Document:

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                                                                   Exhibit 10.56

                        INTERCREDITOR AND SUBORDINATION AGREEMENT

      THIS INTERCREDITOR AND SUBORDINATION AGREEMENT, dated as of January 1,
2002 (as amended, restated or otherwise modified, this "Agreement") is by and
among KNOLOGY Broadband, Inc., a Delaware corporation (the "Guarantor"), certain
of the Subsidiaries of the Guarantor as identified in the Credit Agreement as
borrowers (the "Borrowers" and collectively with the Guarantor, the "Loan
Parties"), KNOLOGY, Inc., a Delaware corporation (the "Subordinated Creditor")
and First Union National Bank, a national banking association, as Administrative
Agent (the "Administrative Agent") for the benefit of itself and the financial
institutions (the "Lenders") as are, or may from time to time become, parties to
the Credit Agreement (as hereinafter defined).

                                   STATEMENT OF PURPOSE

      Pursuant to the Credit Agreement dated as of December 22, 1998 (as
amended, restated, supplemented or otherwise modified, the "Credit Agreement")
by and among the Borrowers, the Guarantor, the Lenders and the Administrative
Agent, the Lenders agreed to extend certain credit facilities to the Borrowers
on terms and conditions contained therein.

      The Guarantor has requested that the Lenders consent (a) to the issuance,
by the Guarantor to the Subordinated Creditor, of subordinated debt in the form
of a $34,500,000 secured subordinated note (the "Intercompany Credit Facility
Note") (b) to the subordinated guaranty of the Junior KNOLOGY Debt (as defined
below) by the Borrowers and (c) to the granting of subordinated liens on certain
assets of the Loan Parties to secure the repayment of the Junior KNOLOGY Debt.
As a condition to granting such consent, the Lenders require that the Loan
Parties and the Subordinated Creditor execute and deliver this Agreement.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

                                        ARTICLE I
                                       DEFINITIONS

      SECTION 1.1 Definitions and Rules of Construction.

      (a) The following terms when used in this Agreement shall have the meaning
as assigned to them below:

      "Administrative Agent" shall have the meaning assigned thereto in the
preamble hereof.

      "Bankruptcy Case" means any proceeding commenced by or against the
Guarantor or any of its Subsidiaries, under any provision of the Bankruptcy Code
or under any other federal or state bankruptcy or insolvency law, including
assignments for the benefit of creditors, or proceedings seeking reorganization,
arrangement, or other similar relief and all converted or succeeding cases in
respect thereof.

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      "Bankruptcy Code" means the United States Bankruptcy Code (11 U.S.C.
Section 101, et seq.), as amended, and any successor statute.

      "Collateral" means the Senior Collateral and the Subordinated Collateral.

      "Collateral Agent" shall have the meaning assigned thereto in Section 3.4
hereof.

      "Credit Agreement" shall have the meaning assigned thereto in the
Statement of Purpose hereof.

      "Credit Documents" means, collectively, the Credit Agreement, all other
Loan Documents (as defined therein), and any other document, instrument, or
agreement now existing or hereafter arising evidencing, documenting, securing,
or otherwise relating to the Senior Debt, together with any amendments,
replacements, substitutions, or restatements thereof.

      "Determination Date" means the date on which the Subordinated Creditor and
the Administrative Agent (on behalf of itself and the other Lenders) (a)
terminate their security interests under the Pledge Agreement or the Security
Agreement or the Subordinated Pledge Agreement or the Subordinated Security
Agreement, respectively, (b) accelerate any sum due under the Credit Documents
or the Junior KNOLOGY Debt Credit Documents, respectively or (c) the Lenders
refuse to fund any additional advance to the Borrower as a result of the
occurrence of any default or event of default under the Credit Documents.

      "Intercompany Guaranty Agreement" means the intercompany guaranty
agreement dated as of January 1, 2002, executed by any Subsidiary of the
Guarantor, in favor of the Subordinated Creditor for the purpose of guaranteeing
the payment of the Junior KNOLOGY Debt in each case, as amended, restated,
supplemented or otherwise modified in accordance with the terms hereof.

      "Intercompany Mortgages" means the collective reference to any mortgage or
deed of trust granted by the Guarantor or any Subsidiary thereof to secure the
payment of the Junior KNOLOGY Debt, in each case, as amended, restated,
supplemented or otherwise modified in accordance with the terms hereof.

      "Intercompany Pledge Agreement" means the intercompany pledge agreement
dated as of January 1, 2002, executed by the Guarantor and certain of its
Subsidiaries to secure the payment of the Junior KNOLOGY Debt, as amended,
restated, supplemented or otherwise modified in accordance with the terms
hereof.

      "Intercompany Security Agreement" the intercompany security agreement
dated as of January 1, 2002, executed by the Guarantor and certain of its
Subsidiaries to secure the payment of the Junior KNOLOGY Debt, as amended,
restated, supplemented or otherwise modified in accordance with the terms
hereof.

      "Junior KNOLOGY Debt" means all obligations and any other presently
existing or hereafter arising indebtedness, claims, debts, liabilities, and
obligations of Guarantor owing to

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the Subordinated Creditor and evidenced by the Intercompany Credit Facility
Note, whether direct or indirect, whether contingent or of any other nature,
character, or description and any refinancings, renewals, refundings, or
extensions of such amounts in accordance with this Agreement

      "Junior KNOLOGY Debt Credit Documents" means, collectively, the
Intercompany Credit Facility Note, the Junior KNOLOGY Debt Security Documents,
and all other loan documents evidencing the Junior KNOLOGY Debt or any security
interest or lien securing the repayment thereof.

      "Junior KNOLOGY Debt Security Documents" means the collective reference to
the Intercompany Security Agreement, the Intercompany Pledge Agreement, the
Intercompany Guaranty Agreement, the Intercompany Mortgages and any other
agreement or writing pursuant to which the Guarantor or any Subsidiary thereof
purports to pledge or grant a security interest in any property or assets
securing the Junior KNOLOGY Debt or any such Person purports to guaranty the
payment and/or performance of the Junior KNOLOGY Debt.

      "Liquidating Party" shall have the meaning assigned thereto in Section
2.3.

      "Loan Party" means the Guarantor or any Borrower, and "Loan Parties" means
the collective referred thereto.

      "Permitted Junior Securities" means (a) any payment or distribution of
junior securities of any Borrower, the Guarantor or any other Person authorized
by an order or decree giving effect to the subordination of the Junior KNOLOGY
Debt to the Senior Debt, and made by a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy, insolvency or other
similar law, or (b) common stock or other junior debt or equity securities of
any Borrower, the Guarantor or any other Person provided for by a plan of
reorganization or readjustment which such other junior securities are
subordinated, to at least the same extent as the Junior KNOLOGY Debt, to the
indefeasible payment in full in cash of all Senior Debt.

      "Secured Party" means the Subordinated Creditor or the Administrative
Agent, as applicable as the context requires, or any successor or assignee of
any of either of them.

      "Senior Collateral" means the collective reference to all assets of the
Guarantor and its Subsidiaries subject to any security interest or other lien
granted pursuant to any of the Security Documents (as defined in the Credit
Agreement) to secure the payment and/or performance of the Senior Debt. The
Senior Collateral shall, without limitation, include all of the Subordinated
Collateral.

      "Senior Debt" means all Obligations (as defined in the Credit Agreement)
and any other presently existing or hereafter arising indebtedness, claims,
debts, liabilities, and obligations of the Borrowers or the Guarantor owing to
the Administrative Agent or the Lenders under the Credit Agreement and other
Loan Documents, whether direct or indirect, whether contingent or of any other
nature, character, or description and any refinancings, renewals, refundings, or
extensions of such amounts.

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      "Subordinated Collateral" means the collective reference to all assets of
the Guarantor and its Subsidiaries subject to any security interest or other
lien granted pursuant to any of the Junior KNOLOGY Debt Collateral Documents to
secure the payment and/or performance of the Junior KNOLOGY Debt.

      "Subordinated Payment" shall have the meaning assigned thereto in Section
2.2(b).

      "UCC" means the Uniform Commercial Code as in effect in the State of North
Carolina, as amended or modified from time to time; provided that if by reason
of mandatory provisions of law, the perfection of the effect of perfection or
non-perfection of the security interests in any Collateral is governed by the
Uniform Commercial Code as in effect in a jurisdiction other than North
Carolina, "UCC" shall mean the Uniform Commercial Code as in effect in such
other jurisdiction for purposes of the provisions hereof relating to such
perfection or effect of perfection or non-perfection.

      (b) Capitalized terms used herein and not defined shall have the meaning
assigned thereto in the Credit Agreement.

      SECTION 1.2 General. Unless otherwise specified, a reference in this
Agreement to a particular article, section or subsection is a reference to that
article, section or subsection of this Agreement. Wherever from the context it
appears appropriate, each term stated in either the singular or plural shall
include the singular and plural and pronouns stated in the masculine, feminine
or neuter gender shall include the masculine, the feminine and the neuter.

                                   ARTICLE II.
                                  SUBORDINATION

      SECTION 2.1 Subordination to Senior Debt. Notwithstanding anything in the
Junior KNOLOGY Debt or any other agreement relating to the Junior KNOLOGY Debt
to the contrary, the Subordinated Creditor hereby agrees and covenants that, to
the extent set forth herein and on the terms and conditions set forth herein,
the Junior KNOLOGY Debt is and shall be subordinate in right of order and
payment to the indefeasible payment in full in cash of the Senior Debt and the
termination of all Commitments under the Credit Agreement. Each holder of Senior
Debt, either now existing or hereafter arising, shall be deemed to have acquired
such Senior Debt in reliance upon the provisions contained in this Article II.
The Junior KNOLOGY Debt shall include a legend stating that the payment thereof
is subordinate to the indefeasible payment in full in cash of all Senior Debt
pursuant to this Agreement, and the Guarantor and the Borrowers shall mark all
books of account in such manner to indicate that payment thereof is subordinated
pursuant to this Agreement.

      SECTION 2.2 No Payment or Remedies with respect to the Junior KNOLOGY
Debt.

      (a) The Subordinated Creditor shall not accelerate, demand, sue for,
commence any collection or enforcement action or exercise any remedy with
respect to the Junior KNOLOGY Debt until after the indefeasible payment in full
in cash of the Senior Debt and the termination of all Commitments under the
Credit Agreement.

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      (b) The Subordinated Creditor shall not be entitled to receive any
payment, either directly or indirectly, by or on behalf of any Loan Party, in
cash, property or securities (other than Permitted Junior Securities) (i) on
account of the principal of, premium, if any, and interest (including
post-petition interest) on the Junior KNOLOGY Debt at any time outstanding, or
other fees, costs, expenses and any other amounts accrued, incurred or otherwise
due in respect of the Junior KNOLOGY Debt, or (ii) to prepay, purchase, redeem,
retire, exchange, defease or otherwise acquire the Junior KNOLOGY Debt or any
instrument evidencing the Junior KNOLOGY Debt for cash or property (any such
payment, other than a payment with Permitted Junior Securities, collectively
referred to as "Subordinated Payments") until after the indefeasible payment in
full in cash of the Senior Debt and the termination of all Commitments under the
Credit Agreement.

      (c) In furtherance of the provisions of Section 2.1, in the event that,
notwithstanding the foregoing provisions of this Section 2.2, any Subordinated
Payment, either directly or indirectly, shall be made by or on behalf of any
Loan Party, and received by the Subordinated Creditor at a time when such
payment was prohibited by the provisions of this Section 2.2, then, unless and
until such payment is no longer prohibited by this Section 2.2, such payment
shall be segregated and held in trust for the benefit of and shall be promptly
paid over to, the Administrative Agent for the ratable benefit of itself and the
Lenders.

      SECTION 2.3 Subordination upon Dissolution, Liquidation or Reorganization
of any Borrower. Upon any distribution by any Loan Party of assets of any kind
or character, whether in cash, property or securities, to creditors upon any
dissolution, winding up, liquidation or reorganization of such Loan Party (in
such capacity, the "Liquidating Party"), whether in a voluntary or involuntary
bankruptcy, insolvency or receivership proceedings or upon any assignment for
the benefit of creditors or otherwise or any other marshalling of assets and
liabilities of such obligor:

      (a) the Administrative Agent and Lenders shall first receive indefeasible
payment in full in cash, to the extent then presently available for payment, of
all Senior Debt (or have such payments duly provided for in a manner
satisfactory to the Administrative Agent and the Lenders) before the
Subordinated Creditor is entitled to receive any Subordinated Payment on account
of or accrued or incurred in connection with any Junior KNOLOGY Debt;

      (b) any payment or distribution of assets of the Liquidating Party of any
kind or character, whether in cash, property or securities (other than Permitted
Junior Securities) to which the Subordinated Creditor would be entitled except
for the provisions of this Agreement shall be paid by the Liquidating Party, the
liquidating trustee or agent or other person making such a payment or
distribution, directly to the Administrative Agent for the ratable benefit of
itself and the Lenders, to the extent necessary to make payment in full of all
Senior Debt remaining unpaid; and

      (c) in the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Liquidating Party of any kind or character,
whether in cash, property or securities (other than Permitted Junior
Securities), shall be received by the Subordinated Creditor on account of, or
accrued or incurred in connection with, any Junior KNOLOGY Debt before the

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indefeasible payment in full in cash of the Senior Debt and all Commitments
under the Credit Agreement have been terminated, or effective provision (in a
manner satisfactory to the Administrative Agent and Lenders) made for its
payment, then such payment or distribution shall be segregated and received and
held in trust for the benefit of and shall be promptly paid over to the
Administrative Agent, for the ratable benefit of itself and the Lenders, for
application to the payment of all Senior Debt until such Senior Debt shall have
been indefeasibly paid in full in cash.

      SECTION 2.4 Subrogation. Subject to the prior indefeasible payment in full
in cash of all Senior Debt and the termination of all Commitments under the
Credit Agreement, the holder of, or obligee with respect to, any Junior KNOLOGY
Debt shall be subrogated to the rights of the Administrative Agent and Lenders
to receive payments or distributions of assets applicable to the Senior Debt to
the extent that distributions were paid to the Lenders that otherwise would have
been paid to such obligee, until all amounts owing on such Junior KNOLOGY Debt
shall be indefeasibly paid in full, and for the purpose of such subrogation no
such payments or distributions to the Administrative Agent or Lenders by virtue
of this Agreement, which otherwise would have been made to such obligee, shall,
as between the obligor on such Junior KNOLOGY Debt and such obligee, be deemed
to be payment on account of such Senior Debt, it being understood that the
provisions of this Agreement are and are intended solely for the purpose of
defining the relative rights of the Subordinated Creditor, on the one hand, and
the Administrative Agent and Lenders, on the other hand.

      SECTION 2.5 Subordination Rights Not Impaired.

      (a) No right of the Administrative Agent or any Lender to enforce the
subordination provisions herein shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of any Loan Party or by any
act or failure to act, in good faith, by the Administrative Agent or any such
Lender, or by any noncompliance by any Loan Party with the terms of any Junior
KNOLOGY Debt, regardless of any knowledge thereof which any such Lender may have
or be otherwise charged with. The Administrative Agent and the Lenders may
extend, renew, modify or amend the terms of Senior Debt or any security therefor
and release, sell or exchange such security and otherwise deal freely with any
Loan Party, all without affecting the liabilities and obligations of the
Guarantor or any other Loan Party or the rights of the Administrative Agent and
the Lenders hereunder; provided, however, this Agreement does not extend to the
refinancing of the Senior Debt unless such refinancing is arranged by the
Administrative Agent.

      (b) All rights and interests hereunder of the Administrative Agent and the
Lenders, and all agreements and obligations of the Subordinated Creditor under
this Agreement, shall remain in full force and effect irrespective of (i) any
lack of validity or enforceability of the Credit Agreement or any other Loan
Document, or of any provision of any thereof or (ii) any other circumstance that
might otherwise constitute a defense available to, or a discharge of any Loan
Party in respect of the Senior Debt.

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                                  ARTICLE III.
                            INTERCREDITOR PROVISIONS

      SECTION 3.1 Permitted Liens and Relative Priorities.

      (a) As between the Secured Parties, until the indefeasible payment in full
in cash of the Senior Debt and the termination of all Commitments under the
Credit Agreement, and notwithstanding the terms (including the description of
collateral), dating, execution, or delivery of any document, instrument, or
agreement; the time, order, occurrence, method, or manner of granting, or
perfection of any security interest or lien, the time of filing or recording of
any financing statements, or any other documents, instruments, or agreements
under the UCC or any other applicable law; or any provision of the UCC or any
other applicable law to the contrary, the Secured Parties agree:

            (i) The Administrative Agent shall have a first priority security
      interest and lien upon the Collateral, for the ratable benefit of itself
      and the other Lenders, to secure the Senior Debt, which such security
      interest and lien shall be senior in all respects to the security interest
      and lien of the Subordinated Creditor upon the Collateral, including,
      without limitation (A) the right to receive payments upon disposition of,
      on account of, or otherwise relating to any part or all of the Collateral
      (including, without limitation, the proceeds thereof) and (B) the right to
      exercise any remedies with respect to the Collateral (including, without
      limitation, the right to exercise any voting or other corporate rights
      with respect to any pledged ownership interests).

            (ii) The Subordinated Creditor shall have a second priority security
      interest in and lien upon the Collateral to secure the Subordinated
      Indebtedness, which such security interest and lien shall be subordinate
      in all respects to the security interest and lien of the Administrative
      Agent, for the ratable benefit of itself and the other Lenders, upon the
      Collateral, including, without limitation (A) subordinate to the rights of
      the Administrative Agent, on behalf of itself and the other Lenders, to
      receive payments upon disposition of, on account of or otherwise relating
      to any part of or all of the Collateral (including, without limitation,
      the proceeds thereof) and (B) subordinate to the rights of the
      Administrative Agent, on behalf of itself and the other Lenders, to
      exercise any remedies with respect to the Collateral (including, without
      limitation, the right to exercise any voting or other corporate rights
      with respect to any pledged ownership interests).

      (b) In furtherance of the provisions of Section 3.1(a), in the event that,
notwithstanding the foregoing provisions of this Section 3, the Subordinated
Creditor shall obtain or receive any payment on account of or relating to any of
the Collateral (including, without limitation, any proceeds thereof), either
directly or indirectly, in violation or conflict with the provisions of Section
3.1(a), then, unless and until such payment is no longer in violation or
conflict with Section 3.1(a), such payment shall be segregated for all other
funds and assets of the Subordinated Creditor and held in trust for the benefit
of and shall be promptly paid over to the Administrative Agent for the ratable
benefit of the Lenders.

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      (c) In furtherance of the provisions of Section 3.1(a), in the event that,
it shall be determined that all or any portion of the Subordinated Collateral
does not also constitute Senior Collateral (any such Collateral, the "Excess
Collateral"), the Subordinated Creditor hereby agrees to hold such Excess
Collateral for the benefit of the Administrative Agent and Lenders and all such
Excess Collateral shall be deemed to be Senior Collateral for the purposes of
this Section 3.1. To the extent necessary to effectuate the provisions of this
Section 3.1(c), each of the Loan Parties hereby grants a security interest to
the Administrative Agent, for the ratable benefit of itself and the Lenders, in
such Excess Collateral to secure the payment of the Obligations.

      SECTION 3.2 No Alteration of Priority. The lien and security interest
priorities provided in Section 3.1 shall not be altered or otherwise affected by
any amendment, modification, supplement, extension, renewal, restatement, or
refinancing of any of the Senior Debt nor by any action or inaction which either
Secured Party may take or fail to take in respect of the Collateral.

      SECTION 3.3 Notice of Determination Date. The Administrative Agent and the
Subordinated Creditor shall give the other party prompt written notice of the
occurrence of any event giving rise to any Determination Date.

      SECTION 3.4 Management of Collateral; Proceeds. Notwithstanding anything
to the contrary contained in the Credit Documents or the Junior KNOLOGY Debt
Credit Documents, unless and until the indefeasible payment in full in cash of
the Senior Debt and all Commitments under the Credit Agreement have been
terminated:

      (a) the Administrative Agent is hereby appointed by Subordinated Creditor
to act as the collateral agent (the "Collateral Agent") for itself and
Subordinated Creditor, and the Collateral Agent shall have the sole right to
manage the Collateral, including, without limitation, (i) the exclusive right to
exercise or refrain from exercising any action, authority, judgment, discretion,
right, power or remedy of either Secured Party with respect to the Collateral
pursuant to the applicable terms of any Credit Document or any Junior KNOLOGY
Credit Document, as applicable, with respect to the Collateral, (iii) the
exclusive right to enforce or seek to enforce any rights and remedies, with
respect to the Collateral, and (ii) the exclusive right to exercise any voting
or other corporate rights with respect to any Collateral, as applicable;

      (b) the Subordinated Creditor shall not take any action, directly or
indirectly, to enforce any of its rights with respect to the Collateral or take
any other action that would interfere with the rights of the Administrative
Agent under any Credit Document; and

      (c) the Subordinated Creditor shall not take any action, directly or
indirectly, to enforce any of its rights against any Loan Party thereof or take
any other action with respect to any Loan Party thereof that would interfere
with the rights of the Administrative Agent under any Credit Document, in each
case with respect to the foregoing clause (a), clause (b) and clause (c) without
the prior written consent of the Administrative Agent.

      The parties hereto agree and acknowledge that the Collateral Agent shall
have no fiduciary relationship, or other duties or responsibilities except those
expressly set forth in this

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Agreement and no implied duties or responsibilities shall be deemed to exist
hereunder or under any document, agreement or instrument executed in connection
herewith. The Collateral Agent (and any other person or agent acting on behalf
of the Collateral Agent) shall not be liable for any action taken or omitted to
be taken by it or in connection herewith except to the extent such action or
omission is caused solely by the gross negligence or willful misconduct thereof.

                                   ARTICLE IV.
                ADDITIONAL COVENANTS OF THE SUBORDINATED CREDITOR

      SECTION 4.1 Authorization to Effect Subordination. In furtherance of the
terms of this Agreement, the Subordinated Creditor, by its acceptance hereof,
solely in its capacity as obligee with respect to Subordinated Indebtedness (a)
irrevocably authorizes and empowers (but without imposing any obligation on) the
Administrative Agent (through any of its authorized representatives) on behalf
of itself and the other Lenders to demand, sue for, collect and receive such
obligee's ratable share of payments or distributions with respect to the Junior
KNOLOGY Debt or the Subordinated Collateral and take all such other action, in
the name of the Subordinated Creditor or otherwise, as such authorized
representatives may determine to be necessary or appropriate for the enforcement
of the provisions of this Agreement, including without limitation, that in any
Bankruptcy Case, the Administrative Agent shall have the right, as
attorney-in-fact for the Subordinated Creditor, to file any claim, proof of
claim or such other instrument of similar character, in each case, solely to the
extent such proof of claim or such other instrument relates to the Junior
KNOLOGY Debt, any Subordinated Payment and the Subordinated Collateral, if, in
each case, the Subordinated Creditor fails to do so in a timely manner; (b)
agrees to execute and deliver to such representatives, all such further
instruments confirming the authorization hereinabove set forth, and all such
powers of attorney, proofs of claim, assignments of claim and other instruments
as may reasonably be requested by the Administrative Agent; and (c) agrees that
any non-cash distribution received by the Administrative Agent on account of the
Subordinated Collateral that, in the absence of this Agreement, otherwise would
be payable to the Subordinated Creditor, may thereafter be liquidated by the
Administrative Agent, applied to the repayment of Senior Debt in accordance with
terms of the Credit Agreement, and only the cash proceeds thereof, net of costs
of sale, will be counted in determining whether the Senior Debt has been paid in
full. In furtherance of the foregoing, the Subordinated Creditor agrees that
until indefeasible payment in full in cash of all Senior Debt, the Subordinated
Creditor will not vote any interest in any Bankruptcy Case (as such vote relates
to the Junior KNOLOGY Debt, any Subordinated Payment or any Subordinated
Collateral) or take any other action in such Bankruptcy Case, without the prior
consent of the Administrative Agent, provided that the Subordinated Creditor may
defend or vote against or otherwise oppose any action or plan (other than an
action or proceeding seeking to enforce the provisions of this Agreement)
proposed or asserted by any party the intent of which is to subordinate, reduce
or otherwise challenge the validity or priority of any claim or lien asserted by
the Subordinated Creditor in such Bankruptcy Case so long as such action by the
Subordinated Creditor does not have the effect of challenging or otherwise
limiting in any respect any claim, lien or position asserted by or on behalf of
the Administrative Agent or any Lender under or with respect to the Senior Debt.
Any collection, sale, or

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other disposition of the Collateral by the Administrative Agent shall be
conclusively presumed to be commercially reasonable if the Administrative Agent
conducts such collection, sale, or other disposition in conformance with the
applicable provisions of the UCC as in effect in the applicable jurisdiction.
The Administrative Agent agrees to use its commercially reasonable best efforts
to notify the Subordinated Creditor of any such collection, sale or other
disposition and to provide the Subordinated Creditor the reasonable opportunity
to bid for the Collateral subject to such collection, sale or other disposition.

      SECTION 4.2 The exercise of any rights and remedies of the Administrative
Agent hereunder or under the Security Agreement, Pledge Agreement or any other
document regarding the Senior Collateral (a) shall not be prohibited or
restricted in any manner by any of the Junior KNOLOGY Debt Credit Documents and
(b) shall not constitute or give rise to any event of default or "Default" under
any of the Junior KNOLOGY Debt Credit Documents (as such term is defined
therein).

      SECTION 4.3 Waiver of Marshalling. Each party hereto waives any right to
compel the other party to marshal any of the Collateral or to seek payment from
any particular assets of any Loan Party or from any third party.

      SECTION 4.4 Amendments and Modifications. Under no circumstance shall the
Subordinated Creditor amend or modify, or permit the amendment or modification
of, any provision of the Junior KNOLOGY Credit Documents without the prior
written consent of the Administrative Agent.

      SECTION 4.5 Maturity Date; Optional Prepayment. The Subordinated Creditor
and the Guarantor hereby covenant and agree that until the date that is
ninety-one (91) days following the indefeasible payment in full in cash of the
Senior Debt (a) the Guarantor will not make any optional prepayment or
redemption of the Junior KNOLOGY Debt and (b) the Subordinated Creditor will not
amend the terms of the Junior KNOLOGY Debt, if the effect of such amendment is
to require any prepayment or repayment of the Junior KNOLOGY Debt, in each case,
without the prior written consent of the Administrative Agent. This Section 4.5
shall survive the termination of this Agreement and any payment, prepayment or
amendment of the Junior KNOLOGY Debt in violation of the foregoing clause (a) or
(b) shall be void ab initio.

      SECTION 4.6 Further Subordination. Neither the Subordinated Creditor nor
any obligor with respect to the Junior KNOLOGY Debt shall agree to any further
subordination of the Junior KNOLOGY Debt.

      SECTION 4.7 Transfer, Assignments or Pledges of Junior KNOLOGY Debt. In no
event shall the Subordinated Creditor transfer, assign or pledge the Junior
KNOLOGY Debt.

      SECTION 4.8 Statement of Debt. The Subordinated Creditor and the Loan
Parties shall, at any time or times upon the reasonable request of the
Administrative Agent, promptly furnish to the Administrative Agent a true,
correct and complete statement of the outstanding Junior KNOLOGY Debt.

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      SECTION 4.9 Further Assurances. The Subordinated Creditor and the Loan
Parties agree to execute such other documents and take such other actions as may
be reasonably necessary to implement the terms hereof.

                                   ARTICLE V.
                                  MISCELLANEOUS

      SECTION 5.1 Waiver of Notices. The Subordinated Creditor hereby waives
receipt of all notices, demands and protests in connection with payments of
Senior Debt which might otherwise release the obligor or the Subordinated
Creditor with respect to the Junior KNOLOGY Debt from the terms of this
Agreement.

      SECTION 5.2 Bankruptcy Issues. This Agreement shall continue in full force
and effect after the commencement of a Bankruptcy Case (all references herein to
the Loan Parties being deemed to apply to such Person as debtor-in-possession
and to a trustee for such Person's estate in a Bankruptcy Case), and shall apply
with full force and effect with respect to all Collateral or proceeds therefrom
acquired by such Person.

      SECTION 5.3 Notices.

      (a) Method of Communication. Except as otherwise provided in this
Agreement, all notices and communications hereunder shall be in writing, or by
telephone subsequently confirmed in writing. Any notice shall be effective if
delivered by hand delivery or sent via telecopy, recognized overnight courier
service or certified mail, return receipt requested, and shall be presumed to be
received by a party hereto (i) on the date of delivery if delivered by hand or
sent by telecopy, (ii) on the next Business Day if sent by recognized overnight
courier service and (iii) on the fifth (5th) Business Day following the date
sent by certified mail, return receipt requested. A telephonic notice to the
Administrative Agent will be deemed to be the controlling and proper notice in
the event of a discrepancy with or failure to receive a confirming written
notice.

      (b) Addresses for Notices. Notices to any party shall be sent to it at the
following addresses, or any other address as to which all the other parties are
notified in writing.

      If the Administrative Agent   First Union National Bank
                                    Charlotte Plaza, CP-23
                                    201 South College Street
                                    Charlotte, North Carolina 28288-0680
                                    Attention: Syndication Agency Services
                                    Telephone No.: (704) 374-2698
                                    Telecopy No.: (704) 383-0288

                                       11

<PAGE>

      If to Subordinated Creditor:  KNOLOGY, Inc.
                                    1241 O.G. Skinner Drive
                                    West Point, Georgia
                                    Attention: Chad Wachter, Esq.
                                    Telephone No.: (706) 634-2663
                                    Telecopy No.: (706) 773-2663

      If to any Loan Party          KNOLOGY Broadband, Inc.
                                    1241 O.G. Skinner Drive
                                    West Point, Georgia
                                    Attention: Chad Wachter, Esq.
                                    Telephone No.: (706) 634-2663
                                    Telecopy No.: (706) 773-2663

      With copies to:

                                    Alston & Byrd, LLP
                                    One Atlanta Center
                                    1201 West Peachtree Street
                                    Atlanta, GA 30309-3424
                                    Attention: Richard Grice, Esq.
                                    Telephone Number: (404) 881-7000
                                    Telecopy Number: (404) 881-7777

                                       12

<PAGE>

      SECTION 5.4 Binding Effect; Amendments. This Agreement shall be a
continuing agreement, shall be binding upon and shall inure to the benefit of
the parties hereto from time to time and their respective successors and
assigns, and shall be irrevocable. Notwithstanding the payment in full of the
Senior Debt or the termination of the Commitments under the Credit Agreement,
this Agreement shall remain in full force and effect so long as any claim can be
made, whether as the result of any Bankruptcy Case or for any other reason, for
the rescission, avoidance or recovery for any reason of any payment made on the
Senior Debt; and in the event any such payment in fact is rescinded, avoided or
otherwise recovered, this Agreement shall operate to the full extent of the
amount of such payment with the same force and effect as if such payment had not
been made by the Borrowers in the first instance. Any waiver or amendment
hereunder must be evidenced by a signed writing of the party to be bound
thereby, and shall only be effective in the specific instance.

      SECTION 5.5 Indemnification. The Borrower agrees to reimburse the
Administrative Agent (in its capacity as Administrative Agent and as Collateral
Agent) upon demand for all reasonable costs and expenses, including reasonable
counsel fees and disbursements, incurred, and to indemnify and hold the
Administrative Agent and its respective officers, directors, employees and
agents (collectively, the "Indemnified Parties") harmless from and against all
losses of any kind whatsoever suffered thereby in connection with (a) the
defense of any claim or proceeding challenging the exercise by the
Administrative Agent of any right or remedy granted to it under this Agreement,
(b) any claim against the Indemnified Parties, and the prosecution or defense
thereof, arising out of or in any way connected with this Agreement (whether or
not the Indemnified Party is a party thereto), and (c) the collection or
enforcement of the obligations under the Senior Debt or the Subordinated
Indebtedness or any of them, except in any such case in which losses result
solely from the gross negligence or willful misconduct of the Indemnified Party.

      SECTION 5.6 Severability; Benefited Creditor.

      (a) Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Agreement.

      (b) If either Secured Party (a "Benefited Creditor") shall obtain payment
with respect to any Collateral by any means (including through the exercise of
any right of set-off, banker's lien or counterlien or similar right or otherwise
or through the exercise of any right under any applicable documents) and, as a
result of such payment, such Benefited Creditor shall have received a percentage
or amount in excess of those amounts to which it is entitled under Section 3
hereof, it shall promptly make such payments to the other Secured Party and such
other adjustments as shall be necessary so that each Secured Party shall share
the benefit of such excess payment (net of any expenses which may be incurred by
such Benefited Creditor in obtaining or preserving such excess payment) in
accordance with the provisions of Section 3 hereof. Nothing herein shall require
either Secured Party to exercise any such right of set-off, banker's lien,
counterlien or similar right referred to in this Section 5.6 (b).

                                       13

<PAGE>

      SECTION 5.7 Complete Agreement. This Agreement constitutes the complete
agreement and understanding of each of the Subordinated Creditor and the
Administrative Agent, and supersedes all prior or contemporaneous oral and
written negotiations, agreements and understandings, express or implied, with
respect to the subject matter hereof.

      SECTION 5.8 Counterparts. This Agreement may be executed in any number of
counterparts, and by the parties each in separate counterparts, each of which
shall be an original, but all of which shall together constitute one and the
same Agreement.

      SECTION 5.9 Binding Arbitration; Waiver of Jury Trial; Governing Law.

      (a) Binding Arbitration. Upon demand of any party, whether made before or
after institution of any judicial proceeding, any dispute, claim or controversy
arising out of, connected with or relating to this Agreement ("Disputes"),
between or among parties to this Agreement shall be resolved by binding
arbitration as provided herein. Institution of a judicial proceeding by a party
does not waive the right of that party to demand arbitration hereunder. Disputes
may include, without limitation, tort claims, counterclaims, claims brought as
class actions, claims arising from documents relating hereto executed in the
future, disputes as to whether a matter is subject to arbitration, or claims
concerning any aspect of the past, present or future relationships arising out
of or connected with this Agreement. Arbitration shall be conducted under and
governed by the Commercial Financial Disputes Arbitration Rules (the
"Arbitration Rules") of the American Arbitration Association ("AAA") and Title 9
of the U.S. Code. All arbitration hearings shall be conducted in Charlotte,
North Carolina. The expedited procedures set forth in Rule 51, et seq. of the
Arbitration Rules shall be applicable to claims of less than $1,000,000. All
applicable statutes of limitation shall apply to any Dispute. A judgment upon
the award may be entered in any court having jurisdiction. Notwithstanding
anything foregoing to the contrary, any arbitration proceeding demanded
hereunder shall begin within ninety (90) days after such demand thereof and
shall be concluded within one hundred and twenty (120) days after such demand.
These time limitations may not be extended unless a party hereto shows cause for
extension and then such extension shall not exceed a total of sixty (60) days.
The panel from which all arbitrators are selected shall be comprised of licensed
attorneys selected from the Commercial Finance Dispute Panel of the AAA. The
single arbitrator selected for expedited procedure shall be a retired judge from
the highest court of general jurisdiction, state or federal, of the state where
the hearing will be conducted. The parties hereto do not waive any applicable
Federal or state substantive law except as provided herein.

      (b) Jury Trial. THE PARTIES HERETO HEREBY ACKNOWLEDGE THAT BY AGREEING TO
BINDING ARBITRATION THEY HAVE IRREVOCABLY WAIVED THEIR RESPECTIVE RIGHTS TO A
JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF
ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS
HEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

                                       14

<PAGE>

      (c) Governing Law. This Agreement, unless otherwise expressly set forth
therein, shall be governed by, construed and enforced in accordance with the
laws of the state of New York, without reference to the conflicts or choice of
law principles thereof.

      SECTION 5.10 Relationship of Parties. This Agreement is entered into
solely for the purposes set forth above, and, except as is expressly provided
otherwise herein, neither the Administrative Agent nor Subordinated Creditor
hereto assumes any responsibility to the other to advise such other party of
information regarding the financial condition of the Loan Parties or regarding
any of the Collateral or of any other circumstances bearing upon the risk of
nonpayment of any obligations arising under the Credit Documents or the Junior
KNOLOGY Debt Credit Documents. Eachd of the Administrative Agent and
Subordinated Creditor shall be responsible for managing its relationship with
the Loan Parties and except with respect to the Administrative Agent's role as
Collateral Agent, neither the Administrative Agent nor Subordinated Creditor
shall be deemed the agent of the other for any purpose.

                            [Signature Pages Follow]

                                       15

<PAGE>

IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement
as of the date first written above:

[CORPORATE SEAL]                    KNOLOGY OF COLUMBUS, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                          ------------------------------

[CORPORATE SEAL]                    KNOLOGY OF MONTGOMERY, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF PANAMA CITY, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF AUGUSTA, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF CHARLESTON, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[Intercreditor and Subordination Agreement]

<PAGE>

[CORPORATE SEAL]                    KNOLOGY OF SOUTH CAROLINA, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF ALABAMA, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF FLORIDA, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[CORPORATE SEAL]                    KNOLOGY OF HUNTSVILLE, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[COPORATE SEAL]                     KNOLOGY OF GEORGIA, INC., as Borrower

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

                           [SIGNATURE PAGES CONTINUE]

[Intercreditor and Subordination Agreement]

<PAGE>

[CORPORATE SEAL]                    KNOLOGY Broadband, Inc., as Guarantor

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

                           [SIGNATURE PAGES CONTINUE]

[Intercreditor and Subordination Agreement]

<PAGE>

[CORPORATE SEAL]                    KNOLOGY, INC., as Subordinated Creditor

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[Intercreditor and Subordination Agreement]

<PAGE>

                                    FIRST UNION NATIONAL BANK, as
                                     Administrative Agent and Lender

                                    By:
                                        --------------------------------
                                    Name:
                                          ------------------------------
                                    Title:
                                           -----------------------------

[Intercreditor and Subordination Agreement]<PAGE>

                                                                 EXHIBIT 10.33

                               NOVOSTE CORPORATION
                         EXECUTIVE DEFERRED INCOME PLAN

                                  PLAN SUMMARY

         As part of its Executive Deferred Income Plan ("EDI" Plan), Novoste
Corporation (the "Company") offers to assist you with the purchase and
maintenance of a variable life insurance policy (the "Policy") to provide
investment accumulation benefits and life insurance protection for you and your
family. This summary describes the basic terms of the EDI Plan, which are set
forth more fully in certain formal documents - namely, the Split-Dollar Life
Insurance Agreement, the Collateral Assignment and the Tax Adjustment Program.
Each of these and your variable universal life insurance policy, issued by The
Principal Life Insurance Company, appear as separate exhibits to this Summary.
This Summary, your policy and these documents, with their corresponding
schedules, comprise all of the documentation that governs your EDI Plan.

         Although it is somewhat complex, the Company selected this plan format
to enhance your EDI Plan asset security and to provide favorable taxation of
your benefits. This summary is designed to help you cut through the complexity,
by providing a plain English explanation of the EDI Plan.

   o  Explanation of Plan Contributions

      o  You elect to defer a portion of your salary or bonus (your
         "Pay-Reduction Contribution") on a monthly, quarterly or
         annual basis up to the contribution limit specified for the
         year on Schedule B of the Split-Dollar Life Insurance
         Agreement. For 2001, this limit is 10% of your salary and
         bonus paid during the year.

      o  The Company will add a matching contribution (the "Company
         Match"), based on the percentage specified for the year on
         Schedule B of the Split Dollar Life Insurance Agreement. For
         2001, the Company Match percentage is 100% of your
         Pay-Reduction Contribution.

      o  Your Pay-Reduction Contribution and the Company Match are
         treated as W-2 taxable compensation to you and income taxes
         are withheld.

      o  Instead of waiting for salary and bonus deferrals to occur,
         you may make a payment into the EDI Plan from your personal
         funds (a "Personal Funds Contribution"). Because you have
         already paid taxes on dollars that you pay into the Plan as a
         Personal Funds Contribution, special rules apply in
         calculating the contribution limit and Company Match on your
         Personal Funds Contribution. These are designed to equalize
         the treatment of Pay-Reduction Contributions and Personal
         Funds Contributions after taking taxes into account. As a
         result, for 2001, there is a 6% contribution limit and a
         166-2/3% match for a Personal Funds Contribution.

                                        1

<PAGE>

      o  Taken together, these Plan contributions produce what is called the
         "Employee Premium" to the Policy, which can be expressed as a formula
         as follows:

            ((Pay-Reduction Contribution + Company Match) - 40%
            taxes) + (Personal Funds Contribution + (Company
            Match - 40% taxes)) = the "Employee Premium."

         The Employee Premium represents your total dollars paid into the life
         insurance policy. We refer to them as "your dollars" because they
         become your investment in the life insurance policy, even though they
         are partly financed by the Company Match. (Note: Changes in tax rates
         may change the tax percentage in the formula.)

      o  The Company then pays an additional amount into the life insurance
         policy (the "Company Premium"), to replace the estimated amount of
         taxes withheld on your Pay-Reduction Contribution and the Company
         Match. For 2001, the Company Premium is set at two-thirds of your
         Pay-Reduction Contribution and the Company Match combined, after both
         are reduced for estimated taxes. (A comparable result occurs if you
         make a Personal Funds Contribution, but here the Plan takes into
         account that you previously paid taxes on dollars used for a Personal
         Funds Contribution.) The formula for the Company Premium currently
         produces a 60%/40% split of Employee Premiums to Company Premiums,
         which is expected to continue.

      o  The end result is that a premium approximately equal to your pre-tax
         Pay-Reduction Contribution plus the pre-tax Company Match is
         contributed to the life insurance policy. (Once again, there is a
         comparable result, adjusted for estimated taxes, if you make a Personal
         Funds Contribution.)

      o  To summarize, the total premiums paid to the policy will consist of
         your Employee Premiums (60% of the total) and the Company Premiums (40%
         of the total). Your Employee Premiums are the sum of your Pay-Reduction
         Contributions and the Company Match, less estimated income tax
         withholding of 40%, plus any amounts you contribute from personal funds
         and their corresponding Company Match. The Company Premiums replace the
         taxes withheld on your deferral and Company Match. For example:

             Pay-Reduction Contribution         $10,000

             + Company Match                    $10,000

             -  Taxes Withheld                  $ 8,000

             + Personal Funds Contribution      $     0
                                                -------

             = Employee Premium                 $12,000

             + Company Premium                  $ 8,000
                                                -------

             = Total Premium                    $20,000

                                        2

<PAGE>

   o  Investment of Premiums

      o  Your total premium is paid to the insurance company, and invested in
         your life insurance policy. Certain deductions are made by the
         insurance company, after which the remainder is invested in "separate
         accounts" under the Policy. An illustration detailing these amounts is
         attached as Schedule C to the Split-Dollar Life Insurance Agreement.

      o  The separate accounts represent the specific investment alternatives
         offered by the insurance company. You direct the investment of values
         under the Policy among the separate accounts. This lets you make
         initial investments and investment changes that you decide will attain
         your investment goals. Current information regarding your investment
         choices and the procedures for directing these investments are attached
         as an Exhibit to this Summary. Your investment direction privilege
         continues for as long as the Policy remains in force.

   o  Ownership of the Policy

      o  You are the owner of the Policy. You may transfer your ownership rights
         in the Policy to a transferee (such as a life insurance trust, that you
         establish for estate planning purposes). If such a transfer occurs, the
         "Transferee" would control all ownership rights and would be subject to
         the Collateral Assignment obligation described below.

      o  Although the life insurance component of the Policy is minimized to
         drive higher investment accumulation benefits in the EDI Plan, the life
         insurance benefit provides significant economic protection to your
         beneficiary during service with the Company. You may designate and
         change the beneficiary or beneficiaries of the Policy, and select
         optional methods of settlement with respect to the death benefit
         provided for by the Policy.

      o  Neither you nor the Company may borrow any part of the Policy's loan
         value or cash surrender value during the term of the Split-Dollar Life
         Insurance Agreement.

      o  By executing the Collateral Assignment, you assign to the Company a
         security interest in the Policy, limited to the sum of Company
         Premiums. This security interest will be repaid out of Policy insurance
         proceeds, if your death occurs. If a "Specified Termination Event"
         (defined below) occurs, either the Company will withdraw its security
         interest from the Policy cash value or you may elect to repay the
         Company in cash.

                                        3

<PAGE>

   o  Definitions of Specified Termination Events

      o  Normal Retirement - The later of age 65, or 15 years from the
         effective date of the Split-Dollar Life Insurance Agreement,
         assuming continued service with the Company until age 65.

      o  Pre-Retirement Termination - If your employment with the
         Company terminates prior to Normal Retirement, whether
         voluntarily or involuntarily.

      o  Company Termination of Plan - The Company may, upon 30 days' written
         notice, terminate the entire EDI Plan.

      o  Default - Your defaulting under the terms of Collateral
         Assignment, e.g., an unsuccessful contest of the Company's
         rights under the Collateral Assignment.

   o  After a Specified Termination Event

      o  Both you and the Company stop making contributions to the EDI
         Plan, and the Split-Dollar Life Insurance Agreement will
         terminate. At this point, you may make Policy premium payments
         directly to the insurance company, as you see fit.

      o  The Company will recover the Company Premiums it has paid. The
         Company will recover its premiums from the cash value of the
         Policy, unless you elect to pay the Company from other funds
         under your control. Once the Company is paid back, the
         Collateral Assignment will terminate.

      o  The Policy, its remaining cash value and insurance benefit,
         are your sole property. You decide how long to keep the Policy
         in force.

   o  You may then choose among the following:

      o  Taking cash distributions using cash value withdrawals or
         Policy loans. Cash value withdrawals will be nontaxable to the
         extent of your aggregate Employee Premiums. Amounts received
         as policy loans will be nontaxable.

      o  Leaving the cash value to further accumulate.

      o  Surrendering the Policy. A surrender of the Policy would cause
         taxation of all investment gains in the Policy.

                                        4

<PAGE>

   o  The IRS is currently considering a position that would make the
      investment gains on Company Premiums automatically taxable to you
      once the Collateral Assignment ends. If this position is applied and
      taxes result, you could pay them with amounts borrowed or withdrawn
      from the Policy or from your other sources of funds. Keep in mind
      that most of the investment gains will be on Employee Premiums and
      will not be affected by this IRS position.

   o  Role of Tax Adjustment Program

      o   The Split-Dollar Life Insurance Agreement allows the build-up
          on the Company Premiums to accrue to your benefit without
          taxation as the build-up occurs, but the Internal Revenue
          Service is considering new tax rules which might tax the
          build-up each year.

      o   In the event of such adverse tax rules, to avoid current
          taxation of the build-up each year, the accrued build-up
          related to Company Premiums will become the property of the
          Company, and will be replaced by an equal and offsetting
          benefit to you under the Tax Adjustment Program. This
          replacement benefit from the Tax Adjustment Program is a
          traditional nonqualified benefit, i.e., it represents an
          unfunded promise by the Company to pay a future cash benefit.

Subject to satisfactory completion of the application and underwriting, The
Principal Life Insurance Company will issue your Policy in the next several
weeks. Once it is issued, a copy will be provided to you, and you should retain
it as a part of your document package. For now, we have attached as an exhibit a
specimen of the Policy that will be issued to you. Once the actual Policy is
issued, it will automatically become a legal component of the documents
governing your Deferred Income Plan.

                                        5

<PAGE>

                                    EXHIBITS

For your convenience, and to provide you with a complete set of documents for
the EDI Plan, the following Exhibits are attached to this Summary:

   o  Exhibit 1:  Split-Dollar Life Insurance Agreement

   o  Exhibit 2:  Collateral Assignment

   o  Exhibit 3:  Tax Adjustment Program

   o  Exhibit 4:  Description of the Policy's investment alternatives and
                  current procedures

                  These are subject to change from time to time, in accordance
                  with the terms of the Policy.

   o  Exhibit 5:  Life Insurance Policy

                  As noted, a specimen Policy is attached for now. Once an
                  actual Policy is issued to you, it will automatically be
                  deemed to be incorporated as Exhibit 5 (replacing the specimen
                  Policy).

                                        6

<PAGE>

                                                                      EXHIBIT 1

                               NOVOSTE CORPORATION
                         EXECUTIVE DEFERRED INCOME PLAN

                      SPLIT-DOLLAR LIFE INSURANCE AGREEMENT

                  THIS SPLIT-DOLLAR LIFE INSURANCE AGREEMENT (this "Agreement"),
made and entered into the ______ day of ________________, 2001, by and between
______________________________________________ (the "Employee" or "Insured") and
Novoste Corporation, a Florida corporation (the "Company").

                                    RECITALS:
                                    ---------

                  The Employee is a valued employee of the Company. In order to
provide an incentive to the Employee to continue in the employment of the
Company, and to provide greater financial security for the Employee's family,
the Company desires to assist the Employee in providing life insurance for the
benefit and protection of the Employee's family, in accordance with the terms
and conditions of this Agreement.

                  This life insurance will be provided under the Policy (as
defined in Section 1 below). A copy of the Policy will be delivered to the
Employee, subject to its issuance by the Insurance Company.

                  Certain documents are incorporated as part of this Agreement
(i) the Policy, (ii) the Plan Summary of the Novoste Executive Deferred Income
Plan, and (iii) the Tax Adjustment Program. In addition, by also signing the
Collateral Assignment, the Employee agrees to collaterally assign the Policy and
the Policy Proceeds to the Company for the sole purpose of providing security
for repayment of the Company Interest. The parties desire to define and limit
the extent of the Company's security interest in the Policy and the Policy
Proceeds to the Secured Amount. The Policy shall be owned by and legal title
shall be held by the Policy Owner. The interest of the Company in the Policy and
the Policy Proceeds arising pursuant to the Collateral Assignment shall be
limited to that of lienholder and holder of a security interest. In no event may
the Company borrow any part of the Policy's loan value or cash surrender value.

                  NOW, THEREFORE, in consideration of the premises and the
promises contained herein, and each intending to be legally bound hereby, the
parties agree as follows:

                  1. Definitions. For all purposes of this Agreement, including
                     -----------
the Recitals, and any amendment hereto (except as otherwise expressly provided
herein or by amendment or unless the context otherwise requires), the terms
defined in this Section 1 shall have the meanings set forth herein (terms
defined in the singular shall have the same meanings when used in the plural,
and vice versa, and references to one gender shall include the other):

                  "Affiliate" of any Person means (i) any other Person which
         directly, or indirectly through one or more intermediaries, controls
         such Person, (ii) any other Person which directly, or indirectly
         through one or more intermediaries, is controlled by or is under common
         control with such Person, or (iii) any other Person of which such
         Person owns, directly or indirectly, 10% or more of the common stock or

                                        1

<PAGE>

equivalent equity interests. As used in this Agreement, the term "control" means
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "Assignee" has the meaning assigned to such term in Section
         5(b) of this Agreement.

                  "Cash Compensation" means the Employee's salary and bonus that
         are paid in cash during the calendar year by the Company.

                  "Claimant" has the meaning assigned to such term in Section
         9(c) of this Agreement.

                  "Collateral Assignment" means the assignment by and from the
         Policy Owner to the Company for Collateral Security, executed in
         connection with this Agreement, as the same may be modified, amended,
         supplemented, restated or extended from time to time, pursuant to which
         the Policy Owner assigns the Policy and the Policy Proceeds to the
         Company to secure the Insured's obligation to repay the Secured Amount
         to the Company.

                  "Company Interest" means, subject to the next sentence, the
         aggregate sum of all Company Premium payments then or theretofore
         actually paid by the Company to the Insurance Company and credited to
         the Policy. In the event that the Internal Revenue Service issues
         guidance that requires federal income taxation to the Employee of the
         Policy earnings relating to the Company Premiums prior to the
         extinguishment of the Secured Amount, then immediately prior to when a
         modification in this Agreement to avoid such taxation may last be made
         under the terms of the applicable guidance or as otherwise provided by
         the Internal Revenue Service, the Company Interest shall from that
         point forward include the total amount of the Policy earnings relating
         to the Company Premium, as determined under Section 4(d).

                  "Company Match" means the match provided by the Company that
         is considered part of the Employee Premium, and that is calculated:

                           (a) In the case of the Company  Match  related to
                  the  Pay-Reduction  Contribution,  as the  applicable
                  percentage (as listed in Schedule B) of the Employee's
                  Pay-Reduction Contribution; and

                           (b) In the case of the Company Match related to the
                  Personal Funds Contribution, the applicable percentage (as
                  listed in Schedule B) of the Employee's Personal Funds
                  Contribution.

                  "Company Premium" means any premium payment made by the
         Company under the terms of the Policy or called for and due under this
         Agreement. Each Company Premium shall be equal to sixty-six and
         two-thirds percent (66-2/3%) of each Employee Premium (except for any
         period for which a different percentage is specified for this purpose
         on Schedule B).

                  "Employee" means the individual named as the Employee in the
         first paragraph of this Agreement.

                  "Employee Premium" means for any Employee the sum of (a), (b),
         (c) and (d) below:

                           (a) The Employee's Pay-Reduction Contribution
         multiplied by the Specified Factor ;
         -------------

                                        2

<PAGE>

                           (b)  The  Matching  Contribution  (which  is
                  related  to  the  Employee's  Pay-Reduction  Contribution)
                  multiplied by the Specified Factor;
                  -------------

                           (c)  The Employee's Personal Funds Contribution; and

                           (d)  The  Matching Contribution (which is related to
                  the  Employee's  Personal  Funds  Contribution)
                  multiplied by the Specified Factor.
                  -------------

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended, 29 U.S.C.ss.1001, et seq., and the rules and
         regulations issued thereunder.

                  "Insurance Company" means Principal Life Insurance Company, an
         Iowa corporation, and its successors and assigns.

                  "Insured" means the Employee, on whose life the Policy is
         insured. In the event the Policy insures the lives of the Employee and
         spouse, "Insured" means the Employee and spouse.

                  "Maximum Amount" means for any one calendar year the
         Employee's Cash Compensation multiplied by the Maximum Deferral
         Percentage for such calendar year (as listed in Schedule B). Solely for
         purposes of calculating the Maximum Amount when the Employee has
         elected to make a a Personal Funds Contribution, the Plan Administrator
         shall convert the Personal Funds Contribution into an equivalent
         Pay-Reduction Contribution by dividing the Employee's Personal Funds
         Contribution by the Specified Factor.

                  "Minimum Amount" has the meaning assigned to such term in
         Schedule B.

                  "Named Fiduciary" means the Company.

                  "Pay-Reduction Contribution" means the annual dollar amount
         that the Employee has elected to contribute by payroll deduction from
         his or her Cash Compensation to the payment of Policy premiums. These
         contributions from an Employee's Cash Compensation become subject to
         tax at the time they are applied to the payment of Policy premiums, as
         determined by the Plan Administrator.

                  "Permitted Assignee" has the meaning assigned to such term in
         Section 5(b) of this Agreement.

                  "Person" means any individual, joint venture, corporation,
         company, limited liability company, voluntary association, partnership,
         trust, joint stock company, unincorporated organization, association,
         government, or any agency, instrumentality, or political subdivision
         thereof, or any other form of entity or organization.

                  "Personal Funds Contribution" means the annual dollar amount
         that the Employee has elected to contribute to the payment of Policy
         premiums from sources other than salary or bonus reduction. In contrast
         to the Pay- Reduction Contribution, these contributions from an
         Employee's personal funds have been subject to tax at a time before
         they are applied to the payment of Policy premiums.

                  "Plan" has the meaning assigned to such term in Section 9(a)
         of this Agreement.

                                        3

<PAGE>

                  "Plan Administrator" means the Chief Financial Officer of the
         Company, or his or her delegate or delegates.

                  "Policy" means the policy of life insurance (as described on
         Schedule A attached hereto) issued by the Insurance Company on the life
         of the Insured and legally owned by the Policy Owner, as hereinafter
         defined, together with any and all supplements, endorsements and
         amendments thereto.

                  "Policy Anniversary" means any anniversary of the Policy
         Effective Date.

                  "Policy Effective Date" means the effective date of the Policy
         as set forth on Schedule A attached hereto.

                  "Policy Owner" means the Employee, or such other Person to
         whom the Employee has transferred his or her ownership rights in the
         Policy, subject to Section 6(d).

                  "Policy Proceeds" means any and all proceeds of any type of,
         from or under the Policy, including, without limitation, (i) the cash
         surrender value of the Policy, (ii) any and all proceeds of the Policy
         payable when it becomes a claim at death, maturity or otherwise, and
         (iii) distributions or shares of surplus, dividends, deposits or
         additions to the Policy, now or hereafter made thereunder or
         apportioned thereto.

                  "Required Payment" means an amount equal to the lesser of the
         Secured Amount or the cash surrender value of the Policy.

                  "Secured Amount" at any time means the difference of (A) minus
         (B) where: (A) is the amount of the Company Interest; and (B) is the
         aggregate of all amounts, if any, previously paid to the Company (or
         its Permitted Assignee) by the Policy Owner as a repayment of all or
         any portion of the amounts included in (A).

                  "Specified Factor" means, for any period of time, a decimal
         equal to one minus the Assumed Tax Rate (as such is listed in Schedule
         B for the period of time in question, except that the Assumed Tax Rate
         set forth there shall be converted from a percentage to an equivalent
         decimal for purposes of this calculation). For example, at any time the
         Assumed Tax Rate is 40%, the Specified Factor shall be .60 exactly.

                  "Specified Termination Event" means an event that results in
         the termination of this Agreement pursuant to Sections 10(a)(2),
         10(a)(3), 10(a)(4) or 10(a)(5).

                  2. Application for Policy. The Policy Owner has applied to the
                     ----------------------
Insurance Company for the Policy. The Insured, with the assistance of the
Company will take all reasonable steps to cause the Policy to be issued. The
application number and application date are recorded on Schedule A attached
hereto. When the Policy is issued, the policy number, effective date, face
amount and plan of insurance shall be recorded on Schedule A attached hereto.
While the Agreement continues in effect, the Policy shall at all times be
subject to the terms of this Agreement.

                  3. Ownership of Policy. The Policy shall be owned by and legal
                     -------------------
title shall be held by the Policy Owner. The Company shall have no legal,
equitable or beneficial right, title, or interest in the Policy, except to the
extent of the lien on and security interest in the Policy and the Policy
Proceeds created under the

                                        4

<PAGE>

Collateral Assignment. The interest of the Company in the Policy and the Policy
Proceeds shall be limited to that of lienholder and holder of a security
interest. In no event may the Company borrow any part of the Policy's loan value
or cash surrender value.

                  4.  Payment of Premiums; Assignments; Borrowings.
                      --------------------------------------------

                      (a)  Payment of Premiums. At the beginning of each
                           -------------------
                           calendar year (or at such other time or times during
                           the year as the Employee and the Company shall
                           agree), the Employee shall designate his or her
                           Pay-Reduction Contribution and Personal Funds
                           Contribution for the year on forms supplied by the
                           Plan Administrator for such purpose. The total of the
                           Pay-Reduction Contribution and the Personal Funds
                           Contribution shall not be less than the Minimum
                           Amount nor greater than the Maximum Amount applicable
                           for the year. The Pay-Reduction Contribution and the
                           Company Match shall be treated as taxable
                           compensation of the Employee and subjected to
                           applicable withholding for income and employment
                           taxes, as determined by the Plan Administrator. The
                           Company shall withhold the Pay-Reduction Contribution
                           from the Employee's Cash Compensation in one or more
                           installments during the calendar year as elected by
                           the Employee. After combining the Employee's
                           Pay-Reduction Contribution with any Personal Funds
                           Contribution and the related Company Matches, the
                           Company shall thereafter remit the Employee Premium
                           together with the Company Premium to the Insurance
                           Company at one or more times during the calendar year
                           pursuant to the requirements of the Policy.

                      (b)  Collateral Assignment. The Policy Owner and the
                           ---------------------
                           Company shall execute the Collateral Assignment
                           pursuant to which the Policy Owner assigns the Policy
                           and the Policy Proceeds to the Company to the extent
                           of securing the Policy Owner's obligation under
                           Section 9 of this Agreement to repay the Secured
                           Amount to the Company.

                      (c)  Restrictions on Borrowings. Notwithstanding any other
                           --------------------------
                           provision of this Agreement or the Policy, neither
                           the Employee nor the Company may at any time borrow
                           from the Policy.

                      (d)  Separate Tracking of Earnings. At all times during
                           -----------------------------
                           the term of this Agreement, the Company shall track
                           and separately account for the earnings of the Policy
                           relating to the Company Premium and the earnings of
                           the Policy relating to the Employee Premium. To the
                           extent that each payment of the Employee Premium and
                           the Company Premium are paid into the Policy at
                           substantially the same time, it is intended that the
                           earnings of the Policy may be allocated in proportion
                           to the amounts of the respective Employee Premiums
                           and Company Premiums.

                  5.  Company Rights and Restrictions.
                      -------------------------------

                      (a)  Rights as Lienholder. The rights of the Company as
                           --------------------
                           collateral assignee shall be that of a holder of a
                           lien on and security interest in the Policy and
                           Policy

                                        5

<PAGE>

                           Proceeds, securing the Policy Owner's obligations to
                           the Company under this Agreement.

                      (b)  Right to Assign. The Company shall have the right,
                           ---------------
                           without the Policy Owner's consent, to assign or
                           otherwise transfer any or all of its right, title and
                           interest in, to and under this Agreement, the
                           Collateral Assignment, the Policy and the Policy
                           Proceeds, absolutely or (subject to Section 4 of the
                           Collateral Assignment) as collateral security only,
                           to an Affiliate of the Company, to the Insurance
                           Company or to an Affiliate of the Insurance Company
                           (any such Person is referred to herein as a
                           "Permitted Assignee" and any such Person to whom such
                           an assignment or transfer shall have been so made is
                           referred to herein as an "Assignee"). Any Permitted
                           Assignee shall also have the right to assign as set
                           forth under this Section 5(b). Any assignment under
                           this Section 5(b) shall place the Permitted Assignee
                           in the same position as its predecessor, except to
                           the extent the assignment provides otherwise. Within
                           ten (10) days of making such an assignment, the
                           assigning party shall give notice of such assignment
                           to the Policy Owner and, if the Insurance Company is
                           not the Assignee, to the Insurance Company, provided
                           that the failure to do so shall not limit or impair
                           the rights or remedies of the Company or any
                           Permitted Assignee under this Agreement or the
                           Collateral Assignment or the rights or remedies of
                           any Permitted Assignee under any such assignment. The
                           Insured agrees to treat any Permitted Assignee the
                           same as if this Agreement and the Collateral
                           Assignment were made between the Insured and Policy
                           Owner and such Permitted Assignee. No subsequent
                           assignment shall be binding upon the Insurance
                           Company until the notice of the assignment is given
                           to the Insurance Company. Neither the Company nor any
                           Assignee shall have the right to borrow against the
                           Policy.

                      (c)  Right to Repayment. Subject to the limitations of
                           ------------------
                           Section 10(b) and the provisions of Section 8, upon
                           the occurrence of a Specified Termination Event the
                           Company shall have the right to repayment of the
                           amount of the Required Payment plus all amounts
                           required to be repaid pursuant to Section 5 of the
                           Collateral Assignment.

                      (d)  Restrictions on Actions Taken. The Company shall not
                           -----------------------------
                           take any action that might endanger the interests and
                           rights of the Policy Owner in the Policy, subject,
                           however, to the Company's right to exercise any
                           right, power or remedy available to it hereunder or
                           under the Collateral Assignment for the enforcement
                           of the Policy Owner's obligations hereunder and
                           thereunder.

                      (e)  Right to Terminate. The Company shall have the right
                           ------------------
                           to terminate this Agreement at any time upon thirty
                           (30) days prior written notice to the Policy Owner
                           and as specified in Section 10 of this Agreement.

                  6.  Rights of Policy Owner. Subject to the  provisions of this
  Agreement and the Collateral Assignment, the Policy Owner shall possess all
rights in the Policy, including, but not limited to, the following:

                                        6

<PAGE>

                      (a)  the right to transfer the values under the Policy
                           between available investment funds, subject to the
                           terms and conditions of the Policy;

                      (b)  the right to designate and change the beneficiary (or
                           beneficiaries) of the Policy;

                      (c)  the right to select optional methods of settlement
                           with regard to the death benefit provided for in the
                           Policy, subject to the provisions of Section 8 of
                           this Agreement;

                      (d)  the right to transfer to another Person all or a
                           portion of the Policy Owner's right, title and
                           interest in and to the Policy, subject in all cases
                           to the Collateral Assignment and prior written notice
                           to the Company; and

                      (e)  all other rights contained in the Policy, excluding
                           the right to borrow against the Policy.

                  7.  Surrender of Policy.  The Policy Owner may not surrender
                      -------------------
the Policy prior to the occurrence of a termination as enumerated in
Section 10(a).

                  8.  Death Claims Under the Policy. Provided that the Policy
                      -----------------------------
Owner shall not have theretofore satisfied the obligations of the Policy Owner
under Section 10(b) of this Agreement to repay the Secured Amount, the Policy
Owner hereby directs the Insurance Company, upon written demand by the Company
(or its Permitted Assignee) following the death of the Insured (which demand
shall constitute the Company's certification, on which the Insurance Company may
conclusively rely, that such obligations have not been satisfied), to pay to the
Company (or its Permitted Assignee) from the Policy Proceeds an amount equal to
the Secured Amount, notwithstanding the settlement option selected by the Policy
Owner under the Policy. Nothing in this Section 8 shall give the Company any
interest in any of the assets of the Policy Owner or the Insured including, but
not limited to, the Policy itself, other than as a holder of a lien on and
security interest in the Policy and the Policy Proceeds. The balance of the
Policy Proceeds shall be paid to the beneficiary or beneficiaries designated to
receive such balance in accordance with the terms of the Policy.

                  9.  ERISA Requirements.
                      ------------------

                      (a)  Named Fiduciaries. For purposes of ERISA, the Company
                           -----------------
                           will be the Named Fiduciary and Plan Administrator
                           with respect to the plan of split-dollar life
                           insurance provided for under this Agreement and the
                           overall Novoste Corporation Executive Deferred Income
                           Plan of which it is part. Together they may be
                           referred to as the "Plan," which is intended to
                           qualify as a life insurance employee benefit plan.
                           This Agreement, together with the documents
                           incorporated herein, shall constitute the written
                           plan instrument required by ERISA. The Company shall
                           be responsible for the general administration,
                           operation and interpretation of the Plan and for
                           carrying out its provisions, except to the extent all
                           or any such obligations specifically are imposed on
                           another person or persons or entity. The Company may
                           engage an actuary, attorney, accountant, insurance
                           company or similar entity, consultant or any other
                           technical advisor on matters regarding the operation
                           of the Plan and to assist in the administration of
                           the Plan, and to perform such other duties as are
                           required in connection therewith. The Company may
                           allocate its responsibilities for the operation and
                           administration of the Plan,

                                       7

<PAGE>

                           including the designation of persons who are not
                           named fiduciaries to carry out fiduciary
                           responsibilities under the Plan. The Company shall
                           effect such allocation of its responsibilities by
                           adopting resolutions specifying the nature and extent
                           of the responsibilities allocated; including, if
                           appropriate, the persons who are not named
                           fiduciaries, but who are designated to carry out
                           fiduciary responsibilities under the Plan. For these
                           purposes and for purposes of the claims procedures
                           set forth in Section 9(c) hereof, the Company shall
                           have the duty and discretionary authority to
                           interpret and construe the provisions of the Plan and
                           decide any dispute which may arise regarding the
                           rights of the Insured. The discretion of the Company
                           in this regard is intended to be absolute and,
                           therefore, an Employee or Beneficiary shall be
                           entitled to a benefit from the Plan only to the
                           extent that the Company determines that he or she is.
                           Determinations by the Company shall be binding and
                           conclusive upon all interested persons, and such
                           determinations shall be upheld upon review unless
                           they constitute an abuse of discretion. The Plan
                           shall be administered and the records of the Plan
                           shall be maintained on the basis of the plan year.
                           The plan year shall be the twelve month period ending
                           on December 31 of each year.

                      (b)  Funding Policy. All premiums due on the Policy shall
                           --------------
                           be remitted to the Insurance Company when due. The
                           benefits provided by the Policy shall be paid by the
                           Insurance Company in accordance with the terms of the
                           Policy. The payment of such benefits is predicated on
                           the payment of the required premiums.

                      (c)  Claims and Review Procedures. The following claims
                           ----------------------------
                           procedure shall apply for purposes of this Agreement.
                           The claims procedure in subparagraph (c)(1) below
                           shall be followed with respect to benefits provided
                           by the Insurance Company under the terms of the
                           Policy. The claims procedure in subparagraph (c)(2)
                           below shall be followed with respect to benefits, if
                           any, provided directly by the Company. The Policy
                           Owner, the Insured, the Insured's heirs, successors,
                           beneficiaries or personal representatives
                           (individually or collectively, "Claimant") must
                           follow both procedures, if necessary.

                           (1)  Filing a Claim for Insurance Benefits. A
                                -------------------------------------
                                Claimant shall make a claim for benefits
                                provided by the Insurance Company by submitting
                                a written claim and proof of claim to the
                                Insurance Company in accordance with procedures
                                and guidelines established from time to time by
                                the Insurance Company. On written request, the
                                Plan Administrator shall provide copies of any
                                claim forms or instructions, or advise the
                                Claimant how to obtain such forms or
                                instructions. The Insurance Company shall decide
                                whether the claim shall be allowed. If a claim
                                is denied in whole or in part, the Insurance
                                Company shall notify the Claimant and explain
                                the procedure for reviewing a denied claim.

                           (2)  Filing a Claim for Any Other Benefit. The
                                ------------------------------------
                                following claims procedure shall apply with
                                respect to all benefits other than those
                                provided by the Insurance Company:

                                        8

<PAGE>

                                (A)  Filing a Claim; Notification to Claimant of
                                     -------------------------------------------
                                     Decision: The Claimant shall make a claim
                                     --------
                                     in writing in accordance with procedures
                                     and guidelines established from time to
                                     time by the Plan Administrator, which claim
                                     shall be delivered to the Plan
                                     Administrator. The Plan Administrator shall
                                     review and make the decision with respect
                                     to any claim. If a claim is denied in whole
                                     or in part, written notice thereof shall be
                                     furnished to the Claimant within thirty
                                     (30) days after the claim has been filed.
                                     Such notice shall set forth:

                                     (i)    the specific reason or reasons for
                                            the denial;

                                     (ii)   specific reference to the provisions
                                            of this Agreement, the Collateral
                                            Assignment and/or the Policy on
                                            which denial is based;

                                     (iii)  a description of any additional
                                            material or information necessary
                                            for the Claimant to perfect a claim
                                            and an explanation of why such
                                            material or information is
                                            necessary;

                                     (iv)   appropriate information as to the
                                            steps to be taken if Claimant wishes
                                            to submit his or her claim for
                                            review; and

                                     (v)    the right of Claimant to review
                                            pertinent documents.

                                (B)  Procedure for Review: Any Claimant whose
                                     --------------------
                                     claim has been denied in full or in part
                                     may individually, or through the Claimant's
                                     duly authorized representative, request a
                                     review of the claim denial by delivering a
                                     written application for review to the Plan
                                     Administrator at any time within sixty (60)
                                     days after receipt by the Claimant of
                                     written notice of the denial of the claim.
                                     Such request shall set forth in reasonable
                                     detail:

                                     (i)    the grounds upon which the request
                                            for review is based and any facts in
                                            support thereof; and

                                     (ii)   any issues or comments which the
                                            Claimant considers pertinent to the
                                            claim.

                                     Following such request for review, the Plan
                                     Administrator shall review fully and fairly
                                     the decision denying the claim. Prior to
                                     the decision of the Plan Administrator,
                                     the Claimant shall be given an opportunity
                                     to review pertinent documents.

                                (C)  Decision on Review: A decision on the
                                     ------------------
                                     review of a claim denied in whole or in
                                     part shall be made in the following manner:

                                        9

<PAGE>

                                     (i)    The decision on review shall be made
                                            by the Plan Administrator, which
                                            shall consider the application and
                                            any written materials submitted by
                                            the Claimant in connection
                                            therewith. The Plan Administrator,
                                            in its sole discretion, may require
                                            the Claimant to submit such
                                            additional documents or evidence as
                                            the Plan Administrator may deem
                                            necessary or advisable in making
                                            such review.

                                     (ii)   The Plan Administrator will render a
                                            decision upon a review of a denied
                                            claim within sixty (60) days after
                                            receipt of a request for review. If
                                            special circumstances (such as the
                                            need to hold a hearing on any matter
                                            pertaining to the denied claim)
                                            warrant additional time, the
                                            decision will be rendered as soon as
                                            possible, but not later than one
                                            hundred twenty (120) days after
                                            receipt of a request for review.
                                            Written notice of any such extension
                                            will be furnished to the Claimant
                                            prior to the commencement of the
                                            extension.

                                     (iii)  The decision on review shall be in
                                            writing and shall include specific
                                            reasons for the decision, written in
                                            a manner calculated to be understood
                                            by the Claimant, and the specific
                                            references to the provisions of this
                                            Agreement, the Collateral Assignment
                                            or the Policy on which the decision
                                            is based. The decision of the Plan
                                            Administrator on review shall be
                                            final and conclusive upon all
                                            persons. If the decision on review
                                            is not furnished to the Claimant
                                            within the time limits prescribed in
                                            subparagraph (ii) above, the claim
                                            will be deemed denied on review. In
                                            no event may a Claimant commence
                                            legal action for benefits the
                                            Claimant believes are due until the
                                            Claimant has exhausted all of the
                                            remedies and procedures afforded the
                                            Claimant by this Section.

                                (D)  Satisfaction of Claim: Any payment made to
                                     ---------------------
                                     a Claimant may be made pursuant to a
                                     requirement that the Claimant execute a
                                     receipt and release therefor in such form
                                     as shall be determined by the Plan
                                     Administrator or the Company, and any
                                     payment or other distribution to a Claimant
                                     may be delayed until the Plan Administrator
                                     or the Company receives a properly executed
                                     receipt and release.

                  10.   Termination and Repayment.
                        -------------------------

                        (a) Termination.  This Agreement shall terminate upon
                            -----------
                            the occurrence of any one of the following events:

                            (1)    the death of the Insured;

                                       10

<PAGE>

                           (2)  upon thirty (30) days prior written notice of
                                termination by the Company to the Policy Owner
                                pursuant to Section 5(e), such notice to be
                                given in accordance with the provisions of
                                Section 19 of this Agreement;

                           (3)  the occurrence of a "Default" as defined and
                                specified in Section 10 of the Collateral
                                Assignment; or

                           (4)  the later of the employee's age 65 or 15 years
                                from the effective date of this agreement,
                                assuming continued service by the employee with
                                the Company until age 65; or

                           (5)  the termination of the Insured's employment with
                                the Company and all of its Affiliates, whether
                                voluntary or involuntary, prior to fulfillment
                                of the service requirement set forth in
                                10(a)(4).

                      (b)  Repayment. Upon the termination of this Agreement
                           ---------
                           pursuant to Section 10(a)(1) (i.e., the death of the
                           Insured), the Secured Amount shall be repaid to the
                           Company pursuant to the provisions of Section 8,
                           plus all amounts required to be repaid pursuant to
                           Section 5 of the Collateral Assignment. Upon
                           termination of this Agreement as a result of a
                           Specified Termination Event, the Policy Owner shall
                           and hereby agrees to repay to the Company the
                           Required Payment as follows:

                           (1)  by directing the Insurance Company to pay, upon
                                written demand and without the necessity of any
                                further direction, the Required Payment to the
                                Company or its Assignee from the Policy Proceeds
                                (including the cash surrender value of the
                                Policy); or

                           (2)  in the Policy Owner's discretion, by
                                transferring ownership of the Policy to the
                                Company or its Assignee, or by transferring cash
                                to the Company in an amount equal to the
                                Required Payment, provided that if the Policy
                                Owner fails to transfer ownership of the Policy
                                or to transfer such cash within five (5)
                                business days following such termination, then
                                the right of the Policy Owner to satisfy such
                                repayment obligation by effecting such a
                                transfer shall expire and terminate and the
                                Company may make demand on the Insurance Company
                                for the Required Payment as provided in
                                subparagraph (b)(1).

                           In the case of an occurrence of a Specified
                           Termination Event, if the cash surrender value of the
                           Policy (or, if the same shall have been paid by the
                           Insurance Company in accordance with the foregoing
                           provisions, the amount of the Required Payment) at
                           the time of termination shall be less than the
                           Secured Amount, then, notwithstanding anything herein
                           to the contrary, neither the Insured nor the Policy
                           Owner shall be liable to the Company or its Assignee
                           for the payment of the remaining balance of the
                           Secured Amount or any other amount hereunder.
                           Notwithstanding anything to the contrary, if this
                           Agreement and the Collateral Assignment shall have
                           been pledged, assigned or become subject to a

                                       11

<PAGE>

                                lien or security interest, and provided the
                                Policy Owner has been given notice thereof as
                                required by Section 5(b) of this Agreement, the
                                payments or transfer to be made in satisfaction
                                of the Policy Owner's repayment obligations
                                hereunder shall be distributed or made in
                                accordance with the instruments evidencing or
                                governing the terms of such pledge, assignment,
                                lien or security interest for application to the
                                obligations and indebtedness secured thereby in
                                order of priority established by such
                                instruments.

                  11. Actions of Insurance Company. The Insurance Company shall
                      ----------------------------
not be deemed to be a party to this Agreement for any purpose nor in any way be
responsible for its validity. Any payments made or action taken by the Insurance
Company in accordance with the provisions of the Policy, this Agreement or the
Collateral Assignment shall fully discharge the Insurance Company from all
claims, suits and demands of all persons whatsoever, and the Insured and Policy
Owner hereby agree to indemnify the Insurance Company from and against any loss,
damage, cost, expense (including, without limitation, reasonable attorneys'
fees) or liability resulting from any such payment or action.

                  12. Binding Effect. This Agreement and the rights and
                      --------------
obligations herein shall inure to the benefit of and bind the heirs, legal
representatives, successors and assigns of the parties hereto, including
successors of the Company resulting from a merger, acquisition, affiliation or
other corporate restructuring.

                  13. Recitals. The Recitals to this Agreement are incorporated
                      --------
herein and shall constitute an integral part of this Agreement.

                  14. Amendment of Agreement. None of the terms or provisions of
                      ----------------------
this Agreement or of the Collateral Assignment may be waived, limited or amended
except by written agreement, signed by both the Employee and the Company.

                  15. Governing Law. This Agreement shall be subject to and
                      -------------
governed by the laws of the state of Georgia, without regard to choice of law or
conflict of law principles, except to the extent such laws shall be superseded
by the provisions of ERISA or other applicable federal laws.

                  16. Company Not Liable. Although the Company, by this
                      ------------------
Agreement, is assisting the Policy Owner in obtaining certain life insurance
coverage on the life of the Insured, the Company is not responsible for paying
any life insurance benefits which are not paid by the Insurance Company, whether
such nonpayment is caused by refusal of the Insurance Company to pay by virtue
of a legal reason for nonpayment (including, but not limited to, suicide or
fraud in the inducement), inability of the Insurance Company to pay, or any
other reason.

                  17. Rights of Successor Assignee. If the Company shall assign
                      ----------------------------
its rights under this Agreement and the Collateral Assignment and a dispute
shall exist or arise between the Company and the Insured or Policy Owner which
is not directly related to this Agreement or the Collateral Assignment, then the
Permitted Assignee's rights in the Policy, the Policy Proceeds, this Agreement
and the Collateral Assignment shall be held by it free and clear of any defenses
or rights of offset which exist or which are alleged by the Policy Owner or
Insured against the Company arising out of such dispute.

                  18. Counterparts. This Agreement may be executed
                      ------------
simultaneously in one or more counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

                                       12

<PAGE>

                  19. Notices. All notices, requests and other communications to
                      -------
any party under this Agreement shall be in writing (including telefacsimile
transmission or similar writing) and shall be given to such party at its address
or telefacsimile number set forth below or such other address or telefacsimile
number as such party may hereafter specify. A copy of any such notice, request
or communication shall be sent to the Insurance Company at its address or
telefacsimile number set forth below or such other address or telefacsimile
number as the Insurance Company may hereafter specify.

                  (a)   Policy Owner:

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

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

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

                        Fax Number:
                                   ----------------------

                  (b)   Company:

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

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

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

                        Attention:
                                  -----------------------
                        Fax Number:
                                   ----------------------

                  (c)   Insurance Company:

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

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

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

                        Attention:
                                  -----------------------
                        Fax Number:
                                   ----------------------

                        Each such notice, request or other communication shall
                        be effective if (i) given by mail, 72 hours after such
                        communication is deposited in the mails with first class
                        postage prepaid, addressed as specified above, or (ii)
                        given by any other means, when delivered at the address
                        specified above.

                  20. Schedules. Attached to this Agreement are certain
                      ---------
Schedules. Schedule A identifies the Policy that is related to this Agreement.
Schedule B sets forth certain information that is expected to vary over time,
such as the percentage of the Company Match. Schedule C is an illustration of
the possible performance of the Policy under certain specified assumptions. The
Company shall have the right to unilaterally prepare updated Schedules and to
distribute copies of the updated Schedules to the Employee as soon as
practicable thereafter. Any such updated and distributed Schedule shall
automatically become and be considered a part of this Agreement, without a
formal amendment and without the need for any Employee consent. However, the
power to update Schedule A shall not include the power to eliminate thereby any
Employee rights in the Policy that are provided by the other terms of this
Agreement. Rather, the power to update Schedule A is intended to allow the
Company to reflect an exchange of one Policy for a new Policy, and other similar
acts related to the orderly maintenance of records for this Agreement. This
section shall apply notwithstanding the provisions of Section 14.

                                       13

<PAGE>

                  21. Headings. Section headings herein are for the convenience
                      --------
of reference only and shall not affect the construction or interpretation of or
alter or modify the provisions of this Agreement.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed on the year and day first above written.

                                NOVOSTE CORPORATION

                                By:
                                   --------------------------------
                                             President

                                By:
                                   --------------------------------
                                             Secretary

                               POLICY OWNER:

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

                               ------------------------------------
                                                  [Type Name Above]

                                       14

<PAGE>

                                   SCHEDULE A
                             SPLIT-DOLLAR AGREEMENT

                      SPLIT-DOLLAR INSURANCE ON THE LIFE OF

                   -------------------------------------------
<TABLE>
<CAPTION>

Application Number      Application Date
------------------      ----------------

                                              Insurance
Policy Number           Effective Date        Company     Type of Policy    Initial Specified Amount
-------------           --------------        -------     --------------    ------------------------
<S>                     <C>                   <C>          <C>              <C>

                                                          Universal Life    $______________________

</TABLE>

                        Annual Premium$_________________

                                       15

<PAGE>

                                   SCHEDULE B
                             SPLIT-DOLLAR AGREEMENT

         For purposes of this Agreement, the following capitalized terms used
herein shall have the corresponding meanings:

         "Assumed Tax Rate" shall be equal to 40%, or such other percentage
number as the Plan Administrator in its sole discretion from time to time may
determine.

         "Company Match Percentage" shall in any one calendar year be equal to
the percentage listed in the chart below for the Pay-Reduction Contribution and
the Personal Funds Contribution that corresponds to the applicable calendar
year.

         "Maximum Deferral Percentage" shall in any one calendar year be equal
to the percentage listed in the chart below that corresponds to the applicable
calendar year.

         Before the beginning of each calendar year, the Plan Administrator in
its sole discretion shall establish the Company Match Percentage and the Maximum
Deferral Percentage for the following calendar year, and in the event that the
Plan Administrator fails to so establish these percentages, the percentages for
the prior year shall be used.
<TABLE>
<CAPTION>

----------------------- ------------------------- ------------------------- -------------------------
       Calendar              Company Match             Company Match            Maximum Deferral
         Year                  Percentage                Percentage                Percentage
                                for the                   for the
                             Pay-Reduction             Personal Funds
                              Contribution              Contribution
<S>                          <C>                       <C>                      <C>
----------------------- ------------------------- ------------------------- -------------------------
         2001                     100%                    166 2/3%                    10%
----------------------- ------------------------- ------------------------- -------------------------

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

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

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

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

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

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

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

----------------------- ------------------------- ------------------------- -------------------------
</TABLE>

         "Minimum Amount" shall in any one calendar year be equal to $5,000 for
a Pay-Reduction Contribution or $3,000 for a Personal Funds Contribution, or
such other dollar amounts as the Plan Administrator in its sole discretion from
time to time may determine. If in any year an Employee makes both a
Pay-Reduction Contribution and a Personal Funds Contribution, the Employee's
Personal Funds Contribution shall be converted to an equivalent Pay-Reduction
Contribution by dividing the Personal Funds Contribution by the Specified
Factor, and by applying the year's dollar minimum for the Pay-Reduction
Contribution.

                                       16

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