Document:

CONFIDENTIAL

    

     

     

    

     

     

     

     

     

     

     

     

    2010
Management Incentive Compensation Plan

    

    
      
        
        

      

      
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      CONFIDENTIAL

      
 

    

    2010
Management Incentive Compensation Plan

     

     

    
      	
              1.

            	
              Purpose
      of the Plan

            

    

     

    The
Management Incentive Compensation Plan (the “Plan”) is designed to offer
incentive compensation to officers and management-level employees (the “Associates”) of Micromet, Inc.
and its subsidiary Micromet AG (collectively, “Micromet”) by rewarding the
achievement of corporate goals and specifically measured individual goals that
are consistent with and support the achievement of the corporate
goals.  The Plan will create an environment that will focus Associates
on the achievement of objectives.  Since cooperation between
departments and Associates is required to achieve the corporate goals and
because such corporate goals represent a significant portion of the incentive
compensation paid under the Plan, the Plan fosters teamwork and a cohesive
management team.  The Plan is designed to:

     

    
      	
               
      

            	
              ·

            	
              Provide
      an incentive program to achieve overall corporate objectives and to
      enhance shareholder value

            

    

     

    
      	
               
      

            	
              ·

            	
              Reward
      those individuals who significantly impact corporate
    results

            

    

     

    
      	
               
      

            	
              ·

            	
              Encourage
      increased teamwork among all disciplines within
  Micromet

            

    

     

    
      	
               
      

            	
              ·

            	
              Incorporate
      an incentive program in the overall compensation program of Micromet to
      help attract and retain key
Associates

            

    

     

    
      	
              2.

            	
              Plan
      Governance

            

    

     

    The
President and CEO of Micromet, Inc. (the “Chief Executive Officer”) will
be responsible for the administration of the Plan for Associates of Micromet,
Inc., and the Vorstand
of Micromet AG (“Executive
Management Board”) will be responsible for the administration of the Plan
for Associates of Micromet AG, except that the Compensation Committee (the
“Committee”) of the
Board of Directors of Micromet, Inc. (the “Board”) will be responsible
for approving any incentive awards to the Chief Executive Officer and the senior
vice presidents constituting the Executive Management of Micromet, Inc. (each of
whom hereafter referred to as “EM Member”).

     

    
      	
              3.

            	
              Eligibility

            

    

     

    
      	
              3.1.

            	
              The
      EM Members are eligible to participate in the Plan. Any other Associates
      who may be eligible to participate in the Plan will be selected at the
      sole discretion of Micromet.   Each EM Member and each
      Associate selected to participate in the Plan is hereafter referred to as
      a “Plan
      Participant”.

            

    

     

    
      	
              3.2.

            	
              In
      order to be eligible to receive any incentive award under this Plan, an
      Associate (a) must have been in an eligible position for at least three
      (3) consecutive months during the Plan year; (b) must not be a part-time
      Associate (i.e. working fewer than 30 hours per week); and (c) must have
      had at least an average rating of 3.0 on his or her most recent
      performance review (on a scale of 1.0 to 5.0, with 5.0 being the highest
      rating).  If an eligible Associate has been on probation for
      performance or other issues at any time during the Plan year or during the
      period from the end of the Plan year until the time at which bonus
      determinations are made, any award to such individual will be subject to
      the discretion of Micromet.

            

    

     

    
      
        
        

      

      
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      CONFIDENTIAL

       

       

    

    
      	
              4.

            	
              Form
      of Incentive Award Payments

            

    

     

    Incentive
award payments may be made in cash, through the issuance of stock or stock
options, or by a combination of cash, stock and/or stock options, at the
discretion of the Committee, subject to the approval of the
Board.   In the event that the Committee and the Board elect to
pay incentive awards in stock or stock options, the Committee, in its sole
discretion, will make a determination of the number of shares of stock or stock
options to be issued to each Plan Participant based, in part, upon the Plan
Participant’s achievement of corporate and personal goals as described
below.  The issuance of stock and stock options may also be subject to
the approval of Micromet, Inc.’s stockholders, and any stock options issued will
be subject to the terms and conditions of Micromet, Inc.’s 2003 Equity Incentive
Award Plan, as amended from time to time by Micromet, Inc.

     

    
      	
              5.

            	
              Target
      Award Multiplier

            

    

     

    The
target incentive award of each Plan Participant is determined by applying a
“target award multiplier” to the base salary of the Plan
Participant.  The target award multiplier is dependent on the
management level of the Plan Participant.  The following target award
multipliers will apply to determine the target incentive award of the Plan
Participants for the Plan year, provided that the Committee, based on individual
circumstances and in its discretion, may approve a target award multiplier for a
Plan Participant that is different from that listed below:

     

    
      
        
          
            
              	
                      Position

                    	
                      Target Award Multiplier

                    
	
                      President
      & CEO

                    	
                      60%

                    
	
                      Senior
      Vice President (EM Member)

                    	
                      40%

                    
	
                      Vorstand
      (AG)/Geschaeftsfuehrer (GmbH)

                    	
                      35%

                    
	
                      Vice
      President

                    	
                      30%

                    
	
                      Executive
      Director

                    	
                      25%

                    
	
                      Senior
      Director

                    	
                      20%

                    
	
                      Director

                    	
                      20%

                    
	
                      Associate
      Director

                    	
                      15%

                    
	
                      Senior
      Manager

                    	
                      15%

                    

            

          

        

      

    

     

    
      	
              6.

            	
              Corporate
      and Personal Goals

            

    

     

    
      	
              6.1.

            	
              Prior
      to or within 90 days after the beginning of the Plan year, the Chief
      Executive Officer will present to the Committee a list of the overall
      corporate goals for the Plan year, which are subject to approval of the
      Committee and the Board of Directors of Micromet, Inc.  The
      Committee assigns a percentage to each corporate goal based on the
      relative importance of the goal compared to the other corporate goals,
      with the sum of all percentages amounting to 100%.  All Plan
      Participants develop a list of personal goals, which must be approved by
      the immediate supervisor and the EM Member responsible for the applicable
      department, or by the Chief Executive Officer for personal goals of the
      other EM Members.  The supervisor assigns a percentage to each
      personal goal based on the relative importance of the goal compared to the
      other personal goals, with the sum of all percentages amounting to
      100%.

            

    

     

    
      
        
        

      

      
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    CONFIDENTIAL

     

     

    
      	
              6.2.

            	
              The
      Plan calls for incentive awards based on the achievement of annual
      corporate and personal goals that have been approved as described in
      Section 6.1 above.  The relative weight between corporate goals
      and personal goals varies based on the Plan Participant’s level within the
      organization.  The weighting of the corporate goals relative to
      the personal goals for the Plan year is as
  follows:

            

    

     

    
      
        
          	
                  Position

                	
                  Weighting of 

                  Corporate Goals

                	
                  Weighting of 

                  Personal Goals

                
	
                  President
      & CEO

                	
                  100%

                	
                  0%

                
	
                  Senior
      Vice President (EM Member)

                	
                  75%

                	
                  25%

                
	
                  Vorstand
      (AG)/Geschaeftsfuehrer GmbH)

                	
                  75%

                	
                  25%

                
	
                  Vice
      President

                	
                  75%

                	
                  25%

                
	
                  Executive
      Director

                	
                  50%

                	
                  50%

                
	
                  Senior
      Director

                	
                  50%

                	
                  50%

                
	
                  Director

                	
                  50%

                	
                  50%

                
	
                  Associate
      Director

                	
                  25%

                	
                  75%

                
	
                  Senior
      Manager

                	
                  25%

                	
                  75%

                

        

      

    

     

    
      	
              7.

            	
              Assessment
      of Performance

            

    

     

    
      	
              7.1.

            	
              Achievement
      of Corporate Goals

            

    

     

    Within 30
days after the end of the Plan year, the Chief Executive Officer will present to
the Committee his assessment of the achievement of the corporate goals for that
Plan year.  The Committee will review and discuss the assessment with
the Chief Executive Officer, and will determine the percentage of the
achievement of the corporate goals during a meeting of the Committee in a closed
session.  The same payment multiplier for the corporate goals
determined by the Committee will be used for all Plan Participants in any given
year.  The Committee may, in its discretion, include achievements that
have not been established as corporate goals at the beginning of the Plan year
or determine that the level of achievement of a particular corporate goal
exceeds 100%.

     

    
      
        
        

      

      
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    CONFIDENTIAL

     

     

    
      	
              7.2.

            	
              Achievement
      of Personal Goals

            

    

     

    Within 30
days after the end of the Plan year, the Chief Executive Officer will present to
the Committee his assessment of the achievement of the personal goals of each EM
Member for that Plan year.  The Committee will review and discuss the
assessment with the Chief Executive Officer, and will determine the percentage
of the achievement of the personal goals during a meeting of the Committee in
consultation with the Chief Executive Officer.

     

    Each
supervisor will determine the achievement of the personal goals of the
Associates reporting to him, subject to the approval of the EM Member
responsible for the applicable department.  The final determination of
the achievement of the personal goals will be made by the Executive Management
taking into account the variances in goal setting and assessment practices
across the departments of Micromet.

     

    The
Committee and the supervisors may, in their discretion, include achievements
that have not been established as personal goals at the beginning of the Plan
year or determine that the level of achievement of a particular personal goal
exceeds 100%.

     

    
      	
              8.

            	
              Calculation
      of Cash Incentive Award

            

    

     

    
      	
              8.1.

            	
              The
      example below shows sample cash incentive award calculations under the
      Plan.  First, the target award is calculated by multiplying the
      Plan Participant’s base salary by the target award
      multiplier.  This amount is then divided between its corporate
      component and its individual component based on the weighting assigned for
      the specific management level.

            

    

     

    
      	
              8.2.

            	
              After
      the end of the Plan year, the achievement of the corporate and personal
      goals (each expressed as a percentage) will be established as described
      above.  The corporate award multiplier, which is based on
      overall corporate performance, is used to calculate corporate goal
      component of the incentive award by multiplying the target award for the
      corporate goal component by the percentage of the corporate goal
      achievement determined by the Committee.  The percentage
      determined by the Compensation Committee or the responsible supervisor for
      the achievement of the personal goals of a Plan Participant is used in the
      same way to calculate the personal goal component of the incentive
      award.

            

    

     

    
      
        
        

      

      
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    CONFIDENTIAL

     

    
       

      Example:

       

    

    
      
        
          
            
              
                
                  
                    
                      	
                              Target Award Calculation

                            	 
      	 
      	 
	
                              Position:

                            	
                              Executive
      Director

                            	 
	
                              Base
      Salary:

                            	
                              $120,000

                            	 
      	 
	
                              Target
      Award Multiplier:

                            	
                              25%

                            	 
      	 
	
                              Target
      Award (in dollars):

                            	
                              $30,000

                            	
                              ($120,000
      x 25%)

                            	 
	 
      	 
	
                              Weighting of Corporate and Personal Goals for
      Executive Directors

                            	 
	
                              Corporate
      goals:

                            	
                              50%

                            	 
      	 
	
                              Personal
      goals:

                            	
                              50%

                            	 
      	 
	 
      	 
      	 
      	 
	
                              Target Award

                            	 
      	 
      	 
	
                              Target
      Award based on corporate goals:

                            	
                              $15,000

                            	
                              ($30,000
      x 50%)

                            	 
	
                              Target
      Award based on personal goals:

                            	
                              $7,500

                            	
                              ($30,000
      x 50%)

                            	 
	 
      	 
	
                              Assumed achievement of corporate and personal goal
      achievement:

                            	 
	
                              Achievement
      of corporate goals

                            	
                              75%

                            	 
      	 
	
                              Achievement
      of personal goals

                            	
                              125%

                            	 
      	 
	 
      	 
      	 
      	 
	
                              Actual Incentive Award

                            	 
      	 
      	 
	
                              Corporate
      component

                            	
                              $11,250

                            	
                              ($15,000
      x 75%)

                            	 
	
                              Individual
      component

                            	
                              $9,375

                            	
                              ($15,000x
      125%)

                            	 

                    

                  

                

              

            

          

        

      

    

     

    
      	
              9.

            	
              Payment
      of the Incentive Award

            

    

     

    
      	
              9.1.

            	
              Annual
      performance reviews for Plan Participants will be completed before March
      31 of the year following the Plan year.  Payment of incentive
      awards will be made as soon as practicable
      thereafter.  Incentive award calculations will be based on the
      Plan Participant’s base salary as of December 31 of the Plan
      year.  In addition to the required review process, incentive
      award payments to the President & CEO and to the Senior Vice President
      and CFO will be made after the completion and issuance of Micromet, Inc.’s
      year-end audited Financial Statements for the Plan
  year.

            

    

     

    
      	
              9.2.

            	
              Plan
      Participants, who have been in an eligible position for less than a year,
      but for at least three months, will receive a pro-rata bonus based on the
      number of days in an eligible position.  If a Plan Participants
      is promoted during the Plan year from one target award multiplier level to
      another, his or her incentive award will be calculated based on their base
      salary on December 31 of the Plan year, but based on the amount of time
      during the Plan year served at each target award multiplier
      level.

            

    

     

    
      	
              10.

            	
              Termination

            

    

     

    If a Plan
Participant has given or received a notice of termination or if a Plan
Participant’s employment is terminated prior to the payment of the incentive
award under this Plan, Micromet will have sole and absolute discretion as to
whether or not to pay an incentive award. If Micromet decides to pay an
incentive award to such Plan Participant, Micromet will have sole and absolute
discretion as to whether to pay the full amount or a portion of the amount of
the incentive award that may be payable to the Plan Participant in accordance
with the provisions of this Plan.

     

    
      
        
        

      

      
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    CONFIDENTIAL

     

     

    
      	
              11.

            	
              Absolute
      Right to Alter or Abolish the Plan

            

    

     

    Micromet
reserves the right in its absolute discretion to abolish the Plan at any time or
to alter the terms and conditions under which incentive compensation will be
paid.  Such discretion may be exercised any time before, during, and
after the Plan year is completed.  No Plan Participant will have any
vested right to receive any compensation hereunder until actual delivery of such
compensation.

     

    
      	
              12.

            	
              Employment
      Duration/Employment Relationship

            

    

     

    This Plan
does not, and Micromet’s policies and practices in administering this Plan do
not, constitute a contract or other agreement concerning the duration of any
Plan Participant’s employment with Micromet.  The employment
relationship of each Plan Participant of Micromet, Inc. is “at will” and may be
terminated at any time by Micromet, Inc. or by the Plan Participant, with or
without cause.  The employment relationship of each Plan Participant
of Micromet AG is governed by the employment agreement of the Plan Participant
and applicable German law.

     

    
      
        
        

      

      
        7SETTLEMENT
AGREEMENT

    

    THIS SETTLEMENT AGREEMENT
(“Agreement”) is made and entered into as of the 29th day of April, 2010,
by and among (i) LY HOLDINGS,
LLC, a Kentucky limited liability company (“LYH”), (ii) LIGHTYEAR NETWORK SOLUTIONS,
LLC, a Kentucky limited liability company (“LNS”), (iii) CHRIS SULLIVAN, an individual
resident of Nevada (“Sullivan”), (iv) LANJK, LLC, a Kentucky limited
liability company (“LANJK”), (v) RICE REALTY COMPANY, LLC, a
Kentucky limited liability company (“RRC”), (vi) RIGDON O. DEES, III, an
individual resident of California (“Dees”), (vii) CTS EQUITIES LIMITED
PARTNERSHIP, a Nevada limited partnership (“CTS”), and (viii) RON CARMICLE, an individual
resident of Kentucky (“Carmicle,” collectively with LANJK, RRC, Dees, and CTS,
the (“Letter Agreement Holders”).

    

    RECITALS:

    

    A.           Sullivan
Note.

    

    1.           Pursuant
to that certain Fifth Amended and Restated Commercial Note dated February 11,
2010, made by LYH payable to Sullivan in the face principal amount of Eight
Million and 00/100 Dollars ($8,000,000) (the “Sullivan Note”), Sullivan has made
a loan to LYH, which has a current outstanding principal balance as of the date
of this Agreement of Seven Million Seven Hundred Fifty Thousand and No/100
Dollars ($7,750,000).

    

    2.           Pursuant
to that certain Commercial Note dated December 30, 2004, made by Sullivan
payable to Fifth Third Bank in the fact principal amount of Ten Million and
00/100 Dollars ($10,000,000) (the “Fifth Third Note”), Fifth Third has made a
loan to Sullivan.  The Fifth Third Note will mature on July 1,
2010.  Sullivan desires to obtain Fifth Third’s forbearance, or an
extension of twelve to eighteen months, on the Fifth Third Note and the parties
are negotiating in good faith.

    

    3.           Sullivan
indicated to LYH that he will not refinance or renew the Sullivan Loan when it
reaches maturity on July 1, 2010, but will instead require LYH to pay the
Sullivan Note in full.  If Sullivan did require the Sullivan Note to
be paid in full and LYH did not make a full payment, Sullivan would likely
foreclose on the LYH assets securing the Sullivan Loan, including without
limitation the membership interests held by certain of the members of
LYH.

    

    B.           Letter Agreements / Rights
to Override Payments.

     

    1.           VoIP Letter
Agreements.  Pursuant to the terms of that certain Loan
Agreement dated July 30, 2004, as amended, by and among LNS, LYH, and the Letter
Agreement Holders, LNS obtained from the Letter Agreement Holdings the following
term loans: (i) a loan from Dees in the amount of $400,000.00, (ii) a loan from
RRC in the amount of $150,000.00, (iii) a loan from Carmicle in the amount of
$150,000.00, (iv) a loan from LANJK in the amount of $150,000.00, and (v) a loan
from CTS in the amount of $150,000.00 (collectively, the “VoIP
Loans”).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Pursuant
to, and in consideration for, the VoIP Loans, each Letter Agreement Holder
entered into a separate Letter Agreement with LNS and LYH (the “VoIP Letter
Agreements”).  Pursuant to the VoIP Letter Agreements, LNS and LYH
collectively agreed to pay each Letter Agreement Holder a certain percentage of
the Monthly Revenue (as defined in the VoIP Letter Agreements) from sales of
products and services generated from Voice over Internet Protocol Technology,
all as more fully set forth in the VoIP Letter Agreements (the “VoIP Revenue
Payments”).

     

    2.           Wireless Letter
Agreements.  LYH and LNS also obtained from the Letter
Agreement Holders additional loans pursuant to and as evidenced by the following
term notes: (i) Term Note dated July 1, 2008 payable to Dees in the original
principal amount of $150,000.00, (ii) Term Note dated July 1, 2008 payable to
RRC in the original principal amount of $150,000.00, (iii) Term Note dated July
1, 2008 payable to Carmicle in the original principal amount of $150,000.00,
(iv) Term Note dated July 1, 2008 payable to LANJK in the original principal
amount of $300,000.00 and (v) Term Note dated July 1, 2008 payable to CTS in the
original principal amount of $150,000.00 (collectively, the “Wireless Loans”;
collectively with the VoIP Loans, the “Loans”).

     

    Pursuant
to, and in consideration for, the Wireless Loans, each Letter Agreement Holder
entered into a separate Letter Agreement with LNS and LYH (the “Wireless Letter
Agreements,” collectively with the VoIP Letter Agreements, the “Letter
Agreements”).  Pursuant to the Wireless Letter Agreements, LNS and LYH
collectively agreed to pay each Letter Agreement Holder a certain percentage of
the Monthly Revenue (as defined in the Wireless Letter Agreements) from the
sales of wireless service offerings (excluding equipment and accessories), all
as more fully set forth in the Wireless Letter Agreements (the “Wireless Revenue
Payments”; collectively with the VoIP Revenue Payments, the “Revenue
Payments”).

    

    3.           On
February 12, 2010, Libra Alliance Corporation (“Libra”) acquired LNS pursuant to
a securities exchange agreement (the “Exchange Agreement”) by and among Libra
and LYH (the “Exchange”).  As part of the Exchange, Libra issued
10,000,000 shares of common stock and 9,500,000 shares of preferred stock to
LYH.  After the Exchange, LYH owns 69.0% of Libra’s stock on an
as-converted, fully diluted basis.

     

    Immediately
prior to closing the Exchange, Libra, LYH, LNS and the Letter Agreement Holders
expected to close a purchase of the Letter Agreements by Libra and LNS (the
“Override Purchase Plan”).  Although the Override Repurchase Plan was
not fully consummated, LNS, LYH and the Letter Agreement Holders did enter into
that certain First Modification to Letter Agreements dated February 11, 2010
(the “Modification Agreement”).  Pursuant to the Modification
Agreement, among other things, LNS and the Letter Agreement Holders released LYH
from any and all obligations under the Letter Agreements, including without
limitation, any obligation to make any Revenue Payments to any of the Letter
Agreement Holders, and LNS agreed to remain liable for its obligations under the
Letter Agreements, as modified.

     

    LNS and
Libra did not close on the purchase of the Letter Agreements from the Letter
Agreement Holders.  Thus, LNS is currently obligated to make Revenue
Payments to each of the Letter Agreement Holders pursuant to the Letter
Agreements.  LNS desires to limit its obligation to make Revenue
Payments under the Letter Agreements.

    
      
         

      

      
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              C.

            	
              Settlement of Sullivan
      Claims; Purchase of Sullivan Note by LNS; Grant of Security Interest in
      and Option to Purchase Letter
Agreements.

            

    

    

    LYH’s
obligation to Sullivan is maturing.  If LYH fails to pay this debt or
otherwise reach a forbearance agreement, Sullivan may foreclose on liens in his
favor, including the membership interest pledges securing the debt with shares
in LYH held by certain of the Letter Agreement Holders.  This action
would result in Sullivan owning the majority of membership interests in LYH and
otherwise entitling Sullivan to control Libra and LNS.

     

    LNS and
the Letter Agreement Holders have determined that it is in their respective best
interests to take steps to cause Sullivan to forbear from foreclosing on liens
in his favor.  LNS and the Letter Agreement Holders acknowledge that
preventing Sullivan from taking action to foreclose on his liens will preserve
the likelihood of receiving payment on debt owed to each of them and further
preserve each Letter Agreement Holder’s economic investment in
LYH.  Moreover, LNS acknowledges that LYH made payments to Sullivan
after the parties reached an understanding in principal and prior to the
execution of this Agreement, which advances on behalf of LNS it now intends to
reimburse.

    

    To induce
Sullivan to forbear from foreclosing on liens in his favor, LYH, LNS and the
Letter Agreement Holders have agreed to a settlement of Sullivan’s claims
pursuant to which: (1) LNS will purchase and assume the Sullivan Note from
Sullivan in exchange for the Settlement Amount and (2) LYH will be indebted to
LNS pursuant to and in the amount of the Sullivan Note.  To induce LNS
to purchase Sullivan’s rights under the Sullivan Note, the Letter Agreement
Holders will (a) grant LNS security interests in the Letter Agreements to secure
payment by LYH of the Sullivan Note to LNS, and (b) give LNS an option pursuant
to which LNS may purchase the Letter Agreements.  LNS is willing to
enter into this Agreement because the security interest in the Letter Agreements
affords LNS the possibility of discontinuing its obligation to make override
revenue payments to the Letter Agreement Holders and the option provides LNS
with the ability to determine its maximum potential liability under the Letter
Agreements.

    

    NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein and for other good and valuable
consideration, the receipt and sufficiency of all of which is hereby
acknowledged, the parties do hereby agree as follows:

    

    1.           Effect of the
Foregoing.  All of the foregoing are a part of this Agreement
and are not mere recitals.

    

    2.           Settlement.

    

    (a).           Purchase and Assumption of
Sullivan Note.  LNS hereby purchases and assumes any and all of
Sullivan’s rights and obligations under and in connection with the Sullivan
Note.

     

    
      
         

      

      
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    (b).           Settlement
Payment.  In exchange for the purchase of the Sullivan Note,
LNS shall pay to Sullivan the sum of Seven Million Seven Hundred Fifty Thousand
and No/100 Dollars ($7,750,000) (the “Settlement Payment”), which amount shall
be paid as follows: (a) $250,000 contemporaneous with the execution of this
Agreement in immediately available funds payable to Fifth Third as directed by
Sullivan at Closing, (b) on July 1, 2010, and on the first day of each quarter
year thereafter until and including the Maturity Date (as defined below),
$250,000 plus accrued and unpaid interest payable to Fifth Third as directed by
Sullivan (the “Quarterly Payments”), and (c) on the Maturity Date, the
then-outstanding principal amount plus accrued and unpaid interest (the “Final
Payment,” collectively with the Quarterly Payments, the “Deferred
Payment”).  If all such sums are not paid and satisfied in full by the
Maturity Date, any sums remaining due shall thereafter bear interest at the
Default Rate (as defined below).  For purposes of this Agreement,
“Maturity Date” shall mean the sooner of (i) July 1, 2011, or (ii) the maturity
date of the Fifth Third Note.

    

    LNS
intends to prepay the Deferred Payment from subsequent fund raising or
operations to the extent it is able.  LNS may prepay the Deferred
Payment in whole or in part at any time, without premium or
penalty.  Any partial prepayment shall be applied first to accrued
interest due and owing on the Deferred Payment, with the balance being applied
to principal.  Provided, however, no partial prepayment shall postpone
the due date of any installment of principal or interest due on the Deferred
Payment unless and until the Deferred Payment is paid in full.

    

    In
addition to the Settlement Payment, at Closing LNS shall reimburse LYH for
advances made by LYH on behalf of Sullivan after the parties reached a
settlement in principal but prior to the execution of this Agreement in the
amount of Two Hundred Sixty Thousand and No/100 Dollars ($260,000).

    

    (c).           Notwithstanding
the foregoing, LNS shall not be required to pay any installment of the Deferred
Payment when due if the payment of such installment would cause LNS to be unable
to pay its other creditors, as determined by LNS in its sole, reasonable
discretion and LNS provides written notice to Sullivan that it is withholding
payment; provided, however, that LNS must pay any withheld payment(s) to
Sullivan not more than two (2) days after LNS has sufficient funds to make such
payment(s) and pay its other creditors as its debts to such other creditors
become due.

    

    Interest
on the Deferred Payment shall bear interest from the date hereof until the
outstanding principal balance of the Deferred Payment, all accrued but unpaid
interest thereon and all other charges, fees or expenses hereunder have been
repaid to Sullivan in full at a rate equal to (a) the rate charged to
Sullivan by Fifth Third pursuant to the Fifth Third Note; plus (b) (i)
three percent (3%) per annum on all amounts owed hereunder up to Seven Million
Dollars ($7,000,000.00) and (ii) six percent (6%) per annum on all amounts owed
hereunder in excess of Seven Million Dollars ($7,000,000.00); provided, however,
that (x) except in the case of an Event of Default, in no event shall the
rate of interest charged hereunder exceed ten percent (10%) per annum, and
(y) if the debt evidenced by the Fifth Third Note is retired (and not
refinanced), the rate of interest charged hereunder until paid in full shall be
equal to the rate of interest charged hereunder on the business day immediately
preceding the date that the debt evidenced by the Fifth Third Note was retired
(the “Interest Rate”).  Interest shall be computed on the basis of the
actual number of days elapsed in a year of 365 days.  In the event of
a default by LNS with respect to the payment of the Deferred Payment, if such
default is not cured prior to the expiration of any applicable cure period,
Sullivan may, in his sole discretion, determine that all of the Deferred Payment
owing to Sullivan shall bear interest at the a rate of Five and 00/100 percent
(5.00%) per annum above the Interest Rate (hereinafter referred to as the
“Default Rate”).  If LNS fails to make any payment due under this
Agreement within two (2) days of the date it is due, the LNS shall pay a late
charge of five percent (5%) of the amount of the overdue
payment.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    The
occurrence of any of the following shall constitute an “Event of Default” under
this Section 1(b): (i) the Deferred Payment, or any part thereof, shall not be
paid in full within two (2) business days after such payment becomes due
hereunder (whether by lapse of time, acceleration of maturity, or otherwise),
(ii) LNS fails to comply with any term, condition, requirement, or covenant set
forth in Section 2(b), (iii) LNS has withheld two (2) or more payments
under Section 2(c) in successive quarters and Sullivan has reasonable grounds to
believe that the creditworthiness of LNS has become unsatisfactory, or (iv)
Fifth Third declares an event of default under the Fifth Third
Note.  Upon the occurrence of an Event of Default, Sullivan shall
deliver written notice to LNS indicating the claimed default and giving LNS five
(5) business days to cure such Event of Default.  If LNS fails to cure
any Event of Default prior to the expiration of the cure period, Sullivan may
(i) declare the outstanding balance of the Deferred Payment, together with
accrued interest thereon, to be at once due and payable, or (ii) declare this
Agreement to be void.  If Sullivan avoids the Agreement pursuant to
this Section 2(b), the Sullivan Note shall revert to Sullivan, LNS will have no
further obligation to make any payments to Sullivan whether for amounts withheld
or to become due, and the payments Sullivan received from LNS hereunder shall be
credited against the Sullivan Note.

    

    3.           Continuation of LYH’s
Liability.  The purchase of the Sullivan Note by LNS shall have
no effect on the obligations of LYH thereunder.  LYH shall be and
remain absolutely, fully, irrevocably, and unconditionally liable to LNS for any
and all obligations under the Sullivan Note.

    

    4.           Continuation of UCC Security
Interests and Other Liens.  The Sullivan Note is secured by
certain UCC security interests and other liens (collectively, the “Liens”) in
favor of Sullivan securing the Sullivan Note.  Sullivan, the grantors
of any such security interests, and LYH shall execute and deliver to LNS any and
all documents to confirm the continuation of the first and prior Liens of LNS to
secure the Sullivan Note.

    

    5.           Security Interest in the
Letter Agreements.  To induce LNS to purchase the Sullivan
Note, and without such inducement LNS would not purchase the Sullivan Note, the
Letter Agreement Holders grant to LNS a security interest in all of its rights,
title and interests in and to the Letter Agreements and the “Proceeds,” as that
term is defined in the UCC (including insurance Proceeds), products of any sale,
exchange, collection or other disposition of the Letter Agreements or any part
thereof, and all Accessions thereto.  The security interest granted by
the Letter Agreement Holders hereby secures the payment and performance of all
of the following Secured Obligations:  all loans, advances, debts,
liabilities, obligations, covenants and duties owing to LNS from LYH of any kind
or nature, present or future, evidenced by the Sullivan Note.  LNS,
its successors and assigns, shall hold the security interests created hereby
upon the terms of this Agreement, and this Agreement shall continue until the
Sullivan Note has been paid in full.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    6.           Option.  The
Letter Agreement Holders hereb grants to LNS the exclusive option to purchase
the Letter Agreements upon the terms, covenants and conditions set forth herein
(the “Option”).

    

    (a).           Term and Manner of
Exercise.  LNS may exercise the Option at any time during the
period commencing on the date of this Agreement and terminating at 11:59 p.m. on
May 1, 2012 (the “Option Period”) by giving written notice thereof to all, but
not less than all, of the Letter Agreement Holders at the business address of
each such Letter Agreement Holder on file with LNS.

    

    (b).           Option Purchase
Price.  If the Option is exercised by LNS, the purchase price
for the Letter Agreements (the “Purchase Price”) shall be Eight Million and
No/100 Dollars ($8,000,000.00).  On the Option Closing Date (as
defined herein), LNS shall pay the Purchase Price to the Letter Agreement
Holders as follows:

    

    
      
        
          
            	
                    (i).

                  	
                    LANJK

                  	 	$	1,714,285.72	 
	
                    (ii).

                  	
                    RRC

                  	 	$	1,142,857.14	 
	
                    (iii).

                  	
                    Dees

                  	 	$	2,857,142.86	 
	
                    (iv).

                  	
                    CTS

                  	 	$	1,142,857.14	 
	
                    (v).

                  	
                    Carmicle

                  	 	$	1,142,857.14	 

          

        

      

    

    

    (c).           Closing;
Costs.  The closing of the option shall be held on a date to be
selected by LNS, which date shall not be later than thirty (30) days after the
date on which LNS exercises this Option (the “Option Closing
Date”).  If the Option Closing Date is a Saturday, Sunday or holiday,
the next following business day shall be deemed to be the Option Closing
Date. The closing shall be held at a time and place mutually agreed upon by
LNS and the Letter Agreement Holders.  Each party shall bear any and
all of its own expenses in connection with the exercise of the
Option.

    

    7.           Representations, Warranties
and
Covenants.  Each of the parties to this
Agreement represents, warrants and covenants, as of the date hereof, as
follows:

    

    (a).           Each
party hereto has the requisite power and authority to enter into this
Agreement.  The execution and delivery hereof and the performance by
each party hereto of his or its obligations hereunder will not violate or
constitute an event of default under the terms and provisions of any agreement,
document or instrument to which any such party is a party or by which any such
party is bound;

    

    (b).           This
Agreement is a valid and binding obligation of each party hereto;

    

    (c).           To
the best of each party’s knowledge as of the date hereof, each party is in full
compliance with all applicable laws and any other local, municipal, regional,
state or federal requirements and no party hereto has received actual notice
from any governmental authority that he or it is not in full compliance with all
applicable laws and any other local, municipal, regional, state or federal
requirements;

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (d).           The
Letter Agreement Holders have not granted any option or any other rights to
acquire  the Letter Agreements, other than as set forth in this
Agreement;

    

    (e).           So
long as the Option remains in effect, each Letter Agreement Holder will take no
action, or fail to take any required action, that would prohibit him or it or it
from complying with the obligations hereunder or that would cause any of the
representations or warranties hereunder to be untrue as of the date hereof or at
any future date;

    

    (f).           So
long as the Option remains in effect, each Letter Agreement Holder will not
grant any liens on any Letter Agreement, or sell or otherwise transfer any
Letter Agreement.

    

    8.           Miscellaneous.  This
Agreement constitutes the entire understanding between the parties with respect
to the subject matter hereof and supersedes all prior or contemporaneous
agreements in regard thereto.  This Agreement cannot be amended except
by an agreement in writing signed by authorized representatives of all parties
and specifically referring to this Agreement.  The paragraph headings
set forth herein are for convenience only and do not constitute a substantive
part of this Agreement.  This Agreement shall be
governed by and construed under the laws of the Commonwealth of Kentucky,
without regard to conflicts of law principles.  If any
provision of this Agreement shall be determined to be illegal or unenforceable
by any Court of law or any competent governmental or other authority, the
remaining provisions shall be severable and enforceable in accordance with their
terms.

    

    9.           Notice.  All
notices, demands, requests, consents or approvals and other communications
required or permitted hereunder will be in writing, and, to the extent required
by applicable law, will comply with the requirements of the Uniform Commercial
Code then in effect, and will be addressed to such party at the address on file
with LYH or to such other address as any party may give to the other in writing
for such purpose.  All such communications, if personally delivered,
will be conclusively deemed to have been received by a party hereto and to be
effective when so delivered, or if sent by telex, facsimile or telegraphic
means, on the day on which transmitted, or if sent by overnight courier service,
on the day after deposit thereof with such service, or if sent by certified or
registered mail, on the third business day after the day on which deposited in
the mail.

     

    10.           Binding
Effect.  This Agreement is binding upon, and shall inure to the
benefit of, the parties hereto and their heirs, personal representatives,
successors and assigns.

    

    11.           Counterparts.  This
Agreement may be executed in several counterparts, each of which shall be an
original and all of which together shall constitute but one and the same
instrument.

    

    [SPACE
INTENTIONALLY BLANK; SIGNATURES ON FOLLOWING PAGE]

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

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

     

    
      
        	 
      	
                LY
      HOLDINGS, LLC

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ J. Sherman Henderson
  III

              
	 
      	 
      	 
      
	 
      	
                Its:

              	
                Chief Executive Officer

              
	 
      	 
      	 
      
	 
      	
                LIGHTYEAR
      NETWORK SOLUTIONS, LLC

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ J. Sherman Henderson
  III

              
	 
      	 
      	 
      
	 
      	
                Its:

              	
                Chief Executive Officer

              
	 
      	 
      	 
      
	 
      	
                /s/ Chris Sullivan

              
	 
      	
                CHRIS
      SULLIVAN

              
	 
      	 
      
	 
      	
                 LANJK,
    LLC

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ J. Sherman Henderson
  III

              
	 
      	 
      	 
      
	 
      	
                Its:

              	
                Manager

              
	 
      	 
      
	 
      	
                RICE
      REALTY COMPANY, LLC

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ W. Brent Rice

              
	 
      	 
      	 
      
	 
      	
                Its:

              	
                Member

              

      

    

     

    
      
         

      

      
        S-1

        
          

        

      

      
         

      

    

    

    
      	 
      	
              /s/ Rigdon O. Dees, III

            
	 
      	
              RIGDON
      O. DEES, III

            
	 
      	 
      
	 
      	
              CTS
      EQUITIES LIMITED PARTNERSHIP

            
	 
      	 
      
	 
      	
              By:

            	
              /s/ Chris Sullivan

            
	 
      	 
      	 
      
	 
      	
              Its:

            	
              General Partner

            
	 
      	 
      
	 
      	
                /s/ Ronald
  Carmicle

            
	 
      	
              RON
      CARMICLE

            

    

     

    
      
         

      

      
        S-2

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