LOCKBOX AND ACCOUNT CONTROL
AGREEMENT
THIS LOCKBOX AND
ACCOUNT CONTROL AGREEMENT (this “Agreement”) is made as
of March 17, 2010, by and among Lightyear Network
Solutions, LLC (the “Depositor”), Fifth Third
Bank , an Ohio banking corporation (the “Bank”),
and First Savings Bank, F.S.B. (the
“Factor”).
WHEREAS, the
Factor and the Depositor have advised the Bank that Factor is
making or has made financial accommodations to the Depositor which
are secured by, among other things, the proceeds of the
Depositor’s accounts receivable; and
WHEREAS, at the
Factor’s request the Depositor has established a special
account at the Bank (as described below, the “Limited Access
Lockbox Account”); and
WHEREAS, the
Factor and the Depositor have agreed that the transfer of funds out
of the Limited Access Lockbox Account shall be restricted as set
forth below.
NOW, THEREFORE, in
consideration of the foregoing premises and for other valuable
consideration the receipt of which is hereby acknowledged, the
parties agree as follows:
1.
The Limited Access Lockbox Account . The Limited Access
Lockbox Account is Account No. 7380314745 and the title of the
Limited Access Lockbox Account shall be: “Lightyear
Network Solutions, LLC for the Benefit of First Savings Bank,
F.S.B., as Factor, Lockbox Account.”
The Depositor and
the Factor agree to promptly provide the Bank with any documents,
resolutions, and/or instructions needed to establish or maintain
the Limited Access Lockbox Account and the Lockbox (as such term is
defined below). The Depositor hereby agrees to abide by and be
bound by the terms of the Lockbox Terms and Conditions as set forth
in the Fifth Third Treasury Management Terms and Conditions as
established by the Bank from time to time and incorporated herein
by reference (“Lockbox Agreement”).
2.
Accounts; Payment of Account Charges and Service Charges
. The Depositor shall open and maintain at the Bank an account,
titled in its own name bearing Account No. 7380314950 (the
“Operating Account”) that the Bank may debit for any
fees, charges or expenses owed to the Bank (collectively, the
“Account Charges”) and from which the Bank may obtain
reimbursement for any deposit items that are posted or transferred
in error or returned to the Limited Access Lockbox Account or the
Operating Account, for any overdrafts created on the Limited Access
Lockbox Account or the Operating Account, and for any reversals or
cancellations of payment orders and other electronic funds
transfers arising in the Limited Access Lockbox Account or the
Operating Account (collectively, the
“Adjustments”).
The Depositor and
Factor acknowledge that in order for the Bank to provide the
services contemplated in this Agreement, the Bank may, from time to
time, use other internal Bank services and products (collectively,
the “Other Services”). The Factor and the Depositor
agree that the Depositor may be required to purchase such Other
Services and pay to the Bank the Bank’s customary charges for
the Other Services.
At all time, the
Depositor shall keep no less than $50,000 in funds in the Operating
Account to pay the Account Charges and Adjustments (the
“Minimum Funding Balance”).
3.
Lockbox . For the purpose of receipt of funds into the
Limited Access Lockbox Account, the Depositor has established a
lockbox, under the Lockbox Agreement, into which the Bank will
accept remittances, such lockbox commonly known as the
“Lockbox”.
4.
Notices; Delivery of Statements; Authorization . Any
notices required under this Agreement shall be directed as set
forth below and effective: (a) when received if delivered via
U.S. Mail, postage prepaid, or overnight courier; and (b) when
confirmed received by the recipient if delivered via facsimile
transmission.
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Fifth Third
Bank
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5050 Kingsley
Drive
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MD
1MOC2Q
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Cincinnati, OH
45263
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Attention:
MICHAEL CHEETHAM
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OR Depositor
Services
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Fax:
(513) 358-1279
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AND
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Fifth Third
Bank
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250 W Main St,
Suite 100
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MD
735911
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Lexington, KY
40507
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ATTN:
Mary-Alicha Weldon, RM
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Fax:
859-455-5404
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AND
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Fifth Third
Bank
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250 W Main St,
Suite 100
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MD
735911
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Lexington, KY
40507
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ATTN: Tim
Sprague, TMO
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Fax:
859-455-5418
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Lightyear
Network Solutions, LLC
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1901 Eastpoint
Parkway
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Louisville, KY
40223
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Attn:John
Greive
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First Savings
Bank, F.S.B.
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501 East Lewis
and Clark Parkway
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Clarksville,
Indiana 47129
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Attn: Don
Allen
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2
The Depositor
authorizes the Bank to release any and all information about the
Limited Access Lockbox Account and the Lockbox to the Factor upon
the Factor’s request. The Depositor and the Factor instruct
the Bank to send an original or a copy of the periodic account
statement related to the Limited Access Lockbox Account to the
notice addresses for Factor and Depositor set forth in this
paragraph. Bank shall provide Factor with such information relating
to the Restricted Access Lockbox Account as Factor shall reasonably
request, including, without limitation, the ability to access such
information online.
5.
Restrictions on Depositor . Without further consent from
the Depositor, the Depositor irrevocably authorizes and instructs
the Bank to comply with the Factor’s instructions to transfer
funds from the Limited Access Lockbox Account to Factor or an
account maintained by Factor, as directed by Factor in its sole
discretion. The Depositor waives its authority to transfer,
withdraw, or otherwise disburse funds from the Limited Access
Lockbox Account and acknowledges that the Factor shall have
exclusive control of funds credited to the Limited Access Lockbox
Account. The Depositor waives its authority to modify or terminate
this Agreement, the Limited Access Lockbox Account or the Lockbox
Agreement, documents, resolutions, and account instructions,
without the Factor’s express written permission.
6.
Security Interest; Control . Depositor hereby grants a
security interest and lien to, and control in favor of, Factor in
the Limited Access Lockbox Account and Lockbox. This Agreement
constitutes notice to Bank of Factor’s security interest and
lien in (a) the Lockbox and the Limited Access Lockbox
Account; (b) all contract rights and claims in respect of the
Lockbox and the Limited Access Lockbox Account; and, (c) all
cash, checks, money orders and other items of value payable to
Depositor now or hereafter paid, deposited, credited, held (whether
for collection, provisionally or otherwise) or otherwise in the
possession or under the control of Bank or any agent, bailee or
custodian of Bank, including, without limitation, contained or
deposited into the Lockbox or the Limited Access Lockbox Account,
and all proceeds of the foregoing (collectively,
“Receipts”). Without limiting the forgoing, but subject
to Section 7, as collateral security for the payment of all
obligations and liabilities of Depositor to Factor, Depositor
hereby assigns, pledges and transfers to and grants exclusive
control over to Factor all of Depositor’s rights, title and
interest in and to the Limited Access Lockbox Account and the
Lockbox, and all sums now or hereafter on deposit in or payable or
withdrawable from the Limited Access Lockbox Account, and/or the
Lockbox, and any interest accrued or payable thereon, and grants to
Factor a security interest therein. Bank acknowledges that this
Agreement constitutes notice of Factor’s security interest in
the Limited Access Lockbox Account, the Lockbox and the Receipts
and the proceeds thereof and that this Agreement is a control
agreement for the purpose of perfecting Factor’s security
interest in the Limited Access Lockbox Account. Subject to
Section 7, Depositor hereby agrees that Bank, on behalf of
Factor, shall be entitled to exercise, upon the written
instructions of Factor, any and all rights that Factor may have
under its loan documents with Depositor or under applicable law
with respect to the Lockbox, the Limited Access Lockbox Account,
and all Receipts and the proceeds thereof. Subject to
Section 7, Depositor hereby authorizes and irrevocably
appoints Factor as Depositor’s attorney-in-fact. Subject to
Section 7, Factor may take any action which Factor deems
necessary or appropriate to preserve or protect Factor’s
ass
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