Document:

EXHIBIT 10.50

                                                                  CONFORMED COPY
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                  AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

                                  by and among

                        THE CHILLICOTHE TELEPHONE COMPANY

                                       and

                     AMERICAN UNITED LIFE INSURANCE COMPANY
                                       and
                        THE STATE LIFE INSURANCE COMPANY

                          Dated as of November 1, 2002

                        The Chillicothe Telephone Company
               $12,000,000 6.72% Amended and Restated Senior Notes
                                Due June 1, 2018

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                                TABLE OF CONTENTS

SECTION                              HEADING                                PAGE

SECTION 1.      ISSUANCE OF NOTES.............................................1

       (a)      The Notes.....................................................1
       (b)      Note Exchanges to Be Several..................................2
       (c)      Late Payments.................................................2
       (d)      Manner of Payment.............................................2
       (e)      Payment on Non-Business Days..................................2

SECTION 2.      PREPAYMENTS OF THE NOTES......................................2

       (a)      Voluntary Payments with Premium...............................2
       (b)      Manner of Effecting Voluntary Prepayment......................2

SECTION 3.      REPRESENTATIONS AND WARRANTIES................................4

       (a)      Corporate Organization........................................4
       (b)      Conflicting Agreements and Other Matters......................4
       (c)      Due Authorization, etc........................................5
       (d)      Legal Proceedings; Compliance with Law........................5
       (e)      Title to Assets...............................................5
       (f)      Securities Matters............................................6
       (g)      Licenses and Permits..........................................6
       (h)      No Defaults on Indebtedness...................................6
       (i)      Tax Returns...................................................6
       (j)      ERISA Matters.................................................6
       (k)      Investment Company Act........................................7
       (l)      Public Utility................................................7
       (m)      Full Disclosure...............................................7
       (r)      Regulatory Approval...........................................7
       (n)      Existing Debt and Restricted Investments......................7
       (o)      Status under Certain Statutes.................................7

SECTION 4.      AFFIRMATIVE COVENANTS.........................................8

       (a)      Payment.......................................................8
       (b)      Maintenance of Books and Records..............................8
       (c)      Inspection of Books and Records...............................8
       (d)      Financial Information.........................................8
       (e)      Quarterly Financial Statements................................8
       (f)      Annual Financial Statements...................................9
       (g)      Financial Certification.......................................9
       (h)      Copies of Management Letters, etc............................10
       (i)      Copies of Regulatory Reports.................................10
       (j)      Corporate Existence..........................................10

                                      -i-
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       (k)      Payment of Taxes and Claims..................................10
       (l)      Maintenance of Properties and Licenses.......................11
       (m)      Insurance....................................................11
       (n)      Net Worth....................................................11
       (o)      Notice of Default............................................11
       (p)      Exchange of Notes............................................11
       (q)      Qualified Retirement Plans...................................11

SECTION 5.      NEGATIVE COVENANTS...........................................12

       (a)      Limitation on Consolidated Total Debt........................12
       (b)      Limitations on Debt of Restricted Subsidiaries...............12
       (c)      Subordination of Claims......................................12
       (d)      Sale of Assets...............................................12
       (e)      Merger and Consolidation.....................................13
       (f)      Maintenance of Present Business..............................13
       (g)      Transactions with Affiliates.................................13
       (h)      Permitted Liens..............................................13
       (i)      Restricted Payments and Restricted Investments...............15
       (j)      Fixed Charges................................................15
       (k)      Sale of Accounts.............................................15
       (l)      Guaranties; Etc..............................................16
       (m)      Restricted Subsidiaries......................................16

SECTION 6.      CLOSING CONDITIONS...........................................16

SECTION 7.      DEFAULTS.....................................................17

SECTION 8.      PAYMENTS ON AND REGISTRATION AND TRANSFER OF NOTES...........19

SECTION 9.      EXPENSES.....................................................19

SECTION 10.     DELIVERY OF DOCUMENTS; PRO RATA PAYMENTS;
                  AMENDMENTS AND CONSENTS....................................19

       (a)      Delivery of Documents........................................19
       (b)      Pro Rata Payments............................................19
       (c)      Amendments and Consents......................................20

SECTION 11.     INVESTMENT PURPOSE...........................................20

SECTION 12.     DEFINITIONS..................................................21

SECTION 13.     DESIGNATION OF SUBSIDIARIES..................................27

                                      -ii-

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SECTION 14.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES...................27

SECTION 15.     SUCCESSORS AND ASSIGNS.......................................27

SECTION 16.     NOTICES......................................................28

SECTION 17.     GOVERNING LAW................................................28

SECTION 18.     COUNTERPARTS.................................................28

SECTION 19.     CAPTIONS.....................................................28

APPENDIX I        --        Noteholders, Note Allocations and Wire Instructions
SCHEDULE 3(d)     --        Legal Proceedings
EXHIBIT A         --        Form of Amended and Restated Note
EXHIBIT B         --        Subsidiaries
EXHIBIT C         --        Existing Debts and Liens
EXHIBIT D         --        Existing Restricted Investments
EXHIBIT E         --        Form of Opinion of Counsel to the Company

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                  AMENDED AND RESTATED NOTE PURCHASE AGREEMENT

                      RE: THE CHILLICOTHE TELEPHONE COMPANY
               $12,000,000 6.72% AMENDED AND RESTATED SENIOR NOTES
                                DUE JUNE 1, 2018

                          DATED AS OF NOVEMBER 1, 2002

TO THE NOTEHOLDERS NAMED IN APPENDIX I HERETO:

Dear Sirs:

     Reference is hereby made to the Note Purchase Agreement dated as of June 1,
1998 (as amended by the First Amendment dated as of April 1, 1999, the "Original
Note Purchase  Agreement") by and between The Chillicothe  Telephone Company, an
Ohio corporation  (herein called the "Company"),  and each of you (herein called
the  "Noteholders"),  pursuant  to  which  the  Company  issued  and sold to the
Noteholders $12,000,000 aggregate principal amount of its 6.62% Senior Notes due
June 1, 2018 (the "Original Notes").

     The Company and the  Noteholders now desire that the Original Note Purchase
Agreement  be amended  and  restated  in its  entirety to be in the form of this
Amended and Restated  Note Purchase  Agreement  (the or this  "Agreement").  The
Company and the  Noteholders  also desire that the Original Notes be amended and
restated  in their  entirety  in the form of  Exhibit  A hereto,  and  that,  in
accordance  with  Section  1(a) hereof,  each  Noteholder  exchange the existing
Original Note or Original  Notes held by such  Noteholder  for a new Amended and
Restated  Note or  Amended  and  Restated  Notes in the form of Exhibit A hereto
(said  Amended and  Restated  Notes,  together  with any note or notes issued in
substitution therefor,  being herein collectively referred to as the "Notes" and
individually a "Note").

     In  accordance  with  the  foregoing,   the  Company  hereby  confirms  its
agreements set forth below with the Noteholders. Reference is made to Section 12
hereof  for  definitions  of  capitalized  terms used  herein and not  otherwise
defined.

SECTION 1.    ISSUANCE OF NOTES.

     (a) The Notes. Subject to the terms and conditions herein, the Company will
issue to each of the  Noteholders on November [12],  2002, or such later date as
may be fixed by the  Noteholders on at least three days' prior written notice to
the Company, or as may be mutually agreed upon with the Noteholders (the date of
such  issuance  being  herein  called  the  "Closing  Date"),  the  Notes in the
principal  amount  specified on Appendix I hereto,  dated  September 1, 2002, in
exchange for the Original Note or Original Notes held by such Noteholder,  which
Original  Notes shall  cease to accrue  interest as of  September  1, 2002.  The
principal  amount  of the Notes  shall be due in ten  consecutive  equal  annual
installments, each in an aggregate amount equal to $1,200,000 payable on the 1st
day of June in each of the years 2009 through 2018,  inclusive.  The Notes shall

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The Chillicothe Telephone Company                        Note Purchase Agreement

bear  interest  from  September 1, 2002 until  payment in full of the  principal
amount  thereof  at the rate of 6.72% per annum  (provided  that  solely for the
purpose of determining the portion of annual interest  allocable to any interest
payment  period,  it shall be assumed  that a year is  comprised of 360 days and
twelve  30-day  months),  payable  quarterly  on the  1st  day of  March,  June,
September  and  December,  commencing  December 1, 2002,  and  continuing  until
payment in full of the principal amount of the Notes. The Notes shall be subject
to optional and mandatory  prepayment as herein provided,  shall in all respects
be subject to the terms of this  Agreement,  and shall be  substantially  in the
form of Exhibit A hereto.

     (b)  Note  Exchanges  to  Be  Several.   The  exchange  by  the  respective
Noteholders  of each of the  Original  Notes in return  for the  Notes  shall be
separate and  several,  but the  exchange of each  Original  Note for a new Note
shall be a condition  concurrent to the exchange of each other Original Note for
a new Note.

     (c) Late Payments.  Any payment of principal or (to the extent permitted by
applicable  law)  interest  on the Notes not paid  when due,  whether  at stated
maturity, by acceleration or otherwise, shall thereafter bear interest at a rate
per annum equal to 8.72%  (provided  that in no event shall such rate exceed the
maximum rate permitted by law).

     (d) Manner of Note  Exchange.  The  Noteholders  will exchange the Original
Notes against delivery of the Notes to Noteholders' special counsel, Chapman and
Cutler,  which  exchange will be made at the offices of Chapman and Cutler,  111
West Monroe Street,  Chicago,  Illinois 60603 at 10:00 A.M.,  Chicago,  Illinois
time on the Closing Date.

     (e) Payment on Non-Business Days. Whenever any payment to be made hereunder
or under the Notes  shall be stated to be due on a  Saturday,  Sunday or holiday
for banks  under  the laws of the  States of New  York,  Indiana  or Ohio,  such
payment may be made on the next succeeding business day.

SECTION 2.     PREPAYMENTS OF THE NOTES.

     (a) Voluntary Payments with Premium. The Company may, at its option, at any
time, prepay the Notes in whole or in part (but if in part only in the aggregate
amount of $1,000,000 or integral multiples thereof), upon 30 days' prior written
notice to the holders of the Notes,  and upon  payment of a  prepayment  premium
equal to the excess, if any, of (i) the amount equal to the present value of all
installments  of principal  and interest  which are avoided by such  prepayment,
determined by discounting  such payments of principal and interest at a rate per
annum equal to .25% plus the Treasury Yield Percentage,  over (ii) the principal
amount to be  prepaid.  In no event shall such  prepayment  premium be less than
zero.

     (b) Manner of  Effecting  Voluntary  Prepayment.  In the event the  Company
shall give notice of any prepayment in accordance with Section 2(a) above,  such
notice  shall  specify  the  principal  amount of the Notes to be  prepaid,  the
Section  pursuant to which  prepayment  is being made,  and the date of proposed
prepayment,  and  thereupon  such  principal  amount,  together with accrued and
unpaid interest  thereon to the prepayment date and together with the applicable
premium,  if any,  shall become due and payable on the  prepayment  date. In the
event any  prepayment  pursuant  to  Section  2(a) shall be less than the entire

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The Chillicothe Telephone Company                        Note Purchase Agreement

unpaid  principal  amount of the Notes,  the amounts of the prepayments (and the
payment at  maturity)  required  by  Section  1(a) shall be reduced by an amount
which is the same  percentage  of such  required  prepayment  or  payment as the
percentage that the principal  amount of Notes prepaid  pursuant to Section 2(a)
is of the aggregate  principal amount of outstanding  Notes immediately prior to
such prepayment.

     (c) Change in Control.

     (i) Notice of Change in Control or Control Event. The Company will,  within
10 business days after any  Responsible  Officer has knowledge of the occurrence
of any Change in Control or Control Event, give written notice of such Change in
Control or Control  Event to each holder of Notes.  In the case that a Change in
Control has  occurred,  such notice  shall  contain and  constitute  an offer to
prepay the Notes as  described  in clause (ii) of this Section 2(c) and shall be
accompanied by the certificate described in clause (v) of this Section 2(c).

     (ii)  Offer to Prepay  Notes.  The offer to prepay  Notes  contemplated  by
clause (i) of this Section 2(c) shall be an offer to prepay,  in accordance with
and subject to this Section 2(c),  all, but not less than all, the Notes held by
each holder (in this case only,  "holder" in respect of any Note  registered  in
the  name  of a  nominee  for a  disclosed  beneficial  owner  shall  mean  such
beneficial  owner) on a date specified in such offer (the  "Proposed  Prepayment
Date") that is not less than 15 business days and not more than 30 business days
after  the date of such  offer (if the  Proposed  Prepayment  Date  shall not be
specified in such offer, the Proposed Prepayment Date shall be the 30th business
day after the date of such offer).

     (iii)  Acceptance;  Rejection.  A holder of Notes may  accept  the offer to
prepay made pursuant to this Section 2(c) by causing a notice of such acceptance
to be  delivered  to the Company at least 5 business  days prior to the Proposed
Prepayment Date. A failure by a holder of Notes to respond to an offer to prepay
made  pursuant to this Section 2(c) shall be deemed to  constitute an acceptance
of such offer by such holder.

     (iv)  Prepayment.  Prepayment  of the Notes to be prepaid  pursuant to this
Section 2(c) shall be at 100% of the  principal  amount of such Notes,  plus the
premium  specified in Sections  2(a) and (b) hereof  determined  for the date of
prepayment with respect to such principal amount, together with interest on such
Notes accrued to the date of prepayment.  On the business day preceding the date
of prepayment, the Company shall deliver to each holder of Notes being prepaid a
statement showing the prepayment  premium due in connection with such prepayment
and setting forth the details of the computation of such amount.  The prepayment
shall be made on the Proposed Prepayment Date.

     (v) Officer's Certificate.  Each offer to prepay the Notes pursuant to this
Section  2(c)  shall  be  accompanied  by a  certificate,  executed  by a Senior
Financial  Officer of the Company and dated the date of such offer,  specifying:
(A) the Proposed  Prepayment  Date; (B) that such offer is made pursuant to this
Section 2(c); (C) the principal  amount of each Note offered to be prepaid;  (D)
the  estimated  prepayment  premium  due  in  connection  with  such  prepayment
(calculated  as if the date of such  notice  were  the date of the  prepayment),
setting  forth the details of such  computation;  (E) the interest that would be
due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date;

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The Chillicothe Telephone Company                        Note Purchase Agreement

(F) that the  conditions  of this Section 2(c) have been  fulfilled;  and (G) in
reasonable detail, the nature and date of the Change in Control.

     (vi) "Change in Control" Defined.  A "Change in Control" shall be deemed to
have occurred if any Person or Persons (other than members of the McKell Family)
acting  in  concert,  together  with  Affiliates  thereof,   (individually,   an
"Acquiring  Person"  and  collectively,   "Acquiring   Persons")  shall  in  the
aggregate,  directly or indirectly,  control or own  (beneficially or otherwise)
more than 50% (by number of shares) of the issued and  outstanding  Voting Stock
of the Company;  provided,  however,  that if (A) the long-term senior unsecured
debt of each  Acquiring  Person is rated "A-" or above by  Standard & Poor's (or
the equivalent by any other nationally  recognized rating service) or (B) at the
time of the acquisition by an Acquiring  Person or Acquiring  Persons of control
or  ownership  of  more  than  50% (by  number  of  shares)  of the  issued  and
outstanding  Voting Stock of the  Company,  the Notes are rated "A-" or above by
Standard & Poor's (or the equivalent by any other nationally  recognized  rating
service),  then and in either such event,  a "Change of Control" shall be deemed
not to have occurred.

     (vii) "Control Event" Defined. "Control Event" means:

          (A)  the  execution  by the  Company  or any  of its  Subsidiaries  or
     Affiliates  of any  agreement  or  letter  of intent  with  respect  to any
     proposed  transaction or event or series of  transactions  or events which,
     individually or in the aggregate, may reasonably be expected to result in a
     Change in Control, or

          (B) the execution of any written agreement which, when fully performed
     by the parties thereto, would result in a Change in Control.

SECTION 3.     REPRESENTATIONS AND WARRANTIES.

         The Company represents and warrants to the Noteholders as follows:

          (a)  Corporate  Organization.  The  Company and its  Subsidiaries  are
     corporations  organized and existing and in good standing under the laws of
     the State of Ohio,  and are duly  qualified  to do business and are in good
     standing under the laws of each state where the nature of the business done
     or property  owned  require  such  qualification.  The Company is organized
     under the laws of the State of Ohio.  Exhibit B hereto correctly sets forth
     the name of each Subsidiary,  its state of incorporation and the percentage
     of the outstanding capital stock of such Subsidiary owned by the Company or
     another  Subsidiary,  and indicates whether such Subsidiary is a Restricted
     Subsidiary. The Company does not own, directly or indirectly,  more than 1%
     of  the  total  outstanding  capital  stock  of  any  class  of  any  other
     corporation  except  for the  capital  stock of ComNet,  Inc.  of which the
     Company owns approximately 5% of the outstanding capital stock thereof.

          (b)  Conflicting  Agreements and Other Matters.  Neither the execution
     and  delivery  by the  Company of this  Agreement  and the  Notes,  nor the
     performance  or observance  by the Company or any  Subsidiary of any of the
     terms or conditions of this Agreement or the Notes, will (i) conflict with,

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The Chillicothe Telephone Company                        Note Purchase Agreement

     or  result  in a breach  of the  terms,  conditions  or  provisions  of, or
     constitute a default under, or result in any violation of, or result in the
     creation of any Lien upon any of the properties or assets of the Company or
     any Subsidiary  pursuant to, the  Certificate of  Incorporation  or Code of
     Regulations of the Company or any Subsidiary,  any award of any arbitrator,
     or any  indenture,  contract or agreement  (including  any  agreement  with
     stockholders),  instrument,  order, judgment, decree, statute, law, rule or
     regulation  to which the  Company or any  Subsidiary  is  subject,  or (ii)
     require any registration or filing with, or any consent or approval of, any
     Federal,  state or local governmental  agency or authority,  except for the
     Application for Consent and Authority to issue and exchange  $12,000,000 of
     Amended  and  Restated  Senior  Unsecured  Notes  to the  Public  Utilities
     Commission of Ohio (the  "Commission")  which was filed  September 13, 2002
     (the  "Application")  and the approval  thereof by the Commission which was
     obtained by the Company on October 10, 2002.

          (c)  Due  Authorization,  etc.  The  issuance  of the  Notes  and  the
     execution  and  delivery  of this  Agreement  and the Notes are  within the
     corporate  powers  of the  Company  and have been  duly  authorized  by all
     necessary  action of the Company and its  Subsidiaries.  The Notes and this
     Agreement  have  been  duly  executed  and  delivered  by the  Company  and
     constitute  the  legal,  valid  and  binding  obligations,   contracts  and
     agreements of the Company  enforceable in accordance with their  respective
     terms.

          (d)  Legal  Proceedings;  Compliance  With  Law.  Except  as listed on
     Schedule 3(d) hereto,  there are no actions,  suits, or proceedings pending
     or, to the knowledge of the Company,  threatened against the Company or any
     of  its  Subsidiaries  or  any  property  of  the  Company  or  any  of its
     Subsidiaries in any court or before any federal,  state, municipal or other
     governmental  agency,  which, if decided adversely to the Company or any of
     its Subsidiaries,  would have a materially  adverse effect upon the Company
     or any of its  Subsidiaries  or upon  the  business  or  properties  of the
     Company or any of its  Subsidiaries.  Neither  the  Company  nor any of its
     Subsidiaries  is in  default  with  respect  to any  order of any  court or
     governmental agency.

          Neither the Company nor any Subsidiary (1) is in violation of any law,
     ordinance,  franchise,  governmental  rule or  regulation  to  which  it is
     subject;  or (2) has failed to obtain any  license,  permit,  franchise  or
     other governmental authorization necessary to the ownership of its property
     or to the conduct of its  business,  which  violation  or failure to obtain
     would  materially  affect  adversely  the  business,   prospects,  profits,
     properties  or condition  (financial  or  otherwise) of the Company and its
     Subsidiaries,  taken as a whole,  or impair the  ability of the  Company to
     perform its obligations contained in this Agreement or the Notes.

          (e) Title to Assets.  The Company and its  Subsidiaries  have good and
     marketable  title in fee simple to all real  property and good title to all
     personal property they purport to own,  including (except as they have been
     affected by transactions in the ordinary course of business) all properties
     and assets  reflected  in the most recent  balance  sheet  furnished to the
     Noteholders  pursuant to Section 4 of the Original Note Purchase Agreement.
     In the case of property used in their trades or businesses but not owned by

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<PAGE>

     them,  the  Company  and  its  Subsidiaries  have  a  valid,   binding  and
     enforceable right to use such property pursuant to a written lease, license
     or other  agreement.  All of the assets of the Company and its Subsidiaries
     are free and clear of all Liens (other than Liens permitted by Section 5(h)
     hereof).

          (f)   Securities   Matters.   Neither  the  Company  nor  any  of  its
     Subsidiaries  nor any agent  acting on the behalf of the  Company or any of
     its Subsidiaries has offered the Notes or any part thereof,  or any similar
     obligation  for sale to, or solicited any offers to buy such Notes,  or any
     part thereof,  or any similar  obligation from, any Person or Persons so as
     to bring the issue of the Notes within the  provisions  of Section 5 of the
     Securities Act of 1933, as amended,  and neither the Company nor any of its
     Subsidiaries will sell or offer for sale any note or any similar obligation
     of the  Company  or any  Subsidiary  to,  or  solicit  any offer to buy any
     similar  obligation of the Company or any  Subsidiary  from,  any Person or
     Persons so as to bring the issue or sale of the Notes within the provisions
     of Section 5 of the Securities Act of 1933, as amended.

          (g)  Licenses  and  Permits.  The  Company and its  Subsidiaries  have
     procured and are now in possession  of all licenses or permits  required by
     federal,  state or local  laws for the  operation  of the  business  of the
     Company and its  Subsidiaries in each  jurisdiction  wherein the Company or
     any Subsidiary is now conducting or proposes to conduct business.

          (h) No  Defaults on  Indebtedness.  Neither the Company nor any of its
     Subsidiaries  is in default in the payment of the  principal of or interest
     on any  indebtedness  for  borrowed  money  nor  is in  default  under  any
     instrument  or agreement  under and subject to which any  indebtedness  for
     borrowed  money  has been  issued,  and no event  has  occurred  under  the
     provisions of any such  instrument  or agreement  which with or without the
     passing  of time or the  giving of notice,  or both,  constitutes  or would
     constitute an event of default thereunder.

          (i) Tax  Returns.  The  Company  and its  Subsidiaries  have filed all
     federal  and state  income  tax  returns  which,  to the  knowledge  of the
     officers of the Company,  are required to be filed, and have paid all taxes
     shown on said  returns and all  assessments  received by them to the extent
     that they have  become due.  The federal  income tax returns of the Company
     have  been  finally  determined  by  the  Internal  Revenue  Service  to be
     satisfactory (or have been closed by the applicable statute of limitations)
     for all years prior to and  including  the year ended 1997.  No claims have
     been asserted  against the Company in respect of Federal income tax returns
     for any subsequent year.

          (j) ERISA Matters.  Each Plan of the Company and each ERISA  Affiliate
     in which any  employees of the Company or any ERISA  Affiliate  participate
     that is  subject  to any  provisions  of  ERISA is  being  administered  in
     accordance with the documents and instruments governing such Plan, and such
     documents and instruments are consistent with those provisions of ERISA and
     the Internal  Revenue Code which have become  effective and operative  with
     respect  to such  Plan as of the date of this  Agreement.  No such Plan has
     incurred any material  accumulated funding deficiency within the meaning of

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The Chillicothe Telephone Company                        Note Purchase Agreement

     Section 302 of ERISA  (whether or not waived),  and neither the Company nor
     any ERISA  Affiliate  has incurred any material  liability  (including  any
     material  contingent  liability)  to the PBGC in  connection  with any such
     Plan.  No such Plan nor any trust  created  thereunder  nor any  trustee or
     administrator thereof has engaged in a "prohibited  transaction" within the
     meaning  of ERISA or  Section  4975 of the  Internal  Revenue  Code and the
     issuance and sale of the Notes as contemplated hereby will not constitute a
     "prohibited transaction". No such Plan nor any trust created thereunder has
     been  terminated,  nor have there been any  "reportable  events" within the
     meaning of Section 4043 of ERISA with respect to any such Plan. Neither the
     Company nor any ERISA Affiliate contributes to or has any employees who are
     covered  by any  "multiemployer  plan," as such term is  defined in Section
     3(37) of  ERISA,  and  neither  the  Company  nor any ERISA  Affiliate  has
     incurred any withdrawal  liability  with respect to any such  multiemployer
     plan.

          (k)  Investment  Company  Act.  Neither  the  Company  nor  any of its
     Subsidiaries  is an "investment  company" or a company  "controlled"  by an
     "investment company" (as each of the quoted terms is defined or used in the
     Investment Company Act of 1940, as amended).

          (l) Public Utility. The Company is an operating public utility subject
     to the  jurisdiction  of the Public  Utilities  Commission  of Ohio and the
     Federal Communications Commission.

          (m) Full  Disclosure.  Neither this Agreement nor any other  document,
     certificate  or instrument  delivered to the  Noteholders  on behalf of the
     Company or any of its  Subsidiaries  in  connection  with the  transactions
     contemplated  hereby  contains any untrue  statement of a material  fact or
     omits to state a material  fact  necessary in order to make the  statements
     contained therein not misleading.

          (n) Regulatory Approval.  The issue and sale of the Notes have, to the
     extent  required  by law,  been duly  authorized  by the  Public  Utilities
     Commission  of Ohio  which  authorization  is not  subject to any appeal or
     modification  which could affect the validity or terms of the Notes, and no
     other  consent,   exemption,   approval  or   authorization  by  any  other
     governmental  authority is required in  connection  with the  execution and
     delivery of this Agreement or the issue and sale of the Notes.

          (o)  Existing  Debt  and  Restricted  Investments.  Exhibit  C  hereto
     correctly  describes  all Debt of the Company and Liens  securing  any such
     Debt as of  October  1,  2002.  Exhibit D hereto  correctly  describes  the
     Restricted  Investments  of the Company as of September  30,  2002,  all of
     which were made prior to September 30, 2002.

          (o)  Status  under  Certain  Statutes.  Neither  the  Company  nor any
     Subsidiary  is  subject to  regulation  under the  Public  Utility  Holding
     Company  Act of 1935,  as  amended,  the ICC  Termination  Act of 1995,  as
     amended, or the Federal Power Act, as amended.

                                       7
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

SECTION 4.    AFFIRMATIVE COVENANTS.

     The Company  covenants  and agrees that, so long as any amount shall remain
unpaid on any of the Notes, it will:

          (a) Payment. Duly and punctually pay or cause to be paid the principal
     of and interest on the Notes and will duly and punctually  perform or cause
     to be performed all things on its part or on the part of any  Subsidiary to
     be done or performed under this Agreement and the Notes.

          (b) Maintenance of Books and Records. At all times keep and cause each
     Subsidiary  to keep proper books of record and account in which full,  true
     and correct  entries will be made of their  transactions in accordance with
     generally  accepted  accounting  principles  applied on a consistent  basis
     throughout the periods involved.

          (c) Inspection of Books and Records.  At all  reasonable  times permit
     and cause  each  Subsidiary  to permit  the  holders of the Notes and their
     representatives  to  inspect  its books and  records  and to make  extracts
     therefrom and to inspect its properties and operations.

          (d)  Financial  Information.  From time to time furnish and cause each
     Subsidiary  to furnish the holders of the Notes with such  information  and
     statements as the holders of the Notes may  reasonably  request  concerning
     performance  by it of  the  covenants  and  agreements  contained  in  this
     Agreement and the Notes,  and with copies of all financial  statements  and
     reports that it shall send or make  available to its  stockholders;  and in
     the event that an Event of Default has occurred, and the Company shall have
     notified  the  holders of the Notes  that such  Event of  Default  has been
     corrected,  the  Company  shall,  upon  request of the  holders of at least
     66-2/3%  of  the  unpaid   principal  amount  of  the  Notes  at  the  time
     outstanding, for the purpose of showing that such Event of Default has been
     corrected,  furnish to the  holders of the Notes a signed  copy of an audit
     report or, if such  matter may be  covered in a special  report,  a special
     report prepared and certified by an independent certified public accountant
     selected  by the  Company  and  satisfactory  to the  holders of the Notes,
     confirming  that such Event of Default  has been  corrected.  All  expenses
     incurred  in  connection  with such report  shall be borne by the  Company.
     Nothing in this Section 4(d), however,  shall diminish,  defer, postpone or
     otherwise  limit the right of the  holders  of the Notes to take any action
     permitted by Section 7 hereof.

          (e)  Quarterly  Financial  Statements.  Furnish to the  holders of the
     Notes,  within 60 days after the close of each quarterly  accounting period
     in each fiscal year of the Company and its Subsidiaries, (i) a consolidated
     balance sheet and  consolidated  statement of income and retained  earnings
     reflecting the financial  condition of the Company and its  Subsidiaries at
     the end of each such quarterly period and the results of operations  during
     such period, all in reasonable detail, and setting forth comparable figures
     for the same  accounting  period in the preceding  fiscal year,  and (ii) a
     separate balance sheet,  statement of income and retained earnings for each
     Subsidiary reflecting the financial condition of each Subsidiary at the end

                                       8
<PAGE>

     of such quarterly  period and the results of operation  during such period,
     all in reasonable detail, and setting forth comparable figures for the same
     accounting period in the preceding fiscal year.

          The Company shall also furnish to the holders of the Notes,  within 60
     days after the close of each  quarterly  accounting  period in each  fiscal
     year of Telcom, a consolidated balance sheet and consolidated  statement of
     income and retained earnings  reflecting the financial  condition of Telcom
     and its subsidiaries at the end of each quarterly period and the results of
     operations during such period,  all in reasonable detail, and setting forth
     comparable  figures for the same accounting  period in the preceding fiscal
     year.

          (f) Annual Financial Statements.  Furnish to the holders of the Notes,
     as soon as  available,  but in any event within 120 days after the close of
     each fiscal year of the Company, duplicate signed copies of an audit report
     prepared and certified (without qualification as to the scope of the audit)
     by KPMG, LLP or another firm of independent certified public accountants of
     national  standing  selected by the Company and satisfactory to the holders
     of the Notes,  which report shall include a consolidated and  consolidating
     balance  sheet of the  Company and its  Subsidiaries  as at the end of such
     year,  consolidated  and  consolidating  statements  of income and retained
     earnings  of  the  Company  and  its   Subsidiaries  and  consolidated  and
     consolidating  statements of cash flows of the Company and its Subsidiaries
     reflecting  the operations  during said year, all in reasonable  detail and
     setting  forth  comparable  figures for the  preceding  fiscal year,  which
     report  shall  be  accompanied  by a  statement  by  such  accounting  firm
     certifying that in making the examination upon which such report was based,
     no  information  came to its attention  which to its knowledge  indicated a
     default under this Agreement had occurred or specifying any such default.

          The Company shall also furnish to the holders of the Notes, as soon as
     available,  but in any event within 120 days after the close of each fiscal
     year of Telcom,  duplicate  signed  copies of an audit report  prepared and
     certified (without qualification as to the scope of the audit) by KPMG, LLP
     or another firm of  independent  certified  public  accountants of national
     standing  selected by Telcom and  satisfactory to the holders of the Notes,
     which report shall include a consolidated  and  accompanying  supplementary
     consolidating balance sheet of Telcom and its subsidiaries as at the end of
     such  year,  consolidated  and  accompanying  supplementary   consolidating
     statements of income and retained  earnings of Telcom and its  subsidiaries
     and consolidated and accompanying supplementary consolidating statements of
     cash flows of Telcom and its subsidiaries  reflecting the operations during
     said year, all in reasonable  detail and setting forth  comparable  figures
     for the preceding fiscal year.

          (g) (i)  Financial  Certification.  At the time of the delivery to the
     holders of the Notes of the reports  referred to in Sections  4(e) and 4(f)
     hereof,  deliver to the  holders of the Notes a  certificate  signed by its
     chief financial officer,  certifying that (s)he has reviewed the provisions
     of this Agreement and stating,  in his or her opinion, if such be the fact,
     that the Company and its Subsidiaries  have not been and are not in default
     as to any of the provisions  contained in this Agreement,  or, in the event
     the Company or its  Subsidiaries  is or was in default,  setting  forth the
     details of such default.  Such certificate shall set forth the computations
     upon which such  officer  based the  conclusion  that the  Company  and its
     Restricted  Subsidiaries are and have been in compliance with Sections 4(n)
     and (r), and 5(b), (d), (h), (i) and (j) hereof.

                                       9
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

          (ii)  Restricted   Subsidiaries.   If  and  so  long  as  Unrestricted
     Subsidiaries  constitute,  in the aggregate,  more than 10% of Consolidated
     Total Assets or contribute, in the aggregate, more than 10% of Consolidated
     Net Earnings in any fiscal period, then for such fiscal periods, and within
     the respective periods provided in paragraphs (e) and (f) above, deliver to
     the holders of the Notes consolidated financial statements of the character
     and for the dates and periods as provided  in said  paragraphs  (e) and (f)
     covering the Company and its Restricted Subsidiaries.

          (h) Copies of Management  Letters,  etc. Furnish to the holders of the
     Notes,  promptly  after the receipt  thereof by the Company,  copies of all
     management  letters  or  similar  documents  submitted  to the  Company  by
     independent certified public accountants in connection with each annual and
     any interim audit of the accounts of the Company or its Subsidiaries.

          (i) Copies of Regulatory Reports. Furnish to the holders of the Notes,
     promptly after transmittal or filing thereof by the Company,  copies of all
     proxy statements, notices and reports as it shall send to its stockholders,
     copies of all registration  statements  (without  exhibits) and all reports
     which it files with the  Securities  and Exchange  Commission  or any other
     regulatory  agency,  other  than  routine  reports  filed  with  respect to
     employee benefit plans (excepting those annual reports with respect to each
     such plan  requested  by the  holders of the Notes in writing  pursuant  to
     Section 4(q) hereof).

          (j)  Corporate  Existence.  Maintain  and  cause  each  Subsidiary  to
     maintain  its  corporate  existence  in  good  standing  (except  that  the
     corporate existence of any Restricted Subsidiary may be terminated pursuant
     to  a  merger  or  consolidation  permitted  under  Section  5(e)  of  this
     Agreement)  and comply  with all  applicable  laws and  regulations  of the
     United States and of each state thereof and of each  political  subdivision
     thereof and of any and all other governmental authorities.

          (k) Payment of Taxes and Claims.  Pay and cause each Subsidiary to pay
     before they become  delinquent (a) all taxes,  assessments and governmental
     charges  or levies  imposed  on the  Company,  any  Subsidiary  or upon the
     property  of the  Company or any  Subsidiary,  (b) all claims or demands of
     materialmen,  mechanics, carriers,  warehousemen,  landlords and other like
     persons which, if unpaid,  might result in the creation of a Lien or charge
     upon any  property  of the Company or any  Subsidiary,  and (c) all claims,
     assessments or levies  required to be paid by the Company or any Subsidiary
     pursuant to any agreement, contract, law, ordinance or governmental rule or
     regulation governing any pension, retirement, profit-sharing or any similar
     plan of the Company or any  Subsidiary,  provided  that the Company or such
     Subsidiary  shall have the right to contest in good faith,  by  appropriate

                                       10
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

     proceedings  promptly initiated and diligently conducted which will prevent
     the forfeiture or sale of any property of the Company or such Subsidiary or
     any  material  interference  with the use  thereof  by the  Company or such
     Subsidiary,  the  validity,  amount or  imposition  of any of the foregoing
     items and upon such good faith contest to delay or refuse payment  thereof,
     if such  reserve  or  other  appropriate  provision,  if any,  as  shall be
     required by generally accepted  accounting  principles shall have been made
     therefor.

          (l)  Maintenance of Properties  and Licenses.  Maintain and cause each
     Subsidiary  to maintain and keep its  properties  in good  repair,  working
     order and  condition,  and from time to time make all  needful  and  proper
     repairs,  renewals  and  replacements  so that the  business  carried on in
     connection  therewith may be properly and  advantageously  conducted at all
     times.  The  Company  will do or cause to be done all things  necessary  to
     preserve,  renew and keep in full force and effect  the  rights,  licenses,
     permits, agency agreements,  and trade names material to the conduct of its
     business and maintain and operate such  business  properly and  efficiently
     and in  substantially  the manner in which it is  presently  conducted  and
     operated.

          (m)  Insurance.  Maintain and cause each  Subsidiary  to maintain,  in
     financially sound insurance companies of recognized standing,  insurance of
     types and in amounts  usually  maintained  by similar  companies in similar
     businesses.

          (n) Net Worth. At all times during each twelve-month  period ending on
     December 31 in each year, commencing with the twelve-month period ending on
     December 31, 2002, maintain Consolidated Adjusted Net Worth in an amount at
     least equal to $30,000,000,  plus 25% of Consolidated  Net Income,  if any,
     determined on a cumulative basis for each fiscal year of the Company ending
     on or after  December  31,  2002 and prior to the  twelve-month  period for
     which  such   determination  is  being  made  (without  reduction  for  any
     Consolidated Net Loss incurred in any such fiscal year).

          (o) Notice of  Default.  Give the  holders of Notes  prompt  notice in
     writing of any  condition  or event which  constitutes  an Event of Default
     under Section 7 hereof,  or which,  after notice or lapse of time, or both,
     would constitute such an Event of Default.

          (p)  Exchange  of Notes.  At any time,  at its  expense  upon  written
     request of the holder of a Note and surrender of the Note for such purpose,
     issue new Notes in  exchange  therefor  in such  denominations  of at least
     $1,000,000 (or such smaller amount equal to the then outstanding  principal
     amount of such Note) as shall be specified  by the holder of such Note,  in
     an aggregate  principal amount equal to the then unpaid principal amount of
     the Note  surrendered  and  substantially  in the form of  Exhibit  A, with
     appropriate  insertions and variations,  and bearing interest from the date
     to which interest has been paid on the Note surrendered.

          (q) Qualified Retirement Plans. Cause each Plan of the Company and any
     ERISA  Affiliate  in  which  any  employees  of the  Company  or any  ERISA
     Affiliate  participate  that is subject to any  provisions of ERISA and the
     documents and instruments  governing each such Plan to be conformed to when

                                       11
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

     necessary,  and  to be  administered  in a  manner  consistent  with  those
     provisions  of ERISA and the Internal  Revenue Code which may, from time to
     time,  become  effective and operative  with respect to such Plans;  and if
     requested by the holders of the Notes in writing from time to time, furnish
     to the  holders of the Notes a copy of any annual  report  with  respect to
     each such plan that the Company  files with the  Internal  Revenue  Service
     pursuant  to ERISA.  The  Company  will not,  and will not permit any ERISA
     Affiliate  to (i) engage in any  "prohibited  transaction,"  (ii) incur any
     "accumulated  funding  deficiency,"  whether or not waived, (iii) terminate
     any Plan in a manner which could result in the  imposition of a Lien on any
     property  of  the  Company  or any  ERISA  Affiliate,  or  (iv)  incur  any
     withdrawal liability in connection with any "multiemployer plan."

SECTION 5.     NEGATIVE COVENANTS.

     The Company  covenants  and agrees that so long as any amount  shall remain
unpaid on the Notes,  it will not and will not permit any Restricted  Subsidiary
to:

          (a) Limitation on Consolidated  Total Debt.  Permit, at the end of any
     fiscal  quarter of the  Company,  Consolidated  Total Debt to exceed 60% of
     Consolidated Total Capitalization as of such fiscal quarter end.

          (b) Limitations on Debt of Restricted Subsidiaries. In the case of any
     Restricted Subsidiary, create, assume, incur, guarantee or otherwise become
     liable in respect of any Debt  (other  than Debt to the  Company or another
     Restricted Subsidiary), unless at the time such Debt is incurred, and after
     giving effect  thereto and the  application  of the proceeds  thereof,  the
     aggregate amount of all Debt of Subsidiaries,  plus the aggregate amount of
     all other Debt secured by Liens permitted by Section 5(h)(ix) hereof, would
     not exceed 20% of Consolidated Adjusted Net Worth.

          (c) Subordination of Claims.  Subordinate or permit to be subordinated
     any claim  against,  or obligation of another Person held or owned by it to
     any other claim against, or obligation of, such other Person.

          (d) Sale of Assets.  Sell,  lease,  transfer or  otherwise  dispose of
     (collectively, a "Disposition"),  all or any part of its assets (other than
     sales or dispositions in the ordinary course of business) if either (i) the
     aggregate  amount of all  Dispositions  in any fiscal  year  exceeds 10% of
     Consolidated  Total  Assets  determined  as of the  end of the  immediately
     preceding  fiscal year,  or (ii) the aggregate  amount of all  Dispositions
     from and after the date of this Agreement exceeds 25% of Consolidated Total
     Assets determined as of the end of the immediately preceding fiscal year (a
     Disposition of assets  described in clause (i) or (ii) above is referred to
     herein as a "substantial part"),  except: (i) any Restricted Subsidiary may
     sell,  lease or  otherwise  dispose  of, all or a  substantial  part of its
     assets to the  Company or a  Restricted  Subsidiary;  (ii) the  Company may
     sell, lease, transfer or otherwise dispose of, all or a substantial part of
     its assets if the net  proceeds  of such sales are used to  purchase  other
     property of a similar nature of at least  equivalent  value within one year
     of such sale; and (iii) the Company may sell, lease,  transfer or otherwise

                                       12
<PAGE>

     dispose of all or a  substantial  part of its assets if the net proceeds of
     such sale are used to prepay  Senior  Debt  (including  the Notes) on a pro
     rata basis; provided that any prepayment of the Notes must be in accordance
     with the terms of and with the premium  specified in Sections  2(a) and (b)
     hereof.

          (e)  Merger  and   Consolidation.   Merge  or  consolidate   with  any
     corporation  provided that (i) any  Restricted  Subsidiary may be merged or
     consolidated with the Company (if the Company is the surviving corporation)
     or with  another  Restricted  Subsidiary  and (ii) the Company may merge or
     consolidate with another corporation if (A) the surviving corporation would
     be organized under the laws of the United States or any state thereof,  (B)
     the surviving  corporation expressly assumes the obligations of the Company
     under this  Agreement and the Notes,  (C) the surviving  corporation  shall
     have  caused to be  delivered  to each  holder of the Notes an  opinion  of
     nationally  recognized  independent  counsel,  or other independent counsel
     reasonably satisfactory to the holders of the Notes, to the effect that all
     agreements or  instruments  effecting such  assumption  are  enforceable in
     accordance  with their terms and comply  with the terms of hereof,  and (D)
     immediately  following the merger or consolidation  and after giving effect
     thereto (1) no event or condition  would exist  which,  with or without the
     lapse of time or the giving of notice,  or both,  would constitute an Event
     of Default, and (2) the Consolidated  Adjusted Net Worth of the Company and
     its Restricted Subsidiaries would be no less than the Consolidated Adjusted
     Net Worth of the Company and its Restricted Subsidiaries  immediately prior
     to the merger or consolidation.

          (f) Maintenance of Present Business. Engage in any business other than
     Existing Lines of Business, nor purchase or invest, directly or indirectly,
     in any  substantial  amount of  assets or  property  other  than  assets or
     property useful and to be used in Existing Lines of Business.

          (g)  Transactions  with  Affiliates.  Enter  into or be a party to any
     transaction  or  arrangement   with  any  Affiliate   (including,   without
     limitation, the purchase from, sale to or exchange of property with, or the
     rendering of any service by or for, any Affiliate),  except in the ordinary
     course of and pursuant to the  reasonable  requirements  of the business of
     the Company or its  Subsidiaries and upon fair and reasonable terms no less
     favorable to the Company or any of its Subsidiaries  than would be obtained
     in a  comparable  arm's-length  transaction  with a  Person  other  than an
     Affiliate.

          (h) Permitted Liens. Create, assume, or suffer to exist any Liens upon
     any of its  property or assets,  whether now owned or  hereafter  acquired,
     except:

               (i) Liens for taxes or assessments or other governmental  charges
          or levies  not yet due or which are being  contested  in good faith by
          appropriate  proceedings promptly initiated and diligently  conducted,
          if such reserve or other  appropriate  provision,  if any, as shall be
          required by generally accepted  accounting  principles shall have been
          made therefor;

                                       13
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

               (ii) other Liens  incidental to the conduct of their  business or
          the ownership of their  respective  properties which were not incurred
          in connection  with borrowing of money or the obtaining of advances or
          credit and which do not in the aggregate  materially  detract from the
          value of their properties or materially  impair the use thereof in the
          operation of the business;

               (iii) Liens on assets of any Restricted  Subsidiary securing Debt
          of such Restricted  Subsidiary to the Company or to another Restricted
          Subsidiary;

               (iv)  Liens (i) on  property  of the  Company  or any  Restricted
          Subsidiary  securing all or any part of the purchase  price or cost of
          construction  of such  property  created  contemporaneously  with,  or
          within 270 days after,  the acquisition or completion of construction,
          (ii) on any property  existing at the time of  acquisition  thereof by
          the Company or any  Restricted  Subsidiary,  and (iii) existing on the
          property of any Person at the time such Person is acquired (whether by
          purchase of stock or assets, by merger or consolidation, or otherwise)
          by the Company or any Restricted Subsidiary; provided that (A) none of
          such Liens shall  encumber any other property or assets of the Company
          and its Restricted  Subsidiaries,  and (B) the principal amount of the
          Debt secured by any such Lien shall not exceed 100% of the fair market
          value  of the  property  subject  thereto  at the time  such  Lien was
          created;

               (v)  presently  existing  Liens  described  in  Exhibit  C hereto
          securing  existing Debt described in Exhibit C, and any  replacements,
          extensions   or  renewals  of  such  Debt;   provided   that  no  such
          replacement,  extension or renewal shall increase the principal amount
          thereof;

               (vi) Liens of or resulting  from any judgment or award,  the time
          for the  appeal or  petition  for  rehearing  of which  shall not have
          expired, or in respect of which the Company or a Restricted Subsidiary
          shall at any time in good faith be prosecuting an appeal or proceeding
          for a review and in respect of which a stay of execution  pending such
          appeal or proceeding for review shall have been secured;

               (vii) Liens  incurred in connection  with obtaining or performing
          government contracts;

               (viii) Liens on any property of the  Company;  provided  that the
          Company  shall have  granted to the  holders of the Notes a pari passu
          Lien on the same  property,  and the  holders of any such Lien and the
          holders  of  the  Notes  shall  have  entered  into  an  intercreditor
          agreement in form and substance reasonably satisfactory to the holders
          of the Notes providing for such pari passu ranking; and

               (ix) Liens in addition to those  permitted by clauses (i) through
          (viii)  above,   securing  Debt  of  the  Company  or  any  Restricted
          Subsidiary,  provided  that at the time of the  incurrence of any such
          Lien the sum of (i) the aggregate principal amount of all Debt secured
          by Liens permitted by this clause (ix), plus (ii) the aggregate amount

                                       14
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

          of Debt of  Subsidiaries  incurred  within the  limitations of Section
          5(b), shall not exceed 20% of Consolidated Adjusted Net Worth.

               (i) Restricted Payments and Restricted Investments.

                    (1)  Declare  or make,  or incur any  liability  to make any
               Restricted Payments or Restricted Investments, except:

                         (A) a Restricted  Subsidiary  may pay  dividends to the
                    Company; and

                         (B) subject to the limitation in clause (2) below,  the
                    Company and its Restricted  Subsidiaries may declare or make
                    Restricted  Payments and  Restricted  Investments,  provided
                    that immediately after giving effect to any such action, (x)
                    no Event of Default or event  which with the passing of time
                    or the giving of notice,  or both, would constitute an Event
                    of Default shall exist,  and (y) the aggregate amount of all
                    Restricted  Payments and Restricted  Investments  made on or
                    after  August  14,  2002  to and  including  the  date  such
                    Restricted  Payment or Restricted  Investment is declared or
                    made,  as the case may be,  would not  exceed the sum of (i)
                    $7,500,000, plus (ii) 60% of any Cumulative Consolidated Net
                    Income, minus (iii) 100% of any Cumulative  Consolidated Net
                    Loss,  plus (iv) the net  proceeds to the  Company  from any
                    issuance  of  capital  stock  from and after the  August 14,
                    2002;

               (2) In addition to the limitations contained in clause (1) above,
          the aggregate amount of all Restricted  Investments of the Company and
          its Restricted Subsidiaries outstanding at any time on or after August
          14, 2002 shall not exceed the greater of (a)  $7,500,000 or (b) 15% of
          Consolidated Adjusted Net Worth.

     In valuing any  Investments for the purpose of applying the limitations set
forth in this Section  5(i),  Investments  shall be taken at the  original  cost
thereof,  without  allowance for any subsequent  write-offs or  appreciation  or
depreciation therein, but less any amount repaid or recovered in cash on account
of capital or principal.

          (j)  Fixed  Charges.  Permit,  as of the end of each  fiscal  quarter,
     Consolidated  Net Income  Available for Fixed  Charges for the  immediately
     preceding  twelve-month  period to be less than 200% of Fixed  Charges  for
     such twelve-month period.

          (k) Sale of Accounts.  Sell with recourse,  discount or otherwise sell
     to an Affiliate any notes  receivable or accounts  receivable for an amount
     less than the face amount thereof,  less a reserve factor for credit losses
     adjusted from time to time to reflect actual credit loss experience.

                                       15
<PAGE>
The Chillicothe Telephone Company                        Note Purchase Agreement

          (l) Guaranties; Etc. Be or become liable in respect of any Guaranty of
     any  obligation  of any  Affiliate,  or grant any  security  interest in or
     otherwise  pledge  any  of its  assets  to  secure  any  obligation  of any
     Affiliate.

          (m)  Restricted  Subsidiaries.  Permit  at any  time  all of the  then
     designated   Restricted   Subsidiaries,   together  with  the  Company,  to
     constitute  less than 75% of the total  amount of all assets of the Company
     and its Subsidiaries  determined on a consolidated basis in accordance with
     generally accepted accounting principles.

SECTION 6.    CLOSING CONDITIONS.

     The  effectiveness of this Agreement shall be subject to the  satisfaction,
on or before the Closing Date, of the following conditions:

          (a) The representations  and warranties  contained in Section 3 hereof
     shall be true and correct as of the Closing Date;  the Company shall not be
     in default with respect to any of the  provisions  hereof,  and there shall
     exist no event which,  with the passage of time or the giving of notice, or
     both, would constitute such a default; and the Company shall have delivered
     to the  Noteholders  a certificate  signed by a responsible  officer of the
     Company to such effects.

          (b) The  Noteholders  shall have  received from Porter Wright Morris &
     Arthur,  counsel for the Company, a favorable opinion in form and substance
     satisfactory  to the  Noteholders as to all matters  specified in Exhibit E
     hereto  and  such  other  matters   incident  to  the  transaction   herein
     contemplated as the Noteholders may reasonably request.

          (c) The Company shall have provided the Purchasers  with copies of all
     approvals from the Public Utilities  Commission of Ohio and any other state
     or federal  governmental agency or agencies from whom regulatory  approvals
     are necessary for the consummation of all of the transactions  contemplated
     hereby and which approvals are not subject to appeal or modification  which
     could affect the validity or terms of the Notes.

          (d)  Neither  the Company  nor any  Subsidiary  shall have  suffered a
     material adverse change in financial  condition,  nor shall there exist any
     material  action,  suit or proceeding  pending,  or to the knowledge of the
     Company  threatened,  against  the  Company nor any  Subsidiary  which,  if
     decided adversely to the Company or any Subsidiary, would have a materially
     adverse  effect  upon the  Company or any  Subsidiary  or upon any of their
     businesses or properties.

          (e) The Company shall have authorized, issued and delivered to each of
     the  Noteholders,  Notes which shall amend and restate the  Original  Notes
     held by the Noteholders.

          (f) The Company  shall have paid to each  Noteholder  an amendment fee
     equal to  0.125%  of the  aggregate  unpaid  principal  balances  under all
     outstanding  Original Notes  delivered by such Noteholder as of the Closing
     Date in exchange for the Notes.

                                       16
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

          (g) The  Company  shall  have  paid to the  Noteholders  the  interest
     accrued on the Original Notes from the date to which interest has been paid
     thereon to September 1, 2002 at the rate of 6.62% per annum.

          (h) The Company  shall have paid the fees and  expenses of Chapman and
     Cutler,  counsel to the  Noteholders,  in connection with the  transactions
     contemplated by this Agreement.

          (i) All  proceedings  to be taken in connection  with the  transaction
     contemplated by this Agreement and all documents  incident thereto shall be
     satisfactory in form and substance to the Noteholders and their counsel and
     the  Noteholders  shall have  received  copies of all  documents  which the
     Noteholders may reasonably request.

SECTION 7.    DEFAULTS.

         If one or more Events of Default shall occur, that is to say, if

          (a) default shall be made in the punctual  payment of the principal of
     or  premium,  if any,  on any of the Notes  when due,  whether  by  regular
     installment, upon prepayment, by acceleration, at maturity or otherwise; or

          (b)  default  shall  have been  made in the  punctual  payment  of any
     interest on any of the Notes when due, whether by regular installment, upon
     prepayment,  by  acceleration  at maturity or  otherwise,  and such default
     shall have continued for a period of five days; or

          (c) the Company or any Restricted  Subsidiary  defaults in any payment
     of principal  of or interest on any other  obligation  for  borrowed  money
     beyond  any  period  of  grace  provided  with  respect  thereto  or in the
     performance  of any other  agreement,  term or  condition  contained in any
     agreement  under which any such obligation is created if the effect of such
     default is to cause,  or permit the holder or holders of any  obligation of
     the Company or any  Restricted  Subsidiary  in excess of  $1,000,000  (or a
     trustee on behalf of such holder or holders) to cause,  such  obligation to
     become due prior to its stated maturity; or

          (d) an order for relief  shall be entered  in any  Federal  Bankruptcy
     proceeding in which the Company or any Restricted Subsidiary is the debtor;
     or   bankruptcy,   receivership,    insolvency,   reorganization,   relief,
     dissolution,  liquidation or other similar  proceedings shall be instituted
     by or  against  the  Company  or any  Subsidiary  or all or any part of the
     property  of the  Company or any  Restricted  Subsidiary  under the Federal
     Bankruptcy  Code or any other law of the United States or any bankruptcy or
     insolvency law of any state of competent jurisdiction; or

          (e)  the  Company  or any  Restricted  Subsidiary  shall  have  become
     insolvent or unable to pay its debts as they mature,  cease doing  business
     as a going concern, make an assignment for the benefit of creditors,  admit
     in writing  its  inability  to pay its debts as they  become  due,  or if a

                                       17
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

     trustee,  receiver or liquidator  shall be appointed for the Company or any
     Restricted  Subsidiary or for any substantial  portion of the assets of the
     Company or any Restricted Subsidiary; or

          (f) default  shall be made in the  performance  or  observance  of any
     covenant contained in Section 5 of this Agreement; or

          (g) default  shall be made in the  performance  or  observance  of any
     other of the terms,  covenants or  conditions  of this  Agreement  and such
     default  shall  continue for a period of thirty days after  written  notice
     thereof shall have been given by the holders of Notes to the Company; or

          (h) final  judgments  or orders for the  payment of money in excess of
     $1,000,000  in the aggregate  shall be rendered  against the Company or any
     Restricted   Subsidiary   and  such   judgments   or  orders  shall  remain
     unsatisfied,  unstayed  and unbonded for a period of 30 days after the date
     such judgments or orders are required to be paid; or

          (i) if any  representation or warranty  contained in this Agreement or
     in any other  document  supplied  to the holders of Notes by the Company or
     any Subsidiary in connection with this transaction proves to be false as of
     the time this Agreement was made (provided  that, if the Company shall have
     given the holders of the Notes written notice that any such  representation
     or warranty  was false at the time this  Agreement  was made,  which notice
     shall   describe   the  facts  giving  rise  to  the  breach  of  any  such
     representation  or  warranty,  and the  holders of the Notes shall not have
     declared an Event of Default under this clause (i) based on the information
     contained  in the notice  from the Company  within  sixty (60) days of such
     notice,  then the  holders of the Notes  shall be deemed to have waived any
     Event of Default under this clause (i) based on the  information  contained
     in the notice from the Company),

then  the  holder  of the Note if only one  Note  shall be  outstanding,  or the
holders of at least  two-thirds  of the principal  amount of the Notes,  if more
than one Note shall be  outstanding,  may at its or their  option,  by notice in
writing to the  Company,  declare the Note or all of the Notes,  as the case may
be, to be forthwith due and payable and thereupon the Note, or all of the Notes,
shall be and become due and payable,  together with interest accrued thereon and
the premium  specified in Section 2(a) hereof  (whether or not prepayment  would
then be permitted by said Section  2(a))  (provided  that if an Event of Default
results from the filing of a voluntary or involuntary petition in any bankruptcy
proceeding  in which the  Company or any  Subsidiary  is the  debtor,  the Notes
thereupon  shall  immediately  become due and  payable,  with  interest  accrued
thereon  and the  premium  specified  in Section  2(a)  hereof  (whether  or not
prepayment  would then be permitted by said  Section  2(a)),  without any notice
from the  holders of the Notes or  otherwise),  and the holder or holders of the
Note or Notes may take any action or  proceeding at law or in equity which it or
they deem advisable for the protection of its or their  interests to collect and
enforce  payment,  and the  Company  shall  pay all  expenses,  court  costs and
reasonable  attorneys'  fees incurred in  connection  with or arising out of any
default hereunder.

                                       18
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

SECTION 8.     PAYMENTS ON AND REGISTRATION AND TRANSFER OF NOTES.

     The Company agrees that it will make payment of the principal of,  premium,
if any and  interest  on the Notes by wire  transfer  of  immediately  available
federal funds with sufficient information to identify the source and application
of funds  to each of the  Noteholders  in  accordance  with  the  wire  transfer
instructions  set forth in  Appendix I hereto,  or to such other  accounts or in
such  other  manner as may from time to time be  designated  by the  holder of a
Note,  without  presentment  of the Notes and without the rendering of any bills
therefor. The Company shall keep at its principal office a register in which the
Company shall provide for the  registration of the Notes and of transfers of the
Notes (the "Note  Register").  Upon  surrender  of any Note for  transfer at the
office of the Company, the Company shall execute and deliver, in the name of the
designated  transferee  a new Note in a  principal  amount  equal to the  unpaid
principal  amount of, and dated the date to which interest has been paid on, the
Note so surrendered.  When a Note shall be presented or surrendered for transfer
it shall be duly endorsed, or be accompanied by a written instrument of transfer
duly executed, by the holder thereof or his attorney duly authorized in writing.
The  Company  may treat the Person in whose name the Note is  registered  on the
Note  Register as the owner of the Note for the purpose of receiving  payment of
principal of and interest on the Note and for all other purposes and the Company
shall not be affected by notice to the contrary.

SECTION 9.    EXPENSES.

     The  Company  agrees,  whether  or not the  purchase  of the  Notes  herein
contemplated  shall be  consummated,  to pay and save the  Noteholders  harmless
against  liability  for the  payment of all  out-of-pocket  expenses  arising in
connection  with this  transaction  including any  documentary  stamp taxes (and
including interest and penalties, if any), which may be determined to be due and
payable  with  respect to the  execution  and  delivery  of the  Notes,  and the
reasonable  fees and  expenses of counsel to the  Noteholders.  The Company also
agrees to pay, and to save the Noteholders  harmless  against  liability for the
payment of, the  reasonable  fees and expenses of counsel to the  Noteholders in
connection with any documentation and related services arising after the Closing
Date in  connection  with  the  preparation  of  waivers  or  amendments  of any
provisions of this Agreement and the Notes.  In addition,  the Company agrees to
pay, and to save the holders of the Notes  harmless  against,  all  brokerage or
finders fees incurred in the transaction contemplated by this Agreement.

SECTION 10.   DELIVERY OF DOCUMENTS; PRO RATA PAYMENTS; AMENDMENTS AND CONSENTS.

     (a) Delivery of Documents. All notices, certificates,  requests, statements
and other documents  required or permitted to be delivered to the Noteholders or
the holders of Notes by any  provision  hereof  shall also be  delivered to each
holder of a Note.

     (b) Pro Rata Payments. All interest payments and payments or prepayments of
principal  shall  be made  and  applied  pro rata on all  Notes  outstanding  in
accordance with the respective unpaid principal amounts thereof.

                                       19
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

     (c)  Amendments and Consents.  (1) The  registered  holder or holders of at
least  two-thirds  of the  unpaid  principal  amount  of the  Notes  at the time
outstanding  may by agreement  with the Company  amend this  Agreement,  and any
consent,  notice,  request or demand  required or  permitted  to be given by the
Noteholders  or the  holders  of the  Notes  by any  provision  hereof  shall be
sufficient  if given by the  holder or  holders  of at least  two-thirds  of the
unpaid principal amount of Notes at the time  outstanding  except that,  without
the  written  consent of the  holders of all Notes at the time  outstanding,  no
amendment to this Agreement  shall extend the maturity of any Note, or alter the
rate of interest or any premium  payable with respect to any Note, or affect the
amount of any required  prepayments,  or reduce the  proportion of the principal
amount of the Notes required with respect to any consent.

     (2) The Company will provide each holder of the Notes  (irrespective of the
amount of Notes then owned by it) with sufficient information,  sufficiently far
in advance of the date a decision is required,  to enable such holder to make an
informed and considered decision with respect to any proposed amendment,  waiver
or  consent  in respect  of any of the  provisions  hereof or of the Notes.  The
Company will deliver  originally  executed copies of each  amendment,  waiver or
consent effected pursuant to the provisions of this Section 10(c) to each holder
of  outstanding  Notes  promptly  following the date on which it is executed and
delivered by, or receives the consent or approval of, the  requisite  holders of
Notes.

     (3) The Company will not directly or indirectly pay or cause to be paid any
remuneration,  whether by way of  supplemental  or additional  interest,  fee or
otherwise, or grant any security, to any holder of Notes as consideration for or
as an  inducement  to the entering  into by any holder of Notes of any waiver or
amendment of any of the terms and provisions  hereof unless such remuneration is
concurrently  paid,  or security  is  concurrently  granted,  on the same terms,
ratably to each  holder of Notes then  outstanding  even if such  holder did not
consent to such waiver or amendment.

     (4)  Solely for the  purpose  of  determining  whether  the  holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this
Agreement  or the Notes,  or have  directed  the  taking of any action  provided
herein  or in the  Notes to be taken  upon the  direction  of the  holders  of a
specified   percentage  of  the  aggregate   principal   amount  of  Notes  then
outstanding,  Notes  directly or  indirectly  owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

SECTION 11.    INVESTMENT PURPOSE.

     Each Noteholder  represents that its acquisition of the Notes by it will be
for investment and not with a view to resale in connection with any distribution
thereof, it being understood,  however,  that the disposition of the property of
each Noteholder shall at all times be within its control.

                                       20
<PAGE>

SECTION 12.    DEFINITIONS.

     For purposes of this Agreement the following terms shall have the following
meanings:

     "Affiliate" shall mean any Person (i) which directly or indirectly  through
one or more  intermediaries  controls,  or is controlled  by, or is under common
control with, the Company,  (ii) which  beneficially owns or holds 5% or more of
any class of the voting stock of the  Company,  (iii) 5% or more of any class of
the voting stock (or in the case of a Person which is not a  corporation,  5% or
more of the  equity  interest)  of  which is  beneficially  owned or held by the
Company or a Subsidiary,  (iv) any director,  officer of employee of the Company
or any  Subsidiary  or other Person  described  in clauses  (i),  (ii) and (iii)
hereof, and (v) any spouse,  lineal descendant or ascendant,  brother or sister,
by blood, adoption or marriage, of any Person listed in clauses (i) through (iv)
hereof, and spouses of such ascendants,  descendants,  brothers and sisters. The
term "control"  means the  possession,  directly or indirectly,  of the power or
cause the direction of the management and policies of a Person,  whether through
the ownership of voting stock, by contract or otherwise.

     "Capital  Lease" shall mean any lease of property which in accordance  with
generally accepted  accounting  principles should be capitalized on the lessee's
balance sheet or for which the amount of the asset and  liability  thereunder as
if so capitalized should be disclosed in a note to such balance sheet.

     "Capitalized Lease Obligations" shall mean lease payment  obligations under
Capital Leases.

     "Closing Date" shall have the meaning set forth in Section l(a).

     "Consolidated  Adjusted  Net Worth" shall mean  Consolidated  Stockholders'
Equity less all Investments in Affiliates.

     "Consolidated  Net Income (Net Loss)" shall mean,  for any period,  the net
after-tax income (or net loss) of the Company and its Restricted Subsidiaries on
a consolidated basis determined in accordance with generally accepted accounting
principles  consistent  with those  followed  in  preparation  of the  financial
statements  referred to in Sections 4(e) and (f),  excluding  (i)  extraordinary
gains and losses and (ii) any equity  interest of the Company and its Restricted
Subsidiaries  in the  unremitted  earnings  of any  corporation  which  is not a
Restricted Subsidiary.

     "Consolidated  Net Income  Available for Fixed Charges" shall mean, for any
period,  Consolidated  Net Income for such period,  plus (i) all  deductions for
taxes levied in respect of income deducted in computing  Consolidated Net Income
for such period,  and (ii) Fixed Charges deducted in computing  Consolidated Net
Income for such period.

     "Consolidated  Stockholders' Equity" shall mean Consolidated  Stockholders'
Equity of the Company and its Restricted  Subsidiaries  determined in accordance
with generally accepted accounting principles.

                                       21
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

     "Consolidated Total Assets" shall mean, as of any date, the total amount of
all  assets of the  Company  and its  Restricted  Subsidiaries  determined  on a
consolidated basis in accordance with generally accepted  accounting  principles
consistent  with those  followed  in  preparation  of the  financial  statements
referred to in Sections 4(e) and (f).

     "Consolidated  Total  Capitalization"  shall  mean the sum of  Consolidated
Adjusted Net Worth and Consolidated Total Debt.

     "Consolidated  Total Debt" shall mean, as of any date, the aggregate amount
of all Debt of the  Company  and its  Restricted  Subsidiaries  determined  on a
consolidated basis in accordance with generally accepted  accounting  principles
consistent  with those  followed  in  preparation  of the  financial  statements
referred to in Sections 4(e) and (f).

     "Cumulative Consolidated Net Income" shall mean the excess, if any, of:

          (i) the sum of (A) Consolidated Net Income, if any, for each completed
     fiscal year of the Company  commencing  on or after January 1, 2002 and (B)
     Consolidated  Net Income,  if any, for each completed  quarter ending after
     the end of the most recently completed fiscal year of the Company; over

          (ii) the sum of (A)  Consolidated Net Loss, if any, for each completed
     fiscal year of the Company  commencing  on or after January 1, 2002 and (B)
     Consolidated Net Loss, if any, for each completed  quarter ending after the
     end of the most recently completed fiscal year of the Company.

     "Cumulative Consolidated Net Loss" shall mean the excess, if any, of:

          (i) the sum of (A)  Consolidated  Net Loss, if any, for each completed
     fiscal year of the Company  commencing  on or after January 1, 2002 and (B)
     Consolidated Net Loss, if any, for each completed  quarter ending after the
     end of the most recently completed fiscal year of the Company; over

          (ii)  the  sum of (A)  Consolidated  Net  Income,  if  any,  for  each
     completed fiscal year of the Company commencing on or after January 1, 2002
     and (B) Consolidated Net Income,  if any, for each completed quarter ending
     after the end of the most recently completed fiscal year of the Company.

     "Debt" shall mean (i)  indebtedness  for borrowed money or for the deferred
purchase price of property or services, including without limitation Capitalized
Lease Obligations,  but excluding trade accounts payable and accrued liabilities
arising  in the  ordinary  course  of  business,  (ii)  any  other  indebtedness
evidenced by a promissory note or other instrument, (iii) the face amount of all
letters of credit issued for the account of any Person and, without  duplication
all drafts drawn  thereunder,  (iv) any  indebtedness  for borrowed money or the
deferred  purchase  price  of  property  or  services  secured  by a Lien on any
property of any Person,  whether or not such indebtedness has been assumed,  and
(v) Guaranties or other contingent obligations for any indebtedness described in
clauses (i) through (iv).

                                       22
<PAGE>

     "ERISA" shall mean the Employee  Retirement Income Security Act of 1974 and
the regulations adopted pursuant thereto.

     "ERISA  Affiliate"  shall  mean  each  trade or  business  (whether  or not
incorporated) which,  together with the Company,  would be deemed to be a single
employer within the meaning of Section 4001(b)(1) of ERISA.

     "Event of Default" shall have the meaning set forth in Section 7.

     "Existing Lines of Business" shall mean operations in the voice,  video and
data communications and information technology industry.

     "Fixed  Charges"  shall mean,  for any period,  all  consolidated  interest
expense on all Debt and all rental expense on all operating  leases  deducted in
computing Consolidated Net Income for such period, determined in accordance with
generally  accepted  accounting  principles  consistent  with those  followed in
preparation of the financial statements referred to in Sections 4(e) and (f).

     "Funded  Debt" shall mean any Debt payable more than one year from the date
of its  creation  (or which is  renewable at the option of the obligor to a date
more than one year from the date of its creation), including the current portion
thereof,  which under generally accepted  accounting  principles is shown on the
balance sheet as a liability,  including but not limited to the Notes,  any Debt
outstanding  under  a  revolving  credit  or  similar  agreement  providing  for
borrowings  (and  renewables and extensions  thereof) over a period of more than
one year  notwithstanding  that any such Debt may be payable on demand or within
one year after the creation  thereof,  any Capitalized Lease Obligations and any
Guaranty with respect to Funded Debt of another Person.

     "Guaranties"  by  any  Person  shall  mean  all  obligations   (other  than
endorsements  in the ordinary  course of business of negotiable  instruments for
deposit or collection) of such Person  guaranteeing,  or in effect guaranteeing,
any indebtedness, dividend or other obligation of any other Person (the "primary
obligor")  in any manner,  whether  directly or  indirectly  including,  without
limitation,  all  obligations  incurred  through  an  agreement,  contingent  or
otherwise,  by such Person:  (i) to purchase such  indebtedness or obligation or
any property or assets constituting security therefor, (ii) to advance or supply
funds (x) for the purchase or payment of such  indebtedness or obligation or (y)
to maintain  working  capital or other balance  sheet  condition or otherwise to
advance or make available funds for the purchase or payment of such indebtedness
or  obligation,  (iii) to lease  property  or to  purchase  securities  or other
property or services primarily for the purpose of payment of the indebtedness or
obligation,  or (iv)  otherwise  to  assure  the  owner of the  indebtedness  or
obligation of the primary obligor against loss in respect thereof.

     "Investments" shall mean with respect to any Person all investments by such
Person,  in cash or by delivery of property,  made directly or indirectly in any
property or assets or in any other Person,  whether by  acquisition of shares of
capital  stock,  Debt  or  other  obligations  or  by  loan,  advance,   capital
contribution  or  otherwise;  provided,  that  "Investments"  shall  not mean or

                                       23
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

include (i) investments by such Person in property to be used or consumed in the
ordinary course of business, (ii) receivables arising from the sale of goods and
services in the ordinary course of business, and (iii) the billing or collection
of the accounts receivable of such Person by another on behalf of such Person.

     "Liens" shall mean as to any Person, any mortgage,  lien,  pledge,  adverse
claim,  charge,  security  interest  or other  encumbrance  of any kind  whether
presently  effective  or  springing  in or on, or any  interest  or title of any
vendor,  lessor,  lender  or  other  secured  party to or of such  Person  under
conditional  sale or other  title  retention  agreement  or  Capital  Lease with
respect to, any property or asset of such Person,  or the signing or filing of a
financing  statement  which names such  Person as debtor,  or the signing of any
security  agreement  authorizing any other party as the secured party thereunder
to file any financing statement.

     "McKell Family" shall mean and include Robert McKell,  Thomas McKell, David
McKell,  Joseph  McKell  and  Helen  McKell  Sproat,  and the  heirs,  legatees,
descendants  and blood  relatives to the third degree of  consanguinity  of each
such individual.

     "Note" or "Notes" shall have the meaning set forth in Section 1(a).

     "Noteholder"  or  "Noteholders"  shall  have the  meaning  set forth in the
introductory paragraph of this Agreement.

     "Note Register" shall have the meaning set forth in Section 8.

     "Original Note Purchase  Agreement" shall have the meaning set forth in the
introductory paragraph of this Agreement.

     "Original  Notes"  shall  have the  meaning  set forth in the  introductory
paragraph of this Agreement.

     "PBGC"  shall mean the Pension  Benefit  Guaranty  Corporation  established
under ERISA, or any successor thereto.

     "Permitted Investments" shall mean (i) Investments in direct obligations of
the United States government  maturing within one year from the date of purchase
thereof;  (ii)  certificates  of  deposit,  repurchase  agreements,  and bankers
acceptances with final maturities of one year or less issued by U.S.  commercial
banks having capital and surplus  aggregating not less than $100,000,000;  (iii)
if so permitted by law,  savings  deposits in national banks and federal savings
and loan associations having capital stock and surplus aggregating not less than
$100,000,000,  provided that the  aggregate of all such savings  deposits at any
one bank or savings and loan association  shall not exceed $150,000 at any time;
(iv) commercial  paper rated A-1 or P-1 or above by recognized  rating services;
(v) money  market  preferred  stock  rated  "AA" or above by  recognized  rating
services; (vi) tax exempt, floating rate option tender bonds, backed by a letter
of credit  issued by a bank rated "AA" or above by  Standard & Poor's or "Aa" or
above by Moody's  Investors  Service;  (vii) municipal auction rate certificates
rated  "AA"  or  above  by  one  or  more  recognized  rating  services;  (viii)
Investments in Restricted Subsidiaries;  (ix) travel and expense advances of the

                                       24
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

Company  and its  Restricted  Subsidiaries  to  their  respective  officers  and
employees in the ordinary course of business;  and (x) Securities rated "BBB" or
above by  Standard  & Poor's  or "Baa" or above by  Moody's  Investors  Service;
provided, that the aggregate value of all such Securities shall not exceed 5% of
Consolidated Adjusted Net Worth at any time.

     "Person"  shall  mean  an  individual,  partnership,  corporation,  limited
liability  company,  trust or  unincorporated  organization,  or a government or
agency or political subdivision thereof.

     "Plan"  shall mean any  employee  pension  benefit or other plan within the
meaning  of Section  3(2) of ERISA  that is subject to Title IV of ERISA,  other
than any "multiemployer plan" within the meaning of Section 3(37) of ERISA.

     "Prohibited Transaction" shall have the meaning set forth in Section 3(l).

     "Responsible Officer" shall mean any Senior Financial Officer and any other
officer  of the  Company  with  responsibility  for  the  administration  of the
relevant portion of this Agreement.

     "Restricted  Investments"  shall mean all Investments  other than Permitted
Investments.

     "Restricted Payments" shall mean (i) payment or declaration of any dividend
or any other  distribution  on account of any class of stock  (including  in the
term "stock" any warrant or option or other right to purchase  such stock of the
Company  or  any  Restricted  Subsidiary)  of  the  Company  or  any  Restricted
Subsidiary  excluding  any  distribution  which may be payable  solely in common
stock of the  corporation  making  the  distribution,  (ii)  direct or  indirect
redemptions, purchases, or other acquisitions of shares of stock of the Company,
and (iii) any optional prepayment by the Company or any Restricted Subsidiary of
any Subordinated Debt of the Company or any Restricted Subsidiary.

     "Restricted   Subsidiary"  shall  mean  any  Subsidiary   designated  as  a
"Restricted  Subsidiary"  on Exhibit B hereto or  designated as such pursuant to
Section 13.

     "Security"  shall  have  the  meaning  set  forth  in  Section  2(1) of the
Securities Act of 1933, as amended.

     "Senior  Debt"  shall  mean all  Funded  Debt  which  does  not  constitute
Subordinated Debt.

     "Senior  Financial   Officer"  shall  mean  the  chief  financial  officer,
principal accounting officer, treasurer or comptroller of the Company.

     "Standard & Poor's" shall mean Standard & Poor's  Ratings Group, a division
of McGraw-Hill.

     "Subordinated  Debt" shall mean all Debt which is expressly  subordinate in
right of  payment  pursuant  to its  terms to the  Notes,  whether  or not it is
subordinated to other indebtedness of the Company.

                                       25
<PAGE>

     "Subsidiary"  or  "Subsidiaries"  shall  mean the  corporations  listed  on
Exhibit B hereto, and any other corporation or corporations more than 50% of the
outstanding  capital stock of every class of which is hereafter owned,  directly
or indirectly, by the Company.

     "Telcom" shall mean Horizon Telcom, Inc., an Ohio corporation and corporate
parent of the Company.

     "Total  Capitalization" shall mean, as of any date, the sum of Consolidated
Adjusted Net Worth and Consolidated Total Debt.

     "Treasury Yield Percentage" shall mean, as of any date, (i) the most recent
weekly  average  yield on actively  traded U.S.  Treasury  obligations  having a
constant  maturity  equal to the average life of the  payments of principal  and
interest  that are avoided by any  prepayment  as determined by reference to the
week-ending figures published in the most recent Statistical Release which shall
have become  available  at least two  business  days prior to the date fixed for
prepayment,  or  (ii)  if a  Statistical  Release  is not  then  published,  the
arithmetic  average  (rounded  to the nearest  .01%) of the per annum  yields to
maturity for each business day during the week ending at least two business days
prior to the date as of which such  determination  is made, of all the issues of
actively traded marketable United States Treasury fixed interest rate securities
with a constant  maturity equal to the average life of the payments of principal
and interest that are avoided by any prepayment  (excluding all such  securities
which can be surrendered at the option of the holder at face value in payment of
any Federal  estate tax,  which  provide for tax benefits to the holder or which
were issued at substantial discount) as published in The Wall Street Journal or,
if The Wall Street Journal shall cease such publication,  based on average asked
prices  (or  yields)  as  quoted  by  each of  three  United  States  government
securities  dealers of recognized  national  standing selected by the holders of
the Notes.  If the average life of the payments of principal  and interest  that
are avoided by any  prepayment  is not equal to the constant  maturity of a U.S.
Treasury obligation for which a weekly average yield is published or quoted, the
Treasury Yield  Percentage shall be calculated by linear  interpolation  (to the
nearest  one-twelfth  of a year) from the most recent weekly  average  yields of
actively traded U.S. Treasury obligations for which such yields are published or
quoted for the two maturities most closely  corresponding  to such average life;
provided,  however,  that if the average life of the  payments of principal  and
interest that are avoided by any  prepayment is less than one year, the Treasury
Yield  Percentage  shall equal the most recent weekly average yield published or
quoted on actively traded U.S. Treasury  obligations with a constant maturity of
one year.

     "Unrestricted  Subsidiary"  shall  mean  any  Subsidiary  which  is  not  a
Restricted Subsidiary.

     "Voting  Stock"  shall  mean  capital  stock of any class or  classes  of a
corporation  having power under ordinary  circumstances  to vote for election of
members of the board of directors  of such  corporation,  or persons  performing
similar functions.

                                       26
<PAGE>

SECTION 13.     DESIGNATION OF SUBSIDIARIES.

     The Company may designate or redesignate any  Unrestricted  Subsidiary as a
Restricted Subsidiary and may designate or redesignate any Restricted Subsidiary
as an Unrestricted Subsidiary; provided that:

          (a) the Company  shall have given not less than 10 days' prior written
     notice to the  holders  of the Notes  that the  Board of  Directors  of the
     Company has made such determination;

          (b) at the time of such designation or  redesignation  and immediately
     after giving effect thereto, no Default or Event of Default would exist;

          (c) in the case of the  designation  of a Restricted  Subsidiary as an
     Unrestricted   Subsidiary  and  after  giving  effect  thereto,   (i)  such
     Unrestricted  Subsidiary so designated  shall not,  directly or indirectly,
     own any Debt or capital stock or similar equity interests of the Company or
     any  Restricted  Subsidiary,  (ii)  such  designation  shall  be  deemed  a
     Disposition  under,  and shall be permitted by the  provisions  of, Section
     5(d) and (iii) such Restricted  Subsidiary  shall not at any time after the
     date of this Agreement have  previously  been designated as an Unrestricted
     Subsidiary more than once; and

          (d) in the case of the designation of an Unrestricted  Subsidiary as a
     Restricted  Subsidiary and after giving effect thereto, (i) all outstanding
     Debt of such Restricted  Subsidiary so designated shall be permitted within
     the  applicable  limitations  of Sections 5(a) and 5(b),  (ii) all existing
     Liens of such Restricted Subsidiary so designated shall be permitted within
     the  applicable  limitations  of Section 5(h) (other than Section  5(h)(v),
     notwithstanding  that any such Lien  existed as of the Closing  Date),  and
     (iii) such Unrestricted  Subsidiary shall not at any time after the date of
     this Agreement have previously  been designated as a Restricted  Subsidiary
     more than once.

SECTION 14.     SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

     All representations  and warranties  contained herein or made in writing by
the Company in connection  herewith  shall survive the execution and delivery of
this Agreement and of the Notes.

SECTION 15.     SUCCESSORS AND ASSIGNS.

     All covenants and agreements in this Agreement contained by or on behalf of
any of the parties  hereto shall bind and inure to the benefit of the respective
successors and assigns of the parties hereto whether so expressed or not.

                                       27
<PAGE>

The Chillicothe Telephone Company                        Note Purchase Agreement

SECTION 16.     NOTICES.

     All communications provided for hereunder shall be sent by first class mail
and, if to the  Noteholders,  addressed to the Noteholders at the notice address
listed on Appendix I hereto, and if to the Company, addressed to The Chillicothe
Telephone Company, P.O. Box 480, 68 East Main Street,  Chillicothe,  Ohio 45601,
Attention:  Mr. Jack E.  Thompson,  or to such other address with respect to any
party as such shall notify the other parties in writing.

SECTION 17.     GOVERNING LAW.

     This  Agreement is being  delivered  and is intended to be performed in the
State of Ohio,  and shall be construed and enforced in accordance  with the laws
of such State.

SECTION 18.     COUNTERPARTS.

     This Agreement may be executed  simultaneously in two or more counterparts,
each of which shall be an original,  but all of which shall  constitute  but one
agreement.

SECTION 19.     CAPTIONS.

     The captions in this  Agreement are for  convenience  only and shall not be
considered in the interpretation of any of the provisions hereof.

                            THE BALANCE OF THIS PAGE
                            INTENTIONALLY LEFT BLANK

                                       28
<PAGE>
The Chillicothe Telephone Company                        Note Purchase Agreement

     If the  Noteholders  are in agreement with the  foregoing,  please sign the
form of  acceptance  on the enclosed  counterpart  of this letter and return the
same to the  undersigned.  Upon acceptance by all the  Noteholders,  this letter
shall become a binding agreement between the Noteholders and the undersigned.

                                        Very truly yours,

                                        THE CHILLICOTHE TELEPHONE COMPANY

                                        By /s/ Thomas McKell
                                           Its President

The foregoing Agreement is accepted
as of the date first above written

                                   AMERICAN UNITED LIFE INSURANCE COMPANY

                                   By /s/ Kent R. Adams
                                      Its Vice President Fixed Income Securities

                                   THE STATE LIFE INSURANCE COMPANY

                                   By /s/ Kent R. Adams
                                      Its Vice President Fixed Income Securities

                                       29
<PAGE>

                                   APPENDIX I
                                                        PRINCIPAL AMOUNT OF
NAME AND ADDRESS OF NOTEHOLDER                                 NOTES

AMERICAN UNITED LIFE INSURANCE COMPANY                      $11,000,000
One American Square                               consisting of one (1) Note for
Post Office Box 368                                  $2,000,000 and three (3)
Indianapolis, Indiana  46206                         Notes for $3,000,000 each
Attention:  Securities Department

         Payments

All  payments  on or in  respect  of the  Notes to be by bank wire  transfer  of
Federal or other immediately  available funds  (identifying each payment as "The
Chillicothe Telephone Company, 6.72% Amended and Restated Senior Notes due 2018,
PPN  169240 C@ 5" and  identifying  the  breakdown  of  principal,  premium  and
interest and the payment date) to:

         Bank of New York (ABA #021000018)
         One Wall Street, 3rd Floor
         New York, New York  10286
         Window A
         Attention:  P&I Department

         for credit to:  American United Life Insurance Company
         BNF: IOC566

         Notices

All notices and  communications,  including notices with respect to payments and
written  confirmation  of each such payment,  to be addressed as first  provided
above.

Name of Nominee in which Notes are to be issued:  None

Taxpayer I.D. Number:  35-0145825

<PAGE>

                                                            PRINCIPAL AMOUNT OF
NAME AND ADDRESS OF NOTEHOLDER                                     NOTES

THE STATE LIFE INSURANCE COMPANY                                $1,000,000
One American Square
Post Office Box 368
Indianapolis, Indiana  46206
Attention:  Securities Department

         Payments

All  payments  on or in  respect  of the  Notes to be by bank wire  transfer  of
Federal or other immediately  available funds  (identifying each payment as "The
Chillicothe Telephone Company, 6.72% Amended and Restated Senior Notes due 2018,
PPN  169240 C@ 5" and  identifying  the  breakdown  of  principal,  premium  and
interest and the payment date) to:

         Bank of New York (ABA #021000018)
         One Wall Street, 3rd Floor
         New York, New York  10286
         Window A
         Attention:  P&I Department

         for credit to:  The State Life Insurance Company
         BNF:  IOC566/State Life c/o AUL

         Notices

All notices and  communications,  including notices with respect to payments and
written  confirmation  of each such payment,  to be addressed as first  provided
above.

Name of Nominee in which Notes are to be issued:  None

Taxpayer I.D. Number:  35-0684263

                                      I-2
<PAGE>

                                                                   SCHEDULE 3(D)

                                LEGAL PROCEEDINGS

                                      NONE

<PAGE>

                                    EXHIBIT A

         THIS NOTE HAS NOT BEEN REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED,  AND  MAY  NOT BE  SOLD OR  OTHERWISE  TRANSFERRED  EXCEPT  IN
         COMPLIANCE WITH SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.

                        THE CHILLICOTHE TELEPHONE COMPANY
                     6.72% AMENDED AND RESTATED SENIOR NOTE

No.________                                                 [September 1, 2002]

________________                                                PPN 169240 C@ 5

     FOR VALUE RECEIVED, the undersigned,  THE CHILLICOTHE TELEPHONE COMPANY, an
Ohio corporation (the  "Company"),  hereby promises to pay to  _________________
____________________  or  registered  assigns by wire  transfer  of  immediately
available  Federal funds to the account specified on Appendix I to the Agreement
(hereinafter  defined) with  sufficient  information  to identify the source and
application  of funds,  or to such other  account or in such other manner as the
holder of this Note shall specify by notice in writing to the Company, in lawful
money of the United  States,  the  principal  sum of  __________________________
DOLLARS  ($____________)  in ten  consecutive  equal annual  installments in the
amount of  $___________  each on the 1st day of June in each of the  years  2009
through  2018,  inclusive,  and to pay  interest  in like  money  on the  unpaid
principal  balance  hereof at the rate of 6.72% per annum  (provided that solely
for the purpose of determining the portion of annual  interest  allocable to any
interest  payment  period,  it shall be assumed  that a year is comprised of 360
days and twelve 30-day  months) from the date hereof,  payable  quarterly on the
1st day of March, June, September and December in each year, commencing December
1, 2002,  and continuing  until payment in full of the principal  amount of this
Note.

     Any payment of principal or (to the extent  permitted  by  applicable  law)
interest  on this  Note not paid  when  due,  whether  at  stated  maturity,  by
acceleration  or otherwise,  shall  thereafter bear interest at a rate per annum
equal to 8.72%  (provided  that in no event  shall such rate  exceed the maximum
rate permitted by law).

     This Note is issued  pursuant  to an Amended  and  Restated  Note  Purchase
Agreement (the "Agreement") entered into among the Company, American United Life
Insurance  Company and The State Life Insurance  Company dated as of November 1,
2002 and is subject to optional and mandatory  prepayment,  in whole or in part,
in the amounts, upon the notice, with the premium, and subject to the conditions
specified in the Agreement.

     As provided in the Agreement,  this Note is  transferable  only on the Note
Register  of the  Company,  upon  surrender  of this  Note  for  transfer,  duly
endorsed,  or accompanied  by a written  instrument of transfer duly executed by
the  registered  holder hereof or his attorney duly  authorized in writing.  The
Company may treat the Person in whose name this Note is  registered as the owner
hereof for the purpose of receiving payment and for all other purposes,  and the
Company shall not be affected by any notice to the contrary.

<PAGE>

     In case an Event of Default, as defined in the Agreement,  shall occur, the
principal  of this Note may be  declared  due and payable in the manner and with
the effect provided in the Agreement.

     This Note shall be governed by and construed in accordance with the laws of
the State of Ohio.

                                THE CHILLICOTHE TELEPHONE COMPANY

                                 By:_________________________________________
                                   Its_______________________________________

                                      A-2
<PAGE>

                                    EXHIBIT B

                                  SUBSIDIARIES

                                      NONE

<PAGE>

                                    EXHIBIT C

                             EXISTING DEBT AND LIENS
                              AS OF OCTOBER 1, 2002

1    $8,000,000     Senior  Notes due  November 1, 2005 owned by  Relistar  Life
                    Insurance Company.1

2    $12,000,000    Senior Notes Due June 1, 2018 owned by American  United Life
                    Insurance Company.

3    $30,000,000    Senior  Notes  Due  August  1,  2012  owned by The  Variable
                    Annuity  Life  Insurance  Company and AIG Annuity  Insurance
                    Company.

     _________________________

     1    The $8,000,000  Senior Notes due November 1, 2005 were prepaid in full
          on November 1, 2002.

<PAGE>

                                    EXHIBIT D

                         EXISTING RESTRICTED INVESTMENTS
                            AS OF SEPTEMBER 30, 2002

Verisign                                             $250,000 Equity Investment

Intercompany Advances from the                       $1,197
Company to Horizon
Personal Communications

Intercompany Advances from the                       $828,646
Company to Horizon Services, Inc.

Intercompany Advances from the                       $405,898
Company to Horizon Telcom, Inc.

<PAGE>

                                    EXHIBIT E

                    FORM OF OPINION OF COUNSEL TO THE COMPANY

     (i) The Company is duly  organized,  validly  existing and in good standing
under  the  laws of the  State of Ohio  and has the  corporate  power to own and
operate its properties and to carry on its business and to execute,  deliver and
perform the Agreement and the Notes.

     (ii)  Each  Subsidiary  is duly  organized,  validly  existing  and in good
standing under the laws of the State of its  incorporation and has the corporate
power to own and operate its properties and to carry on its business.

     (iii)  The  Company  and each  Subsidiary  are each  duly  qualified  to do
business and are in good standing in each  jurisdiction  where the nature of the
business conducted or property owned by it require such  qualification,  and the
Company and each such  Subsidiary  have all  necessary  licenses  and permits to
carry on their businesses in each such jurisdiction.

     (iv) The Agreement and the Notes have been duly authorized by all necessary
corporate action of the Company, have been duly executed and delivered,  and are
the  legal,  valid  and  binding  obligations  of  the  Company  enforceable  in
accordance with their respective terms, except as the enforcement thereof may be
limited by laws generally  affecting the enforcement of creditors' rights and by
general principles of equity.

     (v) The loans evidenced by the Notes are not usurious under Ohio law.

     (vi) The  execution  and delivery by the Company of the  Agreement  and the
Notes, or the  performance or observance by the Company and its  Subsidiaries of
any of the terms or  conditions  of the  Agreement  or the Notes  will not,  (A)
conflict  with, or result in a breach of the terms,  covenants or provisions of,
or constitute a default  under,  or result in any violation of, or result in the
creation of any Lien upon any of the  properties or assets of the Company or its
Subsidiaries   pursuant  to,  the  Certificate  of   Incorporation  or  Code  of
Regulations of the Company or its Subsidiaries,  any award of any arbitrator, or
any   indenture,   contract  or  agreement   (including   any   agreement   with
stockholders),  instrument,  order,  judgment,  decree,  statute,  law, rule, or
regulation to which the Company or its Subsidiary is subject, or (B) require any
filing or registration  with, or any consent or approval of, any Federal,  state
or local  governmental  agency or  authority,  except the approval of the Public
Utilities Commission of Ohio.

     (vii)  There are no actions,  suits or  proceedings  pending or  threatened
against or  affecting  the Company or its  Subsidiaries,  or any property of the
Company or its Subsidiaries,  in any court or before any governmental  authority
or arbitration  board or tribunal which, if decided  adversely to the Company or
its  Subsidiaries,  would involve the  possibility  of materially  and adversely
affecting the properties,  business,  prospects, profits or condition (financial
other otherwise) of the Company or its Subsidiaries.

     (viii) The issuance and delivery of the Notes are exempt transactions under
the Securities Act of 1933, as amended,  and do not require  registration  under
the Securities Act of 1933, as amended,  or the qualification of an indenture in

<PAGE>

respect thereof under the Trust Indenture Act of 1939, as amended.

     (ix)  Neither the Company nor any  Subsidiary  is, or will be,  solely as a
result of the  execution,  delivery  and  performance  of the  Agreement  or the
issuance  and sale of the Notes,  subject  to  regulation  as a "public  utility
company" or a "holding  company" under the Public Utility Holding Company Act of
1935, as amended.

     (x) Neither the Company nor any Subsidiary is an "investment  company" or a
company "controlled" by an "investment company" under the Investment Company Act
of 1940, as amended.

     (xi) No taxes,  including,  without  limitation,  intangible or documentary
stamp taxes,  mortgage taxes,  transfer taxes or similar charges, are payable to
the State of Ohio (or any  political  subdivision  thereof)  on  account  of the
execution and delivery of the  Agreement,  or the Notes,  or the creation of the
indebtedness  evidenced  thereby or the creation of the estates created thereby,
except for nominal filing or recording fees.

     (xii) The issue and delivery of the Notes have,  to the extent  required by
law,  been duly  authorized  by the Public  Utilities  Commission  of Ohio which
authorization  is not subject to any appeal or  modification  which could affect
the validity or terms of the Notes, and no other consent, exception, approval or
authorization by any other governmental authority is required in connection with
the execution and delivery of the Agreement or the issue of the Notes.

                                      E-2

1557743EXHIBIT 10.51

================================================================================

                        THE CHILLICOTHE TELEPHONE COMPANY

                       -----------------------------------

                             SECOND WAIVER AGREEMENT
                           Dated as of August 14, 2002

                                       re

                             NOTE PURCHASE AGREEMENT
                            Dated as of June 1, 1998

                       -----------------------------------

                       Re: $12,000,000 6.62% Senior Notes
                                Due June 1, 2018

================================================================================

<PAGE>

                             SECOND WAIVER AGREEMENT

     THIS SECOND  WAIVER  AGREEMENT  dated as of August  ___,  2002 (the or this
"Waiver") is between THE CHILLICOTHE TELEPHONE Company, an Ohio corporation (the
"Company"),  and each of the  institutions  which is a signatory  to this Waiver
(collectively, the "Noteholders").

                                    RECITALS:

     A. The Company and each of the Noteholders have heretofore entered into the
Note  Purchase   Agreement  dated  as  of  June  1,  1998  (the  "Note  Purchase
Agreement").  The Company has  heretofore  issued the  $12,000,000  6.62% Senior
Notes due June 1, 2018 (the "Notes")  dated June 23, 1998,  pursuant to the Note
Purchase  Agreement.  The Noteholders are the holders of 100% of the outstanding
principal amount of the Notes.

     B.  The  Company  and the  Noteholders  have  also  entered  into a  Waiver
Agreement dated as of August 8, 2002 (the "First Waiver"), pursuant to which the
Noteholders waived compliance by the Company with the provisions of Section 5(i)
of the Note Purchase  Agreement  through the Expiration  Date (the "First Waiver
Expiration Date") set forth therein.

     C. The Company has requested that the Noteholders  waive  compliance with a
certain  provision  of the  Note  Purchase  Agreement  in  connection  with  the
Company's  issuance of an aggregate of $30,000,000  senior  unsecured notes (the
"New Note Issuance") pursuant to a Note Purchase Agreement dated as of August 1,
2002, and the Company and the  Noteholders now desire to waive said provision of
the Note Purchase  Agreement as of the date hereof (the "Effective Date") in the
respect, but only in the respect, hereinafter set forth.

     D. The Company has also requested that the Noteholders  agree to modify the
First Waiver  Expiration Date, and the Company and the Noteholders now desire to
modify said First Waiver Expiration Date in the respect hereinafter set forth.

     E.  Capitalized  terms  used  herein  shall  have the  respective  meanings
ascribed  thereto in the Note Purchase  Agreement  unless herein  defined or the
context shall otherwise require.

     F. All requirements of law have been fully complied with and all other acts
and things necessary to make this Waiver a valid,  legal and binding  instrument
according  to its  terms for the  purposes  herein  expressed  have been done or
performed.

     NOW, THEREFORE,  upon the full and complete  satisfaction of the conditions
precedent to the effectiveness of the Waiver set forth in SS.2.1 hereof,  and in
consideration of good and valuable  consideration the receipt and sufficiency of
which is hereby acknowledged, the Company and the Noteholders do hereby agree as
follows:

SECTION 1. WAIVER AND CONSENT; MODIFICATION OF FIRST WAIVER EXPIRATION DATE

     Section 1.1. Upon and by virtue of this Waiver becoming effective as herein
contemplated,  the  failure of the  Company  to comply  with the  provisions  of
Section  5(a) of the  Note  Purchase  Agreement  as a  result  of the  New  Note

<PAGE>

Issuance,  which  non-compliance  would otherwise constitute an Event of Default
under the Note  Purchase  Agreement,  shall be deemed to have been waived by the
Noteholders  during the period from and including the Effective Date through and
until,  but not  including,  the  Expiration  Date (as defined  below),  and the
Noteholders  consent to the New Note Issuance,  but solely to the extent the New
Note Issuance  would  otherwise  have resulted in a violation of Section 5(a) of
the Note Purchase  Agreement.  The term "Expiration Date" shall mean the earlier
of (a) September  15, 2002 or (b) the date upon which the Company  enters into a
Second Amendment to the Note Purchase  Agreement  pursuant to which Section 5(a)
of the Note Purchase  Agreement is amended and/or restated such that the Company
would not have been in violation thereof as a result of the New Note Issuance.

     The Company understands and agrees that the waiver and consent contained in
this SS.1.1  pertains only to the Default and Event of Default herein  described
and to the extent so described  and not to any other Default or Event of Default
which may exist under, or any other matters arising in connection with, the Note
Purchase Agreement or to any rights which the Noteholders have arising by virtue
of any such other actions or matters.

     Section  1.2.  The Company and the  Noteholders  hereby agree that the term
"Expiration  Date" as set forth in the First Waiver shall be deemed  amended and
restated to read as follows:  "The term "Expiration Date" shall mean the earlier
of (a) September  15, 2002 or (b) the date upon which the Company  enters into a
Second Amendment to the Note Purchase  Agreement  pursuant to which Section 5(i)
of the Note Purchase  Agreement is amended and/or restated such that the Company
is no longer in violation thereof."

SECTION 2. MISCELLANEOUS.

     Section  2.1.  This Waiver  shall  become  effective  and binding  upon the
Company and the  Noteholders  on the  Effective  Date upon the Company's and the
Noteholders' acceptance in the space below.

     Section 2.2. This Waiver shall be construed in connection  with and as part
of the Note Purchase Agreement,  and except as modified and expressly amended by
this Waiver, all terms,  conditions and covenants contained in the Note Purchase
Agreement  and the Notes are  hereby  ratified  and shall be and  remain in full
force and effect.

     Section  2.3.  Any  and  all  notices,  requests,  certificates  and  other
instruments  executed and  delivered  after the  execution  and delivery of this
Waiver  may  refer  to the  Note  Purchase  Agreement  without  making  specific
reference to this Waiver but nevertheless all such references shall include this
Waiver unless the context otherwise requires.

     Section 2.4. The descriptive  headings of the various  Sections or parts of
this  Waiver  are for  convenience  only and shall not  affect  the  meaning  or
construction of any of the provisions hereof.

     Section 2.5.  This Waiver shall be governed by and  construed in accordance
with Ohio law.

                                       2
<PAGE>

     Section  2.6.  The  execution  hereof by you shall  constitute  a  contract
between us for the uses and purposes  hereinabove set forth, and this Waiver may
be  executed  in  any  number  of   counterparts,   each  executed   counterpart
constituting an original, but all together only one agreement.

                                    THE CHILLICOTHE TELEPHONE COMPANY

                                    By /s/ Thomas McKell
                                       -------------------------------------
                                    Its President
                                       -------------------------------------

Accepted and Agreed to:

                                    AMERICAN UNITED LIFE INSURANCE COMPANY

                                    By /s/ Christopher D. Pahlke
                                       -------------------------------------
                                           Christopher D. Pahlke
                                           Vice President

                                    THE STATE LIFE INSURANCE COMPANY
                                    BY, AMERICAN UNITED LIFE INSURANCE COMPANY,
                                        ITS AGENT

                                    By /s/ Christopher D. Pahlke
                                       -------------------------------------
                                           Christopher D. Pahlke
                                           Vice President

1561830

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]