Document:

<PAGE>
                                                                   Exhibit 10.16

                               AMENDMENT No. 1

      THIS AMENDMENT a made as of the eighteenth day of March, 2002, between
GENERAL ELECTRIC CAPITAL CORPORATION, together with its successors and assigns,
if any, and TXU COMMUNICATIONS VENTURES COMPANY in connection with Schedule
Number 001 of that certain Matter Lease Agreement, dated or dated as of February
25, 2002 ("AGREEMENT"). The terms of this Amendment are hereby incorporated into
the Agreement as though fully set forth therein. The Agreement is hereby amended
as follows:

      Amend the following dates:

      Section B. Financial Terms;
      Subsection 5. Basic Term Commencement Date is April 1, 2002
      Subsection 7. Last Delivery Date is April 1, 2002
      Subsection 17. Interim Rent shall be due on March 31, 2002
      Subsection 18. Basic Term Rent Commencing on April 1, 2002

      Section G. Modifications and Additions for This Schedule Only:

      Under End of Basic Term Options, the Lessee agrees to purchase the
      Equipment upon expiration of the Basic Term, the date is amended to
      reflect on or before October 1, 2004.

TERMS USED, BUT NOT OTHERWISE DEFINED HEREIN SHALL HAVE THE MEANINGS GIVEN TO
THEM IN THE AGREEMENT EXCEPT AS EXPRESSLY AMENDED HEREBY. THE AGREEMENT SHALL
REMAIN IN FULL FORCE AND EFFECT.

      IN WITNESS WHEREOF, the parties hereto have executed this Amendment by
signature of their respective authorised representative set forth below.

LESSOR:                                      LESSEE:

GENERAL ELECTRIC CAPITAL CORPORATION         TXU COMMUNICATION VENTURES COMPANY

By: /s/ William S. Anderson                  By: /s/ Leslie Nolen
    --------------------------                   ------------------------------
Name: William Anderson                       Name: Leslie Nolen

Title: Risk Analyst                          Title: Vice President-Finance and
                                                      Administration

<PAGE>

                               EQUIPMENT SCHEDULE
                          (Quasi Lease - Floating Rate)
                                SCHEDULE NO. 001
                               DATED THIS 3/18/02
                            TO MASTER LEASE AGREEMENT
                          DATED AS OF FEBRUARY 25, 2002

LESSOR & MAILING ADDRESS:                    LESSEE & MAILING ADDRESS:

GENERAL ELECTRIC CAPITAL CORPORATION         TXU COMMUNICATIONS VENTURES COMPANY
16479 DALLAS PARKWAY #300                    300 DECKER DRIVE
ADDISON, TX 75001-2512                       IRVING, TX 75062

This Schedule is executed pursuant to, and incorporates by reference the terms
and conditions of, and capitalized terms not defined herein shall have the
meanings assigned to them in, the Master Lease Agreement identified above
("AGREEMENT", said Agreement and this Schedule being collectively referred to as
"LEASE"). This Schedule, incorporating by reference the Agreement, constitutes a
separate instrument of lease.

A.    EQUIPMENT: Subject to the terms and conditions of the Lease, Lessor agrees
to lease to Lessee the Equipment described below (the "EQUIPMENT").

<TABLE>
<CAPTION>
NUMBER    CAPITALIZED
OF UNITS  LESSORS COST   MANUFACTURER   SERIAL NUMBERS      YEAR/MODEL AND TYPE OF EQUIPMENT
--------  ------------   ------------   --------------      --------------------------------
<S>       <C>            <C>            <C>                 <C>
 1        $2,238,462.94                                     Furniture, Fixtures, Equipment and
                                                            Leasehold Improvements at TXU
                                                            Communications Ventures Company's
                                                            Headquarters at: 300 Decker Dr.,
                                                            Irving, Texas 75062 per the attached
                                                            Exhibit A.
</TABLE>

Equipment immediately listed above is located at: 300 Decker Drive, Irving,
Dallas County, TX 75062

B.    FINANCIAL TERMS

<TABLE>
<S>                                     <C>                   <C>                                    <C>
1. Advance Rent (if any):               NOT APPLICABLE        6.  Lessee Federal Tax ID No.:         752893917
2. Capitalized Lessor's Cost:           $2,238,462.94         7.  Last Delivery Date:                April 1, 2002
3. Basic Term (No. of Months):          30 Months             8.  Daily Lease Rate Factor:           0.00013041
4. Basic Term Fixed Lease Rate Factor:  0.02037196            9.  Interest Rate:                     4.76% per annum.
5. Basic Term Commencement Date:        April 1, 2002         10. Option Payment:                    $1,073,320.95
</TABLE>

11.   First Termination Date: TWENTY-FOUR (24) months after the Basic Term
      Commencement Date.

12.   Variable Rent: For each Adjustment Period shall be a monthly amount equal
      to (a) the Fixed Rent, plus or minus (b) an amount equal to the product of
      (i) the difference in whole basis points (rounded to the next highest
      basis point) between the Current Index and Base Index, times (ii) the
      applicable adjustment factor set forth in the attached table, times (iii)
      a fraction in respect of which the Capitalized Lessor's Cost is the
      numerator and one million is the denominator.

13.   Interest Rate: The annual interest rate for the first three months of the
      term of this Lease is equal to 4.76% ("INITIAL INTEREST RATE").
      Thereafter, the annual interest rate will increase or decrease during each
      Adjustment Period as the Current Index increases or decreases in relation
      to the Base Index. During any Adjustment Period the annual interest rate
      will be equal to the Initial Interest Rate plus or minus the difference,
      expressed as an annual percentage rate, between the Current Index and the
      Base Index.

14.   Base Index: 1.74% per annum.

15.   Current Index: Except for purposes of Section 19 hereof, a per annum
      interest rate as stated in the Federal Reserve Statistical Release H.15
      (519) for 1 Month Commercial Paper under the column indicating an average
      monthly rate. The Current Index shall be the average monthly rate for the
      second calendar month preceding the calendar month in which the applicable
      Adjustment Period commences. For purposes of Section 19 hereof, "Current
      Index" shall be a per annum interest rate as stated in the Federal Reserve
      Statistical Release H.15 (519) for U.S. Government Securities, Treasury
      Constant Maturities for a term that most closely approximates the
      remainder of the Basic Term as of the Payment Date on which the first
      installment of fixed Rent calculated under Section 19 shall become due.
      If, for any reason whatsoever, the Current Index is not published, the
      Current Index, except for purposes of Section 19 hereof, shall instead be
      equal to the latest commercial paper rate for high grade unsecured notes
      of 30 days maturity sold through dealers by major corporations in
      multiples of $1,000, as indicated in the "MONEY RATES" column of the Wall
      Street Journal, Eastern Edition, published on the first business day of
      the calendar month preceding the calendar month in which the rental
      payment being adjusted is due and payable and, for purposes of Section 19
      hereof, shall be equal to the simple average of all asked yields for
      Government Bonds and Notes with scheduled maturities that most closely

                                        1

<PAGE>

      approximates the remainder of the Basic Term as of the Payment Date on
      which the first installment of fixed Rent calculated under Section 19
      shall become due, as indicated in the "Treasury Bonds, Notes & Bills"
      column of the Wall Street Journal, Eastern Edition, published on the first
      business day of the calendar month preceding the calendar month in which
      the rental payment being adjusted is due and payable.

16.   Adjustment Period: Shall mean a monthly period, the first of which shall
      commence on, and include, the third monthly anniversary of the Basic Term
      Commencement Date and continue to, but not include, the same date of the
      next succeeding calendar month. Each subsequent Adjustment Period shall
      commence on, and include, the date immediately following the expiration of
      the prior Adjustment Period and continue to, but not include, the same
      date of the next succeeding calendar month. If Lessee exercises its option
      pursuant to Section 19 hereof, "Adjustment Period" as used in Section 19
      shall also mean the remainder of the Basic Term

17.   Interim Rent: For the period from and including the Lease Commencement
      Date (as defined in the Lease) to but not including the Basic Term
      Commencement Date ("INTERIM PERIOD"), Lessee shall pay as rent ("INTERIM
      RENT") for each unit of Equipment, the product of the Daily Lease Rate
      Factor times the Capitalized Lessor's Cost of such unit times the number
      of days in the Interim Period. Interim Rent shall be due on March 31,
      2002.

18.   Basic Term Rent. Commencing on April 1, 2002 and on the same day of each
      month (each a "Payment Date"), Lessee shall pay as rent (i) Fixed Rent for
      each of the first three months of the Basic Term; and (ii) Variable Rent
      for each month thereafter. If an adjustment to any installment of rent is
      made pursuant to the MISCELLANEOUS Section subsection (f) of the Lease
      after any installment has been paid, the (i) increase, if any, in respect
      of such paid installment shall be payable in addition to and (ii)
      decrease, if any, in respect of such paid installment shall be credited
      against, in each case, the installment of rent due on the payment date
      next following the date of notice of the adjustment.

19.   Option to Fix Variable Rent. At any time from and after the first
      Adjustment Period, Lessee may, upon the giving of 30 days written notice
      to Lessor, elect to fix the monthly Rent for the remainder of the Basic
      Term, commencing on the first Payment Date following the expiration of the
      30 days notice period. The fixed Rent shall be calculated by multiplying
      the respective basis point increase or decrease (rounded up to the nearest
      whole number of a basis point. when necessary) between the Current Index
      and the Base Index for each Adjustment Period times (ii) the applicable
      adjustment factor set forth in the attached table, times (iii) a fraction
      in respect of which the Capitalized Lessor's Cost is the numerator and one
      million is the denominator and the resulting amount shall then be added or
      subtracted, as the case may be, to the Fixed Rent.

20.   Lessee agrees and acknowledges that the Capitalized Lessor's Cost of the
      Equipment as stated on the Schedule is equal to the fair market value of
      the Equipment on the date hereof.

21.   (a) Lessee may, at its option, elect to finance the Option Payment plus
      all applicable sales taxes (collectively, the "Amount Financed") with
      Lessor at the fixed rate per annum simple interest set out below, payable
      in the number of installments set out below and on the terms set out in
      subsection (b) below:

      Number of Payments: THIRTY (30) scheduled monthly installments, payable in
      arrears

      Fixed, per annum simple interest rate: THREE AND 02/100 percent (3.02%)
      plus an adder equal to a per annum interest rate as stated in the Federal
      Reserve Statistical Release H.15 (519) for U.S. Government Securities,
      Treasury Constant Maturities for a 3 year term. If, for any reason
      whatsoever, Statistical Release H.15 (519) is not published, the adder
      shall instead be equal to the simple average of all asked yields for
      Government Bonds and Notes with 3 year scheduled maturities, as indicated
      in the "Treasury Bonds, Notes & Bills" column of the Wall Street Journal,
      Eastern Edition, published on the first business day of the calendar month
      preceding the calendar month in which the first scheduled monthly
      installment is due and payable.

      (b) If Lessee elects to purchase the Equipment by financing the Option
      Payment, THE OPTION PAYMENT SHALL BE PAID TO LESSOR, TOGETHER WITH
      INTEREST THEREON AT THE INTEREST RATE SET FORTH ABOVE IN CONSECUTIVE EQUAL
      MONTHLY INSTALLMENTS OF PRINCIPAL AND INTEREST, EXCEPT THAT THE FINAL
      INSTALLMENT SHALL BE EQUAL TO THE TOTAL OUTSTANDING PRINCIPAL AND INTEREST
      THEN DUE AND UNPAID. The first such installment shall be due exactly one
      (1) month from the date on which the Option Payment is due and payable
      and such installments shall continue on the same day of each month
      thereafter. All payments shall be applied first to interest and then to
      principal. The acceptance by Lessor of any payment which is less than
      payment in full of all amounts due and owing at such time shall not
      constitute a waiver of Lessor's right to receive payment in full at such
      time or at any subsequent time. Interest shall be calculated on the basis
      of a three hundred sixty (360) day year. Each payment may, at the option
      of the Payee, be calculated and applied on an assumption that such payment
      would be made on its due date. It is the intention of the parties hereto
      to comply with the applicable usury laws. Accordingly, it is agreed that
      notwithstanding anything to the contrary contained herein, in no event
      shall any provision contained herein require or permit interest in excess
      of the maximum amount permitted by applicable law to be paid. If necessary
      to give effect to these provisions. Lessor will, at its option, in
      accordance with applicable law, either refund any amount to Lessee to the
      extent that it was in excess of that allowed by applicable law or credit
      such excess amount against the then unpaid principal.

                                       2

<PAGE>

      (c) SECURITY AGREEMENT

      In the event Lessee elects to purchase the Equipment by financing the
      Option Payment, then:

      (i)   To secure payment of the Amount Financed and the interest thereon
            and any penalties, charges or attorneys' fees arising or incurred
            following default hereunder and to secure any and all other
            obligations of the Lessee to the Lessor, whether existing on or
            arising after the date of Lessee's exercise of its Purchase Option,
            Lessee hereby grants, assigns, transfers, pledges, conveys and
            mortgages to Lessor all of Lessee's interest in and to the Equipment
            and all attachments, accessions and additions thereto, substitutions
            and accessories therefor and replacements and proceeds (including
            insurance proceeds) thereof (all of which are referred to herein as
            the "Collateral") including Collateral added or arising after the
            date hereof. The terms "Lessor" and "Lessee" have been used in this
            Section ("this Section") for consistency of reference. However, upon
            exercise of its financing option. Lessee shall be a "debtor" and
            Lessor a "secured parry" as those terms are used under the Uniform
            Commercial Code. This Agreement and the Schedule shall continue to
            be referred to as the "LEASE".

      (ii)  All provisions of this Lease shall survive and continue to remain in
            full force and effect until all indebtedness secured hereby is paid
            in full except the following Sections of the LEASE: (i) TERM, RENT
            AND PAYMENT; (ii) RENT ADJUSTMENT; (iii) EARLY TERMINATION, and (iv)
            PURCHASE OPTION.

      (iii) Except for the security interest granted under this Section, LESSEE
            WARRANTS THAT THE COLLATERAL WILL REMAIN FREE AND CLEAR OF ALL LIENS
            AND ENCUMBRANCES OF EVERY KIND, NATURE AND DESCRIPTION AND THAT
            LESSEE SHALL REMAIN THE SOLE AND LAWFUL OWNER AND IN POSSESSION OF
            THE COLLATERAL UNTIL ALL OBLIGATIONS OF LESSEE TO LESSOR HEREUNDER
            HAVE BEEN FULLY PERFORMED. Lessee will warrant and defend the
            Collateral against all claims by all persons.

      (iv)  The STIPULATED LOSS VALUE Section subsection (i) of this Agreement
            is amended in its entirety to read: "the portion of the principal
            balance outstanding as of the Payment Date that is attributable to
            the affected unit based upon the Capitalized Lessor's Cost of such
            unit relative to the Capitalized Lessor's Cost of all the units of
            Equipment, plus all interest accrued on such portion as of the
            Payment Date.

      (v)   Upon request of Lessor from time to time, Lessee shall do everything
            necessary or expedient to preserve and perfect the security interest
            granted herein and its priority, including without limitation
            obtaining and delivering to Lessor, if applicable: (A) a certificate
            of title showing the lien of Lessor with respect to the Collateral
            and/or (B) landlord and mortgagee waivers satisfactory to Lessor.
            Lessor is hereby granted power to sign Lessee's name and on behalf
            of Lessee to execute and file applications for title, transfer of
            title, financing statements, notices of lien and other documents
            pertaining to any or all of the Collateral. To the extent allowed by
            applicable law, Lessee waives all homestead and other property
            exemption laws. On and after Lessee's exercise of its financing
            option, Lessor may at any reasonable time examine the books and
            records of the Lessee and make copies thereof.

      (vi)  Lessee acknowledges receipt of a true copy of the Lease, and waives
            acceptance hereof.

      (vii) If any installment or other amount due under this Section is not
            paid within ten (10) days after its due date, Lessee agrees to pay a
            late charge of five cents ($.05) per dollar on, and in addition to,
            the amount of said installment, but not exceeding the maximum lawful
            charges. If (A) Lessee fails to make payment of any amount due
            pursuant to this Section within ten (10) days after the same becomes
            due and payable; or (B) Lessee is in default under, or fails to
            perform under any other term or condition contained in the Lease,
            then the entire principal sum remaining unpaid under this Section,
            together with all accrued interest thereon and any other sum payable
            under this Lease, at the election of Lessor, shall immediately
            become due and payable, with interest thereon at the lesser of
            eighteen percent (18%) per annum or the highest rate not prohibited
            by applicable law from the date of such accelerated maturity until
            paid (both before and after any judgment). Lessee may prepay in full
            (but not in part) its entire indebtedness under this Section, at any
            time upon the payment of all amounts due and a prepayment premium
            equal to one percent (1%) of the original Amount Financed.

     (viii) The provisions of this Section shall survive any termination of the
            Lease caused by Lessee's exercise of its financing option. Lessor
            and any assignee of Lessor may assign its rights and interests, in
            whole or in part, under this Section.

C.    INTEREST RATE: Interest shall accrue from the Lease Commencement Date
      through and including the date of termination of the Lease.

D.    LEASE INTENDED AS A SECURITY; PROPERTY TAX

      Lessee and Lessor agree that this Lease is a lease intended as security.
      Lessee shall (a) list all Equipment, (b) report all property taxes
      assessed against the Equipment and (c) pay all such taxes when due
      directly to the appropriate taxing authority. Upon request of Lessor,
      Lessee shall promptly provide proof of filing and proof of payment to
      Lessor.

      Lessor may notify Lessee (and Lessee agrees to follow such notification)
      regarding any changes in property tax reporting and payment
      responsibilities.

                                       3

<PAGE>

E.    ARTICLE 2A NOTICE

      IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE 2A OF THE UNIFORM
      COMMERCIAL CODE AS ADOPTED IN THE APPLICABLE STATE, LESSOR HEREBY MAKES
      THE FOLLOWING DISCLOSURES TO LESSEE PRIOR TO EXECUTION OF THE LEASE, (A)
      THE PERSON(S) SUPPLYING THE EQUIPMENT IS TXU COMMUNICATIONS VENTURES
      COMPANY (THE "SUPPLIER(S)"), (B) LESSEE IS ENTITLED TO THE PROMISES AND
      WARRANTIES, INCLUDING THOSE OF ANY THIRD PARTY, PROVIDED TO THE LESSOR BY
      SUPPLIER(S), WHICH IS SUPPLYING THE EQUIPMENT IN CONNECTION WITH OR AS
      PART OF THE CONTRACT BY WHICH LESSOR ACQUIRED THE EQUIPMENT AND (C) WITH
      RESPECT TO SUCH EQUIPMENT, LESSEE MAY COMMUNICATE WITH SUPPLIER(S) AND
      RECEIVE AN ACCURATE AND COMPLETE STATEMENT OF SUCH PROMISES AND
      WARRANTIES, INCLUDING ANY DISCLAIMERS AND LIMITATIONS OF THEM OR OF
      REMEDIES. TO THE EXTENT PERMITTED BY APPLICABLE LAW, LESSEE HEREBY WAIVES
      ANY AND ALL RIGHTS AND REMEDIES CONFERRED UPON A LESSEE IN ARTICLE 2A AND
      ANY RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE WHICH MAY
      LIMIT OR MODIFY ANY OF LESSOR'S RIGHTS OR REMEDIES UNDER THE DEFAULT AND
      REMEDIES SECTION OF THE AGREEMENT.

F.    STIPULATED LOSS AND TERMINATION VALUE TABLE*

<TABLE>
<CAPTION>
         Termination   Stipulated                  Termination    Stipulated
Rental      Value      Loss Value                     Value       Loss Value
Basic    Percentage    Percentage        Rental    Percentage     Percentage
<S>      <C>           <C>               <C>       <C>            <C>
  1       100.963        100.963           31        47.949         47.949
  2        99.359         99.359           32        46.429         46.429
  3        97.749         97.749           33        44.901         44.901
  4        96.131         96.131           34        43.367         43.367
  5        94.506         94.506           35        41.826         41.826
  6        92.875         92.875           36        40.278         40.278
  7        91.235         91.235           37        37.723         37.723
  8        89.589         89.589           38        36.161         36.161
  9        87.935         87.935           39        34.593         34.593
 10        86.274         86.274           40        33.017         33.017
 11        84.606         84.606           41        31.435         31.435
 12        82.930         82.930           42        29.845         29.845
 13        79.246         79.246           43        28.249         28.249
 14        77.556         77.556           44        26.645         26.645
 15        75.858         75.858           45        25.034         25.034
 16        74.152         74.152           46        23.417         23.417
 17        72.439         72.439           47        21.792         21.792
 18        70.718         70.718           48        20.159         20.159
 19        68.989         68.989           49        18.520         18.520
 20        67.253         67.253           50        16.873         16.873
 21        65.509         65.509           51        15.219         15.219
 22        63.758         63.758           52        13.558         13.558
 23        61.999         61.999           53        11.889         11.889
 24        60.231         60.231           54        10.213         10.213
 25        58.457         58.457           55         8.530          8.530
 26        56.674         56.674           56         6.839          6.839
 27        54.883         54.883           57         5.140          5.140
 28        53.085         53.085           58         3.435          3.435
 29        51.278         51.278           59         1.721          1.721
 30        49.463         49.463           60         0.000          0.000
</TABLE>

*The Stipulated Loss Value Or Termination Value for any unit of Equipment Shall
be the Capitalized Lessor's Cost of such unit multiplied by the appropriate
percentage derived from the above table. In the event that the Lease is for any
reason extended, then the last percentage figure shown above shall control
throughout any such extended term.

                                       4

<PAGE>

G.    MODIFICATIONS AND ADDITIONS FOR THIS SCHEDULE ONLY

For purposes of this Schedule only, the Agreement is amended as follows:

LEASE TERM OPTIONS

            END OF BASIC TERM OPTIONS

      Lessee hereby irrevocably agrees to purchase the Equipment upon the
      expiration of the Basic Term. Lessee shall pay the Lessor the purchase
      price of ONE MILLION SEVENTY-THREE THOUSAND THREE HUNDRED TWENTY AND
      95/100 dollars ($1,073,320.95) in cash for the Equipment, on or before
      October 1, 2004.

      THE EQUIPMENT SHALL BE SOLD TO LESSEE AND POSSESSION MADE AVAILABLE TO
      LESSEE "AS-IS" AND "WHERE-IS"; LESSOR WILL NOT MAKE ANY REPRESENTATION OR
      WARRANTY, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO ANY WARRANTY
      AS TO FITNESS FOR ANY PARTICULAR OR OTHER PURPOSE, MERCHANTABILITY, OR
      PATENT INFRINGEMENT, EXCEPT THAT LESSOR SHALL HAVE THE RIGHT TO SELL THE
      EQUIPMENT AND SHALL TRANSFER TO LESSEE GOOD TITLE FREE AND CLEAR OF ANY
      SUPERIOR LIEN OR ENCUMBRANCE CREATED BY LESSOR. LESSEE IS LIABLE FOR ANY
      TAXES PAYABLE AS A RESULT OF THIS SALE.

            MANDATORY PURCHASE

      IN THE EVENT THAT LESSEE TERMINATES EITHER OF ACCOUNT NUMBERS 4130938-001
      OR 4139038-002 UNDER THE TERMS OF THE LEASE APPLICABLE TO SUCH ACCOUNT,
      THEN LESSEE SHALL EXERCISE ITS PURCHASE OPTION UNDER SECTION 18 OF THE
      LEASE AS OF THE DATE LESSEE TERMINATES SUCH ACCOUNT.

                                                        Initial: /s/      LN

H.    PAYMENT AUTHORIZATION

      You are hereby irrevocably authorized and directed to deliver and apply
      the proceeds due under this Schedule as follows:

<Table>
<Caption>
COMPANY NAME                             ADDRESS                AMOUNT
------------                             -------                ------
<S>                                   <C>                    <C>
TXU Communications Ventures Company   300 Decker Dr.         $2,238,462.94
                                      Irving, TX 75062
</Table>

      This authorization and direction is given pursuant to the same authority
authorizing the above-mentioned financing.

PURSUANT TO THE PROVISIONS OF THE LEASE, AS IT RELATES TO THIS SCHEDULE, LESSEE
HEREBY CERTIFIES AND WARRANTS THAT (i) ALL EQUIPMENT LISTED ABOVE IS IN GOOD
CONDITION AND APPEARANCE, HAS BEEN DELIVERED AND INSTALLED (IF APPLICABLE) AS OF
THE DATE STATED ABOVE AND IN WORKING ORDER; (ii) LESSEE HAS INSPECTED THE
EQUIPMENT, AND ALL SUCH TESTING AS IT DEEMS NECESSARY HAS BEEN PERFORMED BY
LESSEE, SUPPLIER OR THE MANUFACTURER; AND (iii) LESSEE ACCEPTS THE EQUIPMENT FOR
ALL PURPOSES OF THE LEASE AND ALL ATTENDANT DOCUMENTS.

LESSEE DOES FURTHER CERTIFY THAT AS OF THE DATE HEREOF (i) LESSEE IS NOT IN
DEFAULT UNDER THE LEASE; AND (ii) THE REPRESENTATIONS AND WARRANTIES MADE BY
LESSEE PURSUANT TO OR UNDER THE LEASE ARE TRUE AND CORRECT ON THE DATE HEREOF.

      Except as expressly modified hereby, all terms and provisions of the
Agreement shall remain in full force and effect. This Schedule is not binding or
effective with respect to the Agreement or Equipment until executed on behalf of
Lessor and Lessee by authorized representatives of Lessor and Lessee,
respectively.

      IN WITNESS WHEREOF, Lessee and Lessor have caused this Schedule to be
executed by their duly authorized representatives as of the date first above
written.

LESSOR:                                    LESSEE:
GENERAL ELECTRIC CAPITAL CORPORATION       TXU COMMUNICATIONS VENTURES COMPANY

By: /s/ William S. Anderson                By: /s/ Leslie Nolen
   ----------------------------                -------------------------------

Name: WILLIAM S. ANDERSON                  Name: Leslie Nolen

Title:    RISK ANALYST                     Title: Vice President-Finance and
                                                  Administration

                                       5

<PAGE>

                                    Exhibit A
                                       to
                           Equipment Schedule No. 001
                                      dated
                                   3/18, 2002

<TABLE>
<CAPTION>
                                               Invoice
     Vendor                        Invoice #    Date          Amount
     ------                        ---------   ------         ------
<S>                                <C>         <C>         <C>
HBC Engineering                      94L3878    9/10/01    $      375.00
                                     94L4011    10/8/01    $      175.00

Rytech Construction Services          19353     10/7/01    $       21.00
                                      19391     9/14/01    $      302.33
                                      19409     9/14/01    $       47.50
                                      19439     9/14/01    $       52.50
                                      19465     9/14/01    $       47.50

Alman Electric                        30060     6/4/01     $    6,065.52
                                      30067     6/29/01    $   50,731.14
                                      30072     7/25/01    $  136,815.97
                                      30113     9/4/01     $    2,905.67
                                      30111     9/4/01     $  305,796.33
                                      30121     10/1/01    $   88,371.46

KinKo's                           211700023654  6/15/01    $       51.80
                                  211700023692  6/20/01    $       16.09
                                  211700023741  6/25/01    $    2,052.25

A & E Products Co.                   157333     6/21/01    $      171.25

Don Drive Interiors, Inc.         1027-04-01-1  6/06/01    $   54,735.00
                                  1027-04-01-2  7/3/01     $  203,951.00
                                  1027-04-01-3  8/1/01     $  168,645.00
                                  1027-04-01-4  9/4/01     $  397,882.00
                                  1027-04-01-5  10/04/01   $  179,382.00

Prompt Mechanical, Inc.               3285      6/11/01    $   24,356.25
                                      3333      6/29/01    $   55,347.53
                                      3363      7/12/01    $  117,620.23
                                      3441      8/15/01    $   40,403.61
                                      3392      8/3/01     $  148,423.68
                                      3541      9/25/01    $   75,159.49

The Lauck Group                      010259     3/26/01    $   14,855.16
                                     010301     5/4/01     $    7,456.99
                                     010485     5/25/01    $   18,587.02
                                     010538     6/18/01    $   58,341.13
                                     010609     7/28/01    $   59,090.34

Robert Ehlert                                   6/12/01    $    5,335.14
                                                10/10/01   $   10,347.61

Christopher Smith                     18933     8/3/01     $      655.74

Preston Newton                        19148     8/13/01    $      145.18

Mark Tucker                           17476     6/21/01    $       92.35
                                      18231     7/19/01    $      199.02
                                      18232     7/19/01    $      193.60
                                      18233     7/16/01    $      311.27
                                      19375     8/16/01    $      347.67
                                      19376     8/4/01     $      457.64
                                      19377     8/16/01    $      262.97
                                      20019     9/11/01    $      188.88
                                      20020     9/11/01    $      365.94
                                      20021     9/11/01    $      304.83
                                      20377     9/17/01    $      505.04
                                      20827     10/08/01   $      307.06
                                      20828     10/08/01   $      208.26
                                                           -------------
                                                           $2,238,462.94
</TABLE>

                                                            Initial: /s/ LN

1 of 1

<PAGE>

                                    ANNEX B
                                       TO
                                SCHEDULE NO. 001
                       DATED THIS 18th DAY OF March, 2002
                     TO MASTER LEASE AGREEMENT DATED AS OF

                                  BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS: TXU Communications Ventures Company ("Seller"),
for and in consideration of the sum of One Dollar ($1) and other good and
valuable consideration, provided by GENERAL ELECTRIC CAPITAL CORPORATION, FOR
ITSELF AND AS AGENT FOR CERTAIN PARTICIPANTS ("Buyer"), with offices at 16479
Dallas Parkway, Suite 300, Addison, Texas 75001, the receipt of which is hereby
acknowledged, does hereby sell, assign, transfer, set over and convey to Buyer
the equipment (the "Equipment") leased under Schedule No. 001 dated as of
March 18, 2002, between Seller and Buyer, executed pursuant to the Master Lease
Agreement dated February 25, 2002, between Seller and Buyer, a copy of which is
attached hereto and made a part hereof.

Buyer and Seller agree and acknowledge that the sale and conveyance contemplated
hereby is solely for the purpose of granting to Buyer a security interest in the
Equipment. All Equipment in which an interest is conveyed hereby shall remain in
the possession of Seller pursuant to the Lease.

Lessee represents and warrants to Lessor that (i) Lessee will keep the interest
conveyed to Lessor in the Equipment hereunder free from all liens and
encumbrances whatsoever; (ii) Lessee has the right to execute and deliver this
Bill of Sale; (iii) the Equipment has been delivered to Lessee in good order and
condition, and conforms to the specifications, requirements and standards
applicable thereto; and (iv) the Equipment has been accurately labeled,
consistent with the requirements of 40 CFR part 82 Subpart E, with respect to
products manufactured with a controlled (ozone-depleting) substance.

Lessee agrees to save and hold harmless Lessor from and against any and all
federal, state, municipal and local license fees and taxes of any kind or
nature, including, without limiting the generality of the foregoing, any and all
excise, personal property, use and sales taxes, and from and against any and all
liabilities, obligations, losses, damages, penalties, claims, actions and suits
resulting therefrom and imposed upon, incurred by or asserted against Lessor as
a consequence of the sale of the Equipment to Lessor.

IN WITNESS WHEREOF, Buyer and Seller have executed this Bill of Sale this 18th
day of March, 2002.

BUYER:                                       SELLER:

GENERAL ELECTRIC CAPITAL CORPORATION         TXU Communications Ventures Company

By: /s/ William S. Anderson                  BY:/s/ Leslie Nolen
    ---------------------------------           -----------------------------

Name: WILLIAM S. ANDERSON                    Name: Leslie Nolen

Title: RISK ANALYST                          Title: Vice President-Finance and
                                                    Administration

<PAGE>

                                    EXHIBIT I
                               TO SCHEDULE NO. 001
                               DATED THIS 3/18/02
                            TO MASTER LEASE AGREEMENT
                         DATED AS OF FEBRUARY 25, 2002

<TABLE>
<CAPTION>
            floating
              rate
payment    adjustment
number       factor
------     ---------
<S>        <C>
     1       8.2677
     2       8.1335
     3       7.9989
     4       7.8640
     5       7.7287
     6       7.5775
     7       7.4415
     8       7.3053
     9       7.1530
    10       7.0161

    11       6.8788
    12       6.7255
    13       6.5719
    14       6.4327
    15       6.2932
    16       6.1533
    17       6.0131
    18       5.8578
    19       5.7168
    20       5.5756
    21       5.4192
    22       5.2772

    23       5.1349
    24       4.9774
    25       4.8195
    26       4.6716
    27       4.5232
    28       4.3745
    29       4.2255
    30       4.0658
    31       3.9417
    32       3.8174
    33       3.6824
    34       3.5574

    35       3.4321
    36       3.2963
    37       3.1601
    38       3.0296
    39       2.8988
    40       2.7678
    41       2.6363
    42       2.4986
    43       2.3665
    44       2.2342
    45       2.0955
</TABLE>

<PAGE>

<TABLE>
<S>          <C>
    46       1.9624

    47       1.8291
    48       1.6894
    49       1.5494
    50       1.4108
    51       1.2718
    52       1.1326
    53       0.9930
    54       0.8513
    55       0.7110
    56       0.5704
    57       0.4277
    58       0.2865

    59       0.1448
    60       0.0011
</TABLE>

Rental Adjustment =
      (Basis Point Change in Index) times
      (Floating Rate Adjustment Factor) times
      (Original Equipment Cost) divided by
      1,000,000

Initials: /s/ WSA                                     /s/ LN
         ------------                                 -----------
          Lessor                                      Lessee

<PAGE>

                             CERTIFICATE CONCERNING
                       PAYMENT OF PERSONAL PROPERTY TAXES
                       (LESSEE REPORTS PROPERTY AS OWNER)

To: General Electric Capital Corporation

To insure Lessee's compliance with the provisions of the Master Lease Agreement
dated as of February 25, 2002 (the "LEASE") by and between the undersigned,
as Lessee, and GENERAL ELECTRIC CAPITAL CORPORATION (together with its
successors and assigns, if any) as Lessor, with respect to the payment of
personal property taxes on the Property described in Section A of Schedule
No.001 to the Lease (the "PROPERTY"), Lessee hereby agrees that it will list
itself as owner of the equipment and report all equipment under this schedule as
owner. Lessee agrees to pay as such personal property tax (or personal property
tax equivalent) relating to the equipment to the appropriate taxing jurisdiction
on a timely basis until Lessor shall otherwise direct in writing. Lessee agrees
to pay and all penalties or interest relating to the reporting of the
aforementioned equipment.

If Lessor should receive any tax assessments resulting from the incorrect, late
or absent personal property tax reporting or payment by the Lessee, the Lessee
agrees to immediately, reimburse Lessor upon receipt of written request for
reimbursement for any personal property tax (or personal property tax
equivalent) charged to or against the Lessor.

Lessee agrees to submit to Lessor copies of personal property tax returns and
reports (with, if requested, any and all work papers) and cancelled checks
indicating proof of payment.

LESSEE: TXU COMMUNICATIONS VENTURES COMPANY

By: /s/ Leslie Nolen
   -----------------------------------------------
Title: Vice President - Finance and Administration

Date:  3-1-02<PAGE>
                                                                   Exhibit 10.17

                            HOMEBASE ACQUISITION, LLC

                           2003 RESTRICTED SHARE PLAN

                      (AS ADOPTED BY THE BOARD OF MANAGERS
                               ON AUGUST 28, 2003)

<PAGE>

                            HOMEBASE ACQUISITION, LLC
                              RESTRICTED SHARE PLAN

      1.    PURPOSE. The purpose of the Plan is to give Key Employees of
Homebase Acquisition, LLC, a Delaware limited liability company (the "Company"),
and its Subsidiaries the opportunity to acquire Common Shares of the Company, to
provide an incentive for the Key Employees to continue to promote the best
interests of the Company and its Subsidiaries and to enhance their long-term
performance, and to provide an incentive for the Key Employees to join or remain
with the Company and its Subsidiaries.

      2.    DEFINITIONS. Capitalized terms used but not otherwise defined herein
shall have the same meaning as set forth in the Operating Agreement. For
purposes of this Plan, unless otherwise specified in an Agreement, capitalized
terms shall have the following meanings:

            "Agreement" means the written agreement between the Company and a
Grantee evidencing the grant of an Award and setting forth the terms and
conditions thereof.

            "Award" means a grant of Common Shares.

            "Board" means the Board of Managers of the Company.

            "Cause" means, unless otherwise provided in an Agreement, (i) the
Grantee's gross negligence or willful misconduct in the performance of his or
her duties, (ii) the Grantee's willful or grossly negligent failure to perform
his or her duties, (iii) the breach by the Grantee of any written covenants to
the Company or a Subsidiary contained in the Operating Agreement or otherwise,
(iv) dishonest, fraudulent or unlawful behavior by the Grantee (whether or not
in conjunction with employment) or the Grantee being subject to a judgment,
order or decree (by consent or otherwise) by any governmental or regulatory
authority that restricts his or her ability to engage in the business conducted
by the Company or a Subsidiary or (v) willful or reckless breach by the Grantee
of any policy adopted by the Company or a Subsidiary concerning conflicts of
interest, standards of business conduct or fair employment practices or
procedures with respect to compliance with applicable laws.

            "Change in Capitalization" means any increase or reduction in the
number of Common Shares, or any change (including, but not limited to, a change
in value) in the Common Shares, or exchange of Common Shares for a different
number or kind of shares or other securities of the Company, by reason of a
reclassification, recapitalization, merger, consolidation, reorganization,
spin-off, split-up, issuance of warrants or rights or other convertible
securities, share distribution, share split or reverse share split, cash
dividend, property dividend, combination or exchange of Shares, repurchase of
Shares, change in corporate structure or otherwise.

            "Change of Control" means the occurrence during the term of the Plan
of:

            (a)   an acquisition (other than directly from the Company) of
      Common Shares, Class A Preferred Shares or other voting equity interests
      of the Company ("Voting Securities") by any Person or Persons, other than
      the Company, any Member of the Company as of the Effective Date (as
      defined below) of this Agreement, a Subsidiary or

<PAGE>

      any of their affiliates, immediately after which such Person or Persons
      directly or indirectly owns fifty percent (50%) or more of the combined
      voting power of the Company's then outstanding Units; provided, however,
      that in determining whether a Change of Control has occurred, Shares which
      are acquired in a `Non-Control Acquisition' (as hereinafter defined) shall
      not constitute an acquisition that would cause a Change of Control. A
      "Non-Control Acquisition" shall mean an acquisition by (i) an employee
      benefit plan (or a trust forming a part thereof) maintained by (A) the
      Company or (B) any corporation, partnership or other Person of which a
      majority of its voting power or its voting equity securities or equity
      interest is owned, directly or indirectly, by the Company, or a
      Subsidiary, (ii) the Company or one or more Subsidiaries, or (iii) any
      Person in connection with a "Non-Control Transaction" (as hereinafter
      defined);

            (b)   the consummation of a merger, consolidation or business
      combination (a "Transaction") involving the Company, unless (x) holders of
      equity interests in the Company, or their affiliates, immediately before
      such Transaction own, directly or indirectly immediately following such
      Transaction, at least fifty-one percent (51%) of the combined voting power
      of the outstanding equity interests of the entity resulting from such
      Transaction (the "Surviving Entity");

            (c)   a complete liquidation or dissolution of the Company; or

            (d)   the sale or other disposition of more than fifty percent (50%)
      of the net assets of the Company to any Person or Persons (other than a
      transfer to a Subsidiary or to one or more Persons who are Members of the
      Company or their affiliates as of the Effective Date of this Agreement). A
      transaction described in clause (x) of subsection (b) hereof shall be
      referred to as a "Non-Control Transaction."

Notwithstanding the foregoing, none of the events described in clauses (a), (b),
(c) or (d) above shall constitute a Change of Control if, after giving effect
thereto, the Company's principal business is conducted through an entity, the
voting control of which is held, directly or indirectly, by Persons (or their
affiliates) that, directly or indirectly, collectively held voting control of
the Company immediately prior to such event.

Notwithstanding the foregoing, a Change of Control shall not be deemed to occur
solely because any Person or Persons (other than a Subsidiary or one or more
Persons who are Members of the Company as of the Effective Date of this
Agreement) (the "Subject Person(s)") acquired direct or indirect ownership of
more than the permitted amount of the outstanding Voting Securities as a result
of the acquisition of Voting Securities by the Company which, by reducing the
number of Voting Securities outstanding, increases the proportional number of
Common Shares or Class A Preferred Shares directly or indirectly owned by the
Subject Person(s), provided that if a Change of Control would occur (but for the
operation of this sentence) as a result of the acquisition of Voting Securities
by the Company, and after such acquisition by the Company, the Subject Person(s)
becomes the direct or indirect owner(s) of any additional Voting Securities that
increases the percentage of the then outstanding Voting Securities indirectly or
directly owned by the Subject Person(s), then a Change of Control shall occur.

                                       -2-
<PAGE>

            "Class A Preferred Shares" means Membership Rights in the Company
having the economic and voting rights set forth in the Operating Agreement with
respect to "Class A Preferred Shares."

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Common Shares" means Membership Rights in the Company having the
economic and voting rights set forth in the Operating Agreement with respect to
"Common Shares," subject, in the case of Common Shares issued to Key Employees
out of the Management Incentive Pool, to such modifications and limitations on
such Membership Rights as may be specified in one or more separate agreements
between the Company and Employee Member pursuant to which such Common Shares are
issued.

            "Disability" means, with respect to a Key Employee, such employees
being substantially unable to perform his assigned duties on behalf of the
Company or any Subsidiary thereof, as the case may be, for more than ninety (90)
days, whether or not consecutive, in any twelve (12) month period, by reason of
incapacity due to physical or mental illness or injury.

            "Effective Date" shall mean August 28, 2003, the date on which the
Board adopted the Plan.

            "Grantee" means a Key Employee to whom an Award has been granted
under the Plan.

            "Key Employee" means an employee of the Company or any Subsidiary
thereof approved by the Board for participation in the Plan on the basis of his
or her ability to contribute significantly to the growth and profitability of
the Company or any of its Subsidiaries.

            "Management Incentive Pool" means up to 1,000,000 Common Shares or
such greater number thereof as may be approved by the Board for award pursuant
to this Plan and reserved for issuance at the Board's discretion to Persons who
are employed by the Company or any Subsidiary.

            "Operating Agreement" means the Operating Agreement of the Company,
as amended from time to time.

            "Person" includes any individual, corporation, association,
partnership (general or limited), joint venture, trust, estate, limited
liability company, or other legal entity or organization.

            "Plan" means the Homebase Acquisition, LLC 2003 Restricted Share
Plan.

            "Shares" means the Common Shares and the Class A Preferred Shares of
the Company.

            "Subsidiary(ies)" means Consolidated Communications Holdings, Inc.
and any other Person the majority of the Capital Securities of which, directly,
or indirectly through Consolidated Communications Holdings, Inc. or one or more
other Persons, (i) the Company has

                                       -3-
<PAGE>

the right to acquire or (ii) is owned or controlled by the Company. As used in
this definition, "control," including, its correlative meanings, "controlled by"
and "under common control with," shall mean possession, directly or indirectly,
of power to direct or cause the direction of management or policies (whether
through ownership of Capital Securities by contract or otherwise).

            "Vested Shares" means Common Shares awarded pursuant to this Plan,
as to which, at the time in question, all restrictions in respect of such Common
Shares have lapsed (other than the restrictions on transferability described in
Section 6.2(a)) and have become fully vested and non-forfeitable pursuant to
Section 5 of this Agreement.

            "Unvested Shares" means the Common Shares awarded pursuant to this
Plan, that, at the time in question, are not Vested Shares.

      3.    AWARDS. At any time after the Effective Date, the Board may, in its
sole discretion, grant Awards to Key Employees, whether or not such Key
Employees previously had been granted Awards, on such terms and conditions
consistent with the Plan as the Board shall determine. Awards may be made on
terms and conditions (which need not be identical) fixed by the Board. Awards
shall be made in the form of Common Shares that may be subject to certain
restrictions on vesting as set forth in this Plan and certain additional
restrictions that may be set forth in the Agreement between the Company and each
Key Employee. Such Awards shall be granted, and the Common Shares underlying
such Awards shall be issued, in consideration of the performance of services and
for such other consideration, if any, as the Board may determine. A Grantee's
rights with respect to unvested Common Shares shall remain forfeitable at all
times prior to the date on which the restrictions thereon shall have lapsed.

      4.    ADMINISTRATION. The Plan shall be administered by the Board. No
Director shall be liable for any action, failure to act, determination or
interpretation made in good faith with respect to the Plan or any transaction
hereunder, except for liability arising from his or her own willful misfeasance,
gross negligence or reckless disregard of his or her duties. The Company hereby
agrees to indemnify each Director for all costs and expenses and, to the extent
permitted by applicable law, any liability incurred in connection with defending
against, responding to, negotiating for the settlement of or otherwise dealing
with, any claim, cause of action or dispute of any kind arising in connection
with any actions in administering the Plan or in authorizing or denying
authorization for any transaction hereunder.

Subject to the express terms and conditions set forth herein, the Board shall
have the power from time to time to:

            (a)   make any amendment or modification to any Agreement consistent
      with the terms of the Plan;

            (b)   construe and interpret the Plan and the Awards and establish,
      amend and revoke rules and regulations for the administration of the Plan,
      including, but not limited to, correcting any defect or supplying any
      omission, or reconciling any inconsistency in the Plan or in any Agreement
      or between the Plan and any Agreement, in the manner and to the extent it
      shall deem necessary or advisable so that the Plan complies with

                                       -4-
<PAGE>

      applicable law, and otherwise to make the Plan fully effective. All
      decisions and determinations by the Board in the exercise of this power
      shall be final, binding and conclusive upon the Company, its Subsidiaries,
      the Grantees and all other persons having any interest therein;

            (c)   exercise its discretion with respect to the powers and rights
      granted to it as set forth in the Plan; and

            (d)   generally, exercise such powers and perform such acts as it
      deems necessary or advisable to promote the best interests of the Company
      and its Subsidiaries with respect to the Plan.

Unless the Board agrees otherwise, the maximum number of Common Shares that may
be made the subject of Awards granted under the Plan is 1,000,000. The Company
previously has reserved for purposes of the Plan, out of its authorized but
unissued Common Shares, such number of Common Shares.

      5.    VESTING.

            5.1   GENERAL VESTING RULES. Except as otherwise provided in this
Section 5.1 and in Section 5.2, 5.3, 5.4, 5.5, 5.6 or in the Agreement between
the Company and the Grantee, Common Shares issued pursuant to an Award granted
under this Plan shall vest as follows provided that the Grantee is a full-time
employee of the Company or any Subsidiary thereof on the anniversary date in
question:

                  (a)   1/4 on the second anniversary date following the date of
                        the Award;

                  (b)   1/4 on the third anniversary date following the date of
                        the Award;

                  (c)   1/4 on the fourth anniversary date following the date of
                        the Award; and

                  (d)   1/4 on the fifth anniversary date following the date of
                        the Award.

            Notwithstanding the foregoing, Awards granted during the months of
August through December of 2003 shall vest as follows:

            (a)   1/4 on December 31, 2004;

            (b)   1/4 on December 31, 2005;

            (c)   1/4 on December 31, 2006; and

            (d)   1/4 on December 31, 2007.

The Board may accelerate the vesting of Common Shares at any time for any
reason.

                                       -5-
<PAGE>

            5.2   CHANGE OF CONTROL, AND RELATED TRANSACTIONS. Notwithstanding
anything in the Plan to the contrary, upon a Change of Control, all Unvested
Shares awarded to the Grantee pursuant to this Plan (or, if applicable, the
equity interests received by the Grantee in connection with the Change in
Control) shall immediately become Vested Shares if within 12 months following a
Change of Control any of the following occur in respect of the Grantee and, in
the case of the conditions specified in Section 5.2(c) below, the Grantee first
provides written notice to the Company of the occurrence thereof:

                  (a)   the Grantee's employment with the Company, a Subsidiary
      thereof or the successor in interest to the Company or its Subsidiary
      pursuant to the Change in Control, is terminated without Cause by the
      Company, a Subsidiary of the Company or any such successor in interest;

                  (b)   the Grantee's compensation is reduced to less than 90%
      of the Grantee's compensation from the Company or any Subsidiary thereof
      immediately prior to the Change in Control; or

                  (c)   without the Grantee's consent, the Grantee is assigned
      duties and responsibilities that are materially inconsistent with his or
      her level of responsibility as an executive officer.

Notwithstanding the foregoing, Unvested Shares shall not become Vested Shares
pursuant to the conditions specified in Section 5.2(c) if, within thirty (30)
days after receipt of written notice by the Company from the Grantee objecting
to such duties and responsibilities and specifying in reasonable detail the
extent to which such duties and responsibilities are inconsistent, the Company
modifies the Grantee's assigned duties and responsibilities so that such
condition does not exist as of the end of such thirty (30) day period.

            5.3   DEATH OR DISABILITY. If a Grantee's employment with the
Company or any Subsidiary thereof terminates as a result of the death or
Disability of the Grantee, subject to the call right granted to the Company in
Section 7, the Grantee (or the Grantee's successors, heirs, personal
representatives and assigns, as the case may be) shall retain all Vested Shares
but shall forfeit all of the Grantee's rights to all Unvested Shares.

            5.4   TERMINATION WITHOUT CAUSE. In the event a Grantee's employment
by the Company or any Subsidiary thereof is terminated by the Company or any
such Subsidiary without Cause, subject to the call right granted to the Company
in Section 7, the Grantee shall retain all Vested Shares but (except as
otherwise provided in Section 5.2) shall forfeit all of the Grantee's rights to
all Unvested Shares.

            5.5   FORFEITURE. Unless otherwise provided in an Agreement, the
Grantee ( or the Grantee's successors, heirs, personal representatives and
assigns, as the case may be) shall be required to sell and the Company shall be
required to purchase, all Vested Shares and Unvested Shares of the Grantee (or
such Grantee's successors, heirs personal representatives and assigns) upon the
occurrence of any of the following events: (a) termination of the Grantee's
employment with the Company or any Subsidiary thereof for Cause, or (b) any
attempted or completed transfer, sale, pledge, hypothecation, or assignment (a
"Transfer") by the Grantee of the Grantee's Common Shares without the prior
written approval of the Board. The purchase

                                       -6-
<PAGE>

price for such Shares shall equal the aggregate amount, if any, paid by the
Grantee therefore, but shall not be less than $1 in the aggregate. Upon the
payment of such amount by the Company, neither the Grantee nor any successors,
heirs, assigns, or personal representatives of such Grantee, shall thereafter
have any further right or interest in the Shares. Any Shares reacquired by the
Company pursuant to this Section 5.5 are referred to herein as "Forfeited
Shares."

            5.6   RECYCLING OF FORFEITED SHARES. Any Common Shares forfeited
hereunder may be the subject of a subsequent Award pursuant to the Plan.

      6.    DELIVERY OF SHARES.

            6.1   DELIVERY OF COMMON SHARES. Upon the grant of each Award, the
Company shall deliver to the Grantee a certificate representing such number of
Common Shares as are subject to such Award, subject to all applicable
restrictions hereunder and under the Agreement.

            6.2   TRANSFERABILITY.

                  (a)   The Common Shares are subject to the restrictions on
                        transferability set forth in Article VII of the
                        Operating Agreement.

                  (b)   The Awards and the rights thereunder shall not be
                        Transferred.

                  (c)   Any attempted Transfer not in accordance with this
                        Section 6.2 shall be null and void and of no force and
                        effect.

            6.3   RIGHTS OF GRANTEES. The recipient of Common Shares pursuant to
an Award shall be a member of the Company with respect thereto, fully entitled
to receive distributions, vote and exercise all other rights of a member except
to the extent otherwise provided in the Award.

      7.    CALL RIGHT.

                  (a)   For a period of 12 months following the death or
      Disability of a Grantee or other voluntary or involuntary termination of
      the Grantee's employment by the Company or any Subsidiary thereof for any
      reason other than for Cause which is controlled by Section 5.5 hereof
      (each, a "Triggering Event"), the Company shall have the right, but not
      the obligation, to buy all of the Vested Shares held by the deceased,
      disabled or terminated Grantee, or such Grantee's legal representative(s)
      or successor(s) in interest, as the case may be, for an amount equal to
      the Price Per Share and on the terms set forth in this Section 7.

                  (b)   For purposes of this Section 7, the Price Per Share
      shall be the lesser of (i) the fair market value of a Vested Share, as
      determined by the Board in good faith or (ii) the amount determined by
      dividing the Enterprise Value of the Company and its Subsidiaries by the
      total number of Common Shares outstanding as of the date of the Triggering
      Event. For these purposes, the Enterprise Value of the Company and its
      Subsidiaries shall be an amount computed as follows:

                                       -7-
<PAGE>

                  7 x EBITDA.

                      Plus: All current assets of the Company and its
                            Subsidiaries.

                      Minus:(a) The principal amount of all outstanding
                            indebtedness of the Company and its Subsidiaries,
                            plus accrued but unpaid interest thereon;

                            (b) All other liabilities of the Company and its
                            Subsidiaries (whether current or long-term in
                            nature) (other than those identified in item (a)
                            directly above); and

                            (c) The Class A Liquidation Preference applicable to
                            all Class A Preferred Shares outstanding as of the
                            date of the Triggering Event and assuming a
                            liquidation of the Company as of that date.

For these purposes, (A) "EBITDA" means an amount equal to the earnings of the
Company and its Subsidiaries as of December 31 of the year immediately preceding
the date of the Triggering Event (or on the date of the Triggering Event if such
event occurs on December 31 of any year) but before taking into account interest
expense, income taxes, depreciation and amortization, all determined using
generally accepted accounting principals on a basis consistently applied from
year to year, and (B) current assets and liabilities, including accrued interest
on outstanding indebtedness, shall be determined as of the end of the calendar
month immediately preceding the date of the Triggering Event (or on the date of
the Triggering Event if such event occurs on the last day of a calendar month).

            (c)   The Company shall exercise its rights under this Section 7 by
providing timely written notice to the Grantee or the Grantee's legal
representative(s) or successor(s) in interest, as the case may be, within 180
days following the Triggering Event.

            (d)   The Purchase Price (i.e., the Price Per Share multiplied by
the total number of Vested Shares purchased) shall, at the option of the
Company, be paid (1) in full at closing or (2) in five (5) equal annual
installments, the first of which shall be paid in cash at closing and the
remaining installments shall be paid on each of the next four (4) anniversary
dates of the closing along with interest which shall accrue on the deferred
portion of the Purchase Price at a rate equal to the "prime rate" as quoted in
the Wall Street Journal, Midwest Edition, or any successor publication, on the
date on which the Triggering Event occurred.

                                       -8-
<PAGE>

            (e)   Closing shall take place within 60 days following the date on
      which the notice given by the Company pursuant to Section 7(c) is deemed
      to be received by the Grantee or the Grantee's legal representative(s) or
      successor(s) in interest.

      8.    DRAG-ALONG RIGHTS. If the Majority Investors desire to sell or
otherwise dispose of for value some or all of their Shares and receive an offer
from a purchaser who is not then a Member of the Company or related to or
affiliated with any such Member (a "Third-Party Purchaser") to acquire in a
single transaction or a series of related transactions more than fifty (50)
percent (by value) of the Shares of the Company, and such offer is acceptable to
the Majority Investors, then each of the Grantees shall be obligated to, and
hereby agree to, sell all (but not less than all) of the Grantee's Common Shares
to the Third-Party Purchaser upon the same terms (including the price per share)
and conditions offered to any other similarly situated Member of the Company
holding Common Shares. Each of the Grantees further agrees to execute and
deliver any and all agreements, documents and instruments, and to take all other
actions, necessary, or required, to consummate such sale.

      9.    ADJUSTMENT UPON CHANGES IN CAPITALIZATION.

            (a)   In the event of a Change in Capitalization, the Board shall
conclusively determine the appropriate adjustments, if any, to (i) the maximum
number and class of Common Shares or other securities with respect to which
Awards may be granted under the Plan, (ii) the number of Common Shares or other
securities that are subject to outstanding Awards granted under the Plan, and
the purchase price therefore, if applicable. Adjustments, if any, under this
Section 9 shall be made in the sole discretion of the Board, and the Board's
decision shall be binding and conclusive.

            (b)   If, by reason of Change in Capitalization, a Grantee of an
Award shall receive any new, additional or different rights to acquire shares or
other securities, such new, additional or different rights or securities shall
thereupon be subject to all of the conditions, restrictions and performance
criteria that were applicable to the shares subject to the Award prior to such
Change in Capitalization.

            (c)   Nothing contained in this Plan or any Award shall in any way
restrict or impair the ability of the Company's Members or the Board to amend or
waive any provision of the Company's Limited Liability Company Agreement in
accordance with the terms thereof in any way whatsoever. Without limiting the
foregoing, such amendments may change the economic or other terms of the Common
Shares and/or the Class A Preferred Shares, or replace Common Shares and/or
Class A Preferred Shares with other equity interests. In any such event, the
Board shall, in its sole discretion, have the right to amend or interpret the
provisions of this Plan and the Awards in order to adapt this Plan and Awards to
fit any changes in the Company's capital structure.

      10.   TERMINATION AND AMENDMENT OF THE PLAN. The Plan shall terminate on
the day preceding the tenth anniversary of the Effective Date and no Award may
be granted thereafter. The Board may sooner terminate the Plan and the Board may
at any time and from time to time amend, terminate, modify or suspend the Plan
or any Agreement at its sole option and in its unrestricted discretion;
provided, however, that (a) no such amendment, modification,

                                       -9-
<PAGE>

suspension or termination shall impair or adversely affect any Awards
theretofore granted under the Plan, except with the consent of the Grantee, nor
shall any amendment, modification, suspension or termination deprive any Grantee
of any Vested Shares which he or she may have acquired through or as a result of
the Plan, and (b) it shall be presumed conclusively that an adjustment, if any,
for changes in capitalization as provided for in Section 9 do not adversely
affect any such Awards or Vested Shares.

      11.   NON-EXCLUSIVITY OF THE PLAN. The adoption of the Plan by the Board
shall not be construed as amending, modifying or rescinding any previously
approved incentive arrangement, or as creating any limitations on the power of
the Board to adopt such other incentive arrangements as it may deem desirable,
including, without limitation, the granting of options to acquire the Common
Shares, and such arrangements may be either applicable generally or only in
specific cases.

      12.   OTHER LIMITATIONS. As illustrative of the limitations of liability
of the Company and the Board, but not intended to be exhaustive thereof, nothing
in the Plan shall be construed to:

            (a)   give any person any right to be granted an Award other than at
      the sole discretion of the Board;

            (b)   give any person any rights whatsoever with respect to the
      Common Shares except as specifically provided in the Plan or an Agreement;

            (c)   limit in any way the right of the Company or any Subsidiary
      thereof, as the case may be, to terminate the employment of any person at
      any time; or

            (d)   be evidence of any agreement or understanding, express or
      implied, that the Company will employ any person at any particular rate of
      compensation or for any particular period of time.

      13.   REGULATIONS AND OTHER APPROVALS; GOVERNING LAW. Except as to matters
of federal law, the Plan and the rights of all persons claiming hereunder shall
be construed and determined in accordance with the laws of the State of Delaware
without giving effect to conflicts of law principles. Notwithstanding any other
provision of the Plan, the obligation of the Company to deliver Common Shares in
respect of any Award thereof under the Plan shall, in each cash, be subject to
all applicable laws, rules and regulations, including all applicable federal and
state securities laws, and the obtaining of all such approvals by governmental
agencies as may be deemed necessary or appropriate by the Board.

            (a)   Except as provided in Section 10 hereof, the Board may make
      such changes to the Plan or an Agreement as may be necessary or
      appropriate to comply with the rules and regulations of any government
      authority.

            (b)   Each Award is subject to the requirement that, if at any time
      the Board determines, in its sole and absolute discretion, that the
      listing, registration or qualification of the Common Shares issuable
      pursuant to the Plan is required by any securities exchange or under any
      state or federal law, or the consent or approval of any

                                      -10-
<PAGE>

      governmental regulatory body is necessary or desirable as a condition of,
      or in connection with, the grant of an Award or the issuance of the Common
      Shares, no Awards shall be granted and no Common Shares shall be issued,
      in whole or in part, unless such listing, registration, qualification,
      consent or approval has been effected or obtained free of any conditions
      not acceptable to the Board.

      14.   WITHHOLDING OF TAXES. At such times as a Grantee or his or her
beneficiary recognizes taxable income in connection with the rights to acquire
Common Shares granted hereunder (a "Taxable Event"), the Grantee or his or her
beneficiary shall pay to the Company or to one of its Subsidiaries, if
applicable, an amount equal to the federal, state and local income taxes and
other amounts as may be required by law to be withheld in connection with the
Taxable Event (the "Withholding Taxes") prior to the issuance of such shares.
The Company or a Subsidiary thereof, as the case may be, shall have the right to
deduct from any payment of cash to a Grantee or his or her beneficiary an amount
equal to the Withholding Taxes in satisfaction of the obligation to pay
Withholding Taxes.

      15.   SUCCESSORS. In the event of a sale of substantially all of the
assets of the Company, or a merger, consolidation or share exchange involving
the Company, all obligations of the Company shall be binding on the successor to
the transaction.

      16.   NOTICES. All demands, notices, requests, consents and other
communications required or permitted under this Agreement shall be in writing
and shall be personally delivered or sent by facsimile machine (with a
confirmation copy sent by one of the other methods authorized in this Section),
commercial (including FedEx) or U.S. Postal Service overnight delivery service,
or, deposited with the U.S. Postal Service mailed first class, registered or
certified mail, postage prepaid, as set forth below:

            (a)   If to the Company, addressed to:

                  c/o Chairman
                  121 S. 17th Street
                  Mattoon, IL 61938
                  Facsimile: (217) 258-6240

            (b)   Notices to or with respect to a Grantee shall be directed to
      the Grantee, or to his or her beneficiary or beneficiaries, at the
      Grantee's home address on the records of the Company or its Subsidiary.

      Notices shall be deemed given upon the earlier to occur of (i) receipt by
the party to whom such notice is directed; (ii) if sent by facsimile machine, on
the day (other than a Saturday, Sunday or legal holiday in the jurisdiction to
which such notice is directed) such notice is sent if sent (as evidenced by the
facsimile confirmed receipt) prior to 5:00 p.m. U.S. Eastern Time and, if sent
after 5:00 p.m. U.S. Eastern Time, on the day (other than a Saturday, Sunday or
legal holiday in the jurisdiction to which such notice is directed) after which
such notice is sent; (iii) on the first business day (other than a Saturday,
Sunday or legal holiday in the jurisdiction to which such notice is directed)
following the day the same is deposited with the commercial courier if sent by
commercial overnight delivery service; or (iv) the fifth day (other than a

                                      -11-
<PAGE>

Saturday, Sunday or legal holiday in the jurisdiction to which such notice is
directed) following deposit thereof with the U.S. Postal Service as aforesaid.
Each party, by notice duly given in accordance therewith may specify a different
address for the giving of any notice hereunder.

                                      -12-

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