Document:

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                                                                    Exhibit 10.4

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                             LINENS 'N THINGS, INC.

                   Employment Agreement for Jack E. Moore, Jr.

                                November 29, 2004

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                             LINENS 'N THINGS, INC.

                   Employment Agreement for Jack E. Moore, Jr.

Page

1.      Definitions.....................................................     1
2.      Term of Employment..............................................     2
3.      Position, Duties and Responsibilities...........................     2
4.      Base Salary.....................................................     3
5.      Incentive Awards................................................     3
6.      Employment Inducement Awards....................................     3
7.      Employee Benefit Programs.......................................     3
8.      Disability......................................................     4
9.      Reimbursement of Business and Other Expenses; Perquisites.......     5
10.     Termination of Employment.......................................     5
11.     Forfeiture Provisions...........................................     11
12.     Confidentiality; Cooperation with Regard to Litigation;
        Non-Disparagement; Return of Company Materials..................     14
13.     Non-competition.................................................     16
14.     Non-solicitation of Employees...................................     17
15.     Remedies........................................................     17
16.     Resolution of Disputes..........................................     17
17.     Indemnification.................................................     17
18.     Excise Tax Gross-Up.............................................     18
19.     Effect of Agreement on Other Benefits...........................     20
20.     Assignability; Binding Nature...................................     20
21.     Representation..................................................     20
22.     Entire Agreement................................................     20
23.     Amendment or Waiver.............................................     21
24.     Severability....................................................     21
25.     Survivorship....................................................     21
26.     Beneficiaries/References........................................     21
27.     Governing Law/Jurisdiction......................................     21
28.     Notices.........................................................     21
29.     Headings........................................................     22
30.     Counterparts....................................................     22

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                              EMPLOYMENT AGREEMENT

        AGREEMENT, made and entered into as of the 29th day of November, 2004 by
and among Linens 'n Things, Inc., a Delaware corporation (together with its
successors and assigns, the "Company"), and Jack E. Moore, Jr. ("Executive").

                              W I T N E S S E T H:

        WHEREAS, the Company desires to employ Executive pursuant to an
agreement embodying the terms of such employment (this "Agreement") and
Executive desires to enter into this Agreement and to accept such employment,
subject to the terms and provisions of this Agreement;

        NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and Executive (individually a
"Party" and together the "Parties") agree as follows:

        1.      DEFINITIONS.

                (a)     "Award" shall have the meaning set forth in Section 11
                        below.

                (b)     "Base Salary" shall have the meaning set forth in
                        Section 4 below.

                (c)     "Board" shall have the meaning set forth in Section 3(a)
                        below.

                (d)     "Cause" shall have the meaning set forth in Section
                        10(b) below.

                (e)     "Change in Control" shall have the meaning set forth in
                        Section 10(c) below.

                (f)     "Committee" shall have the meaning set forth in Section
                        4 below.

                (g)     "Competition" shall have the meaning set forth in
                        Section 13(a) below.

                (h)     "Confidential Information" shall have the meaning set
                        forth in Section 12(c) below.

                (i)     "Constructive Termination Without Cause" shall have the
                        meaning set forth in Section 10(c) below.

                (j)     "Effective Date" shall have the meaning set forth in
                        Section 2(a) below.

                (k)     "Fair Market Value" shall have the meaning set forth in
                        Section 11(a) below.

                (l)     "Forfeiture Event" shall have the meaning set forth in
                        Section 11 below.

                (m)     "Original Term of Employment" shall have the meaning set
                        forth in Section 2(a) below.

                (n)     "Renewal Term" shall have the meaning set forth in
                        Section 2(a) below.

                (o)     "Restriction Period" shall have the meaning set forth in
                        Section 13(b) below.

                (p)     "Retirement" shall have the meaning set forth in Section
                        10(f) below.

                (q)     "Target Performance" shall have the meaning set forth in
                        Section 10(a) below.

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                (r)     "Severance Period" shall have the meaning set forth in
                        Section 10(c)(ii) below, except as provided otherwise in
                        Section 10(e) below.

                (s)     "Subsidiary" shall have the meaning set forth in Section
                        12(d) below.

                (t)     "Term of Employment" shall have the meaning set forth in
                        Section 2(a) below.

        2.      TERM OF EMPLOYMENT.

                (a)     The term of Executive's employment under this Agreement
shall commence immediately upon the date of this agreement (the "Effective
Date") and end on December 31, 2008 (the "Original Term of Employment"), unless
terminated earlier in accordance herewith. The Original Term of Employment shall
be automatically renewed for successive one-year terms (the "Renewal Terms") so
long as (i) Executive delivers a written renewal request to the Company no less
than 180 days prior to the expiration of the Original Term of Employment or any
Renewal Term and (ii) the Company does not, prior to 150 days before such
expiration date, deliver a notification of non-renewal to Executive stating that
the Company is electing to terminate this Agreement at the expiration of the
then current Term of Employment. "Term of Employment" shall mean the Original
Term of Employment and all Renewal Terms.

                (b)     In the event that this Agreement is not renewed because
the Company has given the 150-day notice prescribed in the preceding paragraph
on or before the expiration of the Original Term of Employment or any Renewal
Term and, in either case, should such notice result in the expiration of the
Term of Employment prior to Executive's 60th birthday, such non-renewal shall be
treated as a "Constructive Termination Without Cause" pursuant to Section 10(c).

                (c)     In the event that this Agreement is not renewed because
Executive has not given the 180-day notice prescribed in Section 2(a) on or
before the expiration of the Original Term of Employment or any Renewal Term,
such non-renewal shall be treated as a Termination for Cause for the purposes of
Sections 10(b)(iii) but not for purposes of Section 11 and 13(b) and Executive
shall have the same entitlements as provided in Section 10(b)(iii) below. For
purposes of the "Restriction Period" under Section 13(b), such non-renewal shall
be deemed a Voluntary Termination by Executive.

                (d)     Notwithstanding anything in this Agreement to the
contrary, at least one year prior to the expiration of the Original Term of
Employment, upon the written request of the Company or Executive, the Parties
shall meet to discuss this Agreement and may agree in writing to modify any of
the terms of this Agreement.

        3.      POSITION, DUTIES AND RESPONSIBILITIES.

                (a)     GENERALLY. Executive shall serve as President and Chief
Operating Officer of the Company. Executive shall have and perform such duties,
responsibilities, and authorities as shall be specified by the Company from time
to time and as are customary for a senior executive of a publicly held
corporation of the size, type, and nature of the Company as they may exist from
time to time and as are consistent with such position and status. Executive
shall devote substantially all of his business time and attention (except for
periods of vacation or absence due to illness), and his best efforts, abilities,
experience, and talent to his position and the businesses of the Company.

                (b)     OTHER ACTIVITIES. Anything herein to the contrary
notwithstanding, nothing in this Agreement shall preclude Executive from (i)
serving on the boards of directors of a reasonable number of other corporations
or the boards of a reasonable number of trade associations and/or charitable
organizations, (ii)

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engaging in charitable activities and community affairs, and (iii) managing his
personal investments and affairs, provided that such activities do not
materially interfere with the proper performance of his duties and
responsibilities under this Agreement and provided that, if Executive desires to
serve as a director of another publicly-held company, he first obtains the
consent of the Chairman of the Board of the Company, which consent will not be
unreasonably withheld.

                (c)     PLACE OF EMPLOYMENT. Executive's principal place of
employment shall be the principal corporate offices of the Company.

        4.      BASE SALARY.

                Executive shall be paid an annualized salary ("Base Salary"),
payable in accordance with the regular payroll practices of the Company, of not
less than $575,000, subject to review for increase at the discretion of the
Compensation Committee (the "Committee") of the Company's Board of Directors
(the "Board").

        5.      INCENTIVE AWARDS.

                Executive shall participate in the Company's annual incentive
compensation plan with a target annual incentive award opportunity of no less
than 80% of Base Salary and a maximum annual incentive award opportunity of not
less than 160% of Base Salary.

        6.      EMPLOYMENT INDUCEMENT AWARDS.

                (a)     Executive shall be eligible for a guaranteed minimum
bonus under the Company's annual incentive compensation plan, for the fiscal
year 2004 only, of $460,000. The bonus contemplated hereunder shall be paid no
later than March 31, 2005 and is subject to continued active employment with the
Company. The bonus contemplated hereunder is a part of, and not in addition to,
any bonus earned pursuant to Section 5 hereof.

                (b)     Upon the commencement of employment, Executive was
granted 200,000 options to purchase shares of Company common stock. The options
have an exercise price of $27.01 per share and vest in one-third increments if
and at such time the Company's stock price reaches predetermined performance
hurdles, and otherwise will vest six years and eleven months from the grant
date, subject to continued employment with the Company, and expire seven years
from the grant date. Under no circumstances do these options vest earlier than
twelve months following the date of grant. Executive was also granted 100,000
options to purchase shares of Company common stock as of the date of his
commencement of employment. These options have an exercise price of $27.01 per
share and vest in five equal annual installments, subject to continued
employment with the Company, and expire seven years from the grant date.

                (c)     Executive is also being awarded 25,000 shares of
restricted stock units, which will vest in five equal installments starting on
the anniversary of the date of his commencement of employment, subject to
continued employment with the Company.

                (d)     Upon the commencement of employment, Executive was given
a one-time signing bonus of $100,000, subject to forfeiture in the event of a
voluntary termination of Executive's employment within 24 months of his
commencement of employment.

        7.      EMPLOYEE BENEFIT PROGRAMS.

                (a)     GENERAL BENEFITS. During the Term of Employment,
beginning the first day of the month following 90 days of employment, Executive
shall be entitled to participate in such employee pension and welfare benefit
plans and programs of the Company as are made available to the Company's
senior-level

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executives or to its employees generally, as such plans or programs may be in
effect from time to time, including, without limitation, health, medical,
dental, long-term disability, travel accident and life insurance plans. The
Company will reimburse Executive for the cost of continuing Executive's existing
medical insurance under COBRA during that 90 day period.

                (b)     LINENS 'N THINGS, INC. 401(K) PLAN. Executive shall be
eligible for the Linens 'n Things, Inc. 401(k) Plan upon completion of 11 months
of employment.

                (c)     DEFERRAL OF COMPENSATION. The Company shall implement
deferral arrangements, reasonably acceptable to Executive and the Company and to
the extent then permitted by applicable law, permitting Executive to elect to
defer receipt, pursuant to written deferral election terms and forms (the
"Deferral Election Forms"), of all or a specified portion of (i) his annual Base
Salary and annual incentive compensation under Sections 4 and 5, (ii) deferred
or restricted stock grants, and (iii) shares acquired upon exercise of stock
options to purchase Company common stock that are acquired in an exercise in
which Executive pays the exercise price by the surrender of previously acquired
shares, to the extent of the net additional shares otherwise issuable to
Executive in such exercise; PROVIDED, HOWEVER, that such deferrals shall not
reduce Executive's total cash compensation in any calendar year below the sum of
(A) the FICA maximum taxable wage base plus (B) the amount needed, on an
after-tax basis, to enable Executive to pay the 1.45% Medicare tax imposed on
his wages in excess of such FICA maximum taxable wage base.

                In accordance with such duly executed Deferral Election Forms,
the Company shall credit to a bookkeeping account (the "Deferred Compensation
Account") maintained for Executive on the respective payment date or dates,
amounts equal to the compensation subject to deferral, such credits to be
denominated in cash if the compensation would have been paid in cash but for the
deferral or in shares if the compensation would have been paid in shares but for
the deferral. An amount of cash equal in value to all cash-denominated amounts
credited to Executive's account and a number of shares of Company common stock
equal to the number of shares credited to Executive's account pursuant to this
Section 7(b) shall be transferred as soon as practicable following such
crediting by the Company to, and shall be held and, if cash, invested by, an
independent trustee selected by the Company and reasonably acceptable to
Executive (a "Trustee") pursuant to a "rabbi trust" established by the Company
in connection with such deferral arrangement and as to which, if cash, the
Trustee shall make investments based on Executive's investment objectives
(including possible investment in publicly traded stocks and bonds, mutual
funds, and insurance vehicles). Thereafter, Executive's deferral accounts will
be valued by reference to the value of the assets of the "rabbi trust". The
Company shall pay all costs of administration or maintenance of the deferral
arrangement, without deduction or reimbursement from the assets of the "rabbi
trust."

                Except as otherwise provided under Section 10 or by applicable
law, in the event of Executive's termination of employment with the Company or
as otherwise determined by the Committee in the event of Executive's hardship,
upon such date(s) or event(s) set forth in the Deferral Election Forms
(including forms filed after deferral but before settlement in which Executive
may elect to further defer settlement), the Company shall promptly distribute to
Executive any shares of Company common stock credited to Executive's deferred
accounts and pay to Executive cash equal to the value of any other assets then
credited to Executive's deferral accounts, less applicable withholding taxes,
and such distribution shall be deemed to fully settle such accounts; PROVIDED,
HOWEVER, that the Company may instead settle such accounts by directing the
Trustee to distribute such other assets of the "rabbi trust." The Company and
Executive agree that compensation deferred pursuant to this Section 7(b) shall
be fully vested and nonforfeitable (subject to Section 11); HOWEVER, Executive
acknowledges that his rights to the deferred compensation provided for in this
Section 7(b) shall be no greater than those of a general unsecured creditor of
the Company, and that such rights may not be pledged, collateralized,
encumbered, hypothecated, or liable for or subject to any lien, obligation, or
liability of

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Executive, or be assignable or transferable by Executive, otherwise than by will
or the laws of descent and distribution, provided that Executive may designate
one or more beneficiaries to receive any payment of such amounts in the event of
his death.

        8.      DISABILITY.

                (a)     During the Term of Employment, as well as during the
Severance Period, Executive shall be entitled to disability coverage as
described in this Section 8(a). In the event Executive becomes disabled, as that
term is defined under the Company's Long-Term Disability Plan, Executive shall
be entitled to receive disability payments in accordance with and pursuant to
the Company's Long-Term Disability Plan or otherwise, beginning as of the
commencement date of his eligibility for the Company's long-term disability
benefits ("Commencement Date") in place of his salary and annual incentive
compensation and on a participation basis equivalent to that of the other senior
executives of the Company, for a period beginning on the Commencement Date and
ending with the earlier to occur of (A) Executive's attainment of age 65 or (B)
Executive's commencement of retirement benefits from the Company in accordance
with Section 10(f) below. If (i) Executive ceases to be disabled during the Term
of Employment (as determined in accordance with the terms of the Long-Term
Disability Plan), (ii) his position is then vacant and (iii) the Company
requests in writing that he resume his position, he may elect to resume such
position by written notice to the Company within 15 days after the Company
delivers its request. If he resumes such position, he shall thereafter be
entitled to his Base Salary at the annual rate in effect on the Commencement
Date and, for the year he resumes his position, a pro rata annual incentive
award. If he ceases to be disabled during the Term of Employment and does not
resume his position in accordance with the preceding sentence, he shall be
treated as if he voluntarily terminated his employment pursuant to Section 10(d)
as of the date Executive ceases to be disabled. If Executive is not offered his
position after he ceases to be disabled during the Term of Employment, he shall
be treated as if his employment was terminated Without Cause pursuant to Section
10(c) as of the date Executive ceases to be disabled.

                (b)     Executive shall be entitled to a pro rata annual
incentive award then in effect for Executive for the year in which the
Commencement Date occurs based on 80% of Base Salary paid to him during such
year prior to the Commencement Date, payable in a lump sum not later than 15
days after the Commencement Date. Executive shall not be entitled to any annual
incentive award with respect to the period following the Commencement Date. If
Executive recommences his position in accordance with Section 8(a), he shall be
entitled to a pro rata annual incentive award for the year he resumes such
position and shall thereafter be entitled to annual incentive awards in
accordance with Section 5 hereof.

                (c)     During the period Executive is receiving disability
benefits pursuant to Section 8(a) above, he shall continue to be treated as an
employee for purposes of all employee benefits and entitlements in which he was
participating on the Commencement Date, including without limitation, the
benefits and entitlements referred to in Section 6 and Section 7 above, except
that Executive shall not be entitled to receive any annual salary increases
following the Commencement Date.

        9.      REIMBURSEMENT OF BUSINESS AND OTHER EXPENSES.

                Executive is authorized to incur reasonable expenses in carrying
out his duties and responsibilities under this Agreement, and the Company shall
promptly reimburse him for all such business expenses incurred in connection
therewith, subject to documentation in accordance with the Company's policy.

        10.     TERMINATION OF EMPLOYMENT.

                (a)     TERMINATION DUE TO DEATH. In the event Executive's
employment with the Company is

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terminated due to his death, his estate or his beneficiaries, as the case may
be, shall be entitled to and their sole remedies under this Agreement shall be:

                        (i)     Base Salary through the date of death, which
                                shall be paid in a single lump sum not later
                                than 15 days following Executive's death;

                        (ii)    pro rata annual incentive award for the year in
                                which Executive's death occurs assuming that
                                Executive would have received an award equal to
                                80% of Base Salary for such year, which shall be
                                payable in a lump sum promptly (but in no event
                                later than 15 days) after his death;

                        (iii)   elimination of all restrictions on any
                                restricted stock or deferred stock awards
                                outstanding at the time of his death;

                        (iv)    immediate vesting of all outstanding stock
                                options and the right to exercise such stock
                                options for a period of one year following death
                                (or such longer period as may be provided in
                                stock options granted to other similarly
                                situated executive officers of the Company) or
                                for the remainder of the exercise period, if
                                less;

                        (v)     the balance of any incentive awards earned as of
                                December 31 of the prior year (but not yet
                                paid), which shall be paid in a single lump sum
                                not later than 15 days following Executive's
                                death;

                        (vi)    settlement of all deferred compensation
                                arrangements in accordance with Executive's duly
                                executed Deferral Election Forms and the plan
                                documents; and

                        (vii)   other or additional benefits then due or earned
                                in accordance with applicable plans and programs
                                of the Company.

                (b)     TERMINATION BY THE COMPANY FOR CAUSE.

                        (i)     "Cause" shall mean:

                                (A)     Executive's willful and material breach
                                        of Sections 12, 13 or 14 of this
                                        Agreement;

                                (B)     Executive is convicted of a felony
                                        involving moral turpitude; or

                                (C)     Executive engages in conduct that
                                        constitutes willful gross neglect or
                                        willful gross misconduct in carrying out
                                        his duties under this Agreement,
                                        resulting, in either case, in material
                                        harm to the financial condition or
                                        reputation of the Company.

For purposes of this Agreement, an act or failure to act on Executive's part
shall be considered "willful" if it was done or omitted to be done by him not in
good faith, and shall not include any act or failure to act resulting from any
incapacity of Executive.

                        (ii)    A termination for Cause shall not take effect
                                unless the provisions of this paragraph (ii) are
                                complied with. Executive shall be given written
                                notice by the Company of its intention to
                                terminate him for Cause, such notice (A) to
                                state in detail the particular act or acts or
                                failure or failures to act that constitute the

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                                grounds on which the proposed termination for
                                Cause is based and (B) to be given within 90
                                days of the Company's learning of such act or
                                acts or failure or failures to act. Executive
                                shall have 20 days after the date that such
                                written notice has been given to him in which to
                                cure such conduct, to the extent such cure is
                                possible. If he fails to cure such conduct,
                                Executive shall then be entitled to a hearing
                                before the Committee of the Board at which
                                Executive is entitled to appear. Such hearing
                                shall be held within 25 days of such notice to
                                Executive, provided he requests such hearing
                                within 10 days of the written notice from the
                                Company of the intention to terminate him for
                                Cause. If, within five days following such
                                hearing, Executive is furnished written notice
                                by the Board confirming that, in its judgment,
                                grounds for Cause on the basis of the original
                                notice exist, he shall thereupon be terminated
                                for Cause.

                        (iii)   In the event the Company terminates Executive's
                                employment for Cause, he shall be entitled to
                                and his sole remedies under this Agreement shall
                                be:

                                (A)     Base Salary through the date of the
                                        termination of his employment for Cause,
                                        which shall be paid in a single lump sum
                                        not later than 15 days following
                                        Executive's termination of employment;

                                (B)     any incentive awards earned as of
                                        December 31 of the prior year (but not
                                        yet paid), which shall be paid in a
                                        single lump sum not later than 15 days
                                        following Executive's termination of
                                        employment;

                                (C)     settlement of all deferred compensation
                                        arrangements in accordance with
                                        Executive's duly executed Deferral
                                        Election Forms; and

                                (D)     other or additional benefits then due or
                                        earned in accordance with applicable
                                        plans or programs of the Company.

                (c)     TERMINATION WITHOUT CAUSE OR CONSTRUCTIVE TERMINATION
WITHOUT CAUSE PRIOR TO A CHANGE IN CONTROL. In the event Executive's employment
with the Company is terminated without Cause (which termination shall be
effective as of the date specified by the Company in a written notice to
Executive), other than due to death, or in the event there is a Constructive
Termination Without Cause (as defined below), in either case prior to a Change
in Control (as defined below), Executive shall be entitled to and his sole
remedies under this Agreement shall be:

                        (i)     Base Salary through the date of termination of
                                Executive's employment, which shall be paid in a
                                single lump sum not later than 15 days following
                                Executive's termination of employment;

                        (ii)    Base Salary, at the annualized rate in effect on
                                the date of termination of Executive's
                                employment (or in the event a reduction in Base
                                Salary is a basis for a Constructive Termination
                                Without Cause, then the Base Salary in effect
                                immediately prior to such reduction), for a
                                period of 24 months following such termination
                                (the "Severance Period");

                        (iii)   pro rata annual incentive award for the year in
                                which termination occurs equal to 80% of Base
                                Salary (determined in accordance with Section
                                10(c)(ii) above) for such year, payable in a
                                lump sum promptly (but in no event later than 15
                                days) following termination;

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                        (iv)    an amount equal to 80% of Base Salary
                                (determined in accordance with Section 10(c)(ii)
                                above), multiplied by two, payable in equal
                                monthly installments over the Severance Period;

                        (v)     the balance of any incentive awards earned as of
                                December 31 of the prior year (but not yet
                                paid), which shall be paid in a single lump sum
                                not later than 15 days following Executive's
                                termination of employment;

                        (vi)    settlement of all deferred compensation
                                arrangements in accordance with Executive's duly
                                executed Deferral Election Forms and the plan
                                documents (unless Executive has previously and
                                appropriately elected not to have such
                                settlement upon such a termination);

                        (vii)   continued participation in all medical, health
                                and life insurance plans at the same benefit
                                level at which he was participating on the date
                                of the termination of his employment until the
                                earlier of:

                                (A)     24 months; or

                                (B)     the date, or dates, he receives
                                        equivalent coverage and benefits under
                                        the plans and programs of a subsequent
                                        employer (such coverage and benefits to
                                        be determined on a coverage-by-coverage,
                                        or benefit-by-benefit, basis); provided
                                        that (1) if Executive is precluded from
                                        continuing his participation in any
                                        employee benefit plan or program as
                                        provided in this clause (vii) of this
                                        Section 10(c), he shall receive cash
                                        payments equal on an after-tax basis to
                                        the cost to him of obtaining the
                                        benefits provided under the plan or
                                        program in which he is unable to
                                        participate for the period specified in
                                        this clause (vii) of this Section 10(c),
                                        (2) such cost shall be deemed to be the
                                        lowest reasonable cost that would be
                                        incurred by Executive in obtaining such
                                        benefit himself on an individual basis,
                                        and (3) payment of such amounts shall be
                                        made quarterly in advance; and

                        (viii)  other or additional benefits then due or earned
                                in accordance with applicable plans and programs
                                of the Company.

        A termination without "Cause" shall mean Executive's employment is
terminated by the Company for any reason other than Cause (as defined in Section
10(b)) or due to death.

        "Constructive Termination Without Cause" shall mean a termination of
Executive's employment at his initiative as provided in this Section 10(c)
following the occurrence, without Executive's written consent, of one or more of
the following events (except as a result of a prior termination):

                                (A)     an assignment of any duties to Executive
                                        which are inconsistent with his status
                                        as President and Chief Operating Officer
                                        of the Company which is not cured
                                        following 30 days written notice;

                                (B)     a decrease in annual Base Salary or in
                                        target annual incentive award
                                        opportunity below 80% of Base Salary;

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                                (C)     any other failure by the Company to
                                        perform any material obligation under,
                                        or breach by the Company of any material
                                        provision of, this Agreement that is not
                                        cured within 30 days following written
                                        notice; or

                                (D)     any failure to secure the agreement of
                                        any successor corporation or other
                                        entity to the Company to fully assume
                                        the Company's obligations under this
                                        Agreement.

        In addition, following a Change in Control, "Constructive Termination
Without Cause" shall also mean a termination of Executive's employment at his
initiative as provided in this Section 10(c) following the occurrence, without
Executive's written consent, of a relocation of his principal place of
employment outside a 35-mile radius of his principal place of employment as in
effect immediately prior to such Change in Control.

        A "Change in Control" shall be deemed to have occurred if:

                        (i)     any Person (other than the Company, any trustee
                                or other fiduciary holding securities under any
                                employee benefit plan of the Company, or any
                                company owned, directly or indirectly, by the
                                stockholders of the Company immediately prior to
                                the occurrence with respect to which the
                                evaluation is being made in substantially the
                                same proportions as their ownership of the
                                common stock of the Company) becomes the
                                Beneficial Owner (except that a Person shall be
                                deemed to be the Beneficial Owner of all shares
                                that any such Person has the right to acquire
                                pursuant to any agreement or arrangement or upon
                                exercise of conversion rights, warrants or
                                options or otherwise, without regard to the
                                sixty day period referred to in Rule 13d-3 under
                                the Exchange Act), directly or indirectly, of
                                securities of the Company or any Significant
                                Subsidiary (as defined below), representing 30%
                                or more of the combined voting power of the
                                Company's or such subsidiary's then outstanding
                                securities;

                        (ii)    during any period of two consecutive years,
                                individuals who at the beginning of such period
                                constitute the Board, and any new director
                                (other than a director designated by a person
                                who has entered into an agreement with the
                                Company to effect a transaction described in
                                clause (i), (iii), or (iv) of this paragraph)
                                whose election by the Board or nomination for
                                election by the Company's stockholders was
                                approved by a vote of at least two-thirds of the
                                directors then still in office who either were
                                directors at the beginning of the two-year
                                period or whose election or nomination for
                                election was previously so approved but
                                excluding for this purpose any such new director
                                whose initial assumption of office occurs as a
                                result of either an actual or threatened
                                election contest (as such terms are used in Rule
                                14a-11 of Regulation 14A promulgated under the
                                Exchange Act) or other actual or threatened
                                solicitation of proxies or consents by or on
                                behalf of an individual, corporation,
                                partnership, group, associate or other entity or
                                Person other than the Board, cease for any
                                reason to constitute at least a majority of the
                                Board;

                        (iii)   the consummation of a merger or consolidation of
                                the Company or any subsidiary owning directly or
                                indirectly all or substantially all of the
                                consolidated assets of the Company (a
                                "Significant Subsidiary") with any other entity,
                                other than a merger or consolidation which would
                                result in the voting securities of the Company
                                or a Significant Subsidiary outstanding
                                immediately prior thereto

                                       9
<PAGE>

                                continuing to represent (either by remaining
                                outstanding or by being converted into voting
                                securities of the surviving or resulting entity)
                                more than 50% of the combined voting power of
                                the surviving or resulting entity outstanding
                                immediately after such merger or consolidation;

                        (iv)    the consummation of the sale or disposition of
                                all or substantially all of the consolidated
                                assets of the Company (other than such a sale or
                                disposition immediately after which such assets
                                will be owned directly or indirectly by the
                                stockholders of the Company in substantially the
                                same proportions as their ownership of the
                                common stock of the Company immediately prior to
                                such sale or disposition); or

                        (v)     any other event occurs which the Board
                                reasonably and in good faith determines would
                                materially alter the structure of the Company or
                                its ownership.

For purposes of this definition:

                                (A)     The term "Beneficial Owner" shall have
                                        the meaning ascribed to such term in
                                        Rule 13d-3 under the Exchange Act
                                        (including any successor to such Rule).

                                (B)     The term "Exchange Act" means the
                                        Securities Exchange Act of 1934, as
                                        amended from time to time, or any
                                        successor act thereto.

                                (C)     The term "Person" shall have the meaning
                                        ascribed to such term in Section 3(a)(9)
                                        of the Exchange Act and used in Sections
                                        13(d) and 14(d) thereof, including
                                        "group" as defined in Section 14(d)
                                        thereof.

                (d)     VOLUNTARY TERMINATION. In the event of a termination of
employment by Executive on his own initiative after delivery of 10 business days
advance written notice, other than a termination due to death, a Constructive
Termination Without Cause, or a Retirement pursuant to Section 10(f) below,
Executive shall have the same entitlements as provided in Section 10(b)(iii)
above for a termination for Cause, provided that at the Company's election (the
"Company Option"), furnished in writing to Executive within 15 days following
such notice of termination, the Company shall in addition pay Executive 180% of
his Base Salary for a period of 12 months following such termination in exchange
for Executive not engaging in Competition with the Company or any Subsidiary as
set forth in Section 13(a) below. Notwithstanding any implication to the
contrary, Executive shall not have the right to terminate his employment with
the Company during the Term of Employment except in the event of a Constructive
Termination Without Cause or Retirement, and any voluntary termination of
employment during the Term of Employment in violation of this Agreement shall be
considered a material breach; provided however, if the Company elects to pay
Executive 180% of his Base Salary in accordance with this Section 10(d), the
Company shall waive any and all claims it may have against Executive for any
breach of this Agreement relating to his voluntary termination of employment
unless Executive is found by a court of competent jurisdiction not to be in
compliance with Section 13(a) below; provided further, however, that
notwithstanding anything contained in the foregoing to the contrary, it is not
the intention of the Company to waive any claims it may have against any third
parties relating to a voluntary termination by Executive in violation of this
Agreement.

                (e)     TERMINATION WITHOUT CAUSE, CONSTRUCTIVE TERMINATION
WITHOUT CAUSE OR VOLUNTARY TERMINATION FOLLOWING A CHANGE IN CONTROL. In the
event Executive's employment with the Company is terminated by the Company
without Cause (which termination shall be effective as of the date specified by
the

                                       10
<PAGE>

Company in a written notice to Executive), other than due to death, or in the
event there is a Constructive Termination Without Cause (as defined above), in
either case within eighteen months following a Change in Control (as defined
above), Executive shall be entitled to and his sole remedies under this
Agreement shall be:

                        (i)     Base Salary through the date of termination of
                                Executive's employment, which shall be paid in a
                                single lump sum not later than 15 days following
                                Executive's termination of employment;

                        (ii)    an amount equal to 2.5 times Executive's Base
                                Salary, at the annualized rate in effect on the
                                date of termination of Executive's employment
                                (or in the event a reduction in Base Salary is a
                                basis for a Constructive Termination Without
                                Cause, then the Base Salary in effect
                                immediately prior to such reduction), payable in
                                a cash lump sum promptly (but in no event later
                                than 15 days) following Executive's termination
                                of employment;

                        (iii)   pro rata annual incentive award for the year in
                                which termination occurs assuming that Executive
                                would have received an award equal to 80% of
                                Base Salary (determined in accordance with
                                Section 10(e)(ii) above) for such year, payable
                                in a cash lump sum promptly (but in no event
                                later than 15 days) following Executive's
                                termination of employment;

                        (iv)    an amount equal to 80% of such Base Salary
                                (determined in accordance with Section 10(e)(ii)
                                above) multiplied by two, payable in a cash lump
                                sum promptly (but in no event later than 15
                                days) following Executive's termination of
                                employment;

                        (v)     elimination of all restrictions on any
                                restricted stock or deferred stock awards
                                outstanding at the time of termination of
                                employment;

                        (vi)    immediate vesting of all outstanding stock
                                options and the right to exercise vested stock
                                options for the remainder of the exercise
                                period;

                        (vii)   the balance of any incentive awards earned as of
                                December 31 of the prior year (but not yet
                                paid), which shall be paid in a single lump sum
                                not later than 15 days following Executive's
                                termination of employment;

                        (vii)   settlement of all deferred compensation
                                arrangements in accordance with Executive's duly
                                executed Deferral Election Forms and the plan
                                documents (unless Executive has previously and
                                appropriately elected not to have such
                                settlement upon such a termination);

                        (ix)    continued participation in all medical, health
                                and life insurance plans at the same benefit and
                                participation level at which he was
                                participating on the date of the termination of
                                his employment until the earlier of:

                                (A)     the end of the Severance Period; or

                                (B)     the date, or dates, he receives
                                        equivalent coverage and benefits under
                                        the plans and programs of a subsequent
                                        employer (such coverage and benefits to
                                        be determined on a coverage-by-coverage,
                                        or benefit-by-benefit, basis);

                                       11
<PAGE>

                                        provided that (1) if Executive is
                                        precluded from continuing his
                                        participation in any employee benefit
                                        plan or program as provided in this
                                        clause (vii) of this Section 10(e), he
                                        shall receive cash payments equal on an
                                        after-tax basis to the cost to him of
                                        obtaining the benefits provided under
                                        the plan or program in which he is
                                        unable to participate for the period
                                        specified in this clause (vii) of this
                                        Section 10(e), (2) such cost shall be
                                        deemed to be the lowest reasonable cost
                                        that would be incurred by Executive in
                                        obtaining such benefit himself on an
                                        individual basis, and (3) payment of
                                        such amounts shall be made quarterly in
                                        advance;

                        (x)     other or additional benefits then due or earned
                                in accordance with applicable plans and programs
                                of the Company.

                (f)     RETIREMENT. Upon Executive's Retirement (as defined
below), Executive shall be entitled to and his sole remedies under this
Agreement shall be:

                        (i)     Base Salary through the date of termination of
                                Executive's employment, which shall be paid in a
                                single lump sum not later than 15 days following
                                Executive's termination of employment;

                        (ii)    pro rata annual incentive award for the year in
                                which termination occurs, based on performance
                                valuation at the end of such year and payable in
                                a cash lump sum promptly (but in no event later
                                than 15 days) thereafter;

                        (iii)   continued vesting (as if Executive remained
                                employed by the Company) of any restricted stock
                                or deferred stock awards outstanding at the time
                                of his termination of employment;

                        (iv)    continued vesting (as if Executive remained
                                employed by the Company) of all outstanding
                                stock options and the right to exercise such
                                stock options for the remainder of the exercise
                                period;

                        (v)     the balance of any incentive awards earned as of
                                December 31 of the prior year (but not yet
                                paid), which shall be paid in a single lump sum
                                not later than 15 days following Executive's
                                termination of employment;

                        (vi)    settlement of all deferred compensation
                                arrangements in accordance with Executive's duly
                                executed Deferral Election Forms and the plan
                                documents (unless Executive has previously and
                                appropriately elected not to have such
                                settlement at such time);

                        (vii)   other or additional benefits then due or earned
                                in accordance with applicable plans and programs
                                of the Company.

For purposes of this Agreement, "Retirement" shall mean Executive's voluntary
termination of employment with the Company at the earlier of (i) at or after
attaining age 55 and 15 years of service with the Company; or (ii) attaining age
60.

                (g)     Notwithstanding anything else herein to the contrary in
Sections 7, 10 or otherwise,

                                       12
<PAGE>

distributions attributable to any deferred compensation arrangements to be made
to Executive may be delayed for up to 12 months in order to avoid adverse tax
implications to Executive, the Company or other similarly situated employees
under Section 4009A of the Internal Revenue Code of 1986 (the "Code").

                (h)     NO MITIGATION; NO OFFSET. In the event of any
termination of employment, Executive shall be under no obligation to seek other
employment; amounts due Executive under this Agreement shall not be offset by
any remuneration attributable to any subsequent employment that he may obtain.

                (i)     NATURE OF PAYMENTS. Any amounts due under this Section
10 are in the nature of severance payments considered to be reasonable by the
Company and are not in the nature of a penalty.

                (j)     NO FURTHER LIABILITY; RELEASE. In the event of
Executive's termination of employment, payment made and performance by the
Company in accordance with this Section 10 shall operate to fully discharge and
release the Company and its directors, officers, employees, subsidiaries,
affiliates, stockholders, successors, assigns, agents and representatives from
any further obligation or liability with respect to Executive's rights under
this Agreement. Other than payment and performance under this Section 10, the
Company and its directors, officers, employees, subsidiaries, affiliates,
stockholders, successors, assigns, agents and representatives shall have no
further obligation or liability to Executive or any other person under this
Agreement in the event of Executive's termination of employment. The Company
shall have the right to condition the payment of any severance or other amounts
pursuant to this Section 10 upon the delivery by Executive to the Company of a
release in the form satisfactory to the Company releasing any and all claims
Executive may have against the Company and its directors, officers, employees,
subsidiaries, affiliates, stockholders, successors, assigns, agents and
representatives arising out of this Agreement.

        11.     FORFEITURE PROVISIONS.

                (a)     FORFEITURE OF STOCK OPTIONS AND OTHER AWARDS AND GAINS
REALIZED UPON PRIOR OPTION EXERCISES OR AWARD SETTLEMENTS. Unless otherwise
determined by the Committee, upon a termination of Executive's employment for
Cause, Executive's engaging in "Competition" (as defined in Section 13(a)) with
the Company or any Subsidiary after a voluntary termination of employment
pursuant to Section 10(d), or Executive's violation of any of the other
restrictive covenants contained in Section 12, 13 or 14 (each a "Forfeiture
Event") during the Term of Employment and for 24 months thereafter, all of the
following forfeitures will result:

                        (i)     The unexercised portion of any stock option,
                                whether or not vested, and any other Award not
                                then settled (except for an Award that has not
                                been settled solely due to an elective deferral
                                by Executive and otherwise is not forfeitable in
                                the event of any termination of Executive's
                                service) will be immediately forfeited and
                                canceled upon the occurrence of the Forfeiture
                                Event; and

                        (ii)    Executive will be obligated to repay to the
                                Company, in cash, within five business days
                                after demand is made therefor by the Company,
                                the total amount of Award Gain (as defined
                                herein) realized by Executive upon each exercise
                                of a stock option or settlement of an Award
                                (regardless of any elective deferral) that
                                occurred (A) during the period commencing with
                                the date that is 24 months prior to the
                                occurrence of the Forfeiture Event and the date
                                24 months after the Forfeiture Event, if the
                                Forfeiture Event occurred while Executive was
                                employed by the Company or a Subsidiary or
                                affiliate, or (B) during the period commencing
                                24 months prior to the date Executive's
                                employment by the Company terminated and ending
                                12 months (or, in the event that the Forfeiture
                                Event is a breach of Section

                                       13
<PAGE>

                                14, 24 months) after the date of such
                                termination, if the Forfeiture Event occurred
                                after Executive ceased to be so employed. For
                                purposes of this Section, the term "Award Gain"
                                shall mean (i), in respect of a given stock
                                option exercise, the product of (X) the Fair
                                Market Value per share of common stock at the
                                date of such exercise (without regard to any
                                subsequent change in the market price of shares)
                                minus the exercise price times (Y) the number of
                                shares as to which the stock option was
                                exercised at that date, and (ii) with respect to
                                any other settlement of an Award granted to
                                Executive, the Fair Market Value of the cash or
                                stock paid or payable or distributed to
                                Executive (regardless of any elective deferral)
                                less any cash or the Fair Market Value of any
                                stock or property (other than an Award or award
                                which would have itself then been forfeitable
                                hereunder and excluding any payment of tax
                                withholding) paid by Executive to the Company as
                                a condition of or in connection with such
                                settlement.

For purposes of this Agreement "Fair Market Value" shall mean as of any given
date, the closing sale price per share of the Company's common stock reported on
a consolidated basis for securities listed on the principal stock exchange or
market on which the common stock of the Company is traded on the date as of
which such value is being determined, or, if there is no sale on that day, then
on the last previous day on which a sale was reported; and "Award" shall mean
any cash award, stock option, stock appreciation right, restricted stock,
deferred stock (such as a restricted stock unit), bonus stock, dividend
equivalent, or other stock-based or performance-based award or similar award,
together with any related right or interest, granted to or held by Executive
(but excluding any annual cash incentive award which is payable on an annual
basis and is determined based entirely on a one-year (or less) performance
measurement period).

                (b)     COMMITTEE DISCRETION. The Committee may, in its
discretion, waive in whole or in part the Company's right to forfeiture under
this Section, but no such waiver shall be effective unless evidenced by a
writing signed by a duly authorized officer of the Company. In addition, the
Committee may impose additional conditions on Awards, by inclusion of
appropriate provisions in the document evidencing or governing any such Award.

        12.     CONFIDENTIALITY: COOPERATION WITH REGARD TO LITIGATION;
NON-DISPARAGEMENT; RETURN OF COMPANY MATERIALS.

                (a)     During the Term of Employment and thereafter, Executive
shall not, without the prior written consent of the Company, disclose to anyone
(except in good faith in the ordinary course of business to a person who will be
advised by Executive to keep such information confidential) or make use of any
Confidential Information except in the performance of his duties hereunder or
when required to do so by legal process, by any governmental agency having
supervisory authority over the business of the Company or by any administrative
or legislative body (including a committee thereof) that requires him to
divulge, disclose or make accessible such information. In the event that
Executive is so ordered, he shall give prompt written notice to the Company in
order to allow the Company the opportunity to object to or otherwise resist such
order.

                (b)     During the Term of Employment and thereafter, Executive
shall not disclose the existence or contents of this Agreement beyond what is
disclosed in the proxy statement or documents filed with the government unless
and to the extent such disclosure is required by law, by a governmental agency,
or in a document required by law to be filed with a governmental agency or in
connection with enforcement of his rights under this Agreement. In the event
that disclosure is so required, Executive shall give prompt written notice to
the Company in order to allow the Company the opportunity to object to or
otherwise resist such requirement. This restriction shall not apply to such
disclosure by him to members of his immediate family, his

                                       14
<PAGE>

tax, legal or financial advisors, any lender, or tax authorities, or to
potential future employers to the extent necessary, each of whom shall be
advised not to disclose such information.

                (c)     "Confidential Information" shall mean (i) all
information concerning the business of the Company or any Subsidiary including
information relating to any of their products, product development, trade
secrets, customers, suppliers, finances, and business plans and strategies,
(ii)all documents marked "Confidential," and (iii) information regarding the
organization structure and the names, titles, status, compensation, benefits and
other proprietary employment-related aspects of the employees of the Company and
the Company's employment practices. Excluded from the definition of Confidential
Information is information (A) that is or becomes part of the public domain,
other than through the breach of this Agreement by Executive or (B) regarding
the Company's business or industry properly acquired by Executive in the course
of his career as an executive in the Company's industry and independent of
Executive's employment by the Company. For this purpose, information known or
available generally within the trade or industry of the Company or any
Subsidiary shall be deemed to be known or available to the public.

                (d)     "Subsidiary" shall mean any corporation controlled
directly or indirectly by the Company.

                (e)     Executive agrees to cooperate with the Company, during
the Term of Employment and thereafter (including following Executive's
termination of employment for any reason), by making himself reasonably
available to testify on behalf of the Company or any Subsidiary in any action,
suit, or proceeding, whether civil, criminal, administrative, or investigative,
and to assist the Company, or any Subsidiary, in any such action, suit, or
proceeding, by providing information and meeting and consulting with the Board
or its representatives or counsel, or representatives or counsel to the Company,
or any Subsidiary as requested; provided, however that the same does not
materially interfere with his then current professional activities. The Company
agrees to reimburse Executive, on an after-tax basis, for all expenses actually
incurred in connection with his provision of testimony or assistance.

                (f)     Executive agrees that, during the Term of Employment and
thereafter (including following Executive's termination of employment for any
reason) he will not make statements or representations, or otherwise
communicate, directly or indirectly, in writing, orally, or otherwise, or take
any action which may, directly or indirectly, disparage the Company or any
Subsidiary or their respective officers, directors, employees, advisors,
businesses or reputations. The Company agrees that, during the Term of
Employment and thereafter (including following Executive's termination of
employment for any reason) the Company will not make statements or
representations, or otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may directly or indirectly,
disparage Executive or his business or reputation. Notwithstanding the
foregoing, nothing in this Agreement shall preclude either Executive or the
Company from making truthful statements or disclosures that are required by
applicable law, regulation, or legal process.

                (g)     Upon any termination of employment, Executive agrees to
deliver any Company property and any documents, notes, drawings, specifications,
computer software, data and other materials of any nature pertaining to any
Confidential Information that are held by Executive and will not take any of the
foregoing, or any reproduction of any of the foregoing, that is embodied an any
tangible medium of expression, provided that the foregoing shall not prohibit
Executive from retaining his personal phone directories and rolodexes.

                                       15
<PAGE>

        13.     NON-COMPETITION.

                (a)     During the Restriction Period (as defined in Section
13(b) below), Executive shall not engage in Competition with the Company or any
Subsidiary. "Competition" shall mean engaging in any activity, except as
provided below, for a Competitor of the Company or any Subsidiary, whether as an
employee, consultant, principal, agent, officer, director, partner, shareholder
(except as a less than one percent shareholder of a publicly traded company) or
otherwise. A "Competitor" shall mean (i) Bed Bath & Beyond, Spencer Gifts, J.C.
Penny's, Target, Ross Stores, Inc., The TJX Companies, Kohls Corporation,
Federated Department Stores or The May Department Stores Company (and any
successor or successors thereto); (ii) any home textiles or housewares store,
specialty store or other retailer if $50 million or more of its annual gross
sales revenues (in either case, based on the most recent quarterly or annual
financial statements available) are derived from the sale of home textiles,
housewares or other goods or merchandise of the types sold in the Company's (or
any Subsidiary's) stores; (iii) any corporation or other entity whether
independent or owned, funded or controlled by any other entity, engaged or
organized for the purpose of engaging, in whole or in part, in the sale of home
textiles, housewares or other goods or merchandise of the types sold in the
Company's (or any Subsidiary's) stores; (iv) any business that provides buying
office services to any business or group of businesses referred to above, or (v)
any business (in the U.S. or any country in which the Company or any Subsidiary
operates a store or stores) which is in material competition with the Company or
any Subsidiary or division thereof and in which Executive's "officer" functions
would be substantially similar to Executive's functions with the Company.

                (b)     For the purposes of this Section 13, "Restriction
Period" shall mean the period beginning with the Effective Date and ending with:

                        (i)     in the case of a termination of Executive's
                                employment without Cause or a Constructive
                                Termination Without Cause, the Restriction
                                Period shall terminate immediately upon
                                Executive's termination of employment;

                        (ii)    in the case of a termination of Executive's
                                employment for Cause, 24 months from the date of
                                such termination;

                        (iii)   in the case of a voluntary termination of
                                Executive's employment pursuant to Section 10(d)
                                (or a failure by Executive to provide notice of
                                renewal of the Term of Employment under Section
                                2) followed by the Company's election to
                                exercise the Company Option and to pay Executive
                                (and subject to the payment of) the amount
                                provided in Section 10(d) above, the first
                                anniversary of such termination;

                        (iv)    in the case of a voluntary termination of
                                Executive's employment pursuant to Section 10(d)
                                (or a failure by Executive to provide notice of
                                renewal of the Term of Employment under Section
                                2) which is not followed by the Company's
                                election to exercise the Company Option and to
                                pay Executive the amount provided in Section
                                10(d) above, the date of such termination; or

                        (v)     in the case of a Retirement pursuant to Section
                                10(f) above, the remainder of the Term of
                                Employment.

        14.     NON-SOLICITATION OF EMPLOYEES.

        During the period beginning with the Effective Date and ending 24 months
following the termination or

                                       16
<PAGE>

other cessation of Executive's employment for any reason, Executive shall not
induce employees of the Company or any Subsidiary to terminate their employment;
provided, however, that the foregoing shall not be construed to prevent
Executive from engaging in generic nontargeted advertising for employees
generally. During such period, Executive shall not hire, either directly or
through any employee, agent or representative, any employee of the Company or
any Subsidiary or any person who was employed by the Company or any Subsidiary
within 180 days of such hiring.

        15.     REMEDIES.

        In addition to whatever other rights and remedies the Company may have
at equity or in law, if Executive breaches any of the provisions contained in
Sections 12, 13 or 14 above, the Company (a) shall have its rights under Section
11 of this Agreement, (b) shall have the right to immediately terminate all
payments and benefits due under this Agreement and (c) shall have the right to
seek injunctive relief (without posting bond or other security and without the
need to prove damages). Executive acknowledges that such a breach of Sections
12, 13 or 14 would cause irreparable injury and that money damages would not
provide an adequate remedy for the Company; provided, however, the foregoing
shall not prevent Executive from contesting the issuance of any such injunction
on the ground that no violation or threatened violation of Sections 12, 13 or 14
has occurred.

        16.     RESOLUTION OF DISPUTES.

        Any controversy, claim or defense arising out of or relating to this
Agreement or any breach or asserted breach hereof or questioning or defending
the validity and binding effect hereof arising under or in connection with this
Agreement, other than seeking injunctive relief under Section 15, shall be
resolved by binding arbitration, to be held at an office closest to the
Company's principal offices in accordance with the rules and procedures of the
American Arbitration Association, except that disputes arising under or in
connection with Sections 12, 13 and 14 above shall be submitted to the federal
or state courts in the State of New Jersey. Judgment upon the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof.
Pending the resolution of any arbitration or court proceeding, the Company shall
continue payment of all amounts and benefits due Executive under this Agreement.
All reasonable costs and expenses (including fees and disbursements of counsel)
incurred by Executive pursuant to this Section 16 shall be paid on behalf of or
reimbursed to Executive promptly by the Company; provided, however, that in the
event the arbitrator(s) determine(s) that any of Executive's litigation
assertions or defenses are determined to be in bad faith or frivolous, no such
reimbursements related to such assertions or defenses shall be due Executive,
and any such expenses already paid to Executive shall be immediately returned by
Executive to the Company.

        17.     INDEMNIFICATION.

                (a)     COMPANY INDEMNITY. The Company agrees that if Executive
is made a party, or is threatened to be made a party, to any action, suit or
proceeding, whether civil, criminal, administrative or investigative (a
"Proceeding"), by reason of the fact that he is or was a director, officer or
employee of the Company or any Subsidiary or is or was serving at the request of
the Company or any Subsidiary as a director, officer, member, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether or not the
basis of such Proceeding is Executive's alleged action in an official capacity
while serving as a director, officer, member, employee or agent, Executive shall
be indemnified and held harmless by the Company to the fullest extent legally
permitted or authorized by the Company's certificate of incorporation or bylaws
or resolutions of the Company's Board or, if greater, by the laws of the State
of Delaware against all cost, expense, liability and loss (including, without
limitation, attorney's fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by
Executive in connection therewith, and such indemnification shall continue as to
Executive even if he has ceased to be a director, member, officer, employee or
agent of the

                                       17
<PAGE>

Company or other entity and shall inure to the benefit of Executive's heirs,
executors and administrators. The Company shall advance to Executive all
reasonable costs and expenses to be incurred by him in connection with a
Proceeding within 20 days after receipt by the Company of a written request for
such advance. Such request shall include an undertaking by Executive to repay
the amount of such advance if it shall ultimately be determined that he is not
entitled to be indemnified against such costs and expenses. The provisions of
this Section 17(a) shall not be deemed exclusive of any other rights of
indemnification to which Executive may be entitled or which may be granted to
him, and it shall be in addition to any rights of indemnification to which he
may be entitled under any policy of insurance.

                (b)     NO PRESUMPTION REGARDING STANDARD OF CONDUCT. Neither
the failure of the Company (including its Board, independent legal counsel or
stockholders) to have made a determination prior to the commencement of any
proceeding concerning payment of amounts claimed by Executive under Section
17(a) above that indemnification of Executive is proper because he has met the
applicable standard of conduct, nor a determination by the Company (including
its Board, independent legal counsel or stockholders) that Executive has not met
such applicable standard of conduct, shall create a presumption that Executive
has not met the applicable standard of conduct.

                (c)     LIABILITY INSURANCE. The Company agrees to continue and
maintain a directors and officers' liability insurance policy covering Executive
to the extent the Company provides such coverage for its other executive
officers.

        18.     EXCISE TAX GROSS-UP.

                If Executive becomes entitled to one or more payments (with a
"payment" including, without limitation, the vesting of an option or other
non-cash benefit or property), whether pursuant to the terms of this Agreement
or any other plan, arrangement, or agreement with the Company or any affiliated
company (the "Total Payments"), which are or become subject to the tax imposed
by Section 4999 of the Code (or any similar tax that may hereafter be imposed)
(the "Excise Tax"), the Company shall pay to Executive at the time specified
below an additional amount (the "Gross-up Payment") (which shall include,
without limitation, reimbursement for any penalties and interest that may accrue
in respect of such Excise Tax) such that the net amount retained by Executive,
after reduction for any Excise Tax (including any penalties or interest thereon)
on the Total Payments and any federal, state and local income or employment tax
and Excise Tax on the Gross-up Payment provided for by this Section 18, but
before reduction for any federal, state, or local income or employment tax on
the Total Payments, shall be equal to the sum of (a) the Total Payments, and (b)
an amount equal to the product of any deductions disallowed for federal, state,
or local income tax purposes because of the inclusion of the Gross-up Payment in
Executive's adjusted gross income multiplied by the highest applicable marginal
rate of federal, state, or local income taxation, respectively, for the calendar
year in which the Gross-up Payment is to be made. For purposes of determining
whether any of the Total Payments will be subject to the Excise Tax and the
amount of such Excise Tax:

                        (i)     The Total Payments shall be treated as
                                "parachute payments" within the meaning of
                                Section 280G(b)(2) of the Code, and all "excess
                                parachute payments" within the meaning of
                                Section 280G(b)(1) of the Code shall be treated
                                as subject to the Excise Tax, unless, and except
                                to the extent that, in the written opinion of
                                independent compensation consultants, counsel or
                                auditors of nationally recognized standing
                                ("Independent Advisors") selected by the Company
                                and reasonably acceptable to Executive, the
                                Total Payments (in whole or in part) do not
                                constitute parachute payments, or such excess
                                parachute payments (in whole or in part)
                                represent reasonable compensation for services
                                actually rendered within the meaning of Section
                                280G(b)(4) of the Code in excess of the base

                                       18
<PAGE>

                                amount within the meaning of Section 280G(b)(3)
                                of the Code or are otherwise not subject to the
                                Excise Tax;

                        (ii)    The amount of the Total Payments which shall be
                                treated as subject to the Excise Tax shall be
                                equal to the lesser of (A) the total amount of
                                the Total Payments or (B) the total amount of
                                excess parachute payments within the meaning of
                                Section 280G(b)(1) of the Code (after applying
                                clause (i) above); and

                        (iii)   The value of any non-cash benefits or any
                                deferred payment or benefit shall be determined
                                by the Independent Advisors in accordance with
                                the principles of Sections 280G(d)(3) and (4) of
                                the Code.

        For purposes of determining the amount of the Gross-up Payment,
Executive shall be deemed (A) to pay federal income taxes at the highest
marginal rate of federal income taxation for the calendar year in which the
Gross-up Payment is to be made; (B) to pay any applicable state and local income
taxes at the highest marginal rate of taxation for the calendar year in which
the Gross-up Payment is to be made, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local
taxes if paid in such year (determined without regard to limitations on
deductions based upon the amount of Executive's adjusted gross income); and (C)
to have otherwise allowable deductions for federal, state, and local income tax
purposes at least equal to those disallowed because of the inclusion of the
Gross-up Payment in Executive's adjusted gross income. In the event that the
Excise Tax is subsequently determined to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, Executive shall
repay to the Company at the time that the amount of such reduction in Excise Tax
is finally determined (but, if previously paid to the taxing authorities, not
prior to the time the amount of such reduction is refunded to Executive or
otherwise realized as a benefit by Executive) the portion of the Gross-up
Payment that would not have been paid if such Excise Tax had been applied in
initially calculating the Gross-up Payment, plus interest on the amount of such
repayment at the rate provided in Section 1274(b)(2)(B) of the Code. In the
event that the Excise Tax is determined to exceed the amount taken into account
hereunder at the time the Gross-up Payment is made (including by reason of any
payment the existence or amount of which cannot be determined at the time of the
Gross-up Payment), the Company shall make an additional Gross-up Payment in
respect of such excess (plus any interest and penalties payable with respect to
such excess) at the time that the amount of such excess is finally determined.

        The Gross-up Payment provided for above shall be paid on the 30th day
(or such earlier date as the Excise Tax becomes due and payable to the taxing
authorities) after it has been determined that the Total Payments (or any
portion thereof) are subject to the Excise Tax; provided, however, that if the
amount of such Gross-up Payment or portion thereof cannot be finally determined
on or before such day, the Company shall pay to Executive on such day an
estimate, as determined by the Independent Advisors, of the minimum amount of
such payments and shall pay the remainder of such payments (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code), as soon as
the amount thereof can be determined. In the event that the amount of the
estimated payments exceeds the amount subsequently determined to have been due,
such excess shall constitute a loan by the Company to Executive, payable on the
fifth day after demand by the Company (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code). If more than one Gross-up
Payment is made, the amount of each Gross-up Payment shall be computed so as not
to duplicate any prior Gross-up Payment. The Company shall have the right to
control all proceedings with the Internal Revenue Service that may arise in
connection with the determination and assessment of any Excise Tax and, at its
sole option, the Company may pursue or forego any and all administrative
appeals, proceedings, hearings, and conferences with any taxing authority in
respect of such Excise Tax (including any interest or penalties thereon);
provided, however, that the Company's control over any such proceedings shall be
limited to issues

                                       19
<PAGE>

with respect to which a Gross-up Payment would be payable hereunder, and
Executive shall be entitled to settle or contest any other issue raised by the
Internal Revenue Service or any other taxing authority. Executive shall
cooperate with the Company in any proceedings relating to the determination and
assessment of any Excise Tax and shall not take any position or action that
would materially increase the amount of any Gross-up Payment hereunder.

        19.     EFFECT OF AGREEMENT ON OTHER BENEFITS.

                Except as specifically provided in this Agreement, the existence
of this Agreement shall not be interpreted to preclude, prohibit or restrict
Executive's participation in any other employee benefit or other plans or
programs including the Company's 401(k) benefit plan.

        20.     ASSIGNABILITY: BINDING NATURE.

This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors, heirs (in the case of Executive) and permitted
assigns. No rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company except that such rights or obligations
may be assigned or transferred in connection with the sale or transfer of all or
substantially all of the assets of the Company, provided that the assignee or
transferee is the successor to all or substantially all of the assets of the
Company and such assignee or transferee assumes the liabilities, obligations and
duties of the Company, as contained in this Agreement, either contractually or
as a matter of law. The Company further agrees that, in the event of a sale or
transfer of assets as described in the preceding sentence, it shall take
whatever action it legally can in order to cause such assignee or transferee to
expressly assume the liabilities, obligations and duties of the Company
hereunder. No rights or obligations of Executive under this Agreement may be
assigned or transferred by Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of law, except as
provided in Section 26 below.

        21.     REPRESENTATION.

                The Company represents and warrants that it is fully authorized
and empowered to enter into this Agreement and that the performance of its
obligations under this Agreement will not violate any agreement between it and
any other person, firm or organization.

        22.     ENTIRE AGREEMENT.

                This Agreement contains the entire understanding and agreement
between the Parties concerning the subject matter hereof and, as of the
Effective Date, supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, between the Parties with
respect thereto.

        23.     AMENDMENT OR WAIVER.

                No provision in this Agreement may be amended unless such
amendment is agreed to in writing and signed by Executive and an authorized
officer of the Company. Except as set forth herein, no delay or omission to
exercise any right, power or remedy accruing to any Party shall impair any such
right, power or remedy or shall be construed to be a waiver of or an
acquiescence to any breach hereof. No waiver by either Party of any breach by
the other Party of any condition or provision contained in this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent time.
Any waiver must be in writing and signed by Executive or an authorized officer
of the Company, as the case may be.

                                       20
<PAGE>

        24.     SEVERABILITY.

                In the event that any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, in whole or
in part, the remaining provisions of this Agreement shall be unaffected thereby
and shall remain in full force and effect to the fullest extent permitted by
law.

        25.     SURVIVORSHIP.

                The respective rights and obligations of the Parties hereunder
shall survive any termination of Executive's employment to the extent necessary
to the intended preservation of such rights and obligations.

        26.     BENEFICIARIES/REFERENCES.

                Executive shall be entitled, to the extent permitted under any
applicable law, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit payable hereunder following Executive's death by
giving the Company written notice thereof. In the event of Executive's death or
a judicial determination of his incompetence, reference in this Agreement to
Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate or other legal representative.

        27.     GOVERNING LAW/JURISDICTION.

                This Agreement shall be governed by and construed and
interpreted in accordance with the laws of New Jersey without reference to
principles of conflict of laws. Subject to Section 16, the Company and Executive
hereby consent to the jurisdiction of any or all of the following courts for
purposes of resolving any dispute under this Agreement: (i) the United States
District Court for New Jersey or (ii) any of the courts of the State of New
Jersey. The Company and Executive further agree that any service of process or
notice requirements in any such proceeding shall be satisfied if the rules of
such court relating thereto have been substantially satisfied. The Company and
Executive hereby waive, to the fullest extent permitted by applicable law, any
objection which it or he may now or hereafter have to such jurisdiction and any
defense of inconvenient forum.

        28.     NOTICES.

                Any notice given to a Party shall be in writing and shall be
deemed to have been given when delivered personally or sent by certified or
registered mail, postage prepaid, return receipt requested, duly addressed to
the Party concerned at the address indicated below or to such changed address as
such Party may subsequently give such notice of:

                        If to the Company:     Linens 'n Things, Inc.
                                               6 Brighton Road
                                               Clifton, New Jersey 07015-5108
                                               Attention: Senior Vice President,
                                               Human Resources, Administration
                                               and Corporate Secretary

                                       21
<PAGE>

                        If to Executive:       Mr. Jack E. Moore, Jr.
                                               c/o Linens 'n Things, Inc.
                                               6 Brighton Road
                                               Clifton, New Jersey 07015-5108
                                               Attention: Senior Vice President,
                                               Human Resources, Administration
                                               and Corporate Secretary

        29.     HEADINGS.

                The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or
construction of any provision of this Agreement.

        30.     EXECUTIVE REPRESENTATIONS AND WARRANTIES.

                The Executive represents and warrants that (i) the information
(written or oral) provided by certification or other similar documentation by
the Executive to the company in connection with obtaining employment with the
Company or in connection with the Executive's former employment(s), work
history, circumstances of leaving former employment(s) and educational
background, is true, (ii) he has the legal capacity to execute and perform this
Agreement (iii) this Agreement is a valid and binding obligation of the
Executive enforceable against him in accordance with its terms, (iv) the
Executive's service hereunder will not conflict with, or result in a breach of,
any agreement, understanding, order, judgment or other obligation to which the
Executive is presented a party or by which he may be bound, and (v) the
Executive is not subject to, or bound by, any covenant against competition,
confidentiality obligation or any other agreement, order judgment or other
obligation which would conflict with, restrict or limit the performance of the
services to be provided by him hereunder.

        31.     COUNTERPARTS.

                This Agreement may be executed in two or more counterparts.

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

                                             LINENS 'N THINGS, INC.

                                             By:_______________________________
                                             Name:
                                             Title:

                                             EXECUTIVE

                                             ----------------------------------
                                             Jack E. Moore, Jr.

                                       22Exhibit 10.16

                                                                  MLA No. ML0743

                SECOND AMENDED AND RESTATED MASTER LOAN AGREEMENT

      THIS SECOND AMENDED AND RESTATED MASTER LOAN AGREEMENT (this "Agreement"),
dated as of November 30, 2004, is made by and between COBANK, ACB ("CoBank") and
Shenandoah Telecommunications Company (the "Borrower").

      WHEREAS, the Borrower and CoBank have previously entered into that certain
Master Loan Agreement, dated as of January 12, 2000, as amended and restated by
that certain Amended and Restated Master Loan Agreement, dated as of June 22,
2001 (the "Prior MLA").

      WHEREAS, the Borrower and CoBank now wish to amend and restate the Prior
MLA on the terms and conditions set forth herein;

      NOW, THEREFORE, in consideration of the foregoing, intending to be legally
bound hereby, and in consideration of CoBank making one or more loans to the
Borrower, CoBank and the Borrower hereby amend and restate the Prior MLA in its
entirety as follows:

      SECTION 1. Supplements. In the event the Borrower desires to borrow from
CoBank and CoBank is willing to lend to the Borrower, or in the event CoBank and
the Borrower desire to consolidate any existing loans hereunder, the parties
will enter into a Supplement to this Agreement (each supplement, as it may be
amended, modified, supplemented, extended or restated from time to time, a
"Supplement" and, collectively, the "Supplements"). Each Supplement will set
forth CoBank's commitment to make a loan or loans (each, a "Loan" and,
collectively, the "Loans") to the Borrower, the amount of the Loan(s), the
purpose of the Loan(s), the interest rate or rate options applicable to the
Loan(s), the repayment terms of the Loan(s), and any other terms and conditions
applicable to the Loan(s). Each Loan will be governed by the terms and
conditions contained in this Agreement and in the Supplement relating to that
Loan.

      SECTION 2. Availability. Advances under the Loans will be made available
on any day on which CoBank and the Federal Reserve Banks are open for business
(a "Business Day") upon the telephonic or written request of an authorized
employee of the Borrower. Requests for advances under the Loans must be received
no later than 12:00 noon Eastern time on the date the advance is desired or at
such earlier date and time as may be specified in the relevant Supplement.
Advances under the Loans will be made available by wire transfer of immediately
available funds. Wire transfers will be made to such account or accounts as may
be authorized by the Borrower. In taking actions upon telephonic requests,
CoBank shall be entitled to rely on (and shall incur no liability to the
Borrower in acting upon) any request made by a person identifying himself or
herself as one of the persons authorized by the Borrower to request advances
hereunder, so long as any funds advanced are wired to an account previously
designated by the Borrower.

<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

      SECTION 3. Notes and Payments. The Borrower's obligation to repay the
Loans made under each Supplement shall be evidenced by a promissory note (which
may be part of such Supplement) in form and content acceptable to CoBank (such
notes, as they may be amended, modified, supplemented, extended, restated or
replaced from time to time, collectively, the "Notes", and each a "Note"). The
Borrower shall make each payment which it is required to make under the terms of
this Agreement, each Supplement, the Notes and all security and other
instruments and documents relating hereto and thereto (such agreements,
Supplements, Notes, instruments and documents, as they may be amended from time
to time, collectively, at any time, the "Loan Documents") by wire transfer of
immediately available funds or by check. Wire transfers shall be made to ABA No.
307088754 for advice to and credit of CoBank (or to such other account as CoBank
may direct by notice). The Borrower shall give CoBank telephonic notice no later
than 12:00 noon Eastern time of its intent to pay by wire. Funds received by
wire before 3:00 p.m. Eastern time shall be credited on the day received and
funds received by wire after 3:00 p.m. Eastern time shall be credited on the
next Business Day. Checks shall be mailed to CoBank, at Department 167, Denver,
Colorado 80291-0167 (or to such other place as CoBank may direct by notice).
Credit for payment by check will not be given until the later of: (i) the day on
which CoBank receives immediately available funds; or (ii) the next Business Day
after receipt of the check. If any date on which a payment is due under any Loan
Document is not a Business Day, then such payment shall be made on the next
Business Day and such extension of time shall be included in the calculation of
interest due.

      SECTION 4. Security. The Borrower's obligations under the Loan Documents
shall be secured by a statutory first lien on all equity interests in CoBank
which the Borrower may now own or hereafter acquire or be allocated. In
addition, the Borrower's obligations under this Agreement, any Supplement or
Note may be secured as provided in such Supplement or Note, and may be
guaranteed as provided in any future Supplement. The Borrower agrees to take
such steps (including the execution of such instruments and documents) as CoBank
may from time to time reasonably require to enable CoBank to obtain, perfect and
maintain its security interests in such property as is described in the
Supplements.

      SECTION 5. Conditions Precedent.

            (A) Conditions to Initial Supplement. CoBank's obligation to extend
credit under the initial Supplement is subject to the conditions precedent that
CoBank receive, in form and substance satisfactory to CoBank, each of the
following:

                  (1) This Agreement, Etc. A duly executed original of this
      Agreement and all instruments and documents contemplated hereby.

                  (2) Delegation Form. A duly completed and executed original of
      a CoBank Delegation and Wire Transfer Authorization form.

            (B) Conditions to Each Supplement. CoBank's obligations, if any, to
extend credit under, each Supplement, including the initial Supplement, is
subject to the conditions precedent that CoBank receive, in form and content
satisfactory to CoBank, each of the following:

                                       2
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

                  (1) Supplement. A duly executed original of such Supplement,
      the Note relating thereto, and all other instruments and documents
      contemplated by such Supplement.

                  (2) Evidence of Authority. Such certified board resolutions,
      evidence of incumbency, and other evidence that CoBank may require that
      the Supplement, the Note relating thereto and all other instruments and
      documents executed in connection therewith, and, in the case of the
      initial Supplement, this Agreement and all instruments and documents
      executed in connection herewith, have been duly authorized and executed.

                  (3) Consents and Approvals. Such evidence as CoBank may
      require that all required regulatory and other consents and approvals have
      been obtained and are in full force and effect.

                  (4) Fees and Other Charges. All fees and other charges
      provided for herein or in the Supplement.

                  (5) Insurance. Such evidence as CoBank may require that the
      Borrower is in compliance with Subsection 7(E) hereof.

                  (6) Evidence of Perfection, Etc. Such evidence as CoBank may
      require that CoBank has a duly perfected first priority security interest
      in all collateral contemplated by the Supplement.

                  (7) Opinions of Counsel. Opinions of counsel to the Borrower
      and any other entity party to the Loan Documents relating to such
      Supplement acceptable to CoBank.

            (C) Conditions to Each Advance. CoBank's obligation under each
Supplement to make any Loan or advance to the Borrower thereunder is subject to
the further conditions set forth in such Supplement and that no Event of Default
(as defined in Section 9 hereof) or event which with the giving of notice and/or
the passage of time would become an Event of Default hereunder (a "Potential
Default"), shall have occurred and be continuing.

      SECTION 6. Representations and Warranties. The execution by the Borrower
of each Supplement and each request for an advance thereunder shall constitute a
representation and warranty to CoBank that:

            (A) Organization; Powers; Etc. The Borrower and each of its
subsidiaries (collectively, the "Subsidiaries") (i) is duly organized, validly
existing, and in good standing under the laws of its state of incorporation or
formation, as the case may be; (ii) is duly qualified to do business and is in
good standing in each jurisdiction in which the character of its properties or
the nature of its business requires such qualification; (iii) has all requisite
legal and corporate power to own and operate its assets and to carry on its
business and to enter into and perform its obligations under the Loan Documents
to which it is a party; and (iv) has duly and lawfully

                                       3
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

obtained and maintained all franchises, licenses, certificates, permits,
authorizations, approvals, and the like which are necessary in the conduct of
its business.

            (B) Due Authorization; No Violations; Etc. The execution and
delivery by the Borrower of, and the performance by the Borrower of its
obligations under, the Loan Documents to which it is a party have been duly
authorized by all requisite corporate action and do not and will not (i) violate
its articles of incorporation, its bylaws, any provision of any law, rule or
regulation, any judgment, order or ruling of any court or Governmental
Authority, any agreement, indenture, mortgage, or other instrument to which the
Borrower is a party or by which the Borrower or any of its property is bound, or
(ii) be in conflict with, result in a breach of, or constitute with the giving
of notice or lapse of time, or both, a default under any such agreement,
indenture, mortgage, or other instrument. All actions, if any, on the part of
the shareholders of the Borrower necessary in connection with the execution and
delivery by the Borrower of, and the performance by the Borrower of its
obligations under, the Loan Documents to which it is a party have been taken and
remain in full force and effect.

            (C) Binding Agreement. Each of the Loan Documents to which the
Borrower is a party is, or when executed and delivered will be, the legal,
valid, and binding obligation of the Borrower, enforceable against the Borrower
in accordance with its terms, subject only to limitations on enforceability
imposed by (i) applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws affecting creditors' rights generally, and (ii) general equitable
principles.

            (D) Financial Statements, Budgets, Projections, Etc. All financial
statements of the Borrower and any of the Subsidiaries submitted to CoBank in
connection with the Loans present fairly in all material respects the financial
condition of such entity to which such statements relate and the results of such
entity's operations for the periods covered thereby, and are prepared in
accordance with generally accepted accounting principles ("GAAP") consistently
applied (except, in the case of unaudited financial statements, for the omission
of footnotes, other schedules and the effect of normal year-end audit
adjustments). All budgets, projections, feasibility studies, and other
documentation submitted to CoBank in connection with the Loans, by or on behalf
of the Borrower or any of the Subsidiaries were based upon assumptions that were
believed to be reasonable at the time submitted, and as of the date of such
Supplement or request for advance, no fact has come to the attention of the
Borrower, and no event or transaction has occurred, which would cause any
assumption made therein not to be reasonable.

            (E) Consents and Approvals. No consent, permission, authorization,
order or license of any Governmental Authority is necessary in connection with
the execution, delivery, performance or enforcement of the Loan Documents to
which the Borrower is a party or the creation and perfection of the liens and
security interests granted thereby, except as such have been obtained and are in
full force and effect.

            (F) Compliance with Laws. The Borrower and each of the Subsidiaries
is in compliance in all material respects with all federal, state and local
laws, rules, regulations, ordinances, codes and orders (collectively, "Laws"),
the failure to comply with which could reasonably be expected to have a Material
Adverse Effect. The term "Material Adverse

                                       4
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

Effect" shall mean a material adverse effect on the condition, financial or
otherwise, operations, properties or business of the Borrower and the
Subsidiaries, taken as a whole, or on the ability of the Borrower to perform its
obligations under the Loan Documents.

            (G) Environmental Compliance. Without limiting the provisions of
Subsection 6(F), all property owned or leased by the Borrower or any of the
Subsidiaries and all operations conducted by them are in compliance in all
material respects with all Laws relating to environmental protection, the
failure to comply with which could reasonably be expected to have a Material
Adverse Effect.

            (H) Litigation. There are no pending legal, arbitration, or
governmental actions or proceedings to which the Borrower or any of the
Subsidiaries is a party or to which any of their respective property is subject
which could reasonably be expected to have a Material Adverse Effect, and to the
best of the Borrower's knowledge, no such actions or proceedings are threatened
or contemplated.

            (I) Principal Place of Business; Records. The principal place of
business and chief executive office of the Borrower and the place where the
records required by Subsection 7(G) are kept is at the address of the Borrower
shown in Section 14.

            (J) Employee Benefit Plans. The Borrower and each of the
Subsidiaries is in compliance in all material respects with the applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), and the regulations and published interpretations thereunder, the
failure to comply with which could reasonably be expected to have a Material
Adverse Effect.

            (K) Taxes. The Borrower and each of the Subsidiaries has filed or
caused to be filed all federal, state and local tax returns that are required to
be filed, and has paid all taxes as shown on such returns or on any assessment
received by them to the extent such taxes have become due, except where the
payment of such tax or assessment is being contested by the Borrower or such
Pledged Subsidiary in good faith and by appropriate proceedings and then only if
and to the extent reserves required by GAAP have been set aside on the
Borrower's or such Pledged Subsidiary's books therefor.

            (L) Investment Company Act; Public Utility Holding Company Act. The
Borrower is not an "investment company" as that term is defined in, or otherwise
subject to regulation under, the Investment Company Act of 1940, as amended. The
Borrower is not a "holding company" as that term is defined in, or otherwise
subject to regulation under, the Public Utility Holding Company Act of 1935, as
amended.

            (M) Use of Proceeds. The funds to be borrowed under this Agreement
and each Supplement are being borrowed for use only as contemplated thereby. No
part of such funds are being borrowed to purchase any "margin securities" or
otherwise in violation of the regulations of the Federal Reserve System.

            (N) Subsidiaries. The Borrower has no direct subsidiaries other than
as set forth on Schedule 6(N) to this Agreement. The Borrower is the registered
(if applicable) and

                                       5
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

beneficial owner, directly or indirectly, of the specified percentage of the
shares of issued and outstanding capital stock or the membership interest, as
applicable, of each of the Subsidiaries as set forth on Schedule 6(N), which
stock or membership interest is owned free and clear of all liens, warrants,
options, rights to purchase, rights of first refusal and other interests of any
person (except for liens granted to CoBank under the Loan Documents) and which
has been duly authorized and validly issued and is fully paid and
non-assessable.

            (O) Licenses; Permits; Etc. The Borrower and each of the
Subsidiaries is the valid holder of all franchises, licenses, certificates,
permits, authorizations, approvals and the like which are material to the
conduct of its business and which may be required by law, including, without
limitation, all licenses and permits of the Federal Communications Commission
(the "FCC"), the Virginia State Corporation Commission (the "PUC"), the public
utility commissions of any other states in which the Borrower operates and all
required cable television franchises and all such franchises, licenses,
certificates, permits, authorizations, approvals, and the like are in full force
and effect on the date hereof.

            (P) Business Neither the Borrower nor any of the Subsidiaries is
engaged in any business activity or operation other than the provision of
wireline telephone, cellular telephone, cable television and personal
communications services, other telecommunications services and other services
related to such businesses.

      SECTION 7. Affirmative Covenants. Unless otherwise agreed to in writing by
CoBank, which consent shall not be unreasonably withheld, so long as this
Agreement shall remain in effect or the obligations hereunder shall be unpaid or
otherwise unsatisfied, the Borrower will, and (except for Subsections 7(I)(1)
and (2), 7(J), 7(K), 7(L) and 7(M)) will cause each of the Subsidiaries to
(provided that following its acquisition, any Pledged Subsidiary, including,
without limitation, NTC Communications, LLC, shall have 90 days to be in
compliance with the affirmative covenants applicable to it):

            (A) Existence. Preserve and keep in full force and effect its
corporate or limited liability company existence and good standing in the
jurisdiction of its incorporation or formation, and its qualification to
transact business and its good standing in all places in which the character of
its properties or the nature of its business requires such qualification.

            (B) Compliance with Laws and Agreements. Comply in all material
respects with all Laws and agreements, indentures, mortgages, and other
instruments to which it is a party or by which it or any of its property is
bound, the failure to comply with which could reasonably be expected to have a
Material Adverse Effect.

            (C) Compliance with Environmental Laws. Without limiting the
provisions of Subsection 7(B), comply in all material respects with, and cause
all persons occupying or present on any properties owned or leased by it to so
comply with, all Laws relating to environmental protection, the failure to
comply with which could reasonably be expected to have a Material Adverse
Effect.

            (D) Licenses; Permits; Etc. Duly and lawfully obtain and maintain in
full force and effect all franchises, licenses, certificates, permits,
authorizations, approvals, and the

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like which are material to the conduct of its business or which may be required
by applicable Laws, including without limitation, all FCC licenses and permits,
all licenses and permits of the PUC, and all required cable television
franchises, which the failure to so obtain or maintain could reasonably be
expected to have a Material Adverse Effect.

            (E) Insurance. Maintain insurance with insurance companies or
associations acceptable to CoBank in such amounts and covering such risks as are
usually carried by companies engaged in the same or similar business and
similarly situated, and make such increases in the type or amount of coverage as
CoBank may reasonably request.

            (F) Property Maintenance. Maintain and preserve at all times its
property and each and every part and parcel thereof necessary to the proper
functioning of its business in good repair, working order, and condition,
ordinary wear and tear excepted, and in compliance in all material respects with
all applicable Laws.

            (G) Books and Records. Keep adequate records and books of account in
accordance with GAAP consistently applied and any system of accounts to which it
is subject.

            (H) Inspection. Permit CoBank or its agents, at CoBank's expense,
upon reasonable notice and during normal business hours or at such other times
as the parties may agree, to (i) examine its properties, books, and records,
(ii) discuss its affairs, finances, operations, and accounts with its officers,
directors, and independent certified public accountants and (iii) with the prior
consent of, and in the presence of, an officer of the Borrower in each instance,
which consent shall not be unreasonably withheld, discuss its affairs, finances,
operations, and accounts with one or more of its employees.

            (I) Reports and Notices. Furnish, or cause to be furnished, to
CoBank:

                  (1) Annual Financial Statements. As soon as available, but in
      no event later than 120 days after the end of each fiscal year of the
      Borrower occurring during the term hereof, annual financial statements of
      the Borrower prepared on a Consolidated Basis (as hereafter defined) in
      accordance with GAAP consistently applied and in a format that
      demonstrates any accounting or formatting change that may be required by
      the various jurisdictions in which the business of the Borrower is
      conducted (to the extent not inconsistent with GAAP). Such financial
      statements shall: (i) be audited by independent certified public
      accountants selected by the Borrower and reasonably acceptable to CoBank;
      (ii) be accompanied by a report of such accountants containing an
      unqualified opinion or an opinion otherwise acceptable to CoBank; (iii) be
      prepared in reasonable detail, and set forth in comparative form
      corresponding figures for the preceding fiscal year; and (iv) include a
      balance sheet, a statement of income, a statement of retained earnings, a
      statement of cash flows, and all notes and schedules relating thereto. In
      addition, each of such audited consolidated annual financial statements
      shall be accompanied by separate unaudited annual financial statements for
      each of the subsidiaries of the Borrower whose accounts are, in accordance
      with GAAP, consolidated with the Borrower, consisting of a balance sheet
      and a statement of income.

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                  (2) Quarterly Financial Statements. As soon as available but
      in no event later than 60 days after the end of each of the first three
      fiscal quarters of each fiscal year of the Borrower occurring during the
      term hereof, unaudited quarterly financial statements of the Borrower, in
      each case, prepared on a Consolidated Basis in accordance with GAAP
      consistently applied (except for the omission of footnotes and for the
      effect of normal year-end audit adjustments) and in a format that
      demonstrates any accounting or formatting change that may be required by
      various jurisdictions in which the business of the Borrower is conducted
      (to the extent not inconsistent with GAAP). Each of such financial
      statements shall (i) be prepared in reasonable detail and set forth in
      comparative form corresponding figures for the corresponding period of the
      preceding fiscal year, and (ii) include a balance sheet, a statement of
      income for such quarter and for the period year-to-date, a statement of
      cash flows and such other quarterly statements as CoBank may specifically
      request, which quarterly statements shall include any and all supplements
      thereto; provided, however, that the Borrower shall not be obligated to
      provide any quarterly consolidating financial statements if such
      statements have not been prepared for any other purpose.

                  (3) Notice of Default. Promptly after becoming aware thereof,
      notice of (i) the occurrence of any Potential Default or Event of Default
      under any of the Loan Documents; provided, however, that the failure to
      give such notice shall not affect the right and power of CoBank to
      exercise any and all of the remedies specified herein.

                  (4) Notice of Non-Environmental Litigation. Promptly after the
      commencement thereof, notice of the commencement of all actions, suits, or
      proceedings before any court, arbitrator, or governmental department,
      commission, board, bureau, agency, or instrumentality affecting it which
      could reasonably be expected to have a Material Adverse Effect.

                  (5) Notice of Environmental Litigation. Without limiting the
      provisions of Subsection 7(I)(4), promptly after receipt or becoming aware
      thereof, notice of the receipt of all pleadings, orders, complaints,
      indictments, or other communications (i) alleging a condition that may
      require it to undertake or to contribute to a cleanup or other response
      under Laws relating to environmental protection, or which seek penalties,
      damages, injunctive relief, or criminal sanctions related to alleged
      violations of such Laws, or which claim personal injury or property damage
      to any person as a result of environmental factors or conditions and (ii)
      which could reasonably be expected to have a Material Adverse Effect.

                  (6) Regulatory and Other Notices. Promptly after filing,
      receipt or becoming aware thereof, copies of any filings or communications
      sent to and notices or other communications received by it from any
      Governmental Authority, including, without limitation, the Securities and
      Exchange Commission, the FCC, the PUC, any cable television franchisor or
      any other state utility commission relating to any material noncompliance
      by it with any Laws or with respect to any matter or proceeding the effect
      of which, if adversely determined, could reasonably be expected to have a
      Material Adverse Effect.

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                  (7) Material Adverse Change. Prompt notice of any matter which
      has had or could reasonably be expected to have a Material Adverse Effect.

                  (8) Compliance Certificates. Concurrently with each statement
      required to be furnished pursuant to Subsection 7(I)(1) or (2), a
      compliance certificate in the form attached hereto as Exhibit A executed
      by the President or chief financial officer of the Borrower.

                  (9) ERISA Reportable Events. Within 30 days after it becomes
      aware of the occurrence of any Reportable Event (as defined in Section
      4043 of ERISA) applicable to it, a statement describing such Reportable
      Event and the actions it proposes to take in response to such Reportable
      Event.

                  (10) Other Information. Such other information regarding the
      condition, financial or otherwise, or operations of the Borrower and the
      Subsidiaries as CoBank may, from time to time, reasonably request.

            (J) Total Leverage Ratio. Achieve as of the last day of each fiscal
quarter of the Borrower (each a "Quarterly Date"), a Total Leverage Ratio (as
hereinafter defined), determined in accordance with GAAP consistently applied of
the Borrower and all subsidiaries whose accounts are, at the time of
determination, in accordance with GAAP, consolidated (on a "Consolidated Basis")
with the Borrower, not exceeding 2.50:1.00. The term "Total Leverage Ratio"
shall mean the ratio of Indebtedness to Operating Cash Flow (as such terms are
hereinafter defined). The term "Indebtedness" shall mean (i) obligations for
borrowed money, (ii) obligations representing the deferred purchase price of
property or services other than accounts payable arising in connection with the
purchase of goods or services on terms customary in the trade, (iii)
obligations, whether or not assumed, secured by liens or payable out of the
proceeds or production from property now or hereafter owned or acquired, (iv)
obligations which are evidenced by notes, acceptances or other instruments, (v)
leases of real or personal property which are required to be capitalized under
GAAP or which are treated as operating leases under regulations applicable to
them but which otherwise would be required to be capitalized under GAAP (each a
"Capital Lease"), (vi) fixed rate hedging obligations that are due (after giving
effect to any period of grace or notice requirement applicable thereto) and
remain unpaid, and (vii) fixed payment obligations under guarantees that are due
and remain unpaid. For purposes of this Agreement, the term "Operating Cash
Flow" (i) shall mean the sum of (a) net income or deficit, as the case may be,
excluding extraordinary gains and the write-up of any asset, (b) total interest
expense (including non-cash interest), (c) depreciation and amortization expense
and other similar non-cash expense and (d) federal, state and/or local income
taxes and (ii) shall be measured for the then most recently completed four
fiscal quarters, adjusted to give effect to any acquisition, sale or other
disposition of any operation or business (or any portion thereof) during the
period of calculation as if such acquisition, sale or other disposition occurred
on the first day of such period of calculation.

            (K) Debt Service Coverage Ratio. Achieve as of each Quarterly Date,
a Debt Service Coverage Ratio (as hereinafter defined), determined in accordance
with GAAP consistently applied and calculated on a Consolidated Basis, greater
than or equal to 2.00:1.00. The term "Debt Service Coverage Ratio" shall mean
the ratio of (i) Operating Cash Flow minus

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Master Loan Agreement/Shenandoah Telecommunications Company
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cash taxes to (ii) the aggregate of principal and interest payments due on
Indebtedness during the applicable period. Debt Service Coverage Ratio shall be
measured for the then most recently completed four fiscal quarters, adjusted to
give effect to any acquisition, sale or other disposition of any operation or
business (or any portion thereof) during the period of calculation as if such
acquisition, sale or other disposition occurred on the first day of such period
of calculation.

            (L) Equity to Total Assets Ratio. Achieve as of each Quarterly Date,
an Equity to Total Assets Ratio (as hereinafter defined), determined in
accordance with GAAP consistently applied and calculated on a Consolidated
Basis, greater than or equal to 35.0%. The term "Equity to Total Assets Ratio"
shall mean the percentage derived by dividing (i) the amount derived by
subtracting total liabilities from total assets by (ii) total assets, each as of
the last day of the applicable period.

            (M) Capitalization. The Borrower agrees to purchase such equity in
CoBank as CoBank may from time to time require in accordance with its bylaws and
capital plan; provided, however, that CoBank may not require the Borrower to
purchase equity in CoBank in an amount greater than 13% of the portion of
CoBank's five-year average risk-adjusted asset base attributable to loans made
by CoBank to the Borrower. In connection with the foregoing, the Borrower hereby
acknowledges receipt, prior to the execution of this Agreement, of CoBank's
bylaws, a written description of the terms and conditions under which the equity
is issued, CoBank's Loan-Based Capital Plan, CoBank's most recent annual report,
and if more recent than CoBank's latest annual report, its latest quarterly
report. The Borrower hereby consents and agrees that the amount of any
distributions with respect to its patronage with CoBank that are made in
qualified written notices of allocation (as defined in 26 U.S.C. ss. 1388) and
that are received by the Borrower from CoBank, will be taken into account by the
Borrower at the stated dollar amounts whether the distribution is evidenced by a
Participation Certificate or other form of written notice that such distribution
has been made and recorded in the name of the Borrower on the records of CoBank.
All such investments and all other equities in CoBank which the Borrower may now
own or hereafter acquire or be allocated shall be subject to a statutory first
lien in favor of CoBank.

      SECTION 8. Negative Covenants.

            (A) Borrower. Unless otherwise consented to in writing by CoBank,
which consent shall not be unreasonably withheld, the Borrower covenants and
agrees with CoBank that, so long as this Agreement shall remain in effect or the
obligations hereunder shall be unpaid or otherwise unsatisfied, the Borrower
will not:

                  (1) Borrowings. Create, incur, assume, or allow to exist,
      directly or indirectly, any Indebtedness except for (i) Indebtedness to
      CoBank, (ii) Indebtedness under purchase money security agreements and
      Capital Leases ("Purchase Money Indebtedness") not to exceed $5,000,000 in
      the aggregate for the Borrower and its subsidiaries at any one time, (iii)
      obligations to any Pledged Subsidiary, and (iv) other unsecured
      Indebtedness (including, for purposes of this clause (iv), Indebtedness to
      SunTrust Bank pursuant to that certain Commercial Note, dated as of May 8,
      2001 (the "SunTrust Note"), from the Borrower to SunTrust Bank) not to
      exceed $5,000,000 in the aggregate for the Borrower and its subsidiaries
      at any one time.

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Master Loan Agreement/Shenandoah Telecommunications Company
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                  (2) Liens. Create, incur, assume, or allow to exist any
      mortgage, deed of trust, deed to secure debt, pledge, lien (including the
      lien of an attachment, judgment, or execution), security interest, or
      other encumbrance of any kind upon any of its property, real or personal.
      The foregoing restrictions shall not apply to (i) liens in favor of
      CoBank; (ii) liens for taxes, assessments, or governmental charges that
      are not past due, unless the same are being contested in good faith and by
      appropriate proceedings and then only if and to the extent reserves
      required by GAAP have been set aside therefor; (iii) liens, pledges, and
      deposits under workers' compensation, unemployment insurance, social
      security and similar laws; (iv) liens, deposits, and pledges to secure the
      performance of bids, tenders, contracts (other than contracts for the
      payment of money), and like obligations arising in the ordinary course of
      its business as conducted on the date hereof; (v) liens imposed by law in
      favor of mechanics, materialmen, warehousemen, lessors and like persons
      that secure obligations that are not past due, unless the same are being
      contested in good faith and by appropriate proceedings and then only if
      and to the extent reserves required by GAAP have been set aside therefor;
      (vi) liens constituting encumbrances in the nature of zoning restrictions,
      easements and rights or restrictions of record on the use of real property
      of the Borrower that, in the sole judgment of CoBank, do not materially
      detract from the value of such real property or impair the use thereof in
      the Borrower's business; (vii) purchase money security interests and
      equipment leases securing Purchase Money Indebtedness permitted under
      Subsection 8(A)(1)(ii), provided that such security interests and leases
      do not encumber any property other than the items purchased with the
      proceeds thereof or leased thereby and any proceeds thereof; (viii) the
      "Collateral" as defined in the SunTrust Note, without giving effect to any
      amendments of such SunTrust Note after the date hereof; and (ix) liens on
      capital stock of any subsidiary of the Borrower that is not a Pledged
      Subsidiary, provided that CoBank shall have consented to the related
      borrowing as required under Subsection 8(A)(1).

                  (3) Fundamental Changes. (i) merge or consolidate with any
      other entity, acquire all or substantially all of the assets of any person
      or entity, provided that the Borrower and the Pledged Subsidiaries may
      without the consent of CoBank acquire, in the aggregate, all or
      substantially all of the assets of any person or person or entity or
      entities in an amount up to $20,000,000 over the term of the Loans, so
      long as after giving effect to such asset acquisitions, the Borrower in
      each case is in compliance on a pro forma basis with the covenants set
      forth in Subsections 7(J) through 7(L) hereof, (ii) form or create any
      subsidiary or affiliate other than in compliance with the provisions of
      Section 2 of the Second Amended and Restated Pledge Agreement, dated as of
      even date herewith), by and between CoBank and the Borrower (the "Pledge
      Agreement"), or (iii) commence operations under any other name,
      organization, or entity, including any joint venture.

                  (4) Transfer of Assets. Sell, transfer, lease, enter into any
      contract for the sale, transfer or lease of, or otherwise dispose of, any
      of its operating assets, except in the ordinary course of its business;
      provided, however, that the Borrower may sell, transfer, lease or other
      disposition of assets which in the aggregate for the Borrower and its
      subsidiaries do not exceed $5,000,000 in any fiscal year or exceed
      $25,000,000 over the term of the Loans so long as no Potential Default or
      Event of Default exists

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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

      before such disposition and no violation of Subsections 7(J) though 7(L)
      hereof will result after giving affect to such disposition.

                  (5) Loans and Investments. After the date hereof, make any
      loan or advance to, invest in, purchase or make any commitment to purchase
      any commercial paper, stock, bonds, notes, or other securities of any
      person or entity (each, whether made directly or indirectly, an
      "Investment") other than a Pledged Subsidiary other than:

                              (a) commercial paper maturing not in excess of one
            year from the date of acquisition and rated "P1" by Moody's
            Investors Service, Inc., or "A1" by Standard & Poor's Corporation on
            the date of acquisition;

                              (b) certificates of deposit in North American
            commercial banks rated "C" or better by Keefe, Bruyette & Woods,
            Inc., or "3" or better by Cates Consulting Analysts, maturing not in
            excess of one year from the date of acquisition;

                              (c) securities or deposits issued, guaranteed, or
            fully insured as to payment by the United States government or any
            agency thereof, and Class C stock or stock or other securities of,
            or investments in CoBank or CoBank investment services or programs;

                              (d) repurchase agreements of any bank or trust
            company incorporated under the laws of the United States of America
            or any state thereof and fully secured by a pledge of obligations
            issued or fully and unconditionally guaranteed by the United States
            government;

                              (e) money market funds maintained by nationally
            recognized investment firms or financial institutions, which funds
            are from time to time invested only in securities of the type
            described in (a) through (d) above and other securities having a
            rating of "A" or better by a nationally recognized rating agency;
            provided that the aggregate amount invested in such money market
            funds shall not at any time exceed $3,000,000 for any one such fund
            and $5,000,000 for any one such investment firm or financial
            institution; and

                              (f) commercial paper, stocks, bonds, notes, other
            securities and other ownership interests that are excluded from the
            scope of (a) through (e) and are issued by corporations or other
            entities incorporated or organized under the laws of the United
            States of America or any state thereof (collectively "Other
            Investments"); provided that:

                  (i)   the aggregate amount (calculated as the lower of cost or
                        market value) of all Other Investments made by the
                        Borrower and the Subsidiaries at any one time shall not
                        in any event exceed 15% of the Borrower's total assets
                        calculated on a Consolidated Basis, and

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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

                  (ii)  the Borrower will provide CoBank with a schedule of all
                        Other Investments (including valuations) at the end of
                        each fiscal quarter and more frequently upon CoBank's
                        request.

The Borrower acknowledges that CoBank is not in any way acting as an advisor to
it with respect to its or the Subsidiaries investments or otherwise and shall
have no responsibility to it in connection with CoBank's rights under this
Subsection or Subsection 8(B)(5), whether or not CoBank exercises any right to
review investments or makes any recommendation concerning the advisability of
any Other Investment, and the Borrower agrees that the Borrower and the
Subsidiaries will be solely responsible for all decisions made by the Borrower
or any of the Subsidiaries with respect to their respective investments.

                  (6) Change in Business. Engage in any business activity or
      operation different from or unrelated to the business activities and
      operations described in Subsection 6(P).

                  (7) Guarantees. Guarantee, assume, or otherwise become
      obligated or liable with respect to the indebtedness or other obligations
      of any person or entity, other than (i) guaranties made in favor of
      CoBank, (ii) the endorsement of checks, and (iii) guaranties made pursuant
      to that certain Performance Guaranty, dated as of November 5, 1999, made
      by the Borrower for the benefit of Sprint PCS with respect to obligations
      of Shenandoah Personal Communications Company in connection with the
      construction and lease of a PCS system in FCC designated basic trading
      areas 179, 479, 183, 12, 181 and 483.

                  (8) Distributions. Make, declare or pay, directly or
      indirectly, any dividend or other distribution of assets to shareholders
      of the Borrower, or retire, redeem, purchase or otherwise acquire for
      value any capital stock of the Borrower; provided, that the Borrower may
      declare or pay a dividend or other distribution of assets, or retire,
      redeem, purchase or otherwise acquire capital stock of the Borrower in any
      fiscal year in an aggregate amount equal to the greater of (i) $10,000,000
      or (ii) 100% of the immediately preceding fiscal year's aggregate
      after-tax consolidated net income of the Borrower if, and only if, no
      Potential Default or Event of Default then exists and no violation of
      Sections 7(J) through 7(L) hereof will result after giving effect to such
      dividend, distribution, retirement, redemption, purchase or other
      acquisition.

                  (9) Salaries; Wages; Compensation. Pay any wages, salaries or
      other compensation to any officer, director, stockholder, or partner (or
      relative of any thereof) of the Borrower or any of the Subsidiaries unless
      such compensation shall be (i) reasonable and comparable with compensation
      paid by companies of like nature, similarly situated, and (ii) payment for
      services actually rendered.

            (B) The Subsidiaries. Unless otherwise consented to in writing by
CoBank, which consent shall not be unreasonably withheld, the Borrower covenants
and agrees with CoBank that, so long as this Agreement shall remain in effect or
the obligations hereunder shall be unpaid or otherwise unsatisfied, none of the
Subsidiaries will (provided that following its

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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

acquisition, any Pledged Subsidiary, including, without limitation, NTC
Communications, LLC, shall have 90 days to be in compliance with these negative
covenants):

                  (1) Borrowings. Create, incur, assume, or allow to exist,
      directly or indirectly, any Indebtedness except for (i) Indebtedness to
      CoBank, (ii) Purchase Money Indebtedness, the aggregate amount of which
      does not exceed $5,000,000 for the Borrower and its subsidiaries at any
      one time, (iii) Indebtedness to the Borrower or any other Pledged
      Subsidiary, and (iv) Indebtedness of Shenandoah Telephone Company to the
      Rural Utilities Service (the "RUS") and the Rural Telephone Bank (the
      "RTB") outstanding on the date hereof or incurred pursuant to any RUS loan
      commitment in effect on the date hereof.

                  (2) Liens. Create, incur, assume, or allow to exist any
      mortgage, deed of trust, deed to secure debt, pledge, lien (including the
      lien of an attachment, judgment, or execution), security interest, or
      other encumbrance of any kind upon any of its property, real or personal.
      The foregoing restrictions shall not apply to (i) liens in favor of
      CoBank; (ii) liens for taxes, assessments, or governmental charges that
      are not past due, unless the same are being contested in good faith and by
      appropriate proceedings and then only if and to the extent reserves
      required by GAAP have been set aside therefor; (iii) liens, pledges, and
      deposits under workers' compensation, unemployment insurance, and social
      security laws; (iv) liens, deposits, and pledges to secure the performance
      of bids, tenders, contracts (other than contracts for the payment of
      money), and like obligations arising in the ordinary course of its
      business as conducted on the date hereof; (v) liens imposed by law in
      favor of mechanics, materialmen, warehousemen, lessors and like persons
      that secure obligations that are not past due, unless the same are being
      contested in good faith and by appropriate proceedings and then only if
      and to the extent reserves required by GAAP have been set aside therefor;
      (vi) liens constituting encumbrances in the nature of zoning restrictions,
      easements and rights or restrictions of record on the use of real property
      of a Pledged Subsidiary that, in the sole judgment of CoBank, do not
      materially detract from the value of such real property or impair the use
      thereof in the business of such Pledged Subsidiary; (vii) purchase money
      security interests and equipment leases securing Purchase Money
      Indebtedness permitted under Subsection 8(B)(1)(ii), provided that such
      security interests and leases do not encumber any property other than the
      items purchased or leased thereby and any proceeds thereof; and (viii)
      liens granted by Shenandoah Telephone Company from time to time in favor
      of the RUS and the RTB granted pursuant to that certain Restated Mortgage,
      Security Agreement and Financing Statement, dated as of February 1, 1991,
      by and among Shenandoah Telephone Company, the United States of America,
      acting through the Administrator of the RUS (as successor to the Rural
      Electrification Administration) and the RTB, or any amendment or
      supplement thereto, but only to the extent such liens secure indebtedness
      of Shenandoah Telephone Company to the RUS and the RTB outstanding on the
      date hereof or incurred pursuant to any RUS loan commitment in effect on
      the date hereof.

                  (3) Fundamental Changes. (i) Merge or consolidate with any
      other entity, or acquire all or substantially all of the assets of any
      person or entity, provided that

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MLA No. ML0743

      the Borrower and the Pledged Subsidiaries may without the consent of
      CoBank acquire, in the aggregate, all or substantially all of the assets
      of any person or person or entity or entities in an amount up to
      $20,000,000 over the term of the Loans, so long as after giving effect to
      such asset acquisitions, the Borrower in each case is in compliance on a
      pro forma basis with the covenants set forth in Subsections 7(J) through
      7(L) hereof, (ii) form or create any subsidiary other than in compliance
      with the provisions of Section 2 of the Pledge Agreement, or (iii)
      commence operations under any other name, organization, or entity,
      including any joint venture, or issue any additional capital stock other
      than to the Borrower or any Pledged Subsidiary.

                  (4) Transfer of Assets. Sell, transfer, lease, enter into any
      contract for the sale, transfer or lease of, or otherwise dispose of, any
      of its operating assets, except in the ordinary course of its business;
      provided, however, that a Pledged Subsidiary may sell, transfer, lease or
      other disposition of assets which in the aggregate for the Borrower and
      its subsidiaries do not exceed $5,000,000 in any fiscal year or exceed
      $25,000,000 over the term of the Loans so long as no Potential Default or
      Event of Default exists before such disposition and no violation of
      Subsections 7(J) though 7(L) hereof will result after giving affect to
      such disposition.

                  (5) Loans and Investments. After the date hereof, make any
      Investment in any person or entity other than the Borrower or any other
      Pledged Subsidiary, other than

                        (a) commercial paper maturing not in excess of one year
            from the date of acquisition and rated "P1" by Moody's Investors
            Service, Inc., or "A1" by Standard & Poor's Corporation on the date
            of acquisition;

                        (b) certificates of deposit in North American commercial
            banks rated "C" or better by Keefe, Bruyette & Woods, Inc., or "3"
            or better by Cates Consulting Analysts, maturing not in excess of
            one year from the date of acquisition;

                        (c) securities or deposits issued, guaranteed, or fully
            insured as to payment by the United States government or any agency
            thereof, and Class C Stock or other securities of CoBank;

                        (d) repurchase agreements of any bank or trust company
            incorporated under the laws of the United States of America or any
            state thereof and fully secured by a pledge of obligations issued or
            fully and unconditionally guaranteed by the United States
            government;

                        (e) money market funds maintained by nationally
            recognized investment firms or financial institutions, which funds
            are from time to time invested only in securities of the type
            described in Subsections (a) through (d) above, and other securities
            having a rating of "A" or better by a nationally recognized rating
            agency; provided that the aggregate amount invested in such

                                       15
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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

            money market funds shall not at any time exceed $3,000,000 for any
            one such fund and $5,000,000 for any one such investment firm or
            financial institution; and

                        (f) Other Investments, provided that:

                              (i) the aggregate amount (calculated as the lower
                        of cost or market value) of all Other Investments made
                        by the Borrower and the Subsidiaries shall not in any
                        event exceed 15% of the Borrower's total assets
                        calculated on a Consolidated Basis, and

                              (ii) the Borrower will provide CoBank with a
                        schedule of all Other Investments (including valuations)
                        at the end of each fiscal quarter and more frequently
                        upon CoBank's request.

                  (6) Change in Business. Engage in any business activity or
      operation different from or unrelated to its current business activities
      or operations.

                  (7) Salaries; Wages; Compensation. Pay any wages, salaries or
      other compensation to any officer, director, stockholder, or partner (or
      relative of any thereof) of the Borrower or any of the Subsidiaries unless
      such compensation shall be (i) reasonable and comparable with compensation
      paid by companies of like nature, similarly situated, and (ii) payment for
      services actually rendered.

      SECTION 9. Events of Default. Each of the following shall constitute an
"Event of Default" under this Agreement:

            (A) Payment Default. The failure by the Borrower to make any payment
or investment required to be made hereunder, under the Note, or under any other
Loan Document to which it is a party when due (other than any such required
investment the payment of which is entirely within the control of CoBank).

            (B) Representations and Warranties. Any representation or warranty
made by the Borrower herein or in any other Loan Document, or any factual
statement made in any certificate delivered in connection with the Loan, shall
prove to have been false or misleading in any material respect on or as of the
date made and the Borrower fails to commence and diligently pursue action to
remedy such inaccuracy within 10 days after written notice thereof shall have
been delivered by CoBank to the Borrower or such inaccuracy is not remedied
within 60 days after receipt by the Borrower of such notice or CoBank shall
determine that the Borrower intentionally made such false or misleading
representation, warranty or factual statement with knowledge of its false or
misleading nature.

            (C) Covenants and Agreements. The failure by the Borrower or any
Pledged Subsidiary to perform or comply with any other covenant or agreement
contained herein (other than covenants in Subsections 7(A), 7(I)(3) through
7(I)(7) and 7(I)(9) hereof) or any other Loan Document, and the Borrower fails
to commence and diligently pursue action to remedy such default within 10 days
after written notice thereof shall have been delivered by CoBank to the

                                       16
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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

Borrower or such default is not remedied within 60 days after receipt by the
Borrower of such notice.

            (D) Other Covenants. The failure by the Borrower to perform or
comply with any covenant excluded under Subsection (C).

            (E) Cross-Default. The occurrence, after giving effect to any
applicable notice and grace period, of any breach, default, or event of default
under any agreement (other than the Loan Documents) between either the Borrower
or any Pledged Subsidiary and CoBank, including, without limitation, any
guaranty, loan agreement, security agreement, mortgage, deed to secure debt, or
deed of trust.

            (F) Other Indebtedness. The occurrence of any breach, default, event
of default, or event which with the giving of notice or lapse of time, or both,
could become a default or event of default under any agreement, indenture,
mortgage, or other instrument by which the Borrower, or any of the Subsidiaries
or any of their respective property is bound or affected (other than the Loan
Documents) if the effect of such breach, default, event of default, or event is
to accelerate, or to permit the acceleration of, the maturity of any
indebtedness under such agreement, indenture, mortgage, or other instrument and
the aggregate amount of indebtedness the maturity of which has been accelerated
or is then subject to acceleration by reason of any one or more such breach,
default, event of default or other event under any such agreement, indenture,
mortgage or instrument equals or exceeds at any one time $500,000 in the
aggregate.

            (G) Judgments. Any judgment, decree or order for the payment of
money shall be rendered against the Borrower or judgments, decrees, or orders
for the payment of money in an aggregate amount for the Borrower and the
Subsidiaries in excess of $500,000 at any one time shall be rendered against the
Borrower or any of the Subsidiaries and either (1) enforcement proceedings shall
have been commenced; or (2) such judgments, decrees, and orders shall continue
unsatisfied and in effect for a period of 30 consecutive days without being
vacated, discharged, satisfied, or stayed pending appeal.

            (H) Insolvency, Etc. Any of the Borrower or any of the Subsidiaries
(1) shall become insolvent or shall generally not, or shall be unable to, or
shall admit in writing its inability to, pay its debts as they come due; or (2)
shall suspend its business operations or a material part thereof or make an
assignment for the benefit of creditors; (3) shall apply for, consent to, or
acquiesce in the appointment of a trustee, receiver, or other custodian for it
or any of its property or, in the absence of such application, consent, or
acquiescence, a trustee, receiver, or other custodian is so appointed; (iv)
shall commence with respect to it any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution, or liquidation
law or statute of any jurisdiction; or (v) shall have commenced against it any
such proceeding and such proceeding is not dismissed within 90 days of its
commencement.

            (I) Security. The Pledge Agreement or the filings contemplated
thereby shall for any reason fail to create a valid and perfected first-priority
lien, security interest, or security title (subject only to such exceptions as
are therein permitted) on any of the property identified therein.

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Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

      SECTION 10. Remedies Upon Event of Default.

            (A) Automatic Acceleration. Upon the occurrence of an Event of
Default under Subsection 9(H), the entire unpaid principal balance of the Loans,
all accrued interest thereon, and all other amounts payable under this
Agreement, all Supplements, all Notes, and all other agreements between CoBank
and the Borrower shall become immediately due and payable without protest,
presentment, demand, or further notice of any kind, all of which are hereby
expressly waived by the Borrower.

            (B) Acceleration; Etc. Upon the occurrence of an Event of Default
other than under Subsection 9(H), upon notice to the Borrower, CoBank may
declare the entire unpaid principal balance of all Loans, all accrued interest
thereon, and all other amounts payable under this Agreement, all Supplements and
all other agreements between CoBank and the Borrower, to be immediately due and
payable. Upon such a declaration, the unpaid principal balance of all Loans and
all such other amounts shall become immediately due and payable, without
protest, presentment, demand, or further notice of any kind, all of which are
hereby expressly waived by the Borrower.

            (C) Enforcement. Upon the occurrence of an Event of Default, CoBank
may proceed to protect, exercise, and enforce such rights and remedies as may be
provided by agreement or under law including, without limitation, the rights and
remedies provided for in this Agreement and any of the other Loan Documents.
Each and every one of such rights and remedies shall be cumulative and may be
exercised from time to time, and no failure on the part of CoBank to exercise,
and no delay in exercising, any right or remedy shall operate as a waiver
thereof, nor shall any single or partial exercise of any right or remedy
preclude any other or future exercise thereof, or the exercise of any other
right. In addition, CoBank may hold and/or set off and apply against the
Borrower's indebtedness any and all cash, accounts, securities, or other
property in CoBank's possession or under its control.

            (D) Application of Payments. After acceleration of the Loans, all
amounts received by CoBank shall be applied to the amounts owing hereunder, the
Supplements, under the Notes, and the other Loan Documents in whatever order and
manner as CoBank shall elect.

            (E) Regulatory Approvals. Upon any action by CoBank to commence the
exercise of remedies hereunder or under the Pledge Agreement, the Borrower
hereby undertakes and agrees to cooperate and join with CoBank in any
application to the PUC, the FCC, the SEC or any other regulatory body,
administrative agency, court or other forum (any such entity, a "Governmental
Authority") with respect thereto and to provide such assistance in connection
therewith as CoBank may request, including, without limitation, the preparation
of filings and appearances of officers and employees of the Borrower before such
Governmental Authority, in each case in support of any such application made by
CoBank, and the Borrower shall not, directly or indirectly, oppose any such
action by CoBank before any such Governmental Authority.

            (F) Default Rate. If prior to maturity the Borrower fails to make
any payment or investment required to be made under the terms of any Note or
Supplement (except to extent the making of such required investment is entirely
within the control of CoBank) or

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<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

following the occurrence of an Event of Default then, at CoBank's option in each
instance, such payment or investment shall accrue interest at 2% per annum in
excess of the interest rate otherwise applicable to such Loan until such amount,
including interest accrued thereon in accordance with the terms hereof, is paid
in full. After maturity, whether by reason of acceleration or otherwise, the
unpaid principal balance of the Loan shall automatically accrue interest at 2%
per annum in excess of the interest rate otherwise applicable to such Loan. All
interest provided for in this Subsection 10 (F) shall be payable on demand and
shall be calculated from and including the date such payment or investment was
due to but excluding the date paid on the basis of a year consisting of 360
days.

      SECTION 11. Complete Agreement, Amendments. The Loan Documents are
intended by the parties to be a complete and final expression of their
agreement. No amendment, modification, or waiver of any provision of this
Agreement or the other Loan Documents, and no consent to any departure by the
Borrower herefrom or therefrom, shall be effective unless approved by CoBank and
contained in a writing signed by or on behalf of CoBank, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose for which given. In the event this Agreement is amended or restated,
each such amendment or restatement shall be applicable to all Supplements
hereto. Each Supplement shall be deemed to incorporate all of the terms and
conditions of this Agreement as if fully set forth therein. Without limiting the
foregoing, any capitalized term utilized in any Supplement (or in any amendment
to this Agreement or Supplement) and not otherwise defined in the Supplement (or
amendment) shall have the meaning set forth herein.

      SECTION 12. Other Types of Credit. From time to time, CoBank may issue
letters of credit or extend other types of credit to or for the account of the
Borrower. In the event the parties desire to do so under the terms of this
Agreement, such extensions of credit may be set forth in any Supplement and this
Agreement shall be applicable thereto.

      SECTION 13. Applicable Law. Except to the extent governed by applicable
federal law, this Agreement and each Supplement shall be governed by and
construed in accordance with the laws of the Commonwealth of Virginia, without
reference to choice of law doctrine.

      SECTION 14. Notices. All notices hereunder or under any Supplement shall
be in writing and shall be deemed to be duly given upon delivery if personally
delivered or sent by telegram or facsimile transmission, or 3 days after mailing
if sent by express, certified or registered mail, to the parties at the
following addresses (or such other address for a party as shall be specified by
like notice):

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<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

   If to CoBank, as follows:
                                          If to the Borrower, as follows:
   CoBank, ACB
   900 Circle 75 Parkway                  Shenandoah Telecommunications Company
   Suite 1400                             124 South Main Street
   Atlanta, Georgia 30339                 P.O. Box 459
   Attn: Communications and Energy        Edinburg, Virginia  22824
           Banking Group                  Attn: Vice President - Finance
   Fax No.: (770) 618-3202                Fax No.: (540) 984-8192

      SECTION 15. Costs, Expenses and Taxes. To the extent allowed by law, the
Borrower agrees to reimburse all reasonable out-of-pocket costs and expenses
(including the fees and expenses of counsel retained by CoBank) incurred by
CoBank in connection with the origination, negotiation, documentation,
administration, collection, and enforcement of this Agreement and the other Loan
Documents, including, without limitation, all costs and expenses incurred in
perfecting, maintaining, determining the priority of, and releasing any security
for the Borrower's obligations to CoBank, and any stamp, intangible, transfer,
or like tax payable in connection with this Agreement or any other Loan Document
or the recording hereof or thereof.

      SECTION 16. Effectiveness and Severability. This Agreement shall continue
in effect until all indebtedness and obligations of the Borrower under this
Agreement, all Supplements, all Notes and all other Loan Documents shall have
been fully and finally paid or satisfied and CoBank has no commitment to extend
credit to or for the account of the Borrower under any Supplement. Any provision
of this Agreement or any other Loan Document which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or thereof.

      SECTION 17. Obligations Absolute. The obligation of the Borrower to make
all payments required to be made under this Agreement shall be absolute and
unconditional and shall be independent of any action by the PUC or the FCC with
respect to rates and/or disallowance of debt.

      SECTION 18. Successors and Assigns. This Agreement, each Supplement, and
the other Loan Documents shall be binding upon and inure to the benefit of the
Borrower and CoBank and their respective successors and assigns, except that the
Borrower may not assign or transfer its rights or obligations under this
Agreement, any Supplement or any other Loan Document without the prior written
consent of CoBank. Without the consent of, but with confirmed notice to, the
Borrower, CoBank may (a) sell participations to one or more banks or other
entities in all or a portion of its rights and obligations under this Agreement,
or (b) assign to one or more banks or other entities all or a portion of its
rights and obligations under this Agreement.

      SECTION 19. Counterparts. This Agreement, each Supplement and any other
Loan Document may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original and shall

                                       20
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

be binding upon all parties and their respective permitted successors and
assigns, and all of which taken together shall constitute one and the same
agreement.

                        [Signatures follow on next page.]

                                       21
<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

      IN WITNESS WHEREOF, the Borrower has caused this Agreement to be executed
and attested under seal and delivered, and CoBank has caused this Agreement to
be executed and delivered, each by their respective duly authorized officers as
of the date first shown above.

                                         SHENANDOAH TELECOMMUNICATIONS COMPANY

                                         By:________________________________,
                                               Name:____________________________
                                               Title:___________________________

                                         Attest:________________________________
                                                Name:___________________________
                                                Title:__________________________

                                                        [CORPORATE SEAL]

                       [Signatures continue on next page.]

         [Signature Page to Amended and Restated Master Loan Agreement]

<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

                    [Signatures continue from previous page.]

                                            COBANK, ACB

                                            By:_________________________________
                                               John P. Cole, Vice President

         [Signature Page to Amended and Restated Master Loan Agreement]

<PAGE>

Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

                                    EXHIBIT A

                     COMPLIANCE CERTIFICATE - MLA NO. ML0743

                  THIS COMPLIANCE CERTIFICATE is given by [Name], [President or
chief financial officer] of Shenandoah Telecommunications Company (the
"Borrower"), pursuant to Subsection 7(I)(8) of that certain Second Amended and
Restated Master Loan Agreement, dated as of November 30, 2004 (the "MLA"), by
and between the Borrower and CoBank, ACB.

      Capitalized terms used herein and not otherwise defined herein shall have
the meanings ascribed to them in the MLA.

      I hereby certify as follows:

1.    I am the [President or chief financial officer] of the Borrower and as
      such possess the knowledge and authority to certify to the matters set
      forth in this Compliance Certificate;

2.    Attached hereto as Annex A are the [audited/unaudited] [annual/quarterly]
      financial statements of the Borrower for the fiscal [year/quarter] ended
      ______________, as required by Subsection [7(I)(1)/(2)] of the MLA. The
      attached consolidated financial statements present fairly in all material
      respects to the financial condition of the Borrower, during the periods
      covered thereby and as of the dates thereof, and were prepared on a
      Consolidated Basis, and all attached financial statements were prepared in
      accordance with GAAP consistently applied and any system of accounts to
      which the Borrower is subject (except, in the case of unaudited financial
      statements, for the omission of footnotes, other schedules and the effect
      of normal year-end audit adjustments);

3.    As of the date of such financial statements, the Borrower is in compliance
      with the covenants set forth in Subsections 7(J) through (L) of the MLA.
      Attached hereto as Annex B are calculations which demonstrate the
      compliance by the Borrower with such covenants;

4.    I have reviewed the Loan Documents and the activities of the Borrower and
      the Subsidiaries during the fiscal [year/quarter] ended ________________
      in a manner reasonably designed to determine whether there exists a
      Potential Default or Event of Default under the MLA. As of the date of
      this Compliance Certificate, to the best of my knowledge on the basis of
      such review, there exists no condition, event or act which would
      constitute a Potential Default or Event of Default under the MLA, except
      as disclosed on Annex C hereto.

<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

      IN WITNESS WHEREOF, I have executed this Compliance Certificate as of
_____________, _____.

                                            ____________________________________
                                            [Name], [Title] of Shenandoah
                                            Telecommunications Company

<PAGE>
Master Loan Agreement/Shenandoah Telecommunications Company
MLA No. ML0743

                                  Schedule 6(N)

                                  SUBSIDIARIES

<TABLE>
<CAPTION>
                                                        Number of                     Percentage of Total
                                                Shares or Other Interests         Outstanding Shares or Other
            Entity                                Owned by the Borrower         Interests Owned by the Borrower
            ------                                ---------------------         -------------------------------
<S>                                                      <C>                                   <C>
NTC Communications, LLC                                   ___                                  100%

Shenandoah Cable Television Company                      3,610                                 100%

ShenTel Service Company                                  4,800                                 100%

Shenandoah Personal
   Communications Company                                 18                                   100%

Shenandoah Valley Leasing Company                        1,500                                 100%

Shenandoah Mobile Company                                5,000                                 100%

Shenandoah Long Distance Company                          50                                   100%

ShenTel Communications Company                             1                                   100%

Shenandoah Network Company                                712                                  100%

Shenandoah Telephone Company                             5,000                                 100%

Shentel Management Company                                 1                                   100%

Shentel Converged Services, Inc.                           1                                   100%
</TABLE>

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