereof or list the Common Stock on another Trading Market); (any such failure
or breach being referred to as an “Event,” and for purposes of clause (i) or
(ii) the date on which such Event occurs, or for purposes of clause (iii) the
date which such 45 day or 30 consecutive day period (as the case may be) is
exceeded, or for purposes of clause (iv) the date on which such three (3)
Trading Day period is exceeded, being referred to as “Event Date”), then
until the applicable Event is cured, the Company shall pay to each Holder an
amount in cash, as liquidated damages and not as a penalty, equal to 1.0% for
each thirty (30) day period (prorated for partial periods) on a daily basis of
the aggregate original principal amount of the Notes.  While such
Event continues, such liquidated damages shall be paid not less often than each
thirty (30) days.  Any unpaid liquidated damages as of the date when
an Event has been cured by the Company shall be paid within three (3) days
following the date on which such Event has been cured by the
Company.  No liquidated damages shall
accrue for periods during which the Registrable Securities (assuming cashless
exercise, if so required for Rule 144 eligibility) may be sold without
restriction under Rule 144(b)(1)(i).

    

    (c)           Within
three (3) business days of the Effectiveness Date, the Company shall cause its
counsel to issue a blanket opinion in the form attached hereto as Exhibit A, to
the transfer agent stating that the shares are subject to an effective
registration statement and can be reissued free of restrictive legend upon
notice of a sale by the Investor and confirmation by the Investor that it has
complied with the prospectus delivery requirements, provided that the
Company has not advised the transfer agent orally or in writing that the opinion
has been withdrawn. Copies of the blanket opinion required by this Section 2(c)
shall be delivered to the Investor within the time frame set forth
above.

    
      
         

      

      
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    63.           Registration
Procedures.  If and whenever the Company is required by the
provisions hereof to effect the registration of any Registrable Securities under
the Securities Act, the Company will, as expeditiously as possible:

    

    (a)           prepare
and file with the Commission a Registration Statement with respect to such
Registrable Securities, respond as promptly as possible to any comments received
from the Commission, and use its best efforts to cause such Registration
Statement to become and remain effective for the Effectiveness Period with
respect thereto, and promptly provide to the Investor copies of all filings and
Commission letters of comment relating thereto and before filing a Registration
Statement or Prospectus or any amendments or supplements thereto, furnish to the
Investor copies of all such documents proposed to be filed, including documents
incorporated by reference in the Prospectus and, if requested by the
Investor, the exhibits incorporated by reference, and the Investor shall
have the opportunity to object to any information pertaining to itself that
is contained therein and the Company will make the corrections reasonably
requested by the Investor with respect to such information prior to filing
any Registration Statement or amendment thereto or any Prospectus or any
supplement thereto;

    

    (b)           prepare
and file with the Commission such amendments and supplements to such
Registration Statement and the Prospectus used in connection therewith as may be
necessary to comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Securities covered by such Registration
Statement and to keep such Registration Statement effective until the expiration
of the Effectiveness Period applicable to such Registration
Statement;

    

    (c)           furnish
to the Investor such number of copies of the Registration Statement and the
Prospectus included therein (including each preliminary Prospectus and any
amendments and supplements to the Registration Statement and the Prospectus) and
such other documents as the Investor reasonably may request to facilitate the
public sale or disposition of the Registrable Securities covered by such
Registration Statement;

    

    (d)           use
its best efforts to register or qualify the Investor’s Registrable Securities
covered by such Registration Statement under the securities or “blue sky” laws
of such jurisdictions within the United States as the Investor may reasonably
request and do any and all other acts and things which may be reasonably
necessary or advisable to enable the Investor to consummate the disposition in
such jurisdiction of the Registrable Securities, provided, however, that the
Company shall not for any such purpose be required to qualify generally to
transact business as a foreign corporation in any jurisdiction where it is not
so qualified or to consent to general service of process in any such
jurisdiction;

    

    (e)           list
the Registrable Securities covered by such Registration Statement with any
Trading Market exchange on which the Common Stock of the Company is then listed
or quoted and, if the Common Stock is not then listed or quoted , list or quoted
the Registrable Securities on NASDAQ’s Over the Counter Bulletin, NASDAQ or a
national securities exchange selected by the Company;

    
      
         

      

      
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    (f)           immediately
notify the Investor at any time when a Prospectus relating thereto is required
to be delivered under the Securities Act, of the happening of any event as a
result of which the Prospectus contained in such Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, and, at the request of the Investor, the Company shall
prepare a supplement or amendment to such Prospectus so that, as thereafter
delivered to the purchasers of Registrable Securities, such Prospectus shall not
contain an untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statement therein
not misleading;

    

    (g)           make
available for inspection by the Investor and any attorney, accountant or other
agent retained by the Investor, all publicly available, non-confidential
financial and other records, pertinent corporate documents and properties of the
Company, and cause the Company’s officers, directors and employees to supply all
publicly available, non-confidential information reasonably requested by the
attorney, accountant or agent of the Investor;

    

    (h)           provide
a transfer agent and registrar for all such Registrable Securities not later
than the effective date of such Registration Statement;

    

    (i)           if
requested, cause to be delivered, immediately prior to the effectiveness of the
Registration Statement, letters from the Company’s independent certified public
accountants addressed to the Investor (unless the Investor does not provide to
such accountants the appropriate representation letter required by rules
governing the accounting profession) stating that such accountants are
independent public accountants within the meaning of the Securities Act and the
applicable rules and regulations adopted by the SEC thereunder, and otherwise in
customary form and covering such financial and accounting matters as are
customarily covered by letters of the independent certified public accountants
delivered in connection with primary or secondary underwritten public offerings,
as the case may be; and

    

    (j)           at
all times after the Company has filed a Registration Statement with the SEC
pursuant to the requirements of either the Securities Act or the Exchange Act,
the Company shall file all reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the
SEC thereunder, and take such further action as the Investor may reasonably
request, all to the extent required to enable the Investor to be eligible to
sell Registrable Securities pursuant to Rule 144 (or any similar rule then in
effect).

    

    64.           Registration
Expenses.  All expenses relating to the Company’s compliance
with Sections 2 and 3 hereof, including, without limitation, all registration,
filing and listing application fees, costs of distributing any prospectuses and
supplements thereto, printing expenses, fees and disbursements of counsel and
independent public accountants for the Company, fees and expenses (including
counsel fees) incurred in connection with complying with state securities or
“blue sky” laws, fees of the FINRA, NASDAQ, transfer taxes, fees of transfer
agents and registrars, fees of, and disbursements incurred by, one counsel for
the Holders are called “Registration Expenses.” All selling commissions
applicable to the sale of Registrable Securities, including any fees and
disbursements of any special counsel to the Holders beyond those included in
Registration Expenses, are called “Selling Expenses.”  The Company
shall only be responsible for all Registration Expenses.  The
obligation of the Company to bear the expenses described above shall apply
irrespective of whether a registration, becomes effective, is withdrawn or
suspended, is converted to another form of registration and irrespective of when
any of the foregoing shall occur.

    
      
         

      

      
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    65.           Indemnification.

    

    (a)           In
the event of a registration of any Registrable Securities under the Securities
Act pursuant to this Agreement, the Company will indemnify and hold harmless
each Holder, and its officers, directors and each other person, if any, who
controls such Holder within the meaning of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which such Holder,
or such persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in any Registration Statement under
which such Registrable Securities were registered under the Securities Act
pursuant to this Agreement, any preliminary Prospectus or final Prospectus
contained therein, or any amendment or supplement thereof, or arise out of or
are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading or any violation or alleged violation by the Company of the
Securities Act, the Exchange Act or applicable “blue sky” laws, and will
reimburse such Holder, and each such person for any legal or other expenses
incurred by them in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case if and to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished by or on behalf of the Investor or any
such person in writing specifically for use in any such document.

    

    (b)           In
the event of a registration of the Registrable Securities under the Securities
Act pursuant to this Agreement, the Investor will indemnify and hold harmless
the Company, and its officers, directors and each other person, if any, who
controls the Company within the meaning of the Securities Act, against all
losses, claims, damages or liabilities, joint or several, to which the Company
or such persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact which was furnished in writing by the Investor to
the Company expressly for use in (and such information is contained in) the
Registration Statement under which such Registrable Securities were registered
under the Securities Act pursuant to this Agreement, any preliminary Prospectus
or final Prospectus contained therein, or any amendment or supplement thereof,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company and each such
person for any reasonable legal or other expenses incurred by them in connection
with investigating or defending any such loss, claim, damage, liability or
action, provided, however, that the
Investor will be liable in any such case if and only to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission so made in
conformity with information furnished in writing to the Company by or on behalf
of the Investor specifically for use in any such
document.  Notwithstanding the provisions of this paragraph, the
Investor shall not be required to indemnify any person or entity in excess of
the amount of the aggregate net proceeds received by the Investor in respect of
Registrable Securities in connection with any such registration under the
Securities Act.

    
      
         

      

      
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    (c)           Promptly
after receipt by a party entitled to claim indemnification hereunder (an “Indemnified Party”)
of notice of the commencement of any action, such Indemnified Party shall, if a
claim for indemnification in respect thereof is to be made against a party
hereto obligated to indemnify such Indemnified Party (an “Indemnifying Party”),
notify the Indemnifying Party in writing thereof, but the omission so to notify
the Indemnifying Party shall not relieve it from any liability which it may have
to such Indemnified Party other than under this Section 5(c) and shall only
relieve it from any liability which it may have to such Indemnified Party under
this Section 5(c) if and to the extent the Indemnifying Party is prejudiced by
such omission. In case any such action shall be brought against any Indemnified
Party and it shall notify the Indemnifying Party of the commencement thereof,
the Indemnifying Party shall be entitled to participate in and, to the extent it
shall wish, to assume and undertake the defense thereof with counsel
satisfactory to such Indemnified Party, and, after notice from the Indemnifying
Party to such Indemnified Party of its election so to assume and undertake the
defense thereof, the Indemnifying Party shall not be liable to such Indemnified
Party under this Section 5(c) for any legal expenses subsequently incurred by
such Indemnified Party in connection with the defense thereof; if the
Indemnified Party retains its own counsel, then the Indemnified Party shall pay
all fees, costs and expenses of such counsel, provided, however, that, if the
defendants in any such action include both the Indemnified Party and the
Indemnifying Party and the Indemnified Party shall have reasonably concluded
that there may be reasonable defenses available to it which are different from
or additional to those available to the Indemnifying Party or if the interests
of the Indemnified Party reasonably may be deemed to conflict with the interests
of the Indemnifying Party, the Indemnified Party shall have the right to select
one separate counsel and to assume such legal defenses and otherwise to
participate in the defense of such action, with the reasonable expenses and fees
of such separate counsel and other expenses related to such participation to be
reimbursed by the Indemnifying Party as incurred.

    

    (d)           In
order to provide for just and equitable contribution in the event of joint
liability under the Securities Act in any case in which either (i) the Investor,
or any officer, director or controlling person of the Investor, makes a claim
for indemnification pursuant to this Section 5 but it is judicially determined
(by the entry of a final judgment or decree by a court of competent jurisdiction
and the expiration of time to appeal or the denial of the last right of appeal)
that such indemnification may not be enforced in such case notwithstanding the
fact that this Section 5 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of the
Investor or such officer, director or controlling person of the Investor in
circumstances for which indemnification is provided under this Section 5; then,
and in each such case, the Company and the Investor will contribute to the
aggregate losses, claims, damages or liabilities to which they may be subject
(after contribution from others) in such proportion so that the Investor is
responsible only for the portion represented by the percentage that the public
offering price of its securities offered by the Registration Statement bears to
the public offering price of all securities offered by such Registration
Statement, provided, however, that, in any
such case, (A) the Investor will not be required to contribute any amount in
excess of the public offering price of all such securities offered by it
pursuant to such Registration Statement; and (B) no person or entity guilty of
fraudulent misrepresentation (within the meaning of Section 10(f) of the Act)
will be entitled to contribution from any person or entity who was not guilty of
such fraudulent misrepresentation.

    
      
         

      

      
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    (e)           The
indemnification provided for under this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director or controlling Person of such indemnified party
and shall survive the transfer of securities.

    

    66.           Representations and
Warranties.

    

    (a)           The
Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange
Act and, except with respect to certain matters which the Company has disclosed
to the Investor on Schedule 12(u) to the
Security Agreement, the Company has timely filed all proxy statements, reports,
schedules, forms, statements and other documents required to be filed by it
under the Exchange Act.  The Company has filed (i) its Annual Report
on Form 10-KSB for its fiscal year ended October 31, 2007 and (ii) its
Quarterly Report on Form 10-QSB for the fiscal quarters ended January 31, 2008,
July 31, 2007, April 30, 2007 and January 31, 2007 (collectively, the “SEC
Reports”).  Each SEC Report was, at the time of its filing, in
substantial compliance with the requirements of its respective form and none of
the SEC Reports, nor the financial statements (and the notes thereto) included
in the SEC Reports, as of their respective filing dates, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  The
financial statements of the Company included in the SEC Reports comply as to
form in all material respects with applicable accounting requirements and the
published rules and regulations of the Commission or other applicable rules and
regulations with respect thereto.  Such financial statements have been
prepared in accordance with generally accepted accounting principles (“GAAP”) applied on a
consistent basis during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto or (ii) in the case
of unaudited interim statements, to the extent they may not include footnotes or
may be condensed) and fairly present in all material respects the financial
condition, the results of operations and the cash flows of the Company and its
subsidiaries, on a consolidated basis, as of, and for, the periods presented in
each such SEC Report.

    

    (b)           The
Common Stock is listed or quoted, as applicable, for trading on the NASDAQ Over
The Counter Bulletin Board and satisfies all requirements for the continuation
of such listing or quotation, as applicable, and the Company shall do all things
necessary for the continuation of such listing or quotation, as
applicable.  The Company has not received any notice that its Common
Stock will be delisted from or no longer be quoted on, as applicable, the NASDAQ
Over The Counter Bulletin Board (except for prior notices which have been fully
remedied) or that the Common Stock does not meet all requirements for the
continuation of such listing or quotation, as applicable.

    
      
         

      

      
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    (c)           Neither
the Company, nor any of its affiliates, nor any person acting on its or their
behalf, has directly or indirectly made any offers or sales of any security or
solicited any offers to buy any security under circumstances that would cause
the offering of the Securities pursuant to the Security Agreement to be
integrated with prior offerings by the Company for purposes of the Securities
Act which would prevent the Company from selling the Common Stock pursuant to
Rule 506 under the Securities Act, or any applicable exchange-related
stockholder approval provisions, nor will the Company or any of its affiliates
or subsidiaries take any action or steps that would cause the offering of the
Securities to be integrated with other offerings (other than such concurrent
offering to the Investor).

    

    (d)           The
Warrants and the shares of Common Stock that the Investor may acquire pursuant
to the Warrants are all restricted securities under the Securities Act as of the
date of this Agreement.  The Company will not issue any stop transfer
order or other order impeding the sale and delivery of any of the Registrable
Securities at such time as such Registrable Securities are registered for public
sale or an exemption from registration is available, except as required by
federal or state securities laws.

    

    (e)           The
Company understands the nature of the Registrable Securities issuable upon the
exercise of each Warrant and recognizes that the issuance of such Registrable
Securities may have a potential dilutive effect.  The Company
specifically acknowledges that its obligation to issue the Registrable
Securities is binding upon the Company and enforceable regardless of the
dilution such issuance may have on the ownership interests of other shareholders
of the Company.

    

    (f)           Except
for agreements made in the ordinary course of business, there is no agreement
that has not been filed with the Commission as an exhibit to a registration
statement or to a form required to be filed by the Company under the Exchange
Act, the breach of which could reasonably be expected to have a material and
adverse effect on the Company and its subsidiaries, or would prohibit or
otherwise interfere with the ability of the Company to enter into and perform
any of its obligations under this Agreement in any material
respect.

    

    (g)           The
Company will at all times have authorized and reserved a sufficient number of
shares of Common Stock for the full exercise of the Warrants.

    

    (h)           The
Company shall provide written notice to each Holder of (i) the occurrence of
each Discontinuation Event (as defined below) and (ii) the declaration of
effectiveness by the SEC of each Registration Statement required to be filed
hereunder, in each case within one (1) business day of the date of each such
occurrence and/or declaration.

    

    67.           Miscellaneous.

    

    (a)           Remedies.  In the
event of a breach by the Company or by a Holder, of any of their respective
obligations under this Agreement, each Holder or the Company, as the case may
be, in addition to being entitled to exercise all rights granted by law and
under this Agreement, including recovery of damages, will be entitled to
specific performance of its rights under this Agreement.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (b)           No Piggyback on
Registrations.  Except as and to the extent set forth on
Schedule 7(b) hereto, neither the Company nor any of its security holders (other
than the Holders in such capacity pursuant hereto) may include securities of the
Company in any Registration Statement other than the Registrable Securities, and
the Company shall not after the date hereof enter into any agreement providing
any such right for inclusion of shares in the Registration Statement to any of
its security holders.  Except as and to the extent specified in Schedule 7(b) hereto,
the Company has not previously entered into any agreement granting any
registration rights with respect to any of its securities to any person or
entity that have not been fully satisfied.

    

    (c)           Compliance.  Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to any Registration
Statement.  Each Holder further
covenants and agrees that it will not effect any disposition of the Registrable
Securities or its right to purchase the Registrable Securities that would
constitute a sale within the meaning of the Securities Act other than
transactions exempt from the registration requirements of the Securities Act, or
as contemplated in the Registration Statement, and that it will promptly notify
the Company of any material changes in the information set forth in the
Registration Statement regarding the Holders or its plan of
distribution.

    

    (d)           Discontinued
Disposition.  Each Holder agrees by its acquisition of such
Registrable Securities that, upon receipt of a notice from the Company of the
occurrence of a Discontinuation Event (as defined below), such Holder will
forthwith discontinue disposition of such Registrable Securities under the
applicable Registration Statement until such Holder’s receipt of the copies of
the supplemented Prospectus and/or amended Registration Statement or until it is
advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be resumed, and, in either
case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement.  The Company may provide appropriate stop
orders to enforce the provisions of this paragraph.  For purposes of
this Agreement, a “Discontinuation Event” shall mean (i) when the Commission
notifies the Company whether there will be a “review” of such Registration
Statement and whenever the Commission comments in writing on such Registration
Statement (the Company shall provide true and complete copies thereof and all
written responses thereto to each of the Holders); (ii) any request by the
Commission or any other Federal or state governmental authority for amendments
or supplements to such Registration Statement or Prospectus or for additional
information; (iii) the issuance by the Commission of any stop order suspending
the effectiveness of such Registration Statement covering any or all of the
Registrable Securities or the initiation of any Proceedings for that purpose;
(iv) the receipt by the Company of any notification with respect to the
suspension of the qualification or exemption from qualification of any of the
Registrable Securities for sale in any jurisdiction, or the initiation or
threatening of any Proceeding for such purpose; and/or (v) the occurrence of any
event or passage of time that makes the financial statements included in such
Registration Statement ineligible for inclusion therein or any statement made in
such Registration Statement or Prospectus or any document incorporated or deemed
to be incorporated therein by reference untrue in any material respect or that
requires any revisions to such Registration Statement, Prospectus or other
documents so that, in the case of such Registration Statement or Prospectus, as
the case may be, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (e)           Piggy-Back
Registrations.  If at any time during the applicable
Effectiveness Period there is not an effective Registration Statement covering
all of the Registrable Securities required to be covered during such
Effectiveness Period and the Company shall determine to prepare and file with
the Commission a registration statement relating to an offering for its own
account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, then the Company shall promptly send to each Holder written
notice of such determination and, if within fifteen (15) days after receipt of
such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable
Securities such Holder requests to be registered, to the extent the Company may
do so without violating registration rights of others which exist as of the date
of this Agreement, subject to customary underwriter cutbacks applicable to all
holders of registration rights and subject to obtaining any required consent of
any selling stockholder(s) to such inclusion under such registration statement
and subject to any limitations mandated by the SEC, including, without
limitation, restrictions on the number of shares registrable pursuant to Rule
415.

    

    (f)           Amendments and
Waivers.  The provisions of this Agreement, including the
provisions of this sentence, may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the same shall be in writing and signed by the Company and the Holders of
majority of the then outstanding Registrable
Securities.  Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of certain Holders and that does not directly or
indirectly affect the rights of other Holders may be given by Holders of at
least a majority of the Registrable Securities to which such waiver or consent
relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding
sentence.

    

    (g)           Notices.  Any
notice, request, correspondence or document required to be delivered hereunder
may be given to the Company or the Investor at the respective addresses set
forth below or as may hereafter be specified in a notice designated as a change
of address under this Section 7(g).  Any notice, request,
correspondence or document required to be delivered hereunder shall be given by
registered or certified mail, return receipt requested, hand delivery, overnight
mail, Federal Express or other national overnight next day carrier
(collectively, “Courier”) or telecopy
(confirmed by mail).  Notices, requests, correspondence or documents
required to be delivered hereunder shall be, in the case of those by hand
delivery, deemed to have been given when delivered to any party to whom it is
addressed, in the case of those by mail or overnight mail, deemed to have been
given three (3) business days after the date when deposited in the mail or with
the overnight mail carrier, in the case of a Courier, the next business day
following timely delivery of the package with the Courier, and, in the case of a
telecopy, when confirmed.  The address for such notices and
communications shall be as follows:

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              If
      to the Company:

            	
              Rapid
      Link, Incorporated

            
	 
      	
              5408
      No. 99th
      Street

            
	 
      	
              Omaha,
      NE 68134

            
	 
      	
              Attention:

            	
              Chris
      Canfield

            
	 
      	
              Telephone:

            	
              970-547-8165

            
	 
      	
              Facsimile:

            	
              420-392-7545

            
	 
      	 
      	 
      
	
              with
      a copy to:

            	 
      	 
      
	 
      	
              Crosby
      Guenzel LLP

            
	 
      	
              134
      South 13th
      Street

            
	 
      	
              Lincoln,
      Nebraska 68508

            
	 
      	
              Attention:

            	
              Thomas
      E. Jeffers

            
	 
      	
              Telephone:

            	
              (402)
      434-7300

            
	 
      	
              Facsimile:

            	
              (402)434-7303

            
	 
      	 
      	 
      
	
              If
      to Investor:

            	
              To
      the address set forth under Investor’s name on the signature pages
      hereto.

            
	 
      	 
      	 
      
	
              If
      to any other Person who is then the registered Holder:

            	
              To
      the address of such Holder as it appears in the stock transfer books of
      the Company

            

    

    

    or such
other address as may be designated in writing hereafter in accordance with this
Section 7(g) by such Person.

    

    (h)           Successors and
Assigns.  This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of each of the parties and
shall inure to the benefit of each Holder.  The Company may not assign
its rights or obligations hereunder without the prior written consent of each
Holder.  Each Holder may assign their respective rights hereunder in
the manner and to the persons and entities as permitted under the Security
Agreement.

    

    (i)         
  Execution and
Counterparts.  This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same
agreement.  In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

    

    (j)        
   Governing
Law, Jurisdiction and Waiver of Jury Trial.  THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE,
WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.  The Company hereby
consents and agrees that the state or federal courts located in the County of
New York, State of New York shall have exclusion jurisdiction to hear and
determine any Proceeding between the Company, on the one hand, and the Investor,
on the other hand, pertaining to this Agreement or to any matter arising out of
or related to this Agreement; provided, that the
Investor and the Company acknowledge that any appeals from those courts may have
to be heard by a court located outside of the County of New York, State of New
York, and further provided, that
nothing in this Agreement shall be deemed or operate to preclude the Investor
from bringing a Proceeding in any other jurisdiction to collect the obligations,
to realize on the Collateral or any other security for the obligations, or to
enforce a judgment or other court order in favor of the Investor.  The
Company expressly submits and consents in advance to such jurisdiction in any
Proceeding commenced in any such court, and the Company hereby waives any
objection which it may have based upon lack of personal jurisdiction, improper
venue or forum non
conveniens.  The Company hereby waives personal service of the
summons, complaint and other process issued in any such Proceeding and agrees
that service of such summons, complaint and other process may be made by
registered or certified mail addressed to the Company at the address set forth
in Section 7(g) and that service so made shall be deemed completed upon the
earlier of the Company’s actual receipt thereof or three (3) days after deposit
in the U.S. mails, proper postage prepaid.  The parties hereto desire
that their disputes be resolved by a judge applying such applicable
laws.  Therefore, to achieve the best combination of the benefits of
the judicial system and of arbitration, the parties hereto waive all rights to
trial by jury in any Proceeding brought to resolve any dispute, whether arising
in contract, tort, or otherwise between the Investor and/or the Company arising
out of, connected with, related or incidental to the relationship established
between then in connection with this Agreement.  If either party
hereto shall commence a Proceeding to enforce any provisions of this Agreement,
the Security Agreement or any other Ancillary Agreement, then the prevailing
party in such Proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    (k)           Cumulative
Remedies.  The remedies provided herein are cumulative and not
exclusive of any remedies provided by law.

    

    (l)           Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction to be invalid, illegal, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

    

    (m)           Headings.  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof.

    

    [Balance
of page intentionally left blank; signature page follows]

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as
of the date first written above.

    

    

    
      	 	
              RAPID
      LINK, INCORPORATED

            	 
      
	 	 
      	 
      	 
      
	 	 
      	 
      	 
      
	 	
              By:

            	 
      	 
      
	 	 
      	
              Name:

            	 
      
	 	 
      	
              Title:

            	 
      
	 	 
      	 
      	 
      
	 	 
      	 
      	 
      
	 	
              VALENS
      OFFSHORE SPV II, CORP.

            	 
      
	 	 
      	 
      	 
      
	 	 
      	 
      	 
      
	 	
              By:

            	 
      	 
      
	 	 
      	
              Name:

            	 
      
	 	 
      	
              Title:

            	 
      
	 	 
      	 
      	 
      
	 	 
      	 
      	 
      
	 	
              Address
      for Notices:

            	 
      
	 	 
      	 
      	 
      
	 	
              c/o
      Valens Capital Management, LLC

            	 
      
	 	
              335
      Madison Avenue, 10th
      Floor

            	 
      
	 	
              New
      York, NY  10017

            	 
      
	 	
              Attention:  Portfolio
      Services

            	 
      
	 	
              Facsimile:  212-581-5037

            	 
      

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    
      	 
      	
              ____________,
      200___

            

    

    

    [Continental
Stock Transfer

    &
Trust Company

    Two
Broadway

    New York,
New York  10004

    Attn:  William
Seegraber]

    

    Re:           Rapid Link, Incorporated
Registration Statement on Form [S-3]

    

    Ladies
and Gentlemen:

    

    As
counsel to Rapid Link, Incorporated, a Delaware corporation (the “Company”), we have
been requested to render our opinion to you in connection with the resale by the
individuals or entitles listed on Schedule A attached
hereto (the “Selling
Stockholders”), of an aggregate of __________ shares (the “Shares”) of the
Company’s Common Stock.

    

    A
Registration Statement on Form [S-3] under the Securities Act of 1933, as
amended (the “Act”), with respect
to the resale of the Shares was declared effective by the Securities and
Exchange Commission on [date].  Enclosed is the Prospectus dated
[date].  We understand that the Shares are to be offered and sold in
the manner described in the Prospectus.

    

    Based
upon the foregoing, upon request by the Selling Stockholders at any time while
the registration statement remains effective, it is our opinion that the Shares
have been registered for resale under the Act and new certificates evidencing
the Shares upon their transfer or re-registration by the Selling Stockholders
may be issued without restrictive legend.  We will advise you if the
registration statement is not available or effective at any point in the
future.

    

    
      	 
      	
              Very
      truly yours,

            
	 
      	 
      
	 
      	
              [Company
      counsel]

            

    

    

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

     

    Schedule
A to Exhibit A

     

    

    
      	
              Selling
      Stockholder

            	
              R/N/O

            	
              Shares

              Being
      Offered

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    SCHEDULE
7(b)

     

     

    18ex10_3.htm

    
      

    

    Exhibit
10.3

       

      STOCK PLEDGE
AGREEMENT

       

      This
Stock Pledge Agreement (this “Agreement”), dated as
of March 31, 2008, among LV ADMINISTRATIVE SERVICES INC., as administrative and
collateral agent for the Creditor Parties (as defined below) (the “Pledgee”), RAPID
LINK, INCORPORATED, a Delaware corporation (the “Company”), and each
of the other undersigned parties (the Company and each such other undersigned
party, a “Pledgor” and
collectively, the “Pledgors”).

       

      BACKGROUND

       

      The
Company has entered into a Security Agreement dated as of the date hereof (as
amended, modified, restated or supplemented from time to time, the “Security Agreement”),
pursuant to which the Pledgee and the other Creditor Parties (as defined in the
Security Agreement) party thereto provide or will provide certain financial
accommodations to the Company and certain subsidiaries of the
Company.

       

      In order
to induce the Pledgee and the other Creditor Parties to provide or continue to
provide the financial accommodations described in the Security Agreement, each
Pledgor has agreed to pledge and grant a security interest in the collateral
described herein to the Pledgee on the terms and conditions set forth
herein.

       

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

       

      1.            
Defined
Terms.  All capitalized terms used herein which are not defined
shall have the meanings given to them in the Security Agreement.

       

      2.           
 Pledge and Grant
of Security Interest.  To secure the full and punctual payment
and performance of (the following clauses (a) and (b), collectively, the “Obligations”) (a) all
obligations owing to Pledgee and the other Creditor Parties under the Security
Agreement and the Ancillary Agreements referred to in the Security Agreement
(the Security Agreement and the Ancillary Agreements, as each may be amended,
restated, modified and/or supplemented from time to time, collectively, the
“Documents”)
and (b) all other obligations and liabilities of each Pledgor to the Pledgee and
the other Creditor Parties whether now existing or hereafter arising, direct or
indirect, liquidated or unliquidated, absolute or contingent, due or not due and
whether under, pursuant to or evidenced by a note, agreement, guaranty,
instrument or otherwise (in each case, irrespective of the validity, regularity
or enforceability of such Obligations, or of any instrument evidencing any of
the Obligations or of any collateral therefor or of the existence or extent of
such collateral, and irrespective of the allowability, allowance or disallowance
of any or all of such in any case commenced by or against any Pledgor under
Title 11, United States Code, including, without limitation, obligations of each
Pledgor for post-petition interest, fees, costs and charges that would have
accrued or been added to the Obligations but for the commencement of such case),
each Pledgor hereby pledges, assigns, hypothecates, transfers and grants a
security interest to the Pledgee, for the ratable benefit of the Creditor
Parties, in all of the following (the “Collateral”):

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (a)           the
shares of stock or other equity interests set forth on Schedule A annexed
hereto and expressly made a part hereof (together with any additional shares of
stock or other equity interests acquired by any Pledgor, the “Pledged Stock”), the
certificates representing the Pledged Stock and all dividends, cash, instruments
and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of the Pledged
Stock;

       

      (b)           all
additional shares of stock or other equity interests of any issuer (each, an
“Issuer”) of
the Pledged Stock from time to time acquired by any Pledgor in any manner,
including, without limitation, stock dividends or a distribution in connection
with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination of shares, stock split, spin-off or
split-off (which shares shall be deemed to be part of the Collateral), and the
certificates representing such additional shares, and all dividends, cash,
instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such shares; and

       

      (c)           all
options and rights, whether as an addition to, in substitution of or in exchange
for any shares of any Pledged Stock and all dividends, cash, instruments and
other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all such options and
rights.

       

      3.             Delivery of
Collateral.  All certificates representing or evidencing the
Pledged Stock shall be delivered to and held by or on behalf of Pledgee pursuant
hereto and shall be accompanied by duly executed instruments of transfer or
assignments in blank, all in form and substance satisfactory to the
Pledgee.  Each Pledgor hereby authorizes the Issuer upon demand by the
Pledgee to deliver any certificates, instruments or other distributions issued
in connection with the Collateral directly to the Pledgee, in each case to be
held by the Pledgee, subject to the terms hereof.  Upon the occurrence
and during the continuance of an Event of Default (as defined below), the
Pledgee shall have the right, during such time in its discretion and without
notice to the Pledgor, to transfer to or to register in the name of the Pledgee
or any of its nominees any or all of the Pledged Stock.  In addition,
the Pledgee shall have the right at such time to exchange certificates or
instruments representing or evidencing Pledged Stock for certificates or
instruments of smaller or larger denominations.

       

      4.             Representations and
Warranties of each Pledgor.  Each Pledgor jointly and severally
represents and warrants to the Pledgee (which representations and warranties
shall be deemed to continue to be made until all of the Obligations have been
paid in full in cash and each Document and each agreement and instrument entered
into in connection therewith has been irrevocably terminated) that:

       

      (a)           the
execution, delivery and performance by each Pledgor of this Agreement and the
pledge of the Collateral hereunder do not and will not result in any violation
of any agreement, indenture, instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation applicable to any
Pledgor;

       

      (b)           this
Agreement constitutes the legal, valid, and binding obligation of each Pledgor
enforceable against each Pledgor in accordance with its terms;

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (c)           (i)
all Pledged Stock owned by each Pledgor is set forth on Schedule A hereto and
(ii) each Pledgor is the direct and beneficial owner of each share of the
Pledged Stock;

       

      (d)           all
of the shares of the Pledged Stock have been duly authorized, validly issued and
are fully paid and non-assessable;

       

      (e)           no
consent or approval of any person, corporation, governmental body, regulatory
authority or other entity, is or will be necessary for (i) the execution,
delivery and performance of this Agreement, (ii) the exercise by the Pledgee of
any rights with respect to the Collateral or (iii) the pledge and assignment of,
and the grant of a security interest in, the Collateral hereunder;

       

      (f)            there
are no pending or, to the best of Pledgor’s knowledge, threatened actions or
proceedings before any court, judicial body, administrative agency or arbitrator
which may materially adversely affect the Collateral;

       

      (g)         
 each Pledgor has the requisite power and authority to enter into this
Agreement and to pledge and assign the Collateral to the Pledgee, for the
ratable benefit of the Creditor Parties, in accordance with the terms of this
Agreement;

       

      (h)         
 each Pledgor owns each item of the Collateral and, except for the pledge
and security interest granted to the Pledgee hereunder, the Collateral shall be,
immediately following the closing of the transactions contemplated by the
Documents, free and clear of any other security interest, mortgage, pledge,
claim, lien, charge, hypothecation, assignment, offset or encumbrance whatsoever
(collectively, “Liens”);

       

      (i)            there
are no restrictions on transfer of the Pledged Stock contained in the
certificate of incorporation or by-laws (or equivalent organizational documents)
of the Issuer or otherwise which have not otherwise been enforceably and legally
waived by the necessary parties;

       

      (j)            none
of the Pledged Stock has been issued or transferred in violation of the
securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject;

       

      (k)           the
pledge and assignment of the Collateral and the grant of a security interest
under this Agreement vest in the Pledgee, for the ratable benefit of the
Creditor Parties, all rights of each Pledgor in the Collateral as contemplated
by this Agreement; and

       

      (l)            the
Pledged Stock constitutes one hundred percent (100%) of the issued and
outstanding shares of capital stock of each Issuer.

       

      5.             Covenants.  Each
Pledgor jointly and severally covenants that, until the Obligations shall be
indefeasibly satisfied in full in cash and each Document and each agreement and
instrument entered into in connection therewith is irrevocably
terminated:

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (a)           No
Pledgor will sell, assign, transfer, convey, or otherwise dispose of its rights
in or to the Collateral or any interest therein; nor will any Pledgor create,
incur or permit to exist any Lien whatsoever with respect to any of the
Collateral or the proceeds thereof other than that created hereby.

       

      (b)           Each
Pledgor will, at its expense, defend the Pledgee’s right, title and security
interest in and to the Collateral against the claims of any other
party.

       

      (c)           Each
Pledgor shall at any time, and from time to time, upon the written request of
the Pledgee, execute and deliver such further documents and do such further acts
and things as the Pledgee may reasonably request in order to effectuate the
purposes of this Agreement including, but without limitation, delivering to the
Pledgee, upon the occurrence of an Event of Default, irrevocable proxies in
respect of the Collateral in form satisfactory to the Pledgee.  Until
receipt thereof, upon an Event of Default that has occurred and is continuing
beyond any applicable grace period, this Agreement shall constitute the
Pledgor’s proxy to the Pledgee or its nominee to vote all shares of Collateral
then registered in each Pledgor’s name.

       

      (d)           No
Pledgor will consent to or approve the issuance of (i) any additional shares of
any class of capital stock or other equity interests of the Issuer; or (ii) any
securities convertible either voluntarily by the holder thereof or automatically
upon the occurrence or nonoccurrence of any event or condition into, or any
securities exchangeable for, any such shares, unless, in either case, such
shares are pledged as Collateral pursuant to this Agreement.

       

      (e)           Each
Pledgor agrees to execute and deliver to each Issuer that is a limited liability
company or a limited partnership a control acknowledgment (“Control
Acknowledgement”) substantially in the form of Exhibit B
hereto.  Each Pledgor shall cause each such Issuer to acknowledge in
writing its receipt and acceptance thereof. Such Control Acknowledgement shall
instruct such Issuer to follow instructions from the Pledgee without any
Pledgor’s consultation or consent.

       

      6.             Voting Rights and
Dividends.  In addition to the Pledgee’s rights and remedies
set forth in Section 8 hereof, in case an Event of Default shall have occurred
and be continuing, beyond any applicable cure period, the Pledgee shall (i) be
entitled to vote the Collateral, (ii) be entitled to give consents, waivers and
ratifications in respect of the Collateral (each Pledgor hereby irrevocably
constituting and appointing the Pledgee, with full power of substitution, the
proxy and attorney-in-fact of each Pledgor for such purposes) and (iii) be
entitled to collect and receive for its own use cash dividends paid on the
Collateral.  Unless and until there shall have occurred and be
continuing an Event of Default, each Pledgor shall be permitted to exercise or
refrain from exercising any voting rights or other powers; provided that, in
each case, no vote shall be cast or any consent, waiver or ratification given or
any action taken or omitted to be taken if, in the reasonable judgment of the
Pledgee, such action would have a material adverse effect on the value of the
Collateral or any part thereof; and, provided, further, that each
Pledgor shall give at least five (5) days’ written notice of the manner in which
such Pledgor intends to exercise, or the reasons for refraining from exercising,
any voting rights or other powers other than with respect to any election of
directors and voting with respect to any incidental
matters.  Following the occurrence of an Event of Default, all rights
of each Pledgor to vote and to give consents, waivers and ratifications shall
cease and all dividends and all other distributions in respect of any of the
Collateral, shall be delivered to the Pledgee to hold as Collateral and shall,
if received by any Pledgor, be received in trust for the benefit of the Pledgee,
be segregated from the other property or funds of any other Pledgor, and be
forthwith delivered to the Pledgee as Collateral in the same form as so received
(with any necessary endorsement).

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      7.             Event of
Default.  An “Event of Default”
under this Agreement shall occur upon the happening of any of the following
events:

       

      (a)           An
“Event of
Default” under any Document or any agreement or note related to any
Document shall have occurred and be continuing beyond any applicable cure
period;

       

      (b)           Any
Pledgor shall default in the performance of any of its obligations under any
Document, including, without limitation, this Agreement, and such default shall
not be cured during the cure period applicable thereto;

       

      (c)           Any
representation or warranty of any Pledgor made herein, in any Document or in any
agreement, statement or certificate given in writing pursuant hereto or thereto
or in connection herewith or therewith shall be false or misleading in any
material respect;

       

      (d)           Any
portion of the Collateral is subjected to a levy of execution, attachment,
distraint or other judicial process or any portion of the Collateral is the
subject of a claim (other than by the Pledgee) of a Lien or other right or
interest in or to the Collateral and such levy or claim shall not be cured,
disputed or stayed within a period of fifteen (15) Business Days after the
occurrence thereof; or

       

      (e)           Any
Pledgor shall (i) apply for, consent to, or suffer to exist the appointment of,
or the taking of possession by, a receiver, custodian, trustee, liquidator or
other fiduciary of itself or of all or a substantial part of its property, (ii)
make a general assignment for the benefit of creditors, (iii) commence a
voluntary case under any state or federal bankruptcy laws (as now or hereafter
in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition
seeking to take advantage of any other law providing for the relief of debtors,
(vi) acquiesce to, or fail to have dismissed, within thirty (30) days, any
petition filed against it in any involuntary case under such bankruptcy laws, or
(vii) take any action for the purpose of effecting any of the
foregoing.

       

      8.             Remedies.  In
case an Event of Default shall have occurred and is continuing, the Pledgee
may:

       

      (a)           Transfer
any or all of the Collateral into its name, or into the name of its nominee or
nominees;

       

      (b)           Exercise
all corporate rights with respect to the Collateral including, without
limitation, all rights of conversion, exchange, subscription or any other
rights, privileges or options pertaining to any shares of the Collateral as if
it were the absolute owner thereof, including, but without limitation, the right
to exchange, at its discretion, any or all of the Collateral upon the merger,
consolidation, reorganization, recapitalization or other readjustment of the
Issuer thereof, or upon the exercise by the Issuer of any right, privilege or
option pertaining to any of the Collateral, and, in connection therewith, to
deposit and deliver any and all of the Collateral with any committee,
depository, transfer agent, registrar or other designated agent upon such terms
and conditions as it may determine, all without liability except to account for
property actually received by it; and

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (c)           Subject
to any requirement of applicable law, sell, assign and deliver the whole or,
from time to time, any part of the Collateral at the time held by the Pledgee,
at any private sale or at public auction, with or without demand, advertisement
or notice of the time or place of sale or adjournment thereof or otherwise (all
of which are hereby waived, except such notice as is required by applicable law
and cannot be waived), for cash or credit or for other property for immediate or
future delivery, and for such price or prices and on such terms as the Pledgee
in its sole discretion may determine, or as may be required by applicable
law.

       

      Each
Pledgor hereby waives and releases any and all right or equity of redemption,
whether before or after sale hereunder.  At any such sale, unless
prohibited by applicable law, the Pledgee may bid for and purchase the whole or
any part of the Collateral so sold free from any such right or equity of
redemption.  All moneys received by the Pledgee hereunder, whether
upon sale of the Collateral or any part thereof or otherwise, shall be held by
the Pledgee and applied by it as provided in Section 10 hereof.  No
failure or delay on the part of the Pledgee in exercising any rights hereunder
shall operate as a waiver of any such rights nor shall any single or partial
exercise of any such rights preclude any other or future exercise thereof or the
exercise of any other rights hereunder.  The Pledgee shall have no
duty as to the collection or protection of the Collateral or any income thereon
nor any duty as to preservation of any rights pertaining thereto, except to
apply the funds in accordance with the requirements of Section 10
hereof.  The Pledgee may exercise its rights with respect to property
held hereunder without resort to other security for or sources of reimbursement
for the Obligations.  In addition to the foregoing, Pledgee shall have
all of the rights, remedies and privileges of a secured party under the Uniform
Commercial Code of New York (the “UCC”) regardless of
the jurisdiction in which enforcement hereof is sought.
b

       

      9.           
Private
Sale.  Each Pledgor recognizes that the Pledgee may be unable
to effect (or to do so only after delay which would adversely affect the value
that might be realized from the Collateral) a public sale of all or part of the
Collateral by reason of certain prohibitions contained in the Securities Act,
and may be compelled to resort to one or more private sales to a restricted
group of purchasers who will be obliged to agree, among other things, to acquire
such Collateral for their own account, for investment and not with a view to the
distribution or resale thereof.  Each Pledgor agrees that any such
private sale may be at prices and on terms less favorable to the seller than if
sold at public sales and that such private sales shall be deemed to have been
made in a commercially reasonable manner.  Each Pledgor agrees that
the Pledgee has no obligation to delay sale of any Collateral for the period of
time necessary to permit the Issuer to register the Collateral for public sale
under the Securities Act.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      10.           Proceeds of
Sale.  The proceeds of any collection, recovery, receipt,
appropriation, realization or sale of the Collateral shall be applied by the
Pledgee as follows:

       

      (a)           First,
to the payment of all costs, reasonable expenses and charges of the Pledgee and
to the reimbursement of the Pledgee for the prior payment of such costs,
reasonable expenses and charges incurred in connection with the care and
safekeeping of the Collateral (including, without limitation, the reasonable
expenses of any sale or any other disposition of any of the Collateral),
attorneys’ fees and reasonable expenses, court costs, any other fees or expenses
incurred or expenditures or advances made by the Pledgee in the protection,
enforcement or exercise of its rights, powers or remedies
hereunder;

       

      (b)           Second,
to the payment of the Obligations, in whole or in part, in such order as the
Pledgee may elect, whether or not such Obligations are then due;

       

      (c)           Third,
to such persons, firms, corporations or other entities as required by applicable
law including, without limitation, Section 9-615(a)(3) of the UCC;
and

       

      (d)           Fourth,
to the extent of any surplus to the Pledgors or as a court of competent
jurisdiction may direct.

       

      In the
event that the proceeds of any collection, recovery, receipt, appropriation,
realization or sale are insufficient to satisfy the Obligations, each Pledgor
shall be jointly and severally liable for the deficiency plus the costs and fees
of any attorneys employed by the Pledgee to collect such
deficiency.

       

      11.           Waiver of
Marshaling.  Each Pledgor hereby waives any right to compel any
marshaling of any of the Collateral.

       

      12.           No
Waiver.  Any and all of the Pledgee’s rights with respect to
the Liens granted under this Agreement shall continue unimpaired, and Pledgor
shall be and remain obligated in accordance with the terms hereof,
notwithstanding (a) the bankruptcy, insolvency or reorganization of any Pledgor,
(b) the release or substitution of any item of the Collateral at any time, or of
any rights or interests therein, or (c) any delay, extension of time, renewal,
compromise or other indulgence granted by the Pledgee in reference to any of the
Obligations.  Each Pledgor hereby waives all notice of any such delay,
extension, release, substitution, renewal, compromise or other indulgence, and
hereby consents to be bound hereby as fully and effectively as if such Pledgor
had expressly agreed thereto in advance.  No delay or extension of
time by the Pledgee in exercising any power of sale, option or other right or
remedy hereunder, and no failure by the Pledgee to give notice or make demand,
shall constitute a waiver thereof, or limit, impair or prejudice the Pledgee’s
right to take any action against any Pledgor or to exercise any other power of
sale, option or any other right or remedy.

       

      13.           Expenses.  The
Collateral shall secure, and each Pledgor shall pay to the Pledgee on demand,
from time to time, all reasonable costs and expenses, (including but not limited
to, reasonable attorneys’ fees and costs, taxes, and all transfer, recording,
filing and other charges) of, or incidental to, the custody, care, transfer,
administration of the Collateral or any other collateral, or in any way relating
to the enforcement, protection or preservation of the rights or remedies of the
Pledgee under this Agreement or with respect to any of the
Obligations.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      14.     
     The Pledgee Appointed
Attorney-In-Fact and Performance by the Pledgee.  Upon the
occurrence of an Event of Default, each Pledgor hereby irrevocably constitutes
and appoints the Pledgee as such Pledgor’s true and lawful attorney-in-fact,
with full power of substitution, to execute, acknowledge and deliver any
instruments and to do in such Pledgor’s name, place and stead, all such acts,
things and deeds for and on behalf of and in the name of such Pledgor, which
such Pledgor could or might do or which the Pledgee may deem necessary,
desirable or convenient to accomplish the purposes of this Agreement, including,
without limitation, to execute such instruments of assignment or transfer or
orders and to register, convey or otherwise transfer title to the Collateral
into the Pledgee’s name.  Each Pledgor hereby ratifies and confirms
all that said attorney-in-fact may so do and hereby declares this power of
attorney to be coupled with an interest and irrevocable.  If any
Pledgor fails to perform any agreement herein contained, the Pledgee may itself
perform or cause performance thereof, and any costs and expenses of the Pledgee
incurred in connection therewith shall be paid by the Pledgors as provided in
Section 10 hereof.

       

      15.       
   Recapture.  Notwithstanding
anything to the contrary in this Agreement, if the Pledgee or any other Creditor
Party receives any payment or payments on account of the Obligations, which
payment or payments or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside and/or required to be repaid to a
trustee, receiver, or any other party under the United States Bankruptcy Code,
as amended, or any other federal or state bankruptcy, reorganization, moratorium
or insolvency law relating to or affecting the enforcement of creditors’ rights
generally, common law or equitable doctrine, then to the extent of any sum not
finally retained by the Pledgee or such other Creditor Party, each Pledgor’s
obligations to the Pledgee and the other Creditor Parties shall be reinstated
and this Agreement shall remain in full force and effect (or be reinstated)
until payment shall have been made to the Pledgee and the other Creditor
Parties, which payment shall be due on demand.

       

      16.           Captions.  All
captions in this Agreement are included herein for convenience of reference only
and shall not constitute part of this Agreement for any other
purpose.

       

      17.          Termination of Security
Interest.  The security interest and rights granted to the
Agent hereunder shall continue in full force and effect, notwithstanding the
termination of this Agreement and the Ancillary Agreements, until all of the
Obligations have been indefeasibly paid or performed in full and this Agreement
has been terminated in accordance with the terms of this
Agreement.  The Agent shall not be required to send termination
statements or other evidence of the release of the security interest granted
hereunder to any Company, or to file them with any filing office, unless and
until this Agreement and the Ancillary Agreements shall have been terminated in
accordance with their terms and all Obligations indefeasibly paid in full in
immediately available funds.

       

      18.           Miscellaneous.

       

      (a)           This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties
hereto.

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (b)           No
waiver of any term or condition of this Agreement, whether by delay, omission or
otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific
instance and for the purpose for which given.

       

      (c)           In
the event that any provision of this Agreement or the application thereof to any
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform to
such statute, regulation or rule of law, and the remainder of this Agreement and
the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this
Agreement.

       

      (d)           This
Agreement shall be binding upon each Pledgor, and each Pledgor’s successors and
assigns, and shall inure to the benefit of the Pledgee and its successors and
assigns for the ratable benefit of the Creditor Parties.

       

      (e)           Any
notice or other communication required or permitted pursuant to this Agreement
shall be given in accordance with the Security Agreement.

       

      (f)           THIS
AGREEMENT AND THE OTHER DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW.

       

      (g)           EACH
PLEDGOR HEREBY CONSENTS AND AGREES THAT THE STATE AND/OR FEDERAL COURTS LOCATED
IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY PLEDGOR, ON THE ONE
HAND, AND THE PLEDGEE AND/OR ANY OTHER CREDITOR PARTY, ON THE OTHER HAND,
PERTAINING TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS OR TO ANY MATTER
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER DOCUMENTS, PROVIDED, THAT EACH
PLEDGOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY
A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT
NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE PLEDGEE OR
ANY OTHER CREDITOR PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION TO COLLECT THE INDEBTEDNESS, TO REALIZE ON THE COLLATERAL OR
ANY OTHER SECURITY FOR THE INDEBTEDNESS, OR TO ENFORCE A JUDGMENT OR OTHER COURT
ORDER IN FAVOR OF THE PLEDGEE AND/OR ANY OTHER CREDITOR PARTY.  EACH
PLEDGOR EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY
ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PLEDGOR HEREBY WAIVES ANY
OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER
VENUE OR FORUM
NON CONVENIENS.  EACH
PLEDGOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO SUCH PLEDGOR AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH
PLEDGOR’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S.
MAILS, PROPER POSTAGE PREPAID.

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (h)           THE
PARTIES HERETO DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE
BENEFITS OF THE JUDICIAL SYSTEM AND/OR OF ARBITRATION, THE PARTIES HERETO WAIVE
ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO
RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE
PLEDGEE AND/OR ANY OTHER CREDITOR PARTY, ON THE ONE HAND, AND/OR ANY PLEDGOR, ON
THE OTHER HAND, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, ANY
OTHER DOCUMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

       

      (i)        
   It is understood and agreed that any person or entity that
desires to become a Pledgor hereunder, or is required to execute a counterpart
of this Agreement after the date hereof pursuant to the requirements of any
Document, shall become a Pledgor hereunder by (x) executing a Joinder
Agreement in form and substance satisfactory to the Pledgee, (y) delivering
supplements to such exhibits and annexes to such Documents as the Pledgee shall
reasonably request and/or set forth in such joinder agreement and (z) taking all
actions as specified in this Agreement as would have been taken by such Pledgor
had it been an original party to this Agreement, in each case with all documents
required above to be delivered to the Pledgee and with all documents and actions
required above to be taken to the reasonable satisfaction of the
Pledgee.

       

      (j)          
 This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original and all of which when taken together shall
constitute one and the same agreement.  Any signature delivered by a
party by facsimile or electronic transmission shall be deemed an original
signature hereto.

       

      [Remainder
of Page Intentionally Left Blank]

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and
year first written above.

       

      

      
        	 
      	
                RAPID
      LINK, INCORPORATED

              
	 	 
	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              
	 	 	 
	 	 	 
	 
      	
                LV
      ADMINISTRATIVE SERVICES INC.,

              
	 
      	
                as
      Agent

              
	 	 
	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              	
                Authorized
      Signatory

              

      

      

        
          
             

          

          
            11

            
              

            

          

          
             

          

        

      

       

      SCHEDULE
A

       

      Pledged
Stock

       

      
        	
                Pledgor

              	
                Issuer

              	
                Class of Stock

              	
                Stock Certificate Number

              	
                Par Value

              	
                Number of Shares

              	
                % of outstanding Shares

              
	
                Rapid
      Link, Incorporated

              	
                Telenational
      Communications, Inc.

              	
                COMMON

              	
                003

              	
                .0001

              	
                1,000

              	
                100%

              
	
                Rapid
      Link, Incorporated

              	
                DTI
      Com, Inc.

              	
                COMMON

              	
                005

              	
                .001

              	
                1,000

              	
                100%

              
	
                Rapid
      Link, Incorporated

              	
                Canmax
      Retail Systems, Inc.

              	
                COMMON

              	
                002

              	
                1.00

              	
                1,000

              	
                100%

              
	
                Rapid
      Link, Incorporated

              	
                One
      Ring Networks, Inc.

              	
                COMMON

              	 
      	
                .001

              	
                11,971,427

              	
                100%

              

      

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      EXHIBIT
A

       

      Form of Irrevocable Stock
Power

       

       

      FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers to the following
shares of stock of _________________________, a Delaware
corporation:

       

      
        	
                No. of
      Shares

              	
                Certificate
      No.

              

      

       

       

      and
irrevocably appoints __________________________________ its agent and
attorney-in-fact to transfer all or any part of such stock and to take all
necessary and appropriate action to effect any such transfer.  The
agent and attorney-in-fact may substitute and appoint one or more persons to act
for him.  The effectiveness of a transfer pursuant to this stock power
shall be subject to any and all transfer restrictions referenced on the face of
the certificates evidencing such interest or in the certificate of incorporation
or bylaws of the subject corporation, to the extent they may from time to time
exist.

       

      
        	 
      	
                Rapid
      Link, Incorporated

              
	 
      	
                a
      Delaware corporation

              
	 	 
	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              

      

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      EXHIBIT
B

       

      FORM OF CONTROL
ACKNOWLEDGMENT

       

      Reference
is hereby made to that certain Stock Pledge Agreement, dated as of March ____,
2008 (as amended, restated, modified and/or supplemented from time to time, the
“Pledge
Agreement”), between Rapid Link, Incorporated (the “Pledgor”), the member
of ____________, a ___________ [limited liability company] [limited partnership]
(the “Issuer”),
and LV Administrative Services Inc., as administrative and collateral agent for
the Creditor Parties (as defined therein) (the “Agent”).  Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed
thereto in the Pledge Agreement.

       

      The
Issuer is hereby instructed by the Pledgor that all of the Pledgor’s right,
title and interest in and to all of the Pledgor’s rights in connection with any
[membership] [partnership] interests in the Issuer now and hereafter owned by
the Pledgor are subject to a pledge and security interest in favor of the Agent,
for the ratable benefit of the Creditor Parties.  The Pledgor hereby
instructs the Issuer to act upon any instruction delivered to it by the Agent
with respect to the Collateral without seeking further instruction from the
Pledgor, and, by its execution hereof,  the Issuer hereby agrees to do
so.

       

      The
Issuer, by its written acknowledgment and acceptance hereof, hereby acknowledges
receipt of a copy of the Pledge Agreement and agrees promptly to note on its
books the security interest granted under the Pledge Agreement.  The
Issuer also waives any rights or requirements at any time hereafter to receive a
copy of the Pledge Agreement in connection with the registration of any
Collateral in the name of the Agent or its nominee or the exercise of voting
rights by the Agent or its nominee.

       

      [Remainder
of this page intentionally left blank]

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the Pledgor has caused this Control Acknowledgment to be duly
signed and delivered by its officer duly authorized as of this _____ day of
___________ 20___.

       

       

      
        	 
      	
                RAPID
      LINK, INCORPORATED

              
	 	 
	 	 
	 
      	
                By:

              	 
      
	 
      	 
      	
                Name:

              
	 
      	 
      	
                Title:

              

      

       

      Acknowledged
and accepted this

       

      ______
day of __________ 20___.

       

      [ISSUER]

       

       

      
        	
                By:

              	 
      	 
      
	 
      	
                Name:

              	 
      
	 
      	
                Title:

              	 
      

      

       

    

     

    2

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