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                                                                    EXHIBIT 10.1

                            ILLUMINET HOLDINGS, INC.
                           1997 EQUITY INCENTIVE PLAN

                                    SECTION 1

                              PURPOSE AND DURATION

        1.1 Effective Date. This Plan permits the grant of Nonqualified Stock
Options, Incentive Stock Options, SARs, Restricted Stock, Performance Units and
Performance Shares. This Plan shall be effective on the date of its adoption by
the Company's Board of Directors.

        1.2 Purpose of this Plan. This Plan is intended to attract, motivate,
and retain (a) employees of the Company and its Affiliates, (b) consultants who
provide significant services to the Company and its Affiliates, and (c) members
of the Board of Directors of the Company who are employees of neither the
Company nor any Affiliate. This Plan also is designed to further the growth and
financial success of the Company and its Affiliates by aligning the interests of
the Participants, through the ownership of Shares and through other incentives,
with the interests of the Company's stockholders.

                                    SECTION 2

                                   DEFINITIONS

        The following words and phrases shall have the following meanings unless
a different meaning is plainly required by the context:

        "1934 Act" means the Securities Exchange Act of 1934, as amended.
Reference to a specific section of the 1934 Act or regulation thereunder shall
include such section or regulation, any valid regulation promulgated under such
section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation.

        "Affiliate" means any corporation or any other entity (including, but
not limited to, partnerships and joint ventures) controlling, controlled by or
under common control with the Company.

        "Affiliated SAR" means an SAR that is granted in connection with a
related Option, and that automatically will be deemed to be exercised at the
same time that the related Option is exercised.

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        "Award" means, individually or collectively, a grant under this Plan of
Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted Stock,
Performance Units or Performance Shares.

        "Award Agreement" means the written agreement setting forth the terms
and provisions applicable to each Award granted under this Plan.

        "Board" or "Board of Directors" means the Board of Directors of the
Company.

        "Board Member" means any individual who is a member of the Board of
Directors of the Company.

        "Change in Control" shall have the meaning assigned to such term in
Section 12.2.

        "Code" means the Internal Revenue Code of 1986, as amended. Reference to
a specific section of the Code or regulation thereunder shall include such
section or regulation, any valid regulation promulgated under such section, and
any comparable provision of any future legislation or regulation amending,
supplementing or superseding such section or regulation.

        "Committee" means the committee appointed by the Board (pursuant to
Section 3.1) to administer this Plan.

        "Company" means Illuminet Holdings, Inc., a Delaware corporation, and
any successor thereto. With respect to the definitions of the Performance Goals,
the Committee in its sole discretion may determine that "Company" means
Illuminet Holdings, Inc., and its consolidated subsidiaries.

        "Consultant" means any consultant, independent contractor or other
person who provides significant services to the Company or its Affiliates, but
who is neither an Employee nor a Board Member.

        "Disability" means a permanent and total disability within the meaning
of Code section 22(e)(3), provided that in the case of Awards other than
Incentive Stock Options, the Committee in its sole discretion may determine
whether a permanent and total disability exists in accordance with uniform and
non-discriminatory standards adopted by the Committee from time to time.

        "Earnings Per Share" means as to any Fiscal Year, the Company's Net
Income or a business unit's Pro Forma Net Income, divided by a weighted average
number of Shares outstanding and dilutive equivalent Shares deemed outstanding.

        "Employee" means any employee of the Company or of an Affiliate, whether
such employee is so employed at the time this Plan is adopted or becomes so
employed subsequent to the adoption of this Plan.

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        "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended. Reference to a specific section of ERISA or regulation thereunder shall
include such section or regulation, any valid regulation promulgated under such
section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation.

        "Exercise Price" means the price at which a Share may be purchased by a
Participant pursuant to the exercise of an Option.

        "Fair Market Value" means, as of any given date, the mean between the
highest and lowest reported sales prices of the Shares on the New York Stock
Exchange Composite Tape or, if not listed on such exchange, on any other
national securities exchange on which the Shares are listed or on the Nasdaq
Stock Market. If there is no regular public trading market for such Shares, the
Fair Market Value of the Shares shall be determined by the Committee in good
faith. Notwithstanding the preceding, for federal, state and local income tax
reporting purposes, fair market value shall be determined by the Committee (or
its delegate) in accordance with uniform and nondiscriminatory standards adopted
by it from time to time.

        "Fiscal Year" means the fiscal year of the Company.

        "Freestanding SAR" means a SAR that is granted independently of any
Option.

        "Grant Date" means, with respect to an Award, the date that the Award
was granted.

        "Incentive Stock Option" means an Option to purchase Shares which is
designated as an Incentive Stock Option and is intended to meet the requirements
of section 422 of the Code.

        "Individual MBOs" means as to a Participant, the objective and
measurable goals set by a "management by objectives" process and approved by the
Committee (in its sole discretion).

        "Net Income" means as to any Fiscal Year, the income after taxes of the
Company for the Fiscal Year determined in accordance with generally accepted
accounting principles; provided, however, that the Committee shall determine
whether any significant item(s) shall be included or excluded from the
calculation of Net Income with respect to one or more Participants and, if the
Committee intends an Award to qualify as "performance-based compensation" under
Section 162(m) of the Code, the Committee shall make such determination prior to
the latest date permissible under Section 162(m) of the Code.

        "Nonemployee Board Member" means a Board Member who is not an employee
of the Company or of any Affiliate.

        "Nonqualified Stock Option" means an Option to purchase Shares which is
not an Incentive Stock Option.

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        "Option" means an Incentive Stock Option or a Nonqualified Stock Option.

        "Participant" means an Employee, Consultant or Nonemployee Board Member
who has an outstanding Award.

        "Performance Goals" means the goal(s) (or combined goal(s)) determined
by the Committee (in its sole discretion) to be applicable to a Participant with
respect to an Award. As determined by the Committee, the Performance Goals
applicable to an Award may provide for a targeted level or levels of achievement
using predetermined measurements, including, for example, one or more of the
following measures: (a) Earnings Per Share, (b) Individual MBOs, (c) Net Income,
(d) Pro Forma Net Income, (e) Return on Designated Assets, (f) Return on
Revenues, and (g) Satisfaction MBOs. The Performance Goals may differ from
Participant to Participant and from Award to Award.

        "Performance Period" shall have the meaning assigned to such term in
Section 8.3.

        "Performance Share" means an Award granted to a Participant pursuant to
Section 8.

        "Performance Unit" means an Award granted to a Participant pursuant to
Section 8.

        "Period of Restriction" means the period during which the transfer of
Shares of Restricted Stock are subject to restrictions and, therefore, the
Shares are subject to a substantial risk of forfeiture. As provided in Section
7, such restrictions may be based on the passage of time, the achievement of
target levels of performance or the occurrence of other events as determined by
the Committee in its sole discretion.

        "Plan" means the Illuminet Holdings, Inc., 1997 Equity Incentive Plan,
as set forth in this instrument and as hereafter amended from time to time.

        "Pro Forma Net Income" means as to any business unit for any Fiscal
Year, the portion of Company's Net Income allocable to such business unit;
provided, however, that the Committee shall determine the basis on which such
allocation shall be made.

        "Restricted Stock" means an Award granted to a Participant pursuant to
Section 7.

        "Retirement" means, in the case of an Employee, a Termination of Service
by reason of the Employee's retirement pursuant to any retirement program
instituted by the Company or any Affiliate employer or as otherwise agreed to by
the Employer or the applicable Affiliate employer. With respect to a Consultant,
no Termination of Service shall be deemed to be on account of "Retirement". With
respect to a Nonemployee Board Member, "Retirement" means termination of service
on the Board at or after age sixty-five (65).

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        "Return on Designated Assets" means as to any Fiscal Year, (a) the Pro
Forma Net Income of a business unit, divided by the average of beginning and
ending business unit designated assets, or (b) the Net Income of the Company,
divided by the average of beginning and ending designated corporate assets.

        "Return on Revenues" means as to any Fiscal Year, the percentage equal
to the Company's Net Income or the business unit's Pro Forma Net Income, divided
by the Company's or the business unit's annual revenue.

        "Rule 16b-3" means Rule 16b-3 promulgated under the 1934 Act, and any
future regulation amending, supplementing or superseding such regulation.

        "Satisfaction MBOs" means as to any Participant, the objective and
measurable individual goals set by a "management by objectives" process and
approved by the Committee, which goals relate to the satisfaction of external or
internal requirements.

        "Section 16 Person" means a person who, with respect to the Shares, is
subject to section 16 of the 1934 Act.

        "Shares" means the shares of common stock of the Company.

        "Stock Appreciation Right" or "SAR" means an Award, granted alone or in
connection with a related Option, that is designated as a SAR pursuant to
Section 6.

        "Subsidiary" means any corporation in an unbroken chain of corporations
beginning with the Company if each of the corporations other than the last
corporation in the unbroken chain then owns stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

        "Tandem SAR" means an SAR that is granted in connection with a related
Option, the exercise of which shall require forfeiture of the right to purchase
an equal number of Shares under the related Option (and when a Share is
purchased under the Option, the SAR shall be canceled to the same extent).

        "Termination of Service" means (a) in the case of an Employee, a
cessation of the employee-employer relationship between an employee and the
Company or an Affiliate for any reason, including, but not limited to, a
cessation by resignation, discharge, death, Disability, Retirement or the
disaffiliation of an Affiliate, but excluding any such cessation where there is
a simultaneous reemployment by the Company or an Affiliate, and (b) in the case
of a Board Member or Consultant, a cessation of the service relationship between
a Board Member or Consultant and the Company or an Affiliate for any reason,
including, but not limited to, a cessation by resignation, discharge, death,
Disability, (Retirement, with respect to a Board

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Member) or the disaffiliation of an Affiliate, but excluding any such cessation
where there is a simultaneous reengagement of the Board Member or Consultant by
the Company or an Affiliate.

                                    SECTION 3

                                 ADMINISTRATION

        3.1 The Committee. This Plan shall be administered by the Committee. The
Committee shall consist of not less than two (2) Board Members, all of whom are
Nonemployee Board Members. The members of the Committee shall be appointed from
time to time by, and shall serve at the pleasure of, the Board of Directors.

        3.2 Authority of the Committee. It shall be the duty of the Committee to
administer this Plan in accordance with its provisions. The Committee shall have
all powers and discretion necessary or appropriate to administer this Plan and
to control its operation, including, but not limited to, the power to (a)
determine which Participants shall be granted Awards, (b) prescribe the terms
and conditions of the Awards, (c) interpret this Plan and the Awards, (d) adopt
rules for the administration, interpretation and application of this Plan as are
consistent therewith, and (e) interpret, amend or revoke any such rules.

        3.3 Delegation by the Committee. The Committee, in its sole discretion
and on such terms and conditions as it may provide, may delegate all or any part
of its authority and powers under this Plan to one or more Board Members or
officers of the Company; provided, however, that the Committee may not delegate
its authority and powers in any way which would jeopardize this Plan's
qualification under Rule 16b-3.

        3.4 Decisions Binding. All determinations and decisions made by the
Committee, the Board and any delegate of the Committee pursuant to Section 3.3
shall be final, conclusive, and binding on all persons, and shall be given the
maximum deference permitted by law.

                                    SECTION 4

                           SHARES SUBJECT TO THIS PLAN

        4.1 Number of Shares. Subject to adjustment as provided in Section 4.3,
the total number of Shares available for grant under this Plan shall not exceed
1,000,000. Shares granted under this Plan may be either authorized but unissued
Shares or treasury Shares, or any combination thereof.

        4.2 Lapsed Awards. If an Award is settled in cash, or is canceled,
terminates, expires or lapses for any reason (with the exception of the
termination of a Tandem SAR upon exercise of the related Option, or the
termination of a related Option upon exercise of the corresponding

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Tandem SAR), any Shares subject to such Award thereafter shall be available to
be the subject of an Award.

        4.3 Adjustments in Awards and Authorized Shares. In the event of any
merger, reorganization, consolidation, recapitalization, separation,
liquidation, stock dividend, stock split, Share combination, or other change in
the corporate structure of the Company affecting the Shares, the Committee shall
adjust the number and class of Shares which may be delivered under this Plan,
the number, class and price of Shares subject to outstanding Awards, and the
numerical limits of Sections 4.1, 5.1, 6.1, 7.1 and 8.1, in such manner as the
Committee (in its sole discretion) shall determine to be advisable or
appropriate to prevent the dilution or diminution of such Awards.
Notwithstanding the preceding, the number of Shares subject to any Award always
shall be a whole number.

        4.4 Repurchase Option. The Committee may, in its sole discretion,
include in the terms of any Award Agreement, that the Company shall have the
option to repurchase Shares of any Participant acquired pursuant to any Award
granted under the Plan upon the Termination of Service of such Participant upon
such terms as the Committee shall state in the Award.

        4.5 Buy-Out Provision. The Committee may at any time offer on behalf of
the Company to buy out, for a payment in cash or Shares, an Award previously
granted, based on such terms and conditions as the Committee, in its sole
discretion, shall establish and communicate to the Participants at the time such
offer is made.

        4.6 Restrictions on Share Transferability. The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of an Award as it
may deem advisable or appropriate in its sole discretion, including, but not
limited to, restrictions related to applicable Federal securities laws, the
requirements of any national securities exchange or system upon which Shares are
then listed or traded, and any blue sky or state securities laws.

        4.7 Adjustments upon Merger or Asset Sale. In the event of a merger of
the Company with or into another corporation, or the sale of substantially all
of the assets of the Company, the Board of Directors, in its discretion, may
require the successor corporation to either (i) assume each outstanding Award or
(ii) substitute an equivalent award by the successor corporation or a Parent or
Subsidiary of the successor corporation. If an Award is not assumed or
substituted in the event of a merger or sale of assets, the Award shall fully
vest and become immediately exercisable and the Committee shall notify the
Participant that the Award shall be exercisable for a period of twenty-five (25)
days from the date of such notice, and the Award shall terminate upon the
expiration of such period unless exercised. For the purposes of this paragraph,
the Award shall be considered assumed if, following the merger or sale of
assets, the Award confers the right to purchase or receive, for each Share
subject to the Award immediately prior to the merger or sale of assets, equal
consideration (whether stock, cash, or other securities or property) as received
in the merger or sale of assets by holders of each Share of common stock held on
the effective date of the transaction (and if holders of Shares were offered a
choice of consideration,

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the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the merger or
sale of assets was not solely common stock of the successor corporation or its
Parent, the Committee may, with the consent of the successor corporation,
provide for the consideration to be received upon the exercise of the Award, for
each Share subject to the award, to be solely common stock of the successor
corporation or its Parent equal in fair market value to the per share
consideration received by holders of common stock in the merger or sale of
assets.

                                    SECTION 5

                                  STOCK OPTIONS

        5.1 Grant of Options. Subject to the terms and provisions of this Plan,
Options may be granted to Participants at any time and from time to time as
determined by the Committee in its sole discretion. The Committee, in its sole
discretion, shall determine the number of Shares subject to each Option;
provided, however, that during any Fiscal Year, no Participant shall be granted
Options covering more than 100,000 Shares. The Committee may grant Incentive
Stock Options, Nonqualified Stock Options, or any combination thereof.

        5.2 Award Agreement. Each Option shall be evidenced by an Award
Agreement that shall specify the Exercise Price, the expiration date of the
Option, the number of Shares to which the Option pertains, any conditions to
exercise of the Option and such other terms and conditions as the Committee, in
its sole discretion, shall determine. The Award Agreement also shall specify
whether the Option is intended to be an Incentive Stock Option or a Nonqualified
Stock Option.

        5.3 Exercise Price. Subject to the provisions of this Section 5.3, the
Exercise Price for each Option shall be determined by the Committee in its sole
discretion.

                5.3.1 Nonqualified Stock Options. In the case of a Nonqualified
        Stock Option, the Exercise Price may be less than the Fair Market Value
        of a Share on the Grant Date.

                5.3.2 Incentive Stock Options. In the case of an Incentive Stock
        Option, the Exercise Price shall be not less than one hundred percent
        (100%) of the Fair Market Value of a Share on the Grant Date; provided,
        however, that if on the Grant Date, the Employee (together with persons
        whose stock ownership is attributed to the Employee pursuant to section
        424(d) of the Code) owns stock possessing more than 10% of the total
        combined voting power of all classes of stock of the Company or any of
        its Subsidiaries, the Exercise Price shall be not less than one hundred
        ten percent (110%) of the Fair Market Value of a Share on the Grant
        Date.

                5.3.3 Substitute Options. Notwithstanding the provisions of
        Sections 5.3.1 and 5.3.2, in the event that the Company or an Affiliate
        consummates a transaction described in section 424(a) of the Code (e.g.,
        the acquisition of property or stock from an unrelated corporation),
        persons who become Participants on account of such transaction may be

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        granted Options in substitution for options granted by such former
        employer or recipient of services. If such substitute Options are
        granted, the Committee, in its sole discretion and consistent with
        section 424(a) of the Code, may determine that such substitute Options
        shall have an exercise price less than one hundred (100%) of the Fair
        Market Value of the Shares on the Grant Date.

                5.4 Expiration of Options.

                5.4.1 Expiration Dates. Except as provided in Section 5.7
        regarding Incentive Stock Options, each Option shall terminate upon the
        earlier of the first to occur of the following events:

                    (a) The date(s) for termination of the Option set forth in
                the Award Agreement; or

                    (b) The expiration of ten (10) years from the Grant Date.

                5.4.2 Committee Discretion. Subject to the limits of Section
        5.4.1, the Committee, in its sole discretion, (a) shall provide in each
        Award Agreement when each Option expires and becomes unexercisable, and
        (b) may, after an Option is granted, extend the maximum term of the
        Option (subject to Section 5.7 regarding Incentive Stock Options).

        5.5 Exercisability of Options. Options granted under this Plan shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall determine in its sole discretion. After an Option is
granted, the Committee, in its sole discretion, may accelerate the
exercisability of the Option. If the Committee provides that any Option is
exercisable only in installments, the Committee may at any time waive such
installment exercise provisions, in whole or in part, based on such factors as
the Committee may determine.

        5.6 Payment. Options shall be exercised by the Participant's delivery of
a written notice of exercise to the Secretary of the Company (or its designee),
setting forth the number of Shares with respect to which the Option is to be
exercised, accompanied by full payment for the Shares.

        Upon the exercise of any Option, the Exercise Price shall be payable to
the Company in full in cash or its equivalent. The Committee, in its sole
discretion, also may permit exercise (a) by tendering previously acquired Shares
having an aggregate Fair Market Value at the time of exercise equal to the total
Exercise Price, or (b) by any other means which the Committee, in its sole
discretion, determines (i) to provide legal consideration for the Shares, and
(ii) to be consistent with the purposes of this Plan.

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        As soon as practicable after receipt of a written notification of
exercise and full payment for the Shares purchased, the Company shall deliver to
the Participant (or the Participant's designated broker), Share certificates
(which may be in book entry form) representing such Shares.

        5.7 Certain Additional Provisions for Incentive Stock Options.

                5.7.1 Exercisability. The aggregate Fair Market Value
        (determined on the Grant Date(s)) of the Shares with respect to which
        Incentive Stock Options are exercisable for the first time by any
        Employee during any calendar year (under all plans of the Company and
        its Subsidiaries) shall not exceed $100,000.

                5.7.2 Termination of Service. No Incentive Stock Option may be
        exercised more than three (3) months after the Participant's Termination
        of Service for any reason other than Disability or death, unless (a) the
        Participant dies during such three-month period, and (b) the Award
        Agreement or the Committee permits later exercise. No Incentive Stock
        Option may be exercised more than one (1) year after the Participant's
        termination of employment on account of Disability, unless (a) the
        Participant dies during such one-year period, and (b) the Award
        Agreement or the Committee permits later exercise.

                5.7.3 Company and Subsidiaries Only. Incentive Stock Options may
        be granted only to persons who are employees of the Company or a
        Subsidiary on the Grant Date.

                5.7.4 Expiration. No Incentive Stock Option may be exercised
        after the expiration of ten (10) years from the Grant Date; provided,
        however, that if the Option is granted to an Employee who, together with
        persons whose stock ownership is attributed to the Employee pursuant to
        section 424(d) of the Code, owns stock possessing more than 10% of the
        total combined voting power of all classes of stock of the Company or
        any of its Subsidiaries, the Option may not be exercised after the
        expiration of five (5) years from the Grant Date.

                                    SECTION 6

                            STOCK APPRECIATION RIGHTS

        6.1 Grant of SARs. Subject to the terms and conditions of this Plan, an
SAR may be granted to Participants at any time and from time to time as shall be
determined by the Committee, in its sole discretion. The Committee may grant
Affiliated SARs, Freestanding SARs, Tandem SARs, or any combination thereof.

                6.1.1 Number of Shares. The Committee shall have complete
        discretion to determine the number of SARs granted to any Participant,
        provided that during any Fiscal Year, no Participant shall be granted
        SARs covering more than 100,000 Shares.

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                6.1.2 Exercise Price and Other Terms. The Committee, subject to
        the provisions of this Plan, shall have complete discretion to determine
        the terms and conditions of SARs granted under this Plan; provided,
        however, that the exercise price of a Freestanding SAR shall be not less
        than one hundred percent (100%) of the Fair Market Value of a Share on
        the Grant Date. The exercise price of Tandem or Affiliated SARs shall
        equal the Exercise Price of the related Option.

        6.2 Exercise of Tandem SARs. Tandem SARs may be exercised for all or
part of the Shares subject to the related Option upon the surrender of the right
to exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable. With respect to a Tandem SAR granted in connection with an
Incentive Stock Option: (a) the Tandem SAR shall expire no later than the
expiration of the underlying Incentive Stock Option; (b) the value of the payout
with respect to the Tandem SAR shall be for no more than one hundred percent
(100%) of the difference between the Exercise Price of the underlying Incentive
Stock Option and the Fair Market Value of the Shares subject to the underlying
Incentive Stock Option at the time the Tandem SAR is exercised; and (c) the
Tandem SAR shall be exercisable only when the Fair Market Value of the Shares
subject to the Incentive Stock Option exceeds the Exercise Price of the
Incentive Stock Option.

        6.3 Exercise of Affiliated SARs. An Affiliated SAR shall be deemed to be
exercised upon the exercise of the related Option. The deemed exercise of an
Affiliated SAR shall not necessitate a reduction in the number of Shares subject
to the related Option.

        6.4 Exercise of Freestanding SARs. Freestanding SARs shall be
exercisable on such terms and conditions as the Committee, in its sole
discretion, shall determine.

        6.5 SAR Agreement. Each SAR grant shall be evidenced by an Award
Agreement that shall specify the exercise price, the term of the SAR, the
conditions of exercise, and such other terms and conditions as the Committee, in
its sole discretion, shall determine.

        6.6 Expiration of SARs. An SAR granted under this Plan shall expire upon
the date determined by the Committee, in its sole discretion, as set forth in
the Award Agreement. Notwithstanding the foregoing, the terms and provisions of
Section 5.4 also shall apply to SARs.

        6.7 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall
be entitled to receive payment from the Company in an amount determined by
multiplying:

                (a) The positive difference between the Fair Market Value of a
        Share on the date of exercise over the exercise price; by

                (b) The number of Shares with respect to which the SAR is
        exercised.

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        At the sole discretion of the Committee, the payment upon SAR exercise
may be in cash, in Shares of equivalent value, or in any combination thereof.

                                    SECTION 7

                                RESTRICTED STOCK

        7.1 Grant of Restricted Stock. Subject to the terms and provisions of
this Plan, the Committee, at any time and from time to time, may grant Shares of
Restricted Stock to Participants in such amounts as the Committee, in its sole
discretion, shall determine. The Committee, in its sole discretion, shall
determine the number of Shares to be granted to each Participant; provided,
however, that during any Fiscal Year, no Participant shall receive more than
100,000 Shares of Restricted Stock.

        7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be
evidenced by an Award Agreement that shall specify the Period of Restriction,
the number of Shares granted, and such other terms and conditions as the
Committee, in its sole discretion, shall determine. Unless the Committee, in its
sole discretion, determines otherwise, Shares of Restricted Stock shall be held
by the Company as escrow agent until the end of the applicable Period of
Restriction.

        7.3 Transferability. Except as otherwise determined by the Committee, in
its sole discretion, Shares of Restricted Stock may not be sold, transferred,
gifted, bequeathed, pledged, assigned, or otherwise alienated or hypothecated,
voluntarily or involuntarily, until the end of the applicable Period of
Restriction.

        7.4 Other Restrictions. The Committee, in its sole discretion, may
impose such other restrictions on Shares of Restricted Stock as it may deem
advisable or appropriate in accordance with this Section 7.4.

                7.4.1 General Restrictions. The Committee may set restrictions
        based upon (a) the achievement of specific performance objectives
        (Company-wide, divisional or individual), (b) applicable Federal or
        state securities laws, or (c) any other basis determined by the
        Committee in its sole discretion.

                7.4.2 Section 162(m) Performance Restrictions. For purposes of
        qualifying grants of Restricted Stock as "performance-based
        compensation" under section 162(m) of the Code, the Committee, in its
        sole discretion, may set restrictions based upon the achievement of
        Performance Goals. The Performance Goals shall be set by the Committee
        on or before the latest date permissible to enable the Restricted Stock
        to qualify as "performance-based compensation" under section 162(m) of
        the Code. In granting Restricted Stock that is intended to qualify under
        Code section 162(m), the Committee shall follow any procedures
        determined by it in its sole discretion from time to time to be

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        necessary, advisable or appropriate to ensure qualification of the
        Restricted Stock under Code section 162(m) (e.g., in determining the
        Performance Goals).

                7.4.3 Legend on Certificates. The Committee, in its sole
        discretion, may legend the certificates representing Restricted Stock to
        give appropriate notice of such restrictions. For example, the Committee
        may determine that some or all certificates representing Shares of
        Restricted Stock shall bear the following legend:

                "THE SALE OR OTHER TRANSFER OF THE SHARES OF STOCK REPRESENTED
                BY THIS CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY, OR BY
                OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
                AS SET FORTH IN THE ILLUMINET HOLDINGS, INC., 1997 EQUITY
                INCENTIVE PLAN, AND IN A RESTRICTED STOCK AGREEMENT. A COPY OF
                THIS PLAN AND SUCH RESTRICTED STOCK AGREEMENT MAY BE OBTAINED
                FROM THE SECRETARY OF ILLUMINET HOLDINGS, INC."

        7.5 Removal of Restrictions. Except as otherwise provided in this
Section 7, Shares of Restricted Stock covered by each Restricted Stock grant
made under this Plan shall be released from escrow as soon as practicable after
the end of the applicable Period of Restriction. The Committee, in its sole
discretion, may accelerate the time at which any restrictions shall lapse and
remove any restrictions. After the end of the applicable Period of Restriction,
the Participant shall be entitled to have any legend or legends under Section
7.4.3 removed from his or her Share certificate, and the Shares shall be freely
transferable by the Participant.

        7.6 Voting Rights. During the Period of Restriction, Participants
holding Shares of Restricted Stock granted hereunder may exercise full voting
rights with respect to those Shares, unless the applicable Award Agreement
provides otherwise.

        7.7 Dividends and Other Distributions. During the Period of Restriction,
Participants holding Shares of Restricted Stock shall be entitled to receive all
dividends and other distributions paid with respect to such Shares unless
otherwise provided in the applicable Award Agreement. If any such dividends or
distributions are paid in Shares, the Shares shall be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted
Stock with respect to which they were paid.

        7.8 Return of Restricted Stock to Company. On the date set forth in the
applicable Award Agreement, the Restricted Stock for which restrictions have not
lapsed shall revert to the Company and thereafter shall be available for grant
under this Plan.

                                      -13-

<PAGE>   14
                                    SECTION 8

                    PERFORMANCE UNITS AND PERFORMANCE SHARES

        8.1 Grant of Performance Units/Shares. Performance Units and Performance
Shares may be granted to Participants at any time and from time to time, as
shall be determined by the Committee, in its sole discretion. The Committee
shall have complete discretion in determining the number of Performance Units
and Performance Shares granted to each Participant; provided, however, that
during any Fiscal Year, (a) no Participant shall receive Performance Units
having an initial value greater than $250,000, and (b) no Participant shall
receive more than 100,000 Performance Shares.

        8.2 Value of Performance Units/Shares. Each Performance Unit shall have
an initial value that is established by the Committee on or before the Grant
Date. Each Performance Share shall have an initial value equal to the Fair
Market Value of a Share on the Grant Date.

        8.3 Performance Objectives and Other Terms. The Committee shall set
performance objectives in its sole discretion which, depending on the extent to
which they are met, will determine the number or value of Performance Units or
Performance Shares, or both, that will be paid out to the Participants. The time
period during which the performance objectives must be met shall be called the
"Performance Period". Each Award of Performance Units or Performance Shares
shall be evidenced by an Award Agreement that shall specify the Performance
Period, and such other terms and conditions as the Committee, in its sole
discretion, shall determine.

                8.3.1 General Performance Objectives. The Committee may set
        performance objectives based upon (a) the achievement of Company-wide,
        divisional or individual goals, (b) applicable Federal or state
        securities laws, or (c) any other basis determined by the Committee in
        its discretion.

                8.3.2 Section 162(m) Performance Objectives. For purposes of
        qualifying grants of Performance Units or Performance Shares as
        "performance-based compensation" under section 162(m) of the Code, the
        Committee, in its sole discretion, may determine that the performance
        objectives applicable to Performance Units or Performance Shares, as the
        case may be, shall be based on the achievement of Performance Goals. The
        Performance Goals shall be set by the Committee on or before the latest
        date permissible to enable the Performance Units or Performance Shares,
        as the case may be, to qualify as "performance-based compensation" under
        section 162(m) of the Code. In granting Performance Units or Performance
        Shares which are intended to qualify under Code section 162(m), the
        Committee shall follow any procedures determined by it from time to time
        to be necessary or appropriate in its sole discretion to ensure
        qualification of the

                                      -14-

<PAGE>   15
        Performance Units or Performance Shares, as the case may be, under Code
        section 162(m) (e.g., in determining the Performance Goals).

        8.4 Earning of Performance Units/Shares. After the applicable
Performance Period has ended, the holder of Performance Units or Performance
Shares shall be entitled to receive a payout of the number of Performance Units
or Performance Shares, as the case may be, earned by the Participant over the
Performance Period, to be determined as a function of the extent to which the
corresponding performance objectives have been achieved. After the grant of a
Performance Unit or Performance Share, the Committee, in its sole discretion,
may reduce or waive any performance objectives for such Performance Unit or
Performance Share.

        8.5 Form and Timing of Payment of Performance Units/Shares. Payment of
earned Performance Units or Performance Shares shall be made as soon as
practicable after the end of the applicable Performance Period. The Committee,
in its sole discretion, may pay earned Performance Units or Performance Shares
in the form of cash, in Shares (which have an aggregate Fair Market Value equal
to the value of the earned Performance Units or Performance Shares, as the case
may be, at the end of the applicable Performance Period), or in any combination
thereof.

        8.6 Cancellation of Performance Units/Shares. On the earlier of the date
set forth in the Award Agreement or the Participant's Termination of Service
(other than by death, Disability or, with respect to an Employee, Retirement),
all unearned or unvested Performance Units or Performance Shares shall be
forfeited to the Company, and thereafter shall be available for grant under this
Plan. In the event of a Participant's death, Disability or, with respect to an
Employee, Retirement, prior to the end of a Performance Period, the Committee
shall reduce his or her Performance Units or Performance Shares proportionately
based on the date of such Termination of Service.

                                    SECTION 9

                                  MISCELLANEOUS

        9.1 Deferrals. The Committee, in its sole discretion, may permit a
Participant to defer receipt of the payment of cash or the delivery of Shares
that would otherwise be due to such Participant under an Award. Any such
deferral election shall be subject to such rules and procedures as shall be
determined by the Committee in its sole discretion.

        9.2 No Effect on Employment or Service. Nothing in this Plan shall
interfere with or limit in any way the right of the Company to terminate any
Participant's employment or service at any time, with or without cause. For
purposes of this Plan, transfer of employment of a Participant between the
Company and any of its Affiliates (or between Affiliates) shall not be deemed a
Termination of Service. Employment or secure relationship with the Company and
its Affiliates is on an at-will basis only, unless otherwise provided by an
applicable employment or service agreement between the Participant and the
Company or its Affiliate, as the case may be.

                                      -15-

<PAGE>   16
        9.3 Participation. No Participant shall have the right to be selected to
receive an Award under this Plan, or, having been so selected, to be selected to
receive a future Award.

        9.4 Indemnification. Each person who is or shall have been a member of
the Committee, or of the Board, shall be indemnified and held harmless by the
Company against and from (a) any loss, cost, liability or expense (including
attorneys' fees) that may be imposed upon or reasonably incurred by him or her
in connection with or resulting from any claim, action, suit or proceeding to
which he or she may be a party or in which he or she may be involved by reason
of any action taken or failure to act under this Plan or any Award Agreement,
and (b) from any and all amounts paid by him or her in settlement thereof, with
the Company's prior written approval, or paid by him or her in satisfaction of
any judgment in any such claim, action, suit or proceeding against him or her;
provided, however, that he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to handle
and defend it on his or her own behalf. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such
persons may be entitled under the Company's Certificate of Incorporation or
Bylaws, by contract, as a matter of law or otherwise, or under any power that
the Company may have to indemnify them or hold them harmless.

        9.5 Successors. All obligations of the Company under this Plan, with
respect to Awards granted hereunder, shall be binding on any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation or otherwise, of all or substantially
all of the business or assets of the Company.

        9.6 Beneficiary Designations. If permitted by the Committee, a
Participant under this Plan may name a beneficiary or beneficiaries to whom any
vested but unpaid Award shall be paid in the event of the Participant's death.
Each such designation shall revoke all prior designations by the Participant and
shall be effective only if given in a form and manner acceptable to the
Committee. In the absence of any such designation, any vested benefits remaining
unpaid at the Participant's death shall be paid to the Participant's estate and,
subject to the terms of this Plan and of the applicable Award Agreement, any
unexercised vested Award may be exercised by the administrator or executor of
the Participant's estate.

        9.7 Transferability of Awards. Except as provided otherwise in the Award
Agreement, Awards granted under this Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated.

        9.8 No Rights as Stockholder. Except to the limited extent provided in
Sections 7.6 and 7.7, no Participant (nor any beneficiary thereof) shall have
any of the rights or privileges of a stockholder of the Company with respect to
any Shares issuable pursuant to an Award (or the exercise thereof), unless and
until certificates representing such Shares shall have been issued, recorded on
the records of the Company or its transfer agents or registrars, and delivered
to the Participant (or his or her beneficiary).

                                      -16-

<PAGE>   17
                                   SECTION 10

                      AMENDMENT, TERMINATION, AND DURATION

        10.1 Amendment, Suspension, or Termination. The Board, in its sole
discretion, may amend or terminate this Plan, or any part thereof, at any time
and for any reason; provided, however, that if and to the extent required by law
or to maintain this Plan's qualification under Rule 16b-3, the Code, or the
rules of any national securities exchange (if applicable), any such amendment
shall be subject to stockholder approval. The amendment, suspension or
termination of this Plan shall not, without the consent of the Participant,
alter or impair any rights or obligations under any Award theretofore granted to
such Participant. No Award may be granted during any period of suspension or
after termination of this Plan.

        10.2 Duration of this Plan. This Plan shall become effective on the date
specified herein, and subject to Section 10.1 (regarding the Board's right to
amend or terminate this Plan), shall remain in effect thereafter; provided,
however, that without further stockholder approval, no Incentive Stock Option
may be granted under this Plan after the tenth anniversary of the effective date
of this Plan.

                                   SECTION 11

                                 TAX WITHHOLDING

        11.1 Withholding Requirements. Prior to the delivery of any Shares or
cash pursuant to an Award (or the exercise thereof), the Company shall have the
power and the right to deduct or withhold from any amounts due to the
Participant from the Company, or require a Participant to remit to the Company,
an amount sufficient to satisfy Federal, state and local taxes (including the
Participant's FICA obligation) required to be withheld with respect to such
Award (or the exercise thereof).

        11.2 Withholding Arrangements. The Committee, in its sole discretion and
pursuant to such procedures as it may specify from time to time, may permit a
Participant to satisfy such tax withholding obligation, in whole or in part, by
(a) electing to have the Company withhold otherwise deliverable Shares, or (b)
delivering to the Company Shares then owned by the Participant having a Fair
Market Value equal to the amount required to be withheld. The amount of the
withholding requirement shall be deemed to include any amount that the Committee
agrees may be withheld at the time any such election is made, not to exceed the
amount determined by using the maximum federal, state or local marginal income
tax rates applicable to the Participant with respect to the Award on the date
that the amount of tax to be withheld is to be determined. The Fair Market Value
of the Shares to be withheld or delivered shall be determined as of the date
that the taxes are required to be withheld.

                                      -17-

<PAGE>   18
                                   SECTION 12

                                CHANGE IN CONTROL

        12.1 Change in Control. In the event of a Change in Control of the
Company, all Awards granted under this Plan that then are outstanding and not
then exercisable or are subject to restrictions, shall, unless otherwise
provided for in the Award Agreements applicable thereto, become immediately
exercisable, and all restrictions shall be removed, as of the first date that
the Change in Control has been deemed to have occurred, and shall remain as such
for the remaining life of the Award as provided herein and within the provisions
of the related Award Agreements. Notwithstanding the preceding sentence, in the
event that the Committee is advised by the Company's independent auditors that
the effect of the preceding sentence would be to preclude the ability of the
Company to account for an acquisition or merger transaction as a pooling of
interests, the Committee may declare the preceding sentence to be inoperable to
such extent as the Committee, in its sole discretion, deems advisable.
Notwithstanding the preceding sentence, in the event that the Committee is
advised by the Company's independent auditors that the effect of the preceding
sentence would be to preclude the ability of the Company to account for a
transaction as a pooling of interests, the Committee may declare the preceding
sentence to be inoperable to such extent as the Committee, in its sole
discretion, deems advisable.

        12.2 Definition. For purposes of Section 12.1 above, a Change in Control
of the Company shall be deemed to have occurred if the conditions set forth in
any one or more of the following shall have been satisfied, unless such
condition shall have received prior approval of a majority vote of the
Continuing Directors, as defined below, indicating that Section 12.1 shall not
apply thereto:

        (a) any "person", as such term is used in Sections 13(d) and 14(d) of
        the 1934 Act (other than the Company, any trustee or other fiduciary
        holding securities under an employee benefit plan of the Company or any
        corporation owned, directly or indirectly, by the stockholders of the
        Company in substantially the same proportions as their ownership of
        stock of the Company), is or becomes the "beneficial owner" (as defined
        in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of
        securities of the Company representing thirty percent (30%) or more of
        the combined voting power of the Company's then outstanding securities;

        (b) during any period of two consecutive years (not including any period
        prior to the Effective Date of this Plan), individuals ("Existing
        Directors") who at the beginning of such period constitute the Board of
        Directors, and any new board member (an "Approved Director") (other than
        a board member designated by a person who has entered into an agreement
        with the Company to effect a transaction described in paragraph (a), (b)
        or (c) of this Section 12.2) whose election by the Board of Directors or
        nomination for election by the Company's shareholders was approved by a
        vote of a least two-thirds (2/3) of the board members then still in
        office who either were board members at the beginning of the

                                      -18-

<PAGE>   19
       period or whose election or nomination for election previously was so
       approved (Existing Directors together with Approved Directors
       constituting "Continuing Directors"), cease for any reason to constitute
       at least a majority of the Board of Directors; or

        (c) the stockholders of the Company approve a merger or consolidation of
        the Company with any other person, other than (i) a merger or
        consolidation which would result in the voting securities of the Company
        outstanding immediately prior thereto continuing to represent (either by
        remaining outstanding or by being converted into voting securities for
        the surviving entity) more than fifty percent (50%) of the combined
        voting power of the voting securities of the Company or such surviving
        entity outstanding immediately after such merger or consolidation, or
        (ii) a merger in which no "person" (as defined in Section 12.2(a))
        acquires more than thirty percent (30%) of the combined voting power of
        the Company's then outstanding securities; or

        (d) the stockholders of the Company approve a plan of complete
        liquidation of the Company or an agreement for the sale or disposition
        by the Company of all or substantially all of the Company's assets (or
        any transaction having a similar effect).

                                   SECTION 13

                               LEGAL CONSTRUCTION

        13.1 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the plural shall
include the singular, and the singular shall include the plural.

        13.2 Severability. In the event any provision of this Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of this Plan, and this Plan shall be construed and enforced
as if the illegal or invalid provision had not been included.

        13.3 Requirements of Law. The grant of Awards and the issuance of Shares
under this Plan shall be subject to all applicable laws, rules and regulations,
and to such approvals by any governmental agencies or national securities
exchanges as may be required from time to time.

        13.4 Securities Law Compliance. With respect to Section 16 Persons,
Awards under this Plan are intended to comply with all applicable conditions of
Rule 16b-3. To the extent any provision of this Plan, Award Agreement or action
by the Committee fails to so comply, it shall be deemed null and void, to the
extent permitted by law and deemed advisable or appropriate by the Committee in
its sole discretion.

        13.5 Governing Law. This Plan and all Award Agreements shall be
construed in accordance with and governed by the laws of the State of Delaware
(excluding its conflict of laws provisions).

                                      -19-

<PAGE>   20
        13.6 Captions. Captions are provided herein for convenience of reference
only, and shall not serve as a basis for interpretation or construction of this
Plan.

                                                   Adopted October 29, 1997

                                                   Amended April 29, 1998

                                      -20-

<PAGE>   21

                            ILLUMINET HOLDINGS, INC.
                           1997 EQUITY INCENTIVE PLAN
                   NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

        This Stock Option Award Agreement (the "Award Agreement"), made this
____ day of ____________, 19__ evidences the grant, by Illuminet Holdings, Inc.,
(the "Company"), of a stock option to _____________ (the "Grantee") on the date
hereof (the "Date of Grant"). By accepting the Award and executing this Award
Agreement, the Grantee agrees to be bound by the provisions hereof and of the
Illuminet Holdings, Inc. 1997 Equity Incentive Plan (the "Plan"). Capitalized
terms not defined herein shall have the same meaning as used in the Plan.

        1.      Shares Optioned and Option Price. The Grantee shall have an
option to purchase _________ shares of the Company's Common Stock, $ par value
(the "Shares"), at an exercise price of $_______ for each share (the "Option"),
subject to the terms and conditions of this Award Agreement and of the Plan, the
provisions of which are incorporated herein by this reference. The Option is
not, nor is it intended to be, an Incentive Stock Option as described in section
422 of the Internal Revenue Code of 1986.

        2.      Exercise Period. The Option may be exercised, from time to time,
with respect to either all or 50% of the following number of Shares subject to
this Option: (i) prior to the first anniversary of the Date of Grant, none of
such Shares; (ii) from and after the first anniversary of the Date of Grant, 25%
of such Shares; (iii) from and after the second anniversary of the Date of
Grant, 50% of such Shares (less any Shares as to which this Option shall have
been exercised prior to such second anniversary); (iv) from and after the third
anniversary of the date of Grant, 75% of such Shares (less any Shares as to
which this Option shall have been exercised prior to such third anniversary);
and (v) from and after the fourth anniversary of the Date of Grant, 100% of such
Shares (less any Shares as to which this Option shall have been exercised prior
to such fourth anniversary). Provided, however, that the Grantee's right to
exercise the Option shall terminate on the earliest to occur of the following
dates:

        (a)     the tenth anniversary of the Date of Grant;

        (b)     the first anniversary of the date of the Grantee's Termination
                of Service on account of Disability or death;

        (c)     the date sixty days following the date of the Grantee's
                Termination of Service for any reason other than Disability or
                death (the "Termination Date"); provided, however, that until
                there is a regular public trading market for the Shares, as
                determined by the Committee, in its sole discretion, the
                Termination Date shall be the date one year following the date
                of the Grantee's Termination of Service for any reason other
                than Disability or death.

        3.      Restriction on Exercise After Termination. Notwithstanding the
foregoing provisions of paragraph 2 or any other provision of this Award
Agreement, the exercise of the Option after termination of employment shall be
subject to satisfaction of the conditions precedent that the Grantee neither (a)
takes other employment or renders services to others

<PAGE>   22

without the written consent of the Company nor (b) conducts himself or herself
in a manner adversely affecting the Company.

        4.      Acceleration. Notwithstanding the foregoing provisions of
paragraph 2, if an event described in Section 12 of the Plan (a "Change in
Control") shall occur before the fourth anniversary of the Date of Grant, this
Option shall become exercisable as to all Shares subject hereto on the date of
such Change in Control.

        5.      Exercise. To the extent that the Option is exercisable
hereunder, it may be exercised in full or in part by the Grantee or, in the
event of the Grantee's death, by the person or persons to whom the Option was
transferred by will or the laws of descent and distribution, by delivering or
mailing written notice of the exercise and full payment of the purchase price to
the Secretary of the Company. The written notice shall be signed by each person
entitled to exercise the Option and shall specify the address and social
security number of each person. If any person other than the Grantee purports to
be entitled to exercise all or any portion of the Option, the written notice
shall be accompanied by proof, satisfactory to the Secretary of the Company, of
that entitlement. The written notice shall be accompanied by full payment in
cash (including personal check), in Shares represented by certificates
transferring ownership to the Company and with an aggregate Fair Market Value
equal to the purchase price on the date the written notice is received by the
Secretary, or in any combination of cash and Shares, provided that payment in
full or part by the transfer of Shares shall be subject to approval by the
Committee. Payment may also be made in such other manner as may be permitted by
the Plan at the time of exercise, subject to approval by the Committee. The
written notice will be effective and the Option shall be deemed exercised to the
extent specified in the notice on the date that the written notice (together
with required accompaniments) is received by the Secretary of the Company at its
then executive offices during regular business hours.

        6.      Transfer of Shares Upon Exercise. As soon as practicable after
receipt of an effective written notice of exercise and full payment of the
purchase price as provided in paragraph 5, the Secretary of the Company shall
cause ownership of the appropriate number of Shares to be transferred to the
person or persons exercising the Option by having a certificate or certificates
for those Shares registered in the name of such person or persons and shall have
each certificate delivered to the appropriate person. Notwithstanding the
foregoing, if the Company or a Subsidiary requires reimbursement of any tax
required by law to be withheld with respect to Shares received upon exercise of
an Option, the Secretary shall not transfer ownership of those Shares until the
required payment is made.

        7.      Transferability of Options. The rights under this Award
Agreement may not be transferred except pursuant to a "domestic relations
order," as defined in the Code or Title I of ERISA, or by will or the laws of
descent and distribution. The rights under this Award Agreement may be exercised
during the lifetime of the Grantee only by the Grantee or permitted transferees.

                                     - 2 -
<PAGE>   23

                7.01    Transferees of Stockholders. The Company shall not be
required to transfer any Shares on its books which shall have been sold,
assigned or otherwise transferred in violation of this Award Agreement, or to
treat as owner of such shares of stock, or to accord the right to vote as such
owner or to pay dividends to, any person or organization to which any such
Shares shall have been sold, assigned or otherwise transferred, from and after
any sale, assignment or transfer of any Share made in violation of this Award
Agreement. Any transfer in violation of the terms of this Award Agreement shall
be deemed null and void.

        8.      Authorized Leave. For purposes hereof, an authorized leave of
absence (authorized by the Company or a Subsidiary to the Grantee in writing)
shall not be deemed a Termination of Service hereunder.

        9.      Taxes. The Grantee will be solely responsible for any Federal,
state or local income taxes imposed in connection with the exercise of the
Option or the delivery of Shares incident thereto, and the Grantee authorizes
the Company or any Subsidiary to make any withholding for taxes which the
Company deems necessary or proper in connection therewith, from any amounts due
to the Grantee by the Company. Subject to approval by the Committee, the Grantee
may satisfy such withholding obligations, in whole or in part, by (a) electing
to have the Company withhold otherwise deliverable Shares or (b) delivering to
the Company Shares then owned by Grantee having a Fair Market Value equal to the
amount required to be withheld.

        10.     Risk of Investment. It is expressly understood and agreed that
the Grantee assumes all risks incident to any change hereafter in the applicable
laws or regulations or incident to any change in the market value of the Shares
after the exercise of this Option in whole or in part. The Grantee has received
and read a copy of the Plan and made a detailed inquiry concerning the Company
and its business, and the Grantee is aware of the limited market available for
resale of the Shares. The Grantee agrees that the Shares acquired on exercise of
this Option shall be acquired for his or her own account for investment only and
not with a view to, or for resale in connection with, any distribution or public
offering thereof within the meaning of the Securities Act of 1933 (the
"Securities Act") or other applicable securities laws. If the Board of Directors
or Committee so determines, any stock certificates issued upon exercise of this
Option shall bear a legend to the effect that the Shares have been so acquired.
The Company may, but in no event shall be required to, bear any expenses of
complying with the Securities Act, other applicable securities laws or the rules
and regulations of any national securities exchange or other regulatory
authority in connection with the registration, qualification, or transfer, as
the case may be, of this Option or any Shares acquired upon the exercise
thereof. The foregoing restrictions on the transfer of the Shares shall be
inoperative if (a) the Company

                                     - 3 -
<PAGE>   24

previously shall have been furnished with an opinion of counsel, satisfactory to
it, to the effect that such transfer will not involve any violation of the
Securities Act and other applicable securities laws or (b) the Shares shall have
been duly registered in compliance with the Securities Act and other applicable
state or federal securities laws. If this Option, or the Shares subject to this
Option, are so registered under the Securities Act, the Grantee agrees that he
or she will not make a public offering of the said Shares except on a national
securities exchange on which the stock of the Company is then listed.

        11.     Transferability of Shares; Company Repurchase Option.

                11.01   No Transfer.

                (a)     Except as otherwise provided herein, the Grantee may not
                        sell, pledge, give, assign, distribute, hypothecate,
                        mortgage or transfer (all hereinafter referred to as
                        "transfer") any Shares acquired pursuant to this Award
                        Agreement.

                (b)     In no event shall the Grantee transfer, directly or
                        indirectly, any of his Shares acquired pursuant to this
                        Award Agreement to any customer, supplier or competitor
                        of the Company or any of its Affiliates.

                11.02   Repurchase Option. Upon Grantee's Termination of Service
and for thirty days thereafter, the Company shall have the exclusive option to
purchase all, but not less than all, of the Shares acquired by Grantee pursuant
to this Award Agreement at a purchase price per Share equal to the Fair Market
Value on the date of such Termination of Service (the "Purchase Option").

                11.03   Payment. If the Company elects to exercise the Purchase
Option, the Company shall give notice of its intention to purchase the Shares
and deliver payment for such Shares within 15 days after the date of such
notice. At the Company's option, the Company may designate another person or
entity to purchase any of the Shares on its behalf, on the terms provided
herein.

                11.04   No Disclosure Obligation. The Grantee acknowledges and
agrees that neither the Company nor any of its shareholders, board members and
officers, has any duty or obligation to disclose to the Grantee any material
information regarding the business of the Company or affecting the value of the
Shares before or at the time of a Grantee's Termination of Service, including,
without limitation, any information concerning plans for the Company to make a
public offering of its securities or to be acquired by or merged with or into
another firm or entity.

        12.     No Conflict. In the event of a conflict between this Award
Agreement and the Plan, the provisions of the Plan shall govern.

        13.     Governing Law. This Award shall be governed under the laws of
the State of Delaware.

                                        ILLUMINET HOLDINGS, INC.

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

                                     - 4 -
<PAGE>   25

ACKNOWLEDGMENT

        The undersigned Grantee acknowledges that he or she understands and
agrees to be bound by each of the terms and conditions of this Award Agreement.

-----------------------------------         ------------------------------------
            Printed Name                                  Signature

                                     - 5 -

<PAGE>   26
                                AMENDMENT NO. 1
                                       TO
                            ILLUMINET HOLDINGS, INC.
                           1997 EQUITY INCENTIVE PLAN

        Pursuant to Section 10.1 of the Illuminet Holdings, Inc. (the "Company")
1997 Equity Incentive Plan, adopted October 29, 1997 and amended April 29, 1998
(the "Plan"), the Board of Directors of the Company hereby amends the Plan as
follows:

        Section 4.1 of the Plan is hereby amended and restated in its entirety
to read as follows:

        4.1     Number of Shares. Subject to adjustment as provided in Section
                4.3, the total number of Shares available for grant under this
                Plan shall equal thirteen percent (13%) of the total shares of
                the Company that may be outstanding from time to time, so that
                as additional Shares are issued by the Company, or as Shares are
                redeemed and cancelled by the Company, the number of Shares
                available for grant under this Plan shall increase or decrease,
                respectively, by thirteen percent (13%) of the number of Shares
                so issued or redeemed and cancelled. Shares granted under this
                Plan may be either authorized but unissued Shares or treasury
                Shares, or any combination thereof.

        IN WITNESS WHEREOF, the Plan is so amended as of this 9th day of
September, 1999.

                             By:_____________________________________________
                             Name:  Roger H. Moore
                             Title: President and Chief Executive Officer<PAGE>   1
                                                                    EXHIBIT 10.2

                                 LOAN AGREEMENT

        LOAN AGREEMENT ("Agreement") made as of August 14 , 1996, by and between
ILLUMINET, INC., a Delaware corporation ("Borrower"), and RURAL TELEPHONE
FINANCE COOPERATIVE, a South Dakota cooperative association ("Lender").

                                    RECITALS

        WHEREAS, Borrower is the surviving corporation of a merger between
Independent Telecommunications Network, Inc. ("ITN") and US Intelco Holdings,
Inc. (the resulting entity of a merger between US Intelco Holdings, Inc.
("USIH") and US Intelco Networks, Inc. ("USIN");

        WHEREAS, Lender previously had made several loans to ITN, USIH and USIN
(collectively the "Predecessor Entities"), as are more fully described in
Schedule 1 hereto;

        WHEREAS, Borrower has agreed to assume, pay, discharge, satisfy and
observe all of the liabilities, duties and obligations owed by the Predecessor
Entities to Lender;

        WHEREAS, Borrower has requested the extension of the aforesaid loans as
well as an additional loan in the amount of $3,894,737.00;

        WHEREAS, Lender is willing to make the extension of loans, as well as
the new loan upon the terms and conditions set forth in this Agreement;

        WHEREAS, this Agreement is made in substitution of and in lieu of the
original loan agreements ("Original Agreements") made between the Predecessor
Entities and Lender as are more fully described in Schedule 1 hereto; and

        WHEREAS, this Agreement shall not be, nor deemed to be, a novation of
the indebtedness evidenced by the Original Agreements.

        NOW, THEREFORE, for and in consideration of the mutual covenants
contained herein, Borrower and Lender do hereby agree as follows:

        1.      CONSTRUCTION AND DEFINITION OF TERMS

        All accounting terms not specifically defined herein shall have the
meanings assigned to them as determined by generally accepted accounting
principles. In addition to the terms defined elsewhere in this Agreement, unless
the context otherwise requires, when used herein, the following terms shall have
the following meanings:

        "ADJUSTMENT DATE" shall mean a date or dates, determined by the Lender,
after the date of the initial Advance to the Maturity Date.

        "ADVANCE" shall mean an advance as defined in Section 2.02.

        "BUSINESS DAY" shall mean any day that Lender is open for business.

<PAGE>   2

        "CASH MARGINS" for any year shall mean net income plus depreciation,
amortization and any other non-cash charges, less any non-cash credits and
principal on long-term debt payable in such year, as calculated on a
consolidated basis for Borrower and all its Subsidiaries.

        "CERTIFIED" shall mean that the information, statement, schedule, report
or other document required to be "Certified" shall contain a representation of a
duly authorized officer of Borrower that such information, statement, schedule,
report or other document is true and correct and complete.

        "CLOSING" shall mean the first date on which funds are advanced to
Borrower pursuant to each Note issued hereunder.

        "COLLATERAL" shall mean the Mortgaged Property, as such term is defined
in the Mortgage, and all proceeds, cash and non-cash, including insurance
proceeds, of the foregoing, whether in the possession of Borrower or any other
person.

        "COMMITMENT" shall have the meaning set forth in Schedule 1 hereto.

        "DEBT SERVICE COVERAGE RATIO" or "DSC" for any year shall mean (a) total
net income or margins plus depreciation, amortization, and interest on long-term
debt for such year, divided by (b) principal and interest on long-term debt
payable in such year, as calculated on a consolidated basis for the Borrower and
all its Subsidiaries.

        "EVENT OF DEFAULT" shall mean any of the events described in Section 8
hereof.

        "FIXED RATE" shall mean the interest rate per annum provided for in
Section 2.03(b)(ii) of this Agreement.

        "INDEBTEDNESS" shall include all items which would properly be included
in the liability section of a balance sheet or in a footnote to a financial
statement, in accordance with generally accepted accounting principles,
including, without limitation, contingent liabilities.

        "LEASES" shall mean any lease of property by which Borrower shall be
obligated for rental or other payments which in the aggregate are in excess of
$100,000 other than such equipment leases which are in form and substance
substantially in conformity with lease agreements in general use in Borrower's
industry by companies of size and character similar to Borrower.

        "LIEN" shall mean any statutory or common law consensual or
non-consensual mortgage, pledge, security interest, encumbrance, lien, right of
set-off, claim or charge of any kind, including, without limitation, any
conditional sale or other title retention transaction, any lease transaction in
the nature thereof and any secured transaction under the Uniform Commercial Code
of any jurisdiction.

        "LOAN" shall mean the loan or loans by the Lender to Borrower, pursuant
to this Agreement and the Note, in an aggregate principal amount not to exceed
the Commitment.

        "MATURITY DATE" shall mean the maturity date defined in the Note.

                                       2
<PAGE>   3

        "MINIMUM NET WORTH TEST" shall be calculated on a consolidated basis for
the Borrower and all its Subsidiaries, and shall mean an equity to total asset
ratio of at least forty (40) percent. Equity shall be determined by subtracting
total liabilities from total assets.

        "MORTGAGE" shall mean the mortgage and security agreement described in
Schedule 1.

        "NET WORTH" shall be calculated on a consolidated basis for the Borrower
and all its Subsidiaries taken as a whole and arrived at by subtracting total
liabilities from total assets.

        "NOTE" shall mean the Note or Notes executed and delivered by Borrower
at or prior to Closing pursuant to Subsection 5.02(a) hereof, and all renewals,
replacements, substitutions and extensions thereof.

        "OBLIGATIONS" shall include the full and punctual performance of all
present and future duties, covenants and responsibilities due to the Lender by
Borrower under this Agreement, the Note, and the Other Agreements, all present
and future obligations of Borrower to the Lender for the payment of money under
this Agreement, the Note, and the Other Agreements, extending to all principal
amounts, interest, late charges and all other charges and sums, as well as all
costs and expenses payable by Borrower under this Agreement, the Note, and the
Other Agreements, and any and all other present and future monetary liabilities
of Borrower to the Lender, whether direct or indirect, contingent or
noncontingent, matured or unmatured, accrued or not accrued, related or
unrelated to this Agreement, whether or not of the same character or class as
Borrower's obligations under this Agreement and the Note, whether or not secured
under any other document, instrument or statutory or common law provision, as
well as all renewals, refinancings, consolidations, recastings and extensions of
any of the foregoing.

        "ORIGINAL AGREEMENTS" shall mean the original loan agreements referred
to in Schedule 1 hereto.

        "OTHER AGREEMENTS" shall mean any and all promissory notes, security
agreements, assignments, subordination agreements, pledge or hypothecation
agreements, mortgages, deeds of trust, leases, contracts, guaranties,
instruments and documents now and hereafter existing between the Lender and
Borrower, executed and/or delivered pursuant to this Agreement or guaranteeing,
securing or in any other manner relating to any of the Obligations, including
the instruments and documents referred to in Subsection 5.2 hereof.

        "PAYMENT DATE" shall mean the last day of each of the months referred to
in Schedule 1 hereto.

        "PAYMENT NOTICE" shall mean the notice furnished to the Borrower at
least quarterly indicating the precise amount of principal and/or interest due
on the next ensuing Payment Date, such notice to be sent to the Borrower at
least ten (10) days before such Payment Date.

        "PERSON" shall include natural persons, corporations, associations,
partnerships, joint ventures, trusts, governments and agencies and departments
thereof, and every other entity of every kind.

                                       3
<PAGE>   4

        "PREDECESSOR ENTITIES" shall have the meaning as prescribed in the
second WHEREAS clause of the Recitals hereto.

        "SUBORDINATED CAPITAL CERTIFICATE" OR "SCC" shall mean a subordinated
certificate representing an investment in the Lender purchased by the Borrower
in connection with the Loan.

        "SUBSIDIARY" at any time means any entity which is at the time
beneficially owned or controlled directly or indirectly by the Borrower, by one
or more such entities or by the Borrower and one or more such entities.

        "TERMINATION DATE" shall mean that date which is two (2) year(s) from
the date hereof.

        "VARIABLE RATE" shall mean the variable rate established by the Lender
from time to time for loans similarly classified pursuant to lender's policies
and procedures then in effect.

        2.      LOAN

        2.01    LOAN. The Lender agrees to make the Loan to Borrower subject to
all of the terms and conditions of this Agreement and the Other Agreements.

        2.02    ADVANCES. The Lender agrees to make, and the Borrower agrees to
request, on the terms and conditions of this Agreement, Advances from time to
time at the office of the Lender in Herndon, Virginia, or at such other place as
the Lender may designate, not to exceed the Commitment. The Borrower shall give
the Lender at least one Business Day prior written notice of the date on which
each Advance is to be made. On the Termination Date the Lender may stop
advancing funds and reduce the Commitment to the aggregate amount theretofore
advanced. The obligation of the Borrower to repay the Advances shall be
evidenced by the Note.

        2.03    PAYMENT, AMORTIZATION AND INTEREST RATE

        (a)     Payment. The Borrower shall pay on each Payment Date quarterly
installments, in an amount as determined by the Lender, of principal and/or
interest as shown in the Payment Notice, except that, if not sooner paid, any
balance of the principal amount and interest accrued thereon and all other
amounts due hereunder shall be due and payable on the Maturity Date. Payment of
principal hereunder shall commence after the first full quarter following the
initial Advance of funds as set forth in Schedule 1 and on each subsequent
Payment Date until the Maturity Date or such earlier date as all amounts due
hereunder and on account of the Note shall have been paid in full. Payment of
interest hereunder is due on each Payment Date in which a principal balance is
outstanding. Principal will be amortized in accordance with the method stated in
Schedule 1 hereto.

The Lender will use, for purposes of calculating the amortization of principal,
one of the following interest rates, as applicable:

        (i)     If the Borrower elects the Fixed Rate, the Fixed Rate in effect
                on the Adjustment Date; or

                                       4
<PAGE>   5

        (ii)    If the Borrower elects the Variable Rate, the Variable Rate in
                effect when amortization begins; or

        (iii)   If the Borrower elects to convert from one interest rate program
                to another, the interest rate then in effect for the elected
                program.

At the Lender's option, all payments shall be applied first to late payment
charges due, as hereinafter provided, then to interest accrued to the date of
such payment, and then to the reduction of principal balance outstanding.

No provision of this Agreement or the Note shall require the payment, or permit
the collection, of interest in excess of the highest rate permitted by
applicable law.

        (b)     Interest Rate. Each Advance shall be initially made at the
Variable Rate. Interest shall be computed from the actual number of days elapsed
on the basis of a year of 365 days until the first Payment Date following the
initial Advance. Thereafter, interest shall continue to be computed for the
actual number of days elapsed on the basis of a year of 365 days unless a Fixed
Rate is applicable to the Loan, in which case interest shall be computed on the
basis of a 30-day month and 360-day year.

        (i)     Variable Rate. If Advances are made at the Variable Rate, it
                shall apply until the Maturity Date, except as provided herein
                below.

        (ii)    Fixed Rate. If the Borrower elects a Fixed Rate, such Fixed Rate
                as is available and in effect for loans similarly classified
                pursuant to Lender's policies and procedures then in effect at
                the time of the election shall apply to such Advance until the
                Adjustment Date. Upon notice given by the Borrower five Business
                Days prior to such Adjustment Date, Borrower may elect to reset
                the interest rate to such Fixed Rate as is available and in
                effect at the time of such Adjustment Date. Such reset Fixed
                Rate shall apply to that portion of the outstanding principal
                balance of the Loan elected to have a Fixed Rate from the
                Adjustment Date until a new Adjustment Date or the Maturity
                Date. If Borrower does not elect to reset the Fixed Rate, the
                Variable Rate shall apply to the outstanding principal balance
                of the Loan that had been bearing interest at the Fixed Rate
                prior to such Adjustment Date, from such Adjustment Date to the
                Maturity Date.

        (iii)   Conversion to Different Interest Program.

        (A)     Variable Rate to Fixed Rate. Subject to the conditions set forth
                herein, the Borrower may convert from the Variable Rate to the
                Fixed Rate for any portion or all of the principal amount of the
                Commitment then outstanding at any time provided the Lender
                offers a Fixed Rate at such time for similarly classified loans.

        (B)     Fixed Rate to Variable Rate. The Borrower may convert from a
                Fixed Rate to the Variable Rate only on an Adjustment Date.

        2.04    PREPAYMENT. In the event the Borrower prepays all or part of the
Loan, the Borrower shall pay such prepayment fee as the Lender may prescribe
from time to time in its

                                       5
<PAGE>   6

policies in connection with any prepayment of the Loan. All prepayments shall be
accompanied by payment of accrued and unpaid interest on the amount of and to
the date of the prepayment. All prepayments shall be applied first to fees,
second to the payment of accrued and unpaid interest, and then to the unpaid
balance of the principal amount of the Loan. If the Loan bears interest at the
Variable Rate the Borrower may prepay the Loan or any portion thereof, as the
case may be, at any time subject to the terms hereof and said prepayment fee
shall be in an amount established by Lender on a cost basis and shall not exceed
fifty (50) basis points times the amount being prepaid. If the Loan bears
interest at the Fixed Rate, the Borrower may prepay the Loan only on an
Adjustment Date or such other date as may be agreed upon by the parties hereto.

        2.05    SUBORDINATED CAPITAL CERTIFICATE. The Borrower shall purchase
SCCs corresponding to each Note, as is more fully prescribed in Schedule 1
hereto. Unless otherwise requested in writing by the Borrower prior to the
initial Advance and approved by the Lender, the Borrower agrees to purchase SCCs
either (1) with each Advance in the amount of five percent (5%) or ten percent
(10%) of each such Advance (as specified in Schedule 1), and each such SCC shall
be paid for with proceeds of such Advance, or (2) by making payments with
Borrower's own funds in twenty equal quarterly installments, commencing with the
first full quarter following the initial Advance. If the Borrower elects to pay
for SCCs other than from Loan funds, the amount of the Commitment will be
correspondingly reduced by said amount when the SCCs are fully paid. If the
Borrower obtains Advances hereunder other than for the purpose of purchasing
SCCs and fails to pay for the SCCs, then the Lender may make Advances for the
account of the Borrower to purchase the SCCs. The Lender agrees to deliver the
SCCs on or about the date on which the SCCs have been paid for in full. The SCCs
shall bear no interest and shall mature in accordance with the terms thereof.

        3.      SECURITY

        As security for the payment and performance of all of the Obligations,
Borrower has entered into the Mortgage pledging and granting to the Lender, and
Borrower hereby grants to Lender, a prior and continuing security interest in
the Collateral that may be secured by the Mortgage that shall continually exist
until all Obligations have been paid in full. If reasonably required by the
Lender at any time, Borrower shall make notations, satisfactory to the Lender,
on its books and records disclosing the existence of the Lender's security
interest in the Collateral. Borrower agrees that, with respect to the
Collateral, which is subject to Article 9 of the Uniform Commercial Code, the
Lender shall have, but not be limited to, all the rights and remedies of a
secured party under the Uniform Commercial Code. The Lender shall have no
liability or duty, either before or after the occurrence of an Event of Default
hereunder, on account of loss of or damage to, or to collect or enforce any of
its rights against, the Collateral, or to preserve any rights against account
debtors or other parties with prior interests in the Collateral.

        4.      REPRESENTATIONS AND WARRANTIES

        To induce the Lender to enter into this Agreement, Borrower represents
and warrants to the Lender as of the date of this Agreement that:

                                       6
<PAGE>   7

        4.01    GOOD STANDING. Borrower is a corporation duly organized validly
existing and in good standing under the laws of the state of its incorporation,
has the power to own its property and to carry on its business, is duly
qualified to do business, and is in good standing in each jurisdiction in which
the transaction of its business makes such qualification necessary.

        4.02    AUTHORITY. Borrower has corporate power and authority to enter
into this Agreement and the Mortgage, to make the borrowing hereunder, to
execute and deliver all documents and instruments required hereunder and to
incur and perform the obligations provided for herein, in the Mortgage, and in
the Note, all of which have been duly authorized by all necessary and proper
corporate and other action, and no consent or approval of any person, including,
without limitation, stockholders and members of Borrower and any public
authority or regulatory body, which has not been obtained is required as a
condition to the validity or enforceability hereof or thereof.

        4.03    BINDING AGREEMENT. This Agreement has been duly and properly
executed by Borrower, constitutes the valid and legally binding obligation of
Borrower and is fully enforceable against Borrower in accordance with its terms,
subject only to laws affecting the rights of creditors generally, the exercise
of judicial discretion in accordance with general principles of equity or
because waivers of statutory or common law rights or remedies may be limited.

        4.04    NO CONFLICTING AGREEMENTS. The execution, delivery of and
performance by Borrower of this Agreement, the Mortgage and the Note, and the
transactions contemplated hereby or thereby, will not: (a) violate any provision
of law, any order, rule or regulation of any court or other agency of
government, any award of any arbitrator, the charter or by-laws of Borrower, or
any indenture, contract, agreement, mortgage, deed of trust or other instrument
to which Borrower is a party or by which it or any of its property is bound; or
(b) be in conflict with, result in a breach of or constitute (with due notice
and/or lapse of time) a default under, any such award, indenture, contract,
agreement, mortgage, deed of trust or other instrument, or result in the
creation or imposition of any Lien (other than contemplated hereby) upon any of
the property or assets of Borrower.

        4.05    LITIGATION. There are no judgments, claims, actions, suits or
proceedings pending or, to the knowledge of Borrower, threatened against or
affecting Borrower or its properties, at law or in equity or before or by any
federal, state, municipal or other governmental department, commission, board,
bureau, agency or instrumentality, which may reasonably be expected to result in
any material adverse change in the business, operations, prospects, properties
or assets or in the condition, financial or otherwise, of Borrower, and Borrower
is not, to its knowledge, in default with respect to any judgment, order, writ,
injunction, decree, rule or regulation of any court or federal, state, municipal
or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, which would reasonably be expected to have
a material adverse effect on Borrower.

        4.06    FINANCIAL CONDITION. The financial statements of Borrower as at
the date set forth in Schedule 1 hereto, heretofore delivered to the Lender, are
complete and correct, fairly present the financial condition of Borrower and
have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis. There are no liabilities of

                                       7
<PAGE>   8

Borrower, direct or indirect, fixed or contingent, as of the date of such
statements which are not reflected therein. There has been no material adverse
change in the financial condition or operations of the Borrower from that set
forth in said financial statements except changes previously disclosed in
writing to the Lender prior to the date hereof.

        4.07    TAXES. Borrower has paid or caused to be paid all federal, state
and local taxes to the extent that such taxes have become due, unless the
Borrower is contesting in good faith any such tax. Borrower has filed or caused
to be filed all federal, state and local tax returns which are required to be
filed by Borrower.

        4.08    TITLE TO PROPERTIES. Borrower has good and marketable title to
all of its real properties and owns all of its other properties and assets free
and clear of any liens.

        4.09    LICENSES AND PERMITS. Borrower has duly obtained and now holds
all licenses, permits, certifications, approvals and the like necessary to own
and operate its property and business that are required by federal, state and
local laws of the jurisdictions in which Borrower conducts its business and each
remains valid and in full force and effect.

        4.10    SUBSIDIARIES. Borrower has no Subsidiaries other than
Subsidiaries heretofore disclosed to the Lender, or hereafter formed or acquired
with the prior written consent of the Lender.

        4.11    CERTAIN INDEBTEDNESS. There is no Indebtedness of Borrower owing
to any employee, officer, stockholder or director of the board of Borrower other
than accrued salaries, commissions and the like and any Indebtedness
subordinated to the Obligations pursuant hereto.

        4.12    LOCATION OF OFFICE. The chief place of business of the Borrower
and the office where its records concerning accounts and contract rights are
kept is identified in Schedule 1 hereto.

        4.13    REQUIRED APPROVALS. No license, consent, permit or approval of
any governmental agency or authority is required to enable the Borrower to enter
into this Agreement or to perform any of its obligations provided for herein
except as disclosed on Schedule 1 hereto and except with respect to regulatory
approvals which may be required in connection with the Lender's enforcement of
certain remedies hereunder.

        4.14    ERISA. Each pension plan of Borrower and its Subsidiaries
providing benefits for employees of Borrower or such Subsidiary covered by Title
IV of the Employee Retirement Income Security Act of 1974, as amended, and the
regulations thereto ("ERISA"), is in compliance with ERISA in all material
respects, and no material liability to the Pension Benefit Guaranty Corporation
("PBGC") or to a multiemployer plan has been, or is expected by Borrower or its
Subsidiaries to be, incurred by Borrower or such Subsidiary.

        5.      CONDITIONS OF LENDING

        The Lender shall have no obligation to make the initial Advance to
Borrower hereunder unless, as of the date of Closing, each of the following
conditions precedent shall be satisfied as provided below:

                                       8
<PAGE>   9

        5.01    LEGAL MATTERS. All legal matters incident to the consummation of
the transactions hereby contemplated shall be satisfactory to counsel for the
Lender and to such local counsel as counsel for the Lender may retain.

        5.02    DOCUMENTS. There shall have been delivered to the Lender, fully
completed and duly executed (when applicable), the following, satisfactory to
the Lender and its counsel:

                (a)     This Agreement and the Note.

                (b)     Certified copies, satisfactory to the Lender, of all
                        such corporate documents and proceedings of the Borrower
                        authorizing the transactions herein contemplated.

                (c)     A written opinion from Borrower's counsel addressing
                        such legal matters as the Lender or its counsel shall
                        reasonably require.

                (d)     The Borrower shall have (i) executed the Mortgage; (ii)
                        if any real property is owned by Borrower, recorded a
                        valid and binding Mortgage granting Lender a first lien
                        in all real property owned by Borrower; (iii) filed
                        financing statements in all jurisdictions necessary to
                        provide Lender a first priority, perfected security
                        interest in all Collateral which may be perfected by the
                        filing of financing statements; and (iv) delivered such
                        other documents as are necessary to create or continue a
                        perfected security interest in favor of the Lender in
                        the Collateral.

        5.03    GOVERNMENT APPROVALS. The Borrower shall have furnished to the
Lender true and correct copies of all certificates, authorizations and consents,
including without limitation the consents referred to in Section 4.13 hereof,
necessary for the execution, delivery or performance by the Borrower of this
Agreement, the Note and the Mortgage.

        5.04    REPRESENTATIONS, WARRANTIES AND MATERIAL CHANGE. At Closing and
at the date of every subsequent Advance hereunder, all covenants,
representations and warranties set forth in this Agreement shall be true and
correct in all material respects on and as of such time with the same effect as
though such covenants, representations and warranties had been made on and as of
such date; no Event of Default specified in Section 8 and no event which, with
the lapse of time or the notice and lapse of time specified in Section 8 would
become such an Event of Default, shall have occurred and be continuing or will
have occurred after giving effect to the Advance on the books of the Borrower;
there shall have occurred no material adverse change in the business or
condition, financial or otherwise, of the Borrower; and nothing shall have
occurred which in the reasonable opinion of the Lender materially and adversely
affects the Borrower's ability to meet its obligations hereunder.

        5.05    MORTGAGE FILING. Within ten (10) days of acquiring any real
property, the Borrower shall cause the Mortgage to be duly recorded as a first
mortgage on all real property and the Mortgage or other appropriate
documentation shall have been duly filed, recorded or indexed as a security
interest in personal property wherever the Lender shall have reasonably
requested, all in accordance with applicable law, and the Borrower shall have
caused satisfactory evidence thereof to be furnished to the Lender.

                                       9
<PAGE>   10

        5.06    SPECIAL CONDITIONS. At Closing and at the time of every
subsequent Advance hereunder, the Lender and its counsel shall be fully
satisfied that the Borrower has complied and will continue to comply with any
special conditions identified in Schedule 1 hereto.

        5.07    REQUISITIONS. The Borrower will request Advances in form and
substance satisfactory to the Lender. Pursuant to the terms and conditions
hereof, the Lender will wire the proceeds of the requested Advance to an account
as directed by the Borrower.

        6.      AFFIRMATIVE COVENANTS

        Borrower covenants and agrees with the Lender that, until all of the
Obligations have been paid in full, Borrower will:

        6.01    MEMBERSHIP. Remain or an affiliate thereof will remain, a member
in good standing of the Lender.

        6.02    FINANCIAL STATEMENTS AND OTHER INFORMATION. Furnish to the
Lender: (a) financial statements as required by the Mortgage; (b) such other
information, reports or statements concerning the operations, business affairs
and/or financial condition of Borrower as the Lender may reasonably request from
time to time; and (c) promptly upon their becoming available information, in
form and substance satisfactory to Lender, notification of any and all changes
or modification of licenses, permits, certifications, approvals and the like
necessary for Borrower to own or operate its business or a substantial part of
its business.

        6.03    FINANCIAL RATIOS. Subject to applicable laws and rules and
orders of regulatory bodies, and to events which in the reasonable judgment of
the Lender are beyond the control of the Borrower, so operate and manage its
business as to achieve DSC of not less than 1.25, said ratio being determined by
averaging each of the two highest annual ratios during the three most recent
fiscal years.

        6.04    ANNUAL CERTIFICATE. Within one hundred twenty (120) days after
the close of each calendar year, commencing with the year in which the initial
Advance hereunder shall have been made, deliver to the Lender a written
statement signed by the general manager or similar senior presiding officer
stating that to the best of said person's knowledge, the Borrower has fulfilled
all of its Obligations under this Agreement, the Note, and the Mortgage
throughout such year or, if there has been a default in the fulfillment of any
such Obligations, specifying each such default known to said person and the
nature and status thereof.

        6.05    USE OF PROCEEDS. Use Advances made hereunder and under the Note
only for the purpose identified in Schedule 1 hereto and for the payment of the
costs, expenses and fees incident to this Agreement and for no other purpose
whatsoever without the prior written consent of the Lender.

        6.06    SPECIAL AFFIRMATIVE COVENANTS. During the term hereof, Lender
and its counsel shall be fully satisfied that the Borrower has complied and will
continue to comply with any special affirmative covenants identified in Schedule
1 hereto.

                                       10
<PAGE>   11

        7.      NEGATIVE COVENANTS.

        7.01    NOTICE. Borrower covenants and agrees with the Lender that
Borrower will not, directly or indirectly, without giving written notice to the
Lender thirty (30) days prior to the effective date of any change:

                (a)     Change Location of Chief Place of Business. Change
                        location of the Borrower's chief place of business.

                (b)     Change of Name. Change the name of Borrower.

        7.02    CONSENT. Borrower covenants and agrees with the Lender that
Borrower will not, directly or indirectly, without the prior written consent of
the Lender:

                (a)     Control. Alter or permit alteration of control of the
                        Borrower. Control shall be as defined by regulations for
                        telephone companies issued by the Federal Communications
                        Commission ("FCC").

                (b)     Subsidiaries. Form or acquire any Subsidiaries.

                (c)     Additional Indebtedness. Borrow money on a secured basis
                        from any other lender or incur any additional secured
                        indebtedness; borrow money or incur any unsecured
                        indebtedness in excess of five percent of total assets;
                        or enter into or allow any of its Subsidiaries to enter
                        into any Leases, unless at that time Borrower meets the
                        Minimum Net Worth Test. If Borrower meets the Minimum
                        net Worth Test, then Borrower may incur additional
                        indebtedness or enter into Leases (or allow any of its
                        Subsidiaries to enter into Leases) without prior written
                        approval of Lender provided the Borrower meets the
                        Minimum Net Worth Test after incurring such additional
                        indebtedness or entering into such Leases; provided,
                        further, however, Borrower must give at least thirty
                        (30) days written notice to Lender prior to incurring
                        any additional indebtedness or entering into such
                        Leases.

        7.03    DIVIDENDS AND OTHER CASH DISTRIBUTIONS. The Borrower will not,
in any one calendar year, without the prior approval in writing of the Lender
(i) declare or pay any dividends or make any other distribution to its
stockholders with respect to its capital stock; (ii) purchase or redeem or
retire any of its capital stock; or (iii) pay any management fees or if already
paying a management fee, pay an increase in management fees unless with respect
to any of the foregoing (after giving effect to such transaction) (a) Borrower
meets the Minimum Net Worth Test and (b) the payment of such dividend, the
making of such distribution, or the purchase, redemption or retirement of such
stock, individually or in the aggregate, does not exceed twenty-five percent
(25%) of the prior fiscal year-end Cash Margins in any one calendar year. In no
event may the Borrower make such a distribution or payment when there is unpaid
any due installment of principal and/or interest on the Note or if the Borrower
is otherwise in material default of any provision of this Agreement or would be
in material default hereunder as a result of such distribution or payment.

                                       11
<PAGE>   12

        7.04    SPECIAL NEGATIVE COVENANTS. During the term hereof, Lender and
its Counsel shall be fully satisfied that the Borrower has complied and will
continue to comply with any special negative covenants identified in Schedule 1
hereto.

        8.      EVENTS OF DEFAULT

        The occurrence of any one or more of the following events shall
constitute an "Event of Default":

                (a)     REPRESENTATION AND WARRANTIES. Any representation or
                        warranty made herein, in any of the Other Agreement or
                        in any statement, report, certificate, opinion,
                        financial statement or other document furnished or to be
                        furnished in connection with this Agreement or the Other
                        Agreements shall be false or misleading in any material
                        respect.

                (b)     PAYMENT. Failure of Borrower to make any of the payment
                        Obligations, including, without limitation, any sum due
                        the Lender under this Agreement or any of the Other
                        Agreements, when and as the same shall become due,
                        whether at the due date thereof, by demand, by
                        acceleration or otherwise.

                (c)     OTHER COVENANTS. Failure, in any material respect, of
                        Borrower to observe or perform any warranty, covenant or
                        condition to be observed or performed by Borrower under
                        this Agreement or any of the Other Agreements.

                (d)     CORPORATE EXISTENCE. The Borrower shall forfeit or
                        otherwise be deprived of its corporate charter,
                        franchises, permits, easements, consents or licenses
                        required to carry on any material portion of its
                        business.

                (e)     OTHER OBLIGATIONS. Default by the Borrower in the
                        payment when due, beyond any applicable grace period, of
                        any money owed by the Borrower, whether principal,
                        interest, premium or otherwise, under any other
                        agreement for borrowing money in an amount in excess of
                        5% of total assets, whether or not such borrowing is
                        secured.

                (f)     BANKRUPTCY. A court shall enter a decree or order for
                        relief with respect to the Borrower or any Subsidiary or
                        guarantor (if any) in an involuntary case under any
                        applicable bankruptcy, insolvency or other similar law
                        now or hereafter in effect, or appointing a receiver,
                        liquidator, assignee, custodian, trustee, sequestrator
                        or similar official, or ordering the winding up or
                        liquidation of its affairs, and such decree or order
                        shall remain unstayed and in effect for a period of
                        sixty (60) consecutive days or the Borrower or any
                        Subsidiary or guarantor (if any) shall commence a
                        voluntary case under any applicable bankruptcy,
                        insolvency or other similar law now or hereafter in
                        effect, or under any such law, or consent to the
                        appointment or taking of possession by a receiver,
                        liquidator, assignee,

                                       12
<PAGE>   13

                        custodian or trustee, of a substantial part of its
                        property, or make any general assignment for the benefit
                        of creditors.

                (g)     DISSOLUTION OR LIQUIDATION. Other than as provided in
                        subsection (f) above, the dissolution or liquidation of
                        the Borrower or any Subsidiary or guarantor (if any), or
                        failure by the Borrower or any Subsidiary or guarantor
                        promptly to forestall or remove any execution,
                        garnishment or attachment of such consequence as will
                        impair its ability to continue its business or fulfill
                        its obligations and such execution, garnishment or
                        attachment shall not be vacated within sixty (60) days.

                (h)     FINAL JUDGMENT. A final non-appealable judgment in
                        excess of $100,000 shall be entered against the Borrower
                        and shall remain unsatisfied or without a stay for a
                        period of ninety (90) days.

        9.      RIGHTS AND REMEDIES

        9.01    RIGHTS AND REMEDIES OF THE LENDER. Under the occurrence of an
Event of Default, the Lender may, subject to:

        (i)     Thirty (30) days prior written notice during which time Borrower
                shall have the opportunity to cure said Event of Default except
                with respect to Obligations pursuant to 8(b), 8(f) and 8(g)
                above which shall require no notice or demand and shall have no
                period to cure; and

        (ii)    compliance, if required, with the rules and regulations of the
                FCC and any state public service or utilities commission having
                jurisdiction;

exercise in any jurisdiction in which enforcement hereof is sought, the
following rights and remedies, in addition to all rights and remedies available
to the Lender under applicable law, all such rights and remedies being
cumulative and enforceable alternatively, successively or concurrently:

                (a)     Declare all unpaid principal outstanding on the Note,
                        all accrued and unpaid interest thereon, and all other
                        Obligations to be immediately due and payable and the
                        same shall thereupon become immediately due and payable
                        without presentment, demand, protest or notice of any
                        kind, all of which are hereby expressly waived.

                (b)     Institute any proceeding or proceedings to enforce the
                        Obligations owed to, or any Liens in favor of the
                        Lender.

                (c)     Pursue all rights and remedies available to the lender
                        that are contemplated by the Mortgage in the manner,
                        upon the conditions, and with the effect provided in the
                        Mortgage, including but not limited to a suit for
                        specific performance, injunctive relief or damages.

                                       13
<PAGE>   14

                (d)     Pursue any other rights and remedies available to the
                        Lender at law or in equity.

        9.02    CUMULATIVE NATURE OF REMEDIES. Nothing herein shall limit the
right of the Lender, subject to notice and right to cure provisions contained
herein, to pursue all rights and remedies available to a creditor following the
occurrence of an Event of Default subject to compliance, if required, with the
rules and regulations of the FCC and any state public service or utilities
commission having jurisdiction. Each right, power and remedy of the lender in
this Agreement and/or the Other Agreements shall be cumulative and concurrent,
and recourse to one or more rights or remedies shall not constitute a waiver of
any other right, power or remedy.

        9.03    COSTS AND EXPENSES. Borrower agrees to pay and to be liable for
any and all reasonable expenses, including reasonable attorney's fees and court
costs, incurred by the Lender in exercising or enforcing any of its rights
hereunder or under the Other Agreements, together with interest thereon at the
rate and determined in the manner provided in the Mortgage. Subject to the
Mortgage and applicable law, the Lender may apply all Collateral and proceeds of
all Collateral to the Obligations in any manner which the Lender, in its
reasonable discretion, deems appropriate, and Borrower will continue to be
liable for any deficiency.

        9.04    LATE PAYMENT CHARGES. If payment of any principal and/or
interest due under the terms of the Note is not received at the office of the
Lender in Herndon, Virginia, or as the Lender may otherwise designate to the
Borrower, within such time period as the Lender may prescribe from time to time
in its policies in connection with any late payment charges (such unpaid amount
of principal and/or interest being herein called the "delinquent amount" and the
period beginning after such due date until payment of the delinquent amount
being herein called the "late-payment period"), the Borrower will pay to the
Lender, in addition to all other amounts due under the terms of the Note, the
Mortgage, and this Agreement, any late-payment charge as may be fixed by the
Lender from time to time, on the delinquent amount for the late-payment period.
Provided, however, no late payment charge shall exceed an amount equal to the
then prevailing bank prime rate published in the "Money Rates" column of the
Eastern addition of the Wall Street Journal plus three percent (3%) per annum on
the delinquent amount computed over the late-payment period on the basis of a
365-day year.

        9.05    LENDER'S SETOFF. The Lender shall have the right, in addition to
all other rights and remedies available to it, to setoff and to recover against
any or all of the Obligations due to Lender, any monies now and hereafter owing
to Borrower by the Lender. Borrower waives all rights of setoff, deduction,
recoupment and counterclaim.

        10.     MISCELLANEOUS

        10.01   PERFORMANCE FOR BORROWER. Borrower agrees and hereby authorizes
that the Lender may, in its sole discretion, but the Lender shall not be
obligated to, advance funds on behalf of Borrower without prior notice to
Borrower, in order to insure Borrower's compliance with any material covenant,
warranty, representation, or agreement of Borrower made in or pursuant to this
Agreement or any of the Other Agreements, to preserve or protect any right or
interest of the Lender in the Collateral or under or pursuant to this Agreement
or any of the Other Agreements, including without limitation, the payment of any
insurance premiums or taxes and

                                       14
<PAGE>   15

the satisfaction or discharge of any judgment or any Lien upon the Collateral or
other property or assets of Borrower; provided, however, that the making of any
such advance by the Lender shall not constitute a waiver by the Lender of any
Event of Default with respect to which such advance is made nor relieve Borrower
of any such Event or Default. Borrower shall pay to the Lender upon demand all
such advances made by lender with interest thereon at the rate and determined in
the manner provided in the Note. All such advances shall be deemed to be
included in the Obligations and secured by the security interest granted the
Lender hereunder to the extent permitted by law.

        10.02   EXPENSES AND FILING FEES. Whether or not any of the transactions
contemplated hereby shall be consummated, Borrower agrees to pay to the Lender
at Closing or thirty (30) days after the execution and delivery hereof,
whichever is earlier, all expenses of the Lender in connection with the filing
or recordation of all financing statements and instruments as may be required by
the Lender at the time of, or subsequent to, the execution of this Agreement,
including, without limitation, all documentary stamps, recordation and transfer
taxes and other costs and taxes incident to recordation of any document or
instrument in connection herewith. Borrower agrees to save harmless and
indemnify the Lender from and against any liability resulting from the failure
to pay any required documentary stamps, recordation and transfer taxes,
recording costs incurred by the Lender in connection with this Agreement. The
provisions of this Subsection 10.02 shall survive the execution and delivery of
this Agreement and the payment of all other Obligations.

        10.03   WAIVERS BY BORROWER. Borrower hereby waives, to the extent the
same may be waived under applicable law: (a) in the event the Lender seeks to
repossess any or all of the Collateral by judicial proceedings, any bond(s) or
demand(s) for possession which otherwise may be necessary or required; (b)
presentment, demand for payment, protest and notice of nonpayment and all
exemptions; and (c) substitution, impairment, exchange or release of any
collateral security for any of the Obligations. Borrower agrees that the Lender
may exercise any or all of its rights and/or remedies hereunder and under the
Other Agreements without resorting to and without regard to security or sources
of liability with respect to any of the Obligations.

        10.04   WAIVERS BY THE LENDER. Neither any failure nor any delay on the
part of the Lender in exercising any right, power or remedy hereunder or under
any of the Other Agreements shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or remedy.

        10.05   LENDER'S RECORDS. Every statement of account or reconciliation
rendered by the Lender to Borrower with respect to any of the Obligations shall
be presumed conclusively to be correct and shall constitute an account stated
between the Lender and Borrower unless, within ten (10) Business Days after such
statement or reconciliation shall have been mailed, postage prepaid, to
Borrower, the Lender shall receive written notice of specific objection thereto.

        10.06   MODIFICATIONS. No modification or waiver of any provision of
this Agreement, the Note or any of the Other Agreements, and no consent to any
departure by Borrower therefrom shall in any event be effective unless the same
shall be in writing, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which

                                       15
<PAGE>   16

given. No notice to or demand upon Borrower in any case shall entitle Borrower
to any other or further notice or demand in the same, similar or other
circumstances.

        10.07   NOTICES. All notices, requests and other communications provided
for herein including, without limitation, any modifications of, or waivers,
requests or consents under, this Agreement shall be given or made in writing
(including, without limitation, by telecopy) and delivered to the intended
recipient at the "Address for Notices" specified below; or, as to any party, at
such other address as shall be designated by such party in a notice to each
other party. Except as otherwise provided in this Agreement, all such
communications shall be deemed to have been duly given when personally delivered
or, in the case of a mailed or telecopied notice, upon receipt, in each case
given or addressed as provided for herein. The Address for Notices of the
respective parties are as follows:

                             Rural Telephone Finance Cooperative
                             Woodland Park
                             2201 Cooperative Way
                             Herndon, Virginia 22071-3025
                             Attention:  Loan Officer
                             Fax:  703-709-6776

                             The Borrower:

                             The address set forth in
                             Schedule 1 hereto

        10.08   GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL

        (a)     THE PERFORMANCE AND CONSTRUCTION OF THIS AGREEMENT AND THE NOTE
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF VIRGINIA.

        (b)     BORROWER HEREBY SUBMIT(S) TO THE NONEXCLUSIVE JURISDICTION OF
THE UNITED STATES COURTS LOCATED IN VIRGINIA AND OF ANY STATE COURT SO LOCATED
FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. BORROWER IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW
OR HEREAFTER HAVE TO THE ESTABLISHING OF THE VENUE OF ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

        (c)     EACH OF THE BORROWER AND THE LENDER HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR

                                       16
<PAGE>   17

RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

        10.09   HOLIDAY PAYMENTS. If any payment to be made by the Borrower
hereunder shall become due on a day which is not a Business Day, such payment
shall be made on the next succeeding Business Day and such extension of time
shall be included in computing any interest in respect of such payment.

        10.10   RESCISSION FEE. The Borrower may elect not to borrow all or any
portion of the Loan, in which event the Lender shall release the Borrower from
its obligations hereunder provided the Borrower complies with such terms and
conditions as the Lender may impose for such release including, without
limitation, payment of any rescission fee which shall not exceed fifty (50)
basis points times the amount of the Commitment being rescinded.

        10.11   SURVIVAL; SUCCESSORS AND ASSIGNS. All covenants, agreements,
representations and warranties made herein and in the Other Agreements shall
survive Closing and the execution and delivery to the Lender of the Note, and
shall continue in full force and effect until all of the Obligations have been
paid in full. Whenever in this Agreement any of the parties hereto is referred
to, such reference shall be deemed to include the successors and assigns of such
party. All covenants, agreements, representations and warranties by or on behalf
of Borrower which are contained in this Agreement and the Other Agreements shall
inure to the benefit of the successors and assigns of the Lender.

        10.12   USE OF TERMS. The use of any gender or the neuter herein shall
also refer to the other gender or the neuter and the use of the plural shall
also refer to the singular, and vice versa.

        10.13   SEVERABILITY. If any term, provision or condition, or any part
thereof, of this Agreement or any of the Other Agreements shall for any reason
be found or held invalid or unenforceable by any court or governmental agency of
competent jurisdiction, such invalidity or unenforceability shall not affect the
remainder of such term, provision or condition nor any other term, provision or
condition, and this Agreement, the Note, and the Other Agreements shall survive
and be construed as if such invalid or unenforceable term, provision or
condition had not been contained therein.

        10.14   MERGER AND INTEGRATION. This Agreement and the attached exhibits
and matters incorporated by reference contain the entire agreement of the
parties hereto with respect to the matters covered and the transactions
contemplated hereby, and no other agreement, statement or promise made by any
party hereto, or by any employee, officer, agent or attorney of any part hereto,
which is not contained herein, shall be valid or binding.

        10.15   COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of
which, when so executed and delivered, shall be an original, but all such
counterparts shall together constitute one and the same instrument.

        10.16   HEADINGS. The headings and sub-headings contained in this
Agreement are intended to be used for convenience only and do not constitute a
part of this Agreement.

                                       17
<PAGE>   18

        10.17   ASSIGNMENT. The Lender may assign its rights and obligations
under this Agreement and the Other Agreements without the consent of Borrower;
provided, however, that no such assignment shall result in terms or conditions
less favorable to Borrower. The Borrower may not assign any of its rights of
obligations under this Agreement or the Other Agreements without the prior
written consent of the Lender.

        10.18   RIGHT TO INSPECT. The Borrower shall permit representatives of
the Lender at any time during normal business hours to inspect and make
abstracts from the books and records pertaining to the Collateral, and permit
representatives of the Lender to be present at Borrower's place of business to
receive copies of all communications and remittances relating to the Collateral,
all in such manner as the Lender may reasonably require.

        10.19   CONSENT TO PATRONAGE CAPITAL DISTRIBUTIONS. Borrower hereby
consents that the amount of any distributions with respect to Borrower's
patronage which are made in written notices of allocation (as defined in Section
1388 of the Internal Revenue Code of 1986, as amended ("Code"), including any
other comparable successor provision) and which are received from Lender will be
taken into account by Borrower at their stated dollar amounts in the manner
provided in Section 1385(a) of the Code in the taxable year in which such
written notices of allocation are received.

        10.20   FURTHER ASSURANCES. The Borrower will, upon demand of the
Lender, make, execute, acknowledge and deliver all such further and supplemental
indentures of mortgage, deeds of trust, mortgages, financing statements,
continuation statements, security agreements and/or any other instruments and
conveyances as may be reasonably requested by the Lender to effectuate the
intention of this Agreement and to provide for the securing and payment of the
principal of and interest on the Note according to the terms thereof.

        10.21   LENDER'S APPROVAL. Wherever prior written approval of Lender is
required under the terms and conditions of this Agreement, Lender hereby agrees
to not unreasonably withhold said approval.

        10.22   SCHEDULE 1. Schedule 1 attached hereto is an integral part of
this Agreement.

                                       18
<PAGE>   19

                IN WITNESS WHEREOF, the parties hereto have executed or caused
to be executed this Agreement under seal as of the date first above written.

                                        ILLUMINET, INC.

                                        By:
                                           -------------------------------------

                                        Title:
                                              ----------------------------------

(SEAL)

Attest:
       -----------------------------
            Assist. Secretary

                                        RURAL TELEPHONE FINANCE COOPERATIVE

                                        By:
                                           -------------------------------------

(SEAL)                                  Title:  Assistant Secretary-Treasurer

Attest:
       -----------------------------
       Assistant Secretary-Treasurer

                                       19
<PAGE>   20

                                   SCHEDULE 1

1.      The Original Agreements and the current Notes are:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                             Original               Amount
New Loan       Original      Agreement  Note        Outstanding    SCC       Maturity  Loan
Number         Loan Number   Date       Amount      As of7/30/96   Amount    Date      Purpose
---------------------------------------------------------------------------------------------------
<S>            <C>           <C>        <C>         <C>             <C>       <C>       <C>
WA 812-A-01    WA 800-A-01   6/15/90    $4,996,670  $4,328,087.27   $499,670  6/15/2010 Headquarters
                                                                                        construction
---------------------------------------------------------------------------------------------------
WA 812-A-02    WA 806-A-02   3/9/95     $1,167,111  $1,140,879.64   $116,711  3/9/2015  Acquisition
                                                                                        of real
                                                                                        property/
                                                                                        operating
                                                                                        capital
---------------------------------------------------------------------------------------------------
WA 812-A-03    WA 806-A-03   3/9/95     $1,504,444  $1,470,631.26   $150,444  3/9/2015  Operating
                                                                                        capital
---------------------------------------------------------------------------------------------------
WA 812-A-04    WA 801-A-03   10/9/95    $3,078,947  $2,799,158.60   $153,947  10/9/2000 Refinance
                                                                                        Northern
                                                                                        Telecom debt
---------------------------------------------------------------------------------------------------
WA 812-A-05    WA 801-A-04   10/9/95    $4,689,474  $  842,105.00   $234,474  10/9/2000 Finance SS7
                                                                                        Network
                                                                                        expansion
---------------------------------------------------------------------------------------------------
WA 812-A-06         --          --      $3,894,737      -0-         $194,737  5 years   Finance
                                                                              from      equity
                                                                              even      investment
                                                                              date      in
                                                                              herewith  Authentix,
                                                                                        Inc. and
                                                                                        capital
                                                                                        expenses for
                                                                                        a cellular
                                                                                        fraud
                                                                                        prevention
                                                                                        service
---------------------------------------------------------------------------------------------------
</TABLE>

The "Commitment" shall mean the Note amount for each particular Note referenced
above.

2.      The Mortgage is the Consolidated Mortgage and Security Agreement by and
        between Borrower and Lender dated as of even date herewith.

3.      The months relating to the Payment Date are March, June, September and
        December.

4.      The method of amortization referred to in Section 2.03 shall be based
        upon the level debt service method for all of the Notes issued
        hereunder.

5.      The date of Borrower's financial statement referred to in Section 4.06
        is June 30, 1995 for ITN and December 31, 1995 for USIH.

6.      The chief place of business referred to in Section 4.12 and the address
        of the Borrower referred to in Section 10.07 is 4501 Intelco Loop, S.E.
        Olympia, WA 98507.

7.      The government authorities referred to in Section 4.13 are not
        applicable.

8.      The special conditions referred to in Section 5.06 are not applicable.

9.      The special affirmative covenants referred to in Section 6.06 are not
        applicable.

10.     The special negative covenants referred to in Section 7.04 are not
        applicable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]