Document:

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                                                                    EXHIBIT 10.1

                                                                  MLA No. ML0883

                             MASTER LOAN AGREEMENT

     THIS MASTER LOAN AGREEMENT (this "Agreement"), dated as of June 29, 2001,
is made by and between COBANK, ACB ("CoBank") and GLOBE TELECOMMUNICATIONS,
INC., INTERSTATE TELEPHONE COMPANY and VALLEY TELEPHONE CO., INC. (collectively,
the "Borrowers").

     WHEREAS, from time to time CoBank may make loans to the Borrowers, and in
order to reduce the amount of paperwork associated therewith, CoBank and the
Borrowers would like to enter into a master loan agreement;

     WHEREAS, ITC Global, Inc. ("ITC Globe"; and collectively with all other
subsidiaries of the Borrowers except for Knology Broadband, Inc. and its
subsidiaries referred to as the "Restricted Subsidiaries") will guaranty the
obligations of the Borrowers to CoBank; and

     NOW, THEREFORE, in consideration of the foregoing, intending to be legally
bound hereby, and in consideration of CoBank making one or more loans to the
Borrowers, CoBank and the Borrowers agree as follows:

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

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

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

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

     SECTION 5.  Conditions Precedent.

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

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

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

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

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

               (2)  Evidence of Authority. Such certified board resolutions,
     evidence of incumbency, legal opinions and other evidence that CoBank may
     require that the Supplement, the Note relating thereto and all other
     instruments and documents executed in connection therewith, and, in the
     case of the initial Supplement, this Agreement and all instruments and
     documents executed in connection herewith, have been duly authorized and
     executed and that the Borrowers and Restricted Subsidiaries are in good
     standing under the laws of the jurisdictions in which they operate.

               (3)  Consents and Approvals. Such evidence, including, without
     limitation, legal opinions, as CoBank may require that all required
     regulatory and other consents and approvals have been obtained and are in
     full force and effect.

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

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

               (6)  Evidence of Perfection, Etc. Such evidence, including,
     without limitation, legal opinions, lien search reports and title
     commitments and title insurance policies, as CoBank may require that CoBank
     has a duly perfected first priority security interest in all collateral
     contemplated by the Supplement.

               (7)  Opinions of Counsel. Opinions of counsel to the Borrowers
     and any other entity party to the Loan Documents relating to such
     Supplement acceptable to CoBank, including, without limitation, opinions
     relating to corporate authority, regulatory and other approvals and the
     status of perfection in any collateral.

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

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

          (A)  Application. Each representation and warranty and all other
information set forth in any application or other document submitted in
connection with, or to induce CoBank to enter into, such Supplement is correct
in all material respects as of the date of the Supplement or request for
advance, except as such representation or warranty expressly relates to an
earlier date.

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          (B)  Disclosure. No representation or warranty of the Borrowers
contained in this Agreement, the financial statements referred to in Subsection
6(F), any other document, certificate or written statement furnished to CoBank
by or on behalf of the Borrowers for use in connection with the Loan Documents
contains any untrue statement of a material fact or omitted, omits or will omit
to state a material fact necessary in order to make the statements contained
herein or therein not misleading in light of the circumstances in which the same
were made.

          (C)  Organization; Powers; Etc. Each of the Borrowers and each of its
Restricted Subsidiaries (i) is duly incorporated, organized, or formed (as
applicable), validly existing, and in good standing under the laws of its state
of incorporation, organization or formation (as applicable); (ii) is duly
qualified to do business and is in good standing in each jurisdiction in which
the character of its properties or the nature of its business requires such
qualification; (iii) has all requisite legal and corporate, partnership or
limited liability company power (as applicable) to own and operate its assets
and to carry on its business and to enter into and perform its obligations under
the Loan Documents to which it is a party; and (iv) has duly and lawfully
obtained and maintained all licenses, certificates, permits, authorizations,
approvals, and the like which are necessary in the conduct of its business, or
which may be otherwise required by law, which if not obtained and maintained,
could have a Material Adverse Effect (as hereinafter defined) on the Borrowers.
The term "Material Adverse Effect" when used with reference to any entity shall
mean a material adverse effect on the condition, financial or otherwise,
operations, properties or business of such entity or on the ability of such
entity to perform its obligations under the Loan Documents to which it is a
party.

          (D)  Due Authorization; No Violations; Etc. The execution and delivery
by each of the Borrowers and each of its Restricted Subsidiaries of, and the
performance by each of the Borrowers and each such Restricted Subsidiary of its
obligations under, the Loan Documents to which it is a party have been duly
authorized by all requisite corporate, partnership or limited liability company
action (as applicable) and do not and will not (i) violate its articles or
certificate of incorporation, articles or certificate of organization or
articles or certificate of formation (as applicable), its bylaws, partnership
agreement or operating agreement (as applicable), any provision of any law, rule
or regulation, any judgment, order or ruling of any court or Governmental
Authority any material agreement or any indenture, mortgage, or other instrument
to which such Borrower or such Restricted Subsidiary is a party or by which such
Borrower or such Restricted Subsidiary or any of their respective properties are
bound, or (ii) be in conflict with, result in a breach of, or constitute with
the giving of notice or lapse of time, or both, a default under any such
agreement, indenture, mortgage, or other instrument. All actions on the part of
the shareholders, partners or members (as applicable) of the Borrowers and each
of its Restricted Subsidiaries necessary in connection with the execution and
delivery by such Borrower or such Restricted Subsidiary of, and the performance
by such Borrower or such Restricted Subsidiary of their respective obligations
under, the Loan Documents to which it is a party have been taken and remain in
full force and effect.

          (E)  Binding Agreement. Each of the Loan Documents to which any
Borrower or any of its Restricted Subsidiaries is a party is, or when executed
and delivered will be, the legal, valid, and binding obligation of such Borrower
or such Restricted Subsidiary, enforceable against such Borrower or such
Restricted Subsidiary in accordance with its terms,

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subject only to limitations on enforceability imposed by (i) applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting
creditors' rights generally, and (ii) general equitable principles.

          (F)  Financial Statements, Budgets, Projections, Etc. All financial
statements of any entity submitted to CoBank in connection with, or to induce
CoBank to enter into, this Agreement or such Supplement fairly and fully present
the financial condition of such entity in all material respects and the results
of such entity's operations for the periods covered thereby, and are prepared in
accordance with generally accepted accounting principles ("GAAP") consistently
applied. There are no material liabilities of such entity, fixed or contingent,
not reflected in such financial statements or the notes thereto. Since the date
of such Supplement or request for advance, there has been no material adverse
change in the financial condition or operations of such entity. All budgets,
projections, feasibility studies, and other documentation submitted by the
Borrowers to CoBank in connection with, or to induce CoBank to enter into, such
Supplement are based upon assumptions that are reasonable and realistic, and as
of the date of such Supplement or request for advance, no fact has come to
light, and no event or transaction has occurred, which would cause any such
assumption not to be reasonable or realistic.

          (G)  Consents and Approvals. No consent, permission, authorization,
order or license of any Governmental Authority or of any party to any agreement
to which any Borrower or any of its Restricted Subsidiaries is a party or by
which they or any of their respective property may be bound or affected, is
necessary in connection with the project, acquisition or other activity being
financed by such Supplement, the execution, delivery, performance or enforcement
of the Loan Documents or the creation and perfection of the liens and security
interests granted thereby, except as such have been obtained and are in full
force and effect or which are required in connection with the exercise of
remedies hereunder.

          (H)  Compliance. Each of the Borrowers and each of its Restricted
Subsidiaries is in compliance with all of the terms of the Loan Documents to
which it is a party and no Event of Default or Potential Default exists.

          (I)  Compliance with Laws. Each of the Borrowers and each of its
Restricted Subsidiaries is in compliance in all material respects with all laws,
rules, regulations, ordinances, codes, orders, and the like (collectively,
"Laws"), the failure to comply with which could have a Material Adverse Effect
on the Borrowers.

          (J)  Environmental Compliance. Without limiting the provisions of
Subsection 6(I), all property owned or leased by each of the Borrowers and each
of its Restricted Subsidiaries and all operations conducted by them are in
compliance in all material respects with all Laws relating to environmental
protection, the failure to comply with which could have a Material Adverse
Effect on the Borrowers.

          (K)  Litigation. There are no pending legal, arbitration, or
governmental actions or proceedings to which any Borrower or any of its
Restricted Subsidiaries is a party or to which any their respective properties
are subject which, if adversely determined, could have a

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Material Adverse Effect on the Borrowers, and to the best of the Borrowers'
knowledge, no such actions or proceedings are threatened or contemplated.

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

          (M)  Employee Benefit Plans. Each of the Borrowers and each of its
Restricted Subsidiaries is in compliance in all material respects with the
applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), and the regulations and published interpretations thereunder,
the failure to comply with which could have a Material Adverse Effect on the
Borrowers.

          (N)  Taxes. Each of the Borrowers and each of its Restricted
Subsidiaries has filed or caused to be filed all federal, state and local tax
returns that are required to be filed, and has paid and shall continue to pay
when due all taxes as shown on such returns, and has paid and shall continue to
pay when due all other taxes, assessments and governmental charges or levies
upon it and its property, income, profits and assets which are due and payable,
except where the payment of such tax, assessment, government charge or levy is
------
being contested in good faith and by appropriate proceedings and adequate
reserves in compliance with GAAP have been set aside on such Borrower's books
therefor.

          (O)  Investment Company Act; Public Utility Holding Company Act.
Neither any Borrower nor any of its Restricted Subsidiaries is an "investment
company" as that term is defined in, or is otherwise subject to regulation
under, the Investment Company Act of 1940, as amended. Neither any Borrower nor
any of its Restricted Subsidiaries is a "holding company" as that term is
defined in, or is otherwise subject to regulation under, the Public Utility
Holding Company Act of 1935, as amended.

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

          (Q)  Restricted Subsidiaries. The Borrowers have no Restricted
Subsidiaries other than as set forth on Schedule 6(Q) to this Agreement. Each
                                        -------------
Borrower is the registered and beneficial owner of the specified percentage of
the shares of issued and outstanding capital stock or other equity interests of
each of its Restricted Subsidiaries as set forth on Schedule 6(Q), which stock
                                                    -------------
and other equity interests are owned free and clear of all liens, warrants,
options, rights to purchase, rights of first refusal and other interests of any
person. The stock or other equity interests of each such Restricted Subsidiary
has been duly authorized and validly issued and is fully paid and non-
assessable.

          (R)  Licenses; Permits; Etc. Each of the Borrowers and each of its
Restricted Subsidiaries is the valid holder of all franchises, licenses,
certificates, permits, authorizations, approvals and the like which are material
to the conduct of its business or which may be required by law, including,
without limitation, all licenses and permits of the Federal Communications

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Commission (the "FCC"), the Georgia Public Service Commission (the "GAPSC"), the
Alabama Public Service Commission (the "ALPSC" and collectively with the GAPSC,
the "PUC") and the public utility commissions of any other states in which any
Borrower operates, and all such franchises, licenses, certificates, permits,
authorizations, approvals, and the like are in full force and effect on the date
of such Supplement and request for advance.

          (S)    Credit Agreements, Etc. Set forth on Schedule 6(S) hereto is a
                                                      -------------
complete and correct list of all loan agreements, incentives, guarantees,
Capital Leases (as defined in Subsection 7(I)), and other credit agreements
(including agreements for the issuance of letters of credit) in effect on the
date of this MLA in respect of which any Borrower or any Restricted Subsidiary
is in any manner directly or contingently obligated for an amount in excess of
$100,000.

     SECTION 7.  Affirmative Covenants.  Unless otherwise agreed to in writing
by CoBank, while this Agreement is in effect, each Borrower will, and will cause
each of its Restricted Subsidiaries to:

          (A)    Existence, Licenses. Etc. (i) Preserve and keep in full force
and effect its existence and good standing in the jurisdiction of its
incorporation, organization or formation (as applicable); (ii) qualify and
remain qualified to transact business in all jurisdictions where such
qualification is required by applicable Laws; and (iii) obtain and maintain all
licenses, certificates, permits, authorizations, approvals, and the like, which
if not obtained and maintained, could have a Material Adverse Effect on the
Borrowers.

          (B)    Compliance with Laws and Agreements. Comply in all material
respects with (i) all Laws, the failure to comply with which could have a
Material Adverse Effect on the Borrowers, and (ii) all agreements, indentures,
mortgages, and other instruments to which such Borrower or any Restricted
Subsidiary of it is a party or by which it or any of its property is bound, the
failure to comply with which could have a Material Adverse Effect on the
Borrowers.

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

          (D)    Insurance. Maintain insurance with insurance companies or
associations acceptable to CoBank in such amounts and covering such risks as are
usually carried by companies engaged in the same business and similarly
situated, and make such increases in the type or amount of coverage as CoBank
may reasonably request. All such policies insuring any collateral for such
Borrower's obligations to CoBank shall have lender or mortgagee loss payable
clauses or endorsements in form and substance acceptable to CoBank. Such
proceeds shall be applied to the extent applicable as provided in the Loan
Documents governing such collateral. At CoBank's request, such Borrower agrees
to deliver to CoBank such proof of compliance with this Subsection 7(D) as
CoBank may require.

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          (E)  Property Maintenance. Maintain and preserve all of its property
and each and every part and parcel thereof that is necessary to or useful in the
proper conduct of its business in good repair, working order, and condition,
ordinary wear and tear excepted, and make all alterations, replacements, and
improvements thereto as may from time to time be necessary in order to ensure
that its properties remain in good working order and condition. At CoBank's
request, but not more than once a year, each Borrower will furnish to CoBank a
report on the condition of such Borrower's and any of its Restricted
Subsidiaries' property prepared by a professional engineer satisfactory to
CoBank.

          (F)  Books and Records. Keep adequate records and books of account in
which complete and accurate entries will be made in accordance with GAAP
consistently applied.

          (G)  Inspection. Permit CoBank or its representatives, upon reasonable
notice and during normal business hours or at such other times as the parties
may agree, to examine any Borrower's properties, books, and records, and to
discuss such Borrower's affairs, finances, and accounts, with such Borrower's
officers, directors, employees, and independent certified public accountants.

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

               (1)  Annual Financial Statements. As soon as available, but in no
     event later than 120 days after the end of each fiscal year of the
     Borrowers occurring during the term hereof, annual consolidated financial
     statements of the Borrowers prepared in accordance with GAAP consistently
     applied and in a format that demonstrates any accounting or formatting
     change that may be required by the various jurisdictions in which the
     business of the Borrowers is conducted (to the extent not inconsistent with
     GAAP). Such financial statements shall: (i) be audited by an independent
     certified public accountant or firm of independent certified public
     accountants selected by the Borrowers and acceptable to CoBank; (ii) be
     accompanied by a report of such accountants containing an opinion thereon
     acceptable to CoBank; (iii) be prepared in reasonable detail, and in
     comparative form; and (iv) include a balance sheet, a statement of income,
     a statement of retained earnings, a statement of cash flows, and all notes
     and schedules relating thereto.

               (2)  Quarterly Financial Statements. As soon as available but in
     no event later than 45 days after the end of each of the first three fiscal
     quarters of each fiscal year of the Borrowers occurring during the term
     hereof, unaudited quarterly consolidated financial statements of the
     Borrowers prepared in accordance with GAAP consistently applied (except for
     the omission of footnotes and for the effect of normal year-end audit
     adjustments) and in a format that demonstrates any accounting or formatting
     change that may be required by various jurisdictions in which the business
     of the Borrowers is conducted (to the extent not inconsistent with GAAP).
     Each of such financial statements shall (i) be prepared in reasonable
     detail, and (ii) include a balance sheet, a statement of income for such
     quarter and for the period year-to-date, and such other quarterly
     statements as CoBank may specifically request, which quarterly statements
     shall include any and all supplements thereto.

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               (3)  Notice of Default. Promptly after becoming aware thereof,
     notice of (i) the occurrence of any Potential Default or Event of Default
     under any of the Loan Documents; and (ii) the occurrence of any breach,
     default, event of default, or other event which with the giving of notice
     or lapse of time, or both, could become a breach, default, or event of
     default under any agreement, indenture, mortgage, or other instrument
     (other than the Loan Documents) to which it is a party or by which it or
     any of its property is bound or affected if the effect of such breach,
     default, event of default, or other event is to accelerate, or to permit
     the acceleration of, the maturity of any indebtedness in an amount in
     excess of $100,000; provided, however, that the failure to give such notice
                         --------  -------
     shall not affect the right and power of CoBank to exercise any and all of
     the remedies specified herein.

               (4)  Notice of Non-Environmental Litigation. Promptly after the
     commencement thereof, notice of the commencement of all actions, suits, or
     proceedings before any court, arbitrator, or governmental department,
     commission, board, bureau, agency, or instrumentality affecting any
     Borrower or any of its Restricted Subsidiaries which, if determined
     adversely, could have a Material Adverse Effect on the Borrowers.

               (5)  Notice of Environmental Litigation. Promptly after receipt
     thereof, notice of the receipt of all pleadings, orders, complaints,
     indictments, or any other communication alleging a condition that may
     require any Borrower or any of its Restricted Subsidiaries to undertake or
     to contribute to a material cleanup or other response under environmental
     Laws, or which seek penalties, damages, injunctive relief, or criminal
     sanctions related to alleged violations of such Laws, or which claim
     personal injury or property damage to any person as a result of
     environmental factors or conditions.

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

               (7)  Material Adverse Change. Promptly after becoming aware
     thereof, notice of any matter which has had or could have a Material
     Adverse Effect on the Borrowers.

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

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               (9)  Management Letters. Promptly after receipt thereof, a copy
     of any management letters submitted to any Borrower or any of its
     Restricted Subsidiaries by its independent certified public accountants.

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

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

          (I)  Total Leverage Ratio. The Borrowers shall maintain at all times
on a consolidated basis and measured as of the last day of each fiscal quarter
of the Borrowers (each a "Quarterly Date"), during the periods set forth below,
a Total Leverage Ratio less than or equal to the ratio set forth below opposite
such date:

                    Date                                 Leverage Ratio
                    ----                                 --------------
       From the date hereof through and
       including December 31, 2002                          5.0:1.0

       January 1, 2003 through and
       including  December 31, 2003                         4.5:1.0

       January 1, 2004 through and
       including  December 31, 2004                         4.0:1.0

       January 1, 2005 and thereafter                       3.5:1.0

The term "Total Leverage Ratio" shall mean the ratio of Indebtedness to
Operating Cash Flow (as such terms are hereinafter defined). The term
"Indebtedness" shall mean (i) obligations for borrowed money, (ii) obligations
representing the deferred purchase price of property or services other than
accounts payable arising in connection with the purchase of goods or services on
terms customary in the trade, (iii) obligations, whether or not assumed, secured
by liens or a pledge of or an encumbrance on the proceeds or production from
property now or hereafter owned or acquired, (iv) obligations which are
evidenced by notes, acceptances or other instruments, (v) leases of real or
personal property which are or would be required to be capitalized under GAAP
(each a "Capital Lease"), and (vi) fixed payment obligations under guarantees
that are due and remain unpaid. For purposes of this Agreement, the term
"Operating Cash Flow"(i) shall mean the sum of (a) net income or deficit, as the
case may be, excluding extraordinary or non-recurring gains or losses and the
write-up or write-down of any asset, (b) total interest expense (including
non-cash interest), (c) depreciation and amortization expense, (d) cash income
taxes and (e) other non-cash items or reserves to the extent such item

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<PAGE>

or reserves are deducted in determining net income and (ii) shall be measured
for the then most recently completed four fiscal quarters, adjusted to give
effect to any acquisition, sale or other disposition, directly or through a
Restricted Subsidiary, of any business (or any portion thereof) during the
period of calculation as if such acquisition, sale or other disposition occurred
on the first day of such period of calculation.

          (J)  Debt Service Coverage Ratio. Commencing on the date hereof, the
Borrowers shall maintain at all times on a consolidated basis and measured at
each Quarterly Date, a Debt Service Coverage Ratio not less than 1.25:1.00.

The term "Debt Service Coverage Ratio" shall mean, as of the date of
calculation, the ratio derived by dividing (i) Operating Cash Flow by (ii) the
sum of: (a) all principal payments scheduled to be made on Indebtedness (or
scheduled reductions in commitments on lines of credit to the extent such
reductions would case the repayment of principal amounts then outstanding under
such lines) plus (b) cash interest expense, each measured for the then most
            ----
recently completed four fiscal quarters.

          (K)  Capital. Acquire non-voting participation certificates in CoBank
in such amounts and at such times as CoBank may from time to time require in
accordance with its Bylaws and Capital Plan (as each may be amended from time to
time), except that the maximum amount of non-voting participation certificates
that the Borrowers may be required to purchase in connection with a Loan may not
exceed the maximum amount permitted by the Bylaws at the time the Supplement
relating to such Loan is entered into or such Loan is renewed or refinanced by
CoBank. The rights and obligations of the parties with respect to such non-
voting participation certificates and any patronage or other distributions made
by CoBank shall be governed by CoBank's Bylaws. The Borrowers hereby consent and
agree that the amount of any distributions with respect to its patronage with
CoBank that are made in qualified written notices of allocation (as defined in
26 U.S.C. 1388) and that are received by the Borrowers from CoBank, will be
taken into account by the Borrowers at their stated dollar amounts whether the
distribution be evidenced by a participation certificate or other form of
written notice that such distribution has been made and recorded in the name of
the Borrowers on the records of CoBank.

     SECTION 8.  Negative Covenants. Unless otherwise agreed to in writing by
CoBank, while this Agreement is in effect each Borrower will not and will cause
its Restricted Subsidiaries not to:

          (A)  Borrowings. Create, incur, assume, or allow to exist, directly or
indirectly, any Indebtedness except for (i) obligations to CoBank, and (ii)
Indebtedness under purchase money security agreements and Capital Leases not to
exceed $1,000,000 in the aggregate for the Borrowers and their Restricted
Subsidiaries at any one time.

          (B)  Liens. Create, incur, assume, or allow to exist any mortgage,
deed of trust, pledge, lien (including the lien of an attachment, judgment, or
execution), security interest, or other encumbrance of any kind upon any of its
property, real or personal. The foregoing restrictions shall not apply to (i)
liens in favor of CoBank; (ii) liens for taxes, assessments, or governmental
charges that are not past due, unless the same are being contested in good faith
and by appropriate proceedings and then only if and to the extent reserves
required by GAAP have

                                       11
<PAGE>

been set aside therefor; (iii) liens, pledges, and deposits under workers'
compensation, unemployment insurance, social security and similar laws; (iv)
liens, deposits, and pledges to secure the performance of bids, tenders,
contracts (other than contracts for the payment of money), and like obligations
arising in the ordinary course of its business; (v) liens imposed by law in
favor of mechanics, materialmen, warehousemen, lessors and like persons that
secure obligations that are not past due, unless the same are being contested in
good faith and by appropriate proceedings and then only if and to the extent
reserves required by GAAP have been set aside therefor; (vi) liens constituting
encumbrances in the nature of zoning restrictions, easements and rights or
restrictions of record on the use of real property of the Borrowers that, in the
sole judgment of CoBank, do not materially detract from the value of such real
property or impair the use thereof in such Borrower's business; (vii) judgment
liens, provided enforcement thereof is effectively stayed and the claims secured
thereby are being contested in good faith by appropriate proceedings and for
which reserves have been established in accordance with GAAP; and (viii)
purchase money security interests and leases securing Indebtedness permitted
under Subsection 8(A)(ii), provided that such security interests and leases do
not encumber any property other than the items purchased with the proceeds
thereof or leased thereby.

          (C)  Fundamental Changes. (i) Unless, and only to the extent required
by law, amend, modify or waive any provision of its articles or certificate of
incorporation, articles or certificate of organization, articles or certificate
of formation, bylaws, partnership agreement or operating agreement (as
applicable), (ii) merge or consolidate with any other entity, acquire all or
substantially all of the assets of any person or entity, or (iii) form or create
any Restricted Subsidiary or (iv) commence operations under any other name,
organization, or entity, including any joint venture.

          (D)  Transfer of Assets. Sell, transfer, lease, enter into any
contract for the sale, transfer or lease of, or otherwise dispose of, any of its
assets, except in the ordinary course of its business; provided, however, any
                                                       --------  -------
such sale, transfer or lease shall be permitted hereunder so long as the
Borrowers are in compliance with Section 7(B) of the First Supplement.

          (E)  Loans and Investments. After the date hereof, make any loan or
advance to, invest in, purchase or make any commitment to purchase any stock,
bonds, notes, or other securities of, or guarantee, assume, or otherwise become
obligated or liable with respect to the obligations of any person or entity
(each, whether made directly or indirectly, an "Investment") other than (i)
stock or other securities of, or investments in CoBank or CoBank investment
services or programs, (ii) marketable direct obligations issued or
unconditionally guaranteed by the United States government or issued by any
agency thereof and backed by the full faith and credit of the United States, in
each case maturing within one year from the date of acquisition thereof and
(iii) time deposits maturing not more than thirty days from the date of creation
thereof with commercial banks having membership in the Federal Deposit Insurance
Corporation in amounts at any one such institution not exceeding the lessor of
$100,000 or the maximum amount of insurance applicable to the aggregate amount
of such Borrower's deposits at such institution.

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

                                       12
<PAGE>

          (G)  Disposition of Licenses. Sell, assign, transfer or otherwise
dispose of, or attempt to dispose of, in any way, any franchise, license,
certificates, permits, authorization, approvals and the like which may be
required by law or which are material to the conduct of its business, the
disposition of which could have a Material Adverse Effect on the Borrowers.

          (H)  Dividends and Other Distributions. Provide, make, declare or pay,
directly or indirectly, any dividend or other distribution of assets to
shareholders, partners or members (as applicable) of such Borrower, or retire,
redeem, purchase or otherwise acquire for value any capital stock or equity
interests (as applicable) of such Borrower; provided, however, the Borrowers may
                                            --------  -------
make a dividend of no more than $40 million to Knology, Inc. ("Knology") for the
purpose set forth in Section 2(i) of the First Supplement hereto, so long as
prior to making such dividend, identified equipment with a fair market value at
least equal to the amount of such dividend, determined within at least 90 days
of such proposed dividend, is pledged by Knology of Knoxville, Inc. to CoBank on
a first priority basis and Knology of Knoxville, Inc. has executed all
documents, including, without limitation, the form of security agreement
attached hereto as Exhibit 8(H), and UCC financing statements, and all other
                   ------------
items necessary to perfect such first-priority lien in favor of CoBank, and
delivered all legal opinions to such effect as CoBank shall request.

          (I)  Transactions with Affiliates. Directly or indirectly enter into
or permit to exist any transaction (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate (as
hereinafter defined) or with any director, officer or employee of such Borrower
or any Affiliate, except (i) as permitted under Subsection 8(J); (ii)
transactions in the ordinary course of and pursuant to the reasonable
requirements of the business of such Borrower or any of its Restricted
Subsidiaries and upon fair and reasonable terms which are fully disclosed to
CoBank and are no less favorable to such Borrower or such Restricted Subsidiary
than would be obtained in a comparable arm's length transaction with a person or
entity that is not an Affiliate; or (iii) payment of compensation to directors,
officers and employees in the ordinary course of business for services actually
rendered in their capacities as directors, officers and employees, provided such
compensation is reasonable and comparable with compensation paid by companies of
like nature and similarly situated. Notwithstanding the foregoing, upon the
election of CoBank, no payments may be made with respect to any items set forth
in clauses (i) and (ii) of the preceding sentence upon the occurrence and during
the continuation of a Potential Default or Event of Default.

          "Affiliate" means any person or entity: (i) directly or indirectly
controlling, controlled by, or under common control with, any Borrower; (ii)
directly or indirectly owning or holding five percent (5%) or more of any equity
interest in any Borrower; or (iii) five percent (5%) or more of whose voting
stock or other equity interest is directly or indirectly owned or held by any
Borrower. For purposes of this definition, "control" (including with correlative
meanings, the terms "controlling," "controlled by" and "under common control
with") means the possession directly or indirectly of the power to direct or
cause the direction of the management and policies of a person, whether through
the ownership of voting securities or by contract or otherwise.

                                       13
<PAGE>

          (J)  Management Fees and Compensation. Directly or indirectly pay any
management, consulting or other similar fees to any person, except (i) any such
fees to Affiliates of the Borrowers not exceeding $3,000,000 in the aggregate
for all Borrowers and their Restricted Subsidiaries with respect to services
actually rendered in any fiscal year and (ii) legal or consulting fees paid to
persons or entities that are not Affiliates of any Borrower or its Restricted
Subsidiaries for services actually rendered and in amounts typically paid by
entities engaged in such Borrower's or such Restricted Subsidiary's business.
Notwithstanding the foregoing, upon the election of CoBank, no payments
otherwise permitted under clause (i) may be made upon the occurrence and during
the continuation of a Potential Default or Event of Default.

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

          (A)  Payment Default. Any Borrower should fail to make any payment to
CoBank when due hereunder, under any Note, or under any other Loan Document to
which it is a party, or should fail to make any investment in CoBank required to
be made hereunder when due.

          (B)  Representations and Warranties. Any representation or warranty
made herein, in any Supplement or in any other Loan Document, or any factual
statement made in any certificate delivered in connection therewith shall prove
to have been false or misleading in any material respect on or as of the date
made or deemed made.

          (C)  Certain Affirmative Covenants. Any Borrower should fail to
perform or comply with any covenant set forth in Section 7 hereof (other than
Subsections 7(H)(3) through 7(H)(7)) and such failure continues for 30 days
after written notice thereof shall have been delivered by CoBank to such
Borrower.

          (D)  Other Covenants and Agreements. Any Borrower should fail to
perform or comply with Subsections 7(H)(3) through 7(H)(7) or any other covenant
or agreement contained herein or in any other Loan Document or should use the
proceeds of any Loan for an unauthorized purpose.

          (E)  Cross-Default. (i) The occurrence of an Event of Default under
any other Loan Document, (ii) the failure, after any applicable grace period, on
the part of any Borrower or any other entity, other than CoBank, to observe,
keep or perform any covenant or agreement contained in any other Loan Document,
or (iii) the failure, after any applicable grace period, on the part of any
Borrower or any of its Restricted Subsidiaries to observe, keep or perform any
covenant or agreement contained in any agreement (other than the Loan Documents)
between such entity and CoBank, including, without limitation, any guaranty,
loan agreement, security agreement, mortgage, deed to secure debt, or deed of
trust.

          (F)  Other Indebtedness. Any Borrower or any of its Restricted
Subsidiaries should fail to pay when due any indebtedness to any other person or
entity for borrowed money or any long-term obligation for the deferred purchase
price of property (including any Capital Lease) in a principal amount in excess
of $250,000 or any other event occurs which, under any

                                       14
<PAGE>

agreement or instrument relating to such indebtedness or obligation, has the
effect of accelerating or permitting the acceleration of such indebtedness or
obligation, whether or not such indebtedness or obligation is actually
accelerated or such person or entity commences the exercise of its remedies
against such Borrower or such Restricted Subsidiary or any of their respective
assets.

          (G)  Judgments. A judgment, decree, or order for the payment of money
in excess of $100,000 should be rendered against any Borrower or any of its
Restricted Subsidiaries and either: (i) enforcement proceedings should have been
commenced; (ii) a lien prohibited under Subsection 8(B) hereof shall have been
obtained; or (iii) such judgment, decree, or order should continue unsatisfied
and in effect for a period of 30 consecutive days without being vacated,
discharged, satisfied, or stayed pending appeal.

          (H)  Insolvency, Etc. Any Borrower or any of its Restricted
Subsidiaries should: (i) become insolvent or should generally not, or should be
unable to, or should admit in writing its inability to, pay its debts as they
come due; or (ii) suspend its business operations or a material part thereof or
make an assignment for the benefit of creditors; or (iii) apply for, consent to,
or acquiesce in the appointment of a trustee, receiver, or other custodian for
it or any of its property or, in the absence of such application, consent, or
acquiescence, a trustee, receiver, or other custodian is so appointed; or (iv)
commence or have commenced against it any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution, or liquidation
Law of any jurisdiction, which, in the case of a proceeding commenced against
any Borrower or any of its Restricted Subsidiaries, is not dismissed within 45
days.

          (I)  Security. Any security agreement or other agreement executed by
any Borrower or any other entity (other than CoBank) intended to create a valid
and perfected lien, security interest or security title in property as described
in a Supplement shall for any reason (other than upon payment in full of the
obligations secured thereby) fail (i) to create a valid and perfected first-
priority lien, security interest, or security title (subject only to such
exceptions as are therein permitted) as contemplated by the Supplement, or (ii)
to secure thereunder the obligations purported to be secured thereby. Any
guaranty described in a Supplement as guaranteeing the obligations of the
Borrowers hereunder shall fail for any reason to be the valid and binding
obligation of the guarantor (other than upon payment in full of the obligations
guaranteed thereby), or the guarantor should in any way contest or dispute the
validity and binding effect of any such guaranty.

          (J)  Change in Ownership of the Borrowers. Knology shall fail to own,
directly or indirectly, 100% of the issued and outstanding voting and other
capital stock in each Borrower.

          (K)  Licenses and Permits. (i) The loss, suspension or revocation of,
or failure to renew, any license or permit now held or hereafter acquired by any
Borrower or any of its Restricted Subsidiaries, if such loss, suspension,
revocation or failure to renew could reasonably be expected to have a Material
Adverse Effect on the Borrowers or (ii) receipt of notice from any regulatory or
Governmental Authority to the effect that such authority intends to replace the
management of any Borrower or any of its Restricted Subsidiaries or assume
control over any Borrower or such Restricted Subsidiary.

                                       15
<PAGE>

Once an Event of Default exists, it shall be deemed to continue, notwithstanding
any curative action by the Borrowers, unless and until CoBank, in its sole
discretion, shall state in writing that the Event of Default no longer exists or
has been waived.

     SECTION 10.  Remedies. Upon the occurrence and during the continuance of an
Event of Default or any Potential Default, CoBank shall have no obligation to
continue to extend credit to the Borrowers under any Supplement and may
discontinue doing so at any time without prior notice. Upon the occurrence of an
Event of Default under Subsection 9(H) hereof, the entire unpaid principal
balance of the Loans, all accrued interest thereon, and all other amounts
payable under this Agreement, all Supplements, all Notes and all other Loan
Documents and all other agreements between CoBank and the Borrowers shall become
immediately due and payable without protest, presentment, demand or further
notice of any kind, all of which are hereby expressly waived by the Borrowers.
In addition, upon the occurrence and during the continuance of any Event of
Default, CoBank may, upon notice to the Borrowers:

          (A)  Termination and Acceleration. Terminate any commitment and
declare the entire unpaid principal balance of the Loans, all accrued interest
thereon, and all other amounts payable under this Agreement, all Supplements,
and the other Loan Documents to be immediately due and payable. Upon such a
declaration, the unpaid principal balance of the Loans and all such other
amounts shall become immediately due and payable, without protest, presentment,
demand, or further notice of any kind, all of which are hereby expressly waived
by the Borrowers.

          (B)  Enforcement. Proceed to protect, exercise, and enforce such
rights and remedies as may be provided by this Agreement, any other Loan
Document or under applicable Laws. Each and every one of such rights and
remedies shall be cumulative and may be exercised from time to time, and no
failure on the part of CoBank to exercise, and no delay in exercising, any right
or remedy shall operate as a waiver thereof, and no single or partial exercise
of any right or remedy shall preclude any other or future exercise thereof, or
the exercise of any other right. Without limiting the foregoing, CoBank may hold
and/or set off and apply against the Borrowers' obligations to CoBank the
proceeds of any equity in CoBank, any cash collateral held by CoBank, or any
balances held by CoBank for the Borrowers' account (whether or not such balances
are then due).

          (C)  Application of Funds. Apply all payments received by it to the
Borrowers' obligations to CoBank in such order and manner as CoBank may elect in
its sole discretion; provided that any payments received from any guarantor or
                     --------
from any disposition of any collateral provided by such guarantor shall only be
applied against obligations guaranteed by such guarantor.

          (D)  Default Rate of Interest. In addition to the rights and remedies
set forth above and notwithstanding any Note and Supplement: (i) if prior to the
maturity of any loan the Borrowers fail to purchase any equity in CoBank when
required or fails to make any payment to CoBank when due, then at CoBank's
option in each instance, such obligation or payment shall bear interest from the
date due to the date paid at 4% per annum in excess of the rate of interest that
would otherwise be applicable to such obligation or payment, (ii) upon the
occurrence and during the continuance of an Event of Default, at CoBank's
option, the unpaid balances of the

                                       16
<PAGE>

Loans shall bear interest at 4% per annum in excess of the rate(s) of interest
that would otherwise be in effect on the Loans under the terms of the Note and
Supplement and (iii) after the maturity of any Loan, whether by reason of
acceleration or otherwise, the unpaid principal balance of the Loan (including
without limitation, principal, interest, fees and expenses) shall automatically
bear interest at 4% per annum in excess of the rate of interest that would
otherwise be in effect on the Loan under the terms of the Note and Supplement.
All interest provided for herein shall be payable on demand and shall be
calculated from the date such payment was due to the date paid on the basis of a
year consisting of 360 days.

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

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

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

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

                                       17
<PAGE>

If to CoBank, as follows:                     If to the Borrowers, as follows:

CoBank, ACB                                   1241 O.G. Skinner Drive
900 Circle 75 Parkway                         West Point, Georgia 31833
Suite 1400                                    Attn: Chief Financial Officer
Atlanta, Georgia 30339                        Fax No.: (706) 645-0148
Attn: Communications and Energy
       Banking Group                          With a copy to:
Fax No.: (770) 618-3202
                                              1241 O.G. Skinner Drive
                                              West Point, Georgia 31833
                                              Attn: General Counsel
                                              Fax No.: (706) 645-0148

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

     SECTION 16.  Effectiveness and Severability. This Agreement shall continue
in effect until: (i) all indebtedness and obligations of the Borrowers under
this Agreement, all Supplements, all Notes and all other Loan Documents shall
have been paid or satisfied; (ii) CoBank has no commitment to extend credit to
or for the account of the Borrowers under any Supplement; and (iii) either party
sends written notice to the other terminating this Agreement. Any provision of
this Agreement or any other Loan Document which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof or thereof.

     SECTION 17.  Regulatory Approvals. Upon any action by CoBank to commence
the exercise of remedies hereunder, or under the Supplements or other Loan
Documents, the Borrowers hereby undertake and agree on behalf of themselves to
cooperate and join with CoBank in any application to any regulatory body
(including the FCC or the PUC), administrative agency, court or other forum (any
such entity, a "Governmental Authority") with respect thereto and to provide
such assistance in connection therewith as CoBank may request, including,
without limitation, the preparation of filings and appearances of officers and
employees of the Borrowers before such Governmental Authority, in each case in
support of any such application made by CoBank, and the Borrowers shall not,
directly or indirectly, oppose any such action by CoBank before any such
Governmental Authority.

                                       18
<PAGE>

     SECTION 18.  Successors and Assigns. This Agreement, each Supplement, and
the other Loan Documents shall be binding upon and inure to the benefit of the
Borrowers and CoBank and their respective successors and assigns, except that
the Borrowers may not assign or transfer its rights or obligations under this
Agreement, any Supplement or any other Loan Document without the prior written
consent of CoBank.

     SECTION 19.  Consent to Jurisdiction. To the maximum extent permitted by
law, the Borrowers agree that any legal action or proceeding with respect to
this Agreement or any of the other Loan Documents may be brought in the courts
of the State of Colorado, or of the United States of America for the District of
Colorado, all as CoBank may elect. By execution of this Agreement, the Borrowers
hereby irrevocably submit to each such jurisdiction, expressly waiving any
objection it may have to the laying of venue by reason of its present or future
domicile. Nothing contained herein shall affect the right of CoBank to commence
legal proceedings or otherwise proceed against the Borrowers in any other
jurisdiction or to serve process in any manner permitted or required by law.

     SECTION 20.  Waiver of Jury Trial. THE BORROWERS AND COBANK HEREBY WAIVE
THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT, ANY SUPPLEMENT, ANY OTHER LOAN DOCUMENT,
OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT
AND THE LENDER/BORROWERS RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE BORROWERS AND COBANK
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS
RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS
AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED
FUTURE DEALINGS. THE BORROWERS AND COBANK FURTHER WARRANT AND REPRESENT THAT
EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE LOAN DOCUMENTS, OR TO ANY OTHER
DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS. IN THE EVENT OF LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. THE
BORROWERS AND COBANK ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND
WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF COBANK.

     SECTION 21.  Counterparts. This Agreement, each Supplement and any other
Loan Document may be executed in any number of counterparts and by the different
parties hereto in

                                       19
<PAGE>

separate counterparts, each of which when executed shall be deemed to be an
original and shall be binding upon all parties and their respective permitted
successors and assigns, and all of which taken together shall constitute one and
the same agreement.

                       [Signatures follow on next page.]

                                       20
<PAGE>

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

INTERSTATE TELEPHONE COMPANY                  GLOBE TELECOMMUNICATIONS, INC.

By:_________________________________
   Name:____________________________          By:______________________________
   Title:___________________________             Name:_________________________
                                                 Title:________________________

Attest:_____________________________
       Name:________________________          Attest:__________________________
       Title:_______________________                 Name:_____________________
                                                     Title:____________________

               [CORPORATE SEAL]
                                                           [CORPORATE SEAL]

                                              VALLEY TELEPHONE CO., INC.

                                              By:______________________________
                                                 Name:_________________________
                                                 Title:________________________

                                              Attest:__________________________
                                                     Name:_____________________
                                                     Title:____________________

                                                           [CORPORATE SEAL]

                      [Signatures continue on next page.]

                                       21
<PAGE>

                   [Signatures continue from previous page.]

                                        COBANK, ACB

                                        By:__________________________________
                                           Rick Freeman, Vice President

                                       22
<PAGE>

                                   EXHIBIT A
                                   ---------

                            COMPLIANCE CERTIFICATE

                    THIS COMPLIANCE CERTIFICATE is given by [Name], [chief
financial officer] of each of Globe Telecommunications, Inc., Interstate
Telephone Company and Valley Telephone Co., Inc. (the "Borrowers"), pursuant to
Subsection 7(H)(8) of that certain Master Loan Agreement, dated as of June 29,
2001, (the "MLA"), by and between the Borrowers and CoBank, ACB.

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

                    I hereby certify as follows:

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

2.       Attached hereto as Annex A are the [audited/unaudited]
                            -------
         [annual/quarterly] financial statements of the Borrowers for the fiscal
         [year/quarter] ended ______________, as required by Subsection
         [7(H)(1)/(2)] of the MLA. Such financial statements were prepared in
         accordance with GAAP consistently applied (except for the omission of
         footnotes and for the effect of normal year-end audit adjustments) and
         in a format that demonstrates any accounting or formatting changes that
         may be required by various jurisdictions in which the business of the
         Borrowers is conducted (to the extent not inconsistent with GAAP);

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

4.       The representations and warranties contained in Section 6 of the MLA
         are true and correct in all material respects as of the date of this
         Certificate, except as disclosed on Annex C hereto;
                                             -------

5.       I have reviewed the activities of the Borrowers during the fiscal
         [year/quarter] ended ______________, and consulted with appropriate
         representatives of the Borrowers and all other parties (other than
         CoBank) to the Loan Documents, and reviewed the Loan Documents (as
         defined in the MLA). As of the date of this Compliance Certificate, I
         am not aware of any condition, event or act which constitutes a
         Potential Default or an Event of Default under the MLA, except as
         disclosed on Annex D hereto; and
                      -------

                                       23
<PAGE>

6.       Attached hereto as Annex E are the legal descriptions of all real
                            -------
         property purchased or leased by the Borrowers or any Restricted
         Subsidiary since the date of the last Compliance Certificate submitted
         pursuant to the MLA.

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

                                    --------------------------------------------
                                    [Name], [Chief financial officer] of each of
                                    Globe Telecommunications, Inc., Interstate
                                    Telephone Company and Valley Telephone Co.,
                                    Inc.

                                       24
<PAGE>

                                 Schedule 6(Q)

                            RESTRICTED SUBSIDIARIES

                            Number and Type            Percentage of
         Name of          of Equity Interests   Outstanding Equity Interests
  Restricted Subsidiary    Beneficially Owned              Owned
  ---------------------    ------------------              -----
     ITC Globe, Inc.        1,000 shares of                 100%
                              common stock      (by Globe Telecommunications,
                                                            Inc.)

                                       25
<PAGE>

                                 Schedule 6(S)

                          EXISTING CREDIT AGREEMENTS

                                     None.

                                       26
<PAGE>

                                 Exhibit 8(H)

             FORM OF KNOLOGY OF KNOXVILLE, INC. SECURITY AGREEMENT

                                [see attached]

                                       27<PAGE>

                                                                 EXHIBIT 10.1.1

                                                              Loan No. ML 0883T1

                               FIRST SUPPLEMENT
                         TO THE MASTER LOAN AGREEMENT

     THIS FIRST SUPPLEMENT (this "First Supplement") to the Master Loan
Agreement dated as of June 29, 2001 (as the same may be amended, modified,
supplemented, extended or restated from time to time, the "MLA"), dated as of
June 29, 2001, is made by and between CoBANK, ACB ("CoBank") and GLOBE
TELECOMMUNICATIONS, INC., INTERSTATE TELEPHONE COMPANY and VALLEY TELEPHONE CO.,
INC. (collectively, the "Borrowers").

     SECTION 1. The Loan Commitment. On the terms and conditions set forth in
the MLA and this First Supplement, CoBank agrees to make a loan to the Borrowers
(the "Loan"), by means of one or more advances in an amount not to exceed
$40,000,000 (the "Commitment"). All of the Borrowers shall be jointly and
severally liable for the Loan, however incurred. References to the Borrowers
with respect to the Loan or any portion thereof shall mean each Borrower on a
joint and several basis. Under the Commitment, amounts borrowed and later repaid
may not be reborrowed. The Commitment shall expire at 12:00 noon Eastern time on
June 29, 2002, or on such later date as CoBank may, in its sole discretion,
authorize in writing (the "Termination Date").

     SECTION 2. Purpose. The proceeds of the Loan shall be used by the Borrowers
(i) subject to the conditions set forth in Section 8(H) of the MLA hereof, to
make dividends to Knology to be used to make equity contributions to Knology of
Knoxville, Inc., (ii) to finance capital expenditures, working capital and
general corporate purposes of the Borrowers and (iii) to pay the expenses and
fees incurred by the Borrowers in connection with the closing of the Loan. The
Borrowers agree that the proceeds of the Loan shall be used only for the
purposes set forth in this Section 2.

     SECTION 3. Availability. Subject to Section 2 of the MLA, Section 9 hereof
and the conditions set forth in the MLA, advances will be made prior to the
Termination Date as provided in Section 1 of the MLA on a date selected by the
Borrower (the "Funding Date").

     SECTION 4. Fees.

          (A)  Origination and Structuring Fee. In consideration of the
Commitment, the Borrowers agree to pay to CoBank a loan structuring fee in the
amount of $100,000 and a loan origination fee in the amount of $200,000. $25,000
of the loan structuring fee has been previously paid to CoBank and the remaining
$75,000 shall be due and payable upon execution and delivery of this First
Supplement. The entire amount of the loan origination fee shall be due and
payable upon the earlier to occur of (i) 60 days hereafter and (ii) the
satisfaction of all conditions precedent to an advance hereunder.
<PAGE>

          (B)  Commitment Fee. The Borrowers shall pay to CoBank a commitment
fee on the average daily unused portion of the Commitment at a rate of 0.375%
per annum (calculated on a 360-day basis), payable quarterly in arrears on the
20/th/ day of each January, April, July and October, commencing October 20,
2001; provided, however, that the last such payment shall be due and payable on
the Termination Date.

     SECTION 5. Interest.

          (A)  Rate Options; Etc. The unpaid principal balance of each advance
under the Loan shall accrue interest at the rate or rates determined or selected
by the Borrowers in accordance with this Section 5(A).

               (1)  Variable Rate Option. As to the portion of the unpaid
     principal balance of the Loan selected by the Borrowers (such portion, and
     each portion selected pursuant to Section 5(A)(2) and Section 5(A)(3)
     below, is hereinafter referred to as a "Portion" of the Loan), interest
     shall accrue pursuant to this variable rate option at a variable annual
     interest rate (the "Variable Rate") equal at all times to the rate
     established by CoBank on the first Business Day of each week. The rate of
     interest so established by CoBank may not exceed CoBank's National Variable
     Rate (as hereinafter defined) in effect on the date so established and
     shall be effective from and including the first Business Day of each week
     to and excluding the first Business Day of the next week. Any change in the
     National Variable Rate shall be effective on the date established by
     CoBank, and CoBank shall notify the Borrowers promptly after any such
     change. The term "National Variable Rate" shall mean the rate of interest
     established by CoBank from time to time as its National Variable Rate. The
     National Variable Rate is intended by CoBank to be a reference rate, and
     CoBank may charge other borrowers rates at, above, or below that rate.

               (2)  LIBOR Option. As to any Portion or Portions of the Loan
     selected by the Borrowers, in minimum amounts of $100,000, interest shall
     accrue pursuant to this LIBOR Option at a fixed rate per annum equal to
     LIBOR (as hereinafter defined) plus the LIBOR Margin applicable on the
                                    ----
     first day of the applicable Interest Period (as hereinafter defined) or
     applicable from time to time as otherwise provided herein. Under this
     option: (i) rates may be fixed for Interest Periods (as hereinafter
     defined) of 1, 2, 3, or 6 months, as selected by the Borrowers; and (ii)
     rates may only be fixed on a Banking Day (as hereinafter defined) or, at
     the option of the Borrowers, on two (2) Banking Days' prior notice. "LIBOR"
     shall mean the rate indicated by Telerate at Page 3750 (rounded upward to
     the nearest thousandth) as having been quoted by the British Bankers
     Association at 11:00 a.m. London time on the date the Borrowers elect to
     fix a rate under this option for the offering of U.S. dollar deposits in
     the London interbank market for the Interest Period designated by the
     Borrowers. "Banking Day" shall mean a day on which CoBank is open for
     business, dealings in U.S. dollar deposits are being carried out in the
     London interbank market, and banks are open for business in New York City
     and London, England. "Interest Period" shall mean the time period chosen by
     the Borrowers during which the chosen fixed rate is to apply to a Portion
     of the

                                       2
<PAGE>

     Loan, which period commences on the day the Borrowers elect to fix a rate
     under this Section 5(A)(2) or under Section 5(A)(3) (or, at the option of
     the Borrowers, two (2) Banking Days later). The Interest Period for
     Portions accruing interest at the LIBOR Option rate shall be 1, 2, 3 or 6
     months, as selected by the Borrowers, and the Interest Period shall end on
     the day in the next calendar month or in the month that is 2, 3, or 6
     months thereafter which corresponds numerically with the day the Interest
     Period commences; provided, however, that: (a) in the event such ending day
     is not a Banking Day, such period shall be extended to the next Banking Day
     unless such next Banking Day falls in the next calendar month, in which
     case it shall end on the preceding Banking Day; and (b) if there is no
     numerically corresponding day in the month, then such period shall end on
     the last Banking Day in the relevant month. In the event Telerate ceases to
     provide such quotations or materially changes the form or substance of such
     quotations (as determined by CoBank), then CoBank will notify the Borrower
     and the parties hereto will agree upon a substitute basis for obtaining
     such quotations.

"LIBOR Margin" shall mean, for each Calculation Period, the applicable per annum
percentage set forth in the pricing table below opposite the Total Leverage
Ratio of the Borrowers, measured on a consolidated basis:

                    Total Leverage Ratio:       LIBOR Margin:
                    --------------------        ------------

                        4.00:1 * 5.00:1             3.00%

                        3.00:1 * 4.00:1             2.50%

                        2.00:1 * 3.00:1             2.00%

                        * 2.00:1                    1.50%

"Calculation Period" shall mean each period commencing on each Adjustment Date
and ending on the day preceding each subsequent Adjustment Date. "Adjustment
Date" shall mean each date which is the fifth Business Day after receipt by
CoBank of (i) each Compliance Certificate delivered by the Borrowers pursuant to
Section 7(H)(8) of the MLA and (ii) if a decrease in the LIBOR Margin is
warranted, a written notice from the Borrowers to decrease such margin.

                    (3)  Quoted Rate Option. As to any Portion or Portions of
     the Loan selected by the Borrowers, interest shall accrue pursuant to this
     quoted rate option at a fixed annual interest rate (the "Quoted Rate") to
     be quoted by CoBank in its sole and absolute discretion. Under this option,
     the interest rate on any Portion of the Loan, in minimum amounts of
     $100,000, may be fixed for such Interest Periods as may be agreeable to
     CoBank in its sole discretion in each instance; provided, however, that
                                                     --------  -------
     such Interest Period shall not extend beyond the Maturity Date (as
     hereinafter defined) and such Interest Period may only expire on a Business
     Day.

                    (4)  Selection And Changes of Rates. The Borrowers shall
     select the rate option applicable to the Loan on the date the Loan is
     advanced. Thereafter, with respect to the Portion of the Loan accruing
     interest at the Variable Rate, the Borrowers

*  less than

                                       3
<PAGE>

     may, on any Business Day subject to Section 5(A)(3) above, elect to have a
     Quoted Rate apply to all or a part of such Portion in the minimum amounts
     provided above, and on any Banking Day, subject to Section 5(A)(2), elect
     to have a LIBOR Option rate apply to all or a part of such Portion in the
     minimum amounts provided above. In addition, with respect to all or a part
     of any Portion of the Loan accruing interest pursuant to the Quoted Rate or
     LIBOR Option rate, the Borrowers may, subject to Sections 5(A)(2) and
     5(A)(3) above, on the last day of the Interest Period for such Portion,
     elect to fix the interest rate accruing on all or a part of such Portion
     for an Interest Period pursuant the Quoted Rate or the LIBOR Option rate.
     In the absence of any such election, interest shall automatically accrue on
     such Portion of the Loan at the Variable Rate. From time to time the
     Borrowers may elect, on any Business Day prior to the expiration of the
     Interest Period for any Portion of the Loan accruing interest pursuant to
     the Quoted Rate or the LIBOR Option rate, and upon payment of a Surcharge
     or a LIBOR Surcharge, as applicable (each as defined in, and calculated
     pursuant to, Section 6 hereof) to convert all, but not part, of such
     Portion of the Loan so that it accrues interest at the Variable Rate or any
     combination of the Variable Rate and the fixed rate options described in
     Sections 5(A)(2) and 5(A)(3) hereof in accordance with the terms thereof.
     Notwithstanding any other provision hereof to the contrary, the Borrowers
     may have outstanding at any time not more than an aggregate of five (5)
     separate Portions. Except for the initial selection, all interest rate
     selections provided for herein shall be made by telephonic or written
     request of an authorized employee of the Borrowers by 12:00 noon, Eastern
     time, on the relevant day. In taking actions upon telephonic requests,
     CoBank shall be entitled to rely on (and shall incur no liability to the
     Borrowers in acting upon) any request made by a person identifying himself
     or herself as one of the persons authorized by the Borrowers to select
     interest rates hereunder.

               Upon the occurrence and during the continuance of an Event of
     Default, as the Interest Periods for Portions of the Loan accruing interest
     at a Quoted Rate or a LIBOR Option rate expire, at CoBank's option, such
     Portions of the Loan shall be converted to the Variable Rate option and the
     Quoted Rate and the LIBOR Option rate will not be available to the
     Borrowers until all Events of Default are no longer continuing.

               (5)  Accrual of Interest. Interest shall accrue pursuant to the
     Quoted Rate option or the LIBOR Option rate selected by the Borrowers from
     and including the first day of the applicable Interest Period to but
     excluding the last day of such Interest Period. If the Borrowers elect to
     refix the interest rate on any Portion of the Loan accruing interest at the
     Quoted Rate or the LIBOR Option rate pursuant to Section 5(A)(4) above, the
     first day of the new Interest Period shall be the last day of the preceding
     Interest Period. In the absence of any such election, interest shall accrue
     on such Portion at the Variable Rate from and including the last day of
     such Interest Period. If the Borrowers elect to convert from either of the
     fixed rate options described in Sections 5(A)(2) or 5(A)(3) hereof to the
     Variable Rate or another fixed rate option pursuant to Section 5(A)(4) upon
     payment of the Surcharge or LIBOR Surcharge as provided in Section 5(A)(4)
     above, interest at the applicable fixed rate shall accrue

                                       4
<PAGE>

     through the day before such conversion and either (i) the first day of any
     new Interest Period shall be the date of such conversion, or (ii) interest
     at the Variable Rate shall accrue on the Portion of the Loan so converted
     from and including the date of conversion.

          (B)   Payment and Calculation. Interest shall be payable quarterly in
arrears by the twentieth (20th) day of the month following the end of each
calendar quarter. Interest shall be calculated on the actual number of days the
Loan is outstanding on the basis of a year consisting of 360 days. In
calculating accrued interest, the date the advance under the Loan is made shall
be included and the date any principal amount of the Loan is repaid or prepaid
shall be excluded as to such amount.

     SECTION 6. Prepayment and Surcharge. The Borrowers may, on one Business
Day's prior written notice, prepay in full or in part any Portion of the Loan
accruing interest at a Variable Rate and, may, on two Business Days' prior
written notice, prepay in full or in part any Portion of the Loan accruing
interest at either of the fixed rate options described in Sections 5(A)(2) or
5(A)(3). Notwithstanding the foregoing, the Borrowers' right to prepay any
amount accruing interest at a Quoted Rate (whether such payment is made
voluntarily, as a result of an acceleration, or otherwise) shall be conditioned
upon the payment of a prepayment Surcharge as defined and calculated below and
the Borrowers right to prepay any amount accruing interest at a LIBOR Option
rate (whether such payment is made voluntarily, as a result of an acceleration
or otherwise) shall be conditioned upon the payment of a LIBOR Surcharge as
defined and calculated below. Unless otherwise agreed, all prepayments will be
applied to principal installments on a pro rata basis and to such Portions of
the Loan as CoBank shall specify. For purposes of calculating the Surcharge and
LIBOR Surcharge provided for in this Section 6, early conversion of a Portion of
the Loan accruing interest pursuant to a Quoted Rate or a LIBOR Option rate so
that it accrues interest at a different rate pursuant to Section 5(A)(4) shall
be deemed a prepayment in full of that portion of the Loan. Upon any such early
conversion or any prepayment of any Portion of the Loan accruing interest
pursuant to a Quoted Rate, and as a condition to any voluntary prepayment, the
Borrowers shall pay to CoBank, on the date of such prepayment or early
conversion, a surcharge ("Surcharge") in an amount equal to the sum of: (a) the
present value of any funding losses incurred or imputed by CoBank to have been
incurred as a result of such prepayment for the period such amount was scheduled
to have been outstanding at such Quoted Rate; plus (b) 1/2 of 1 percent (0.50%)
on the amount prepaid or converted. Upon any such early conversion or any
prepayment of any Portion of the Loan accruing interest pursuant to the LIBOR
Option rate, and as a condition to any voluntary prepayment, the Borrowers shall
pay to CoBank, on the date of such prepayment or early conversion, a surcharge
("LIBOR Surcharge") in an amount equal to the present value of any funding
losses incurred or imputed by CoBank to have been incurred as a result of such
prepayment for the period such amount was scheduled to have been outstanding at
such LIBOR Option rate. Such Surcharge and such LIBOR Surcharge shall be
determined and calculated in accordance with methodology established by CoBank
which shall be customary for the industry and consistent with CoBank's past
practice for calculating such surcharge.

                                       5
<PAGE>

     SECTION 7. Repayment of the Loan.

          (A)  Scheduled Repayments. Commencing on July 20, 2002 and on the
twentieth (20th) day of each October, January, April and July occurring
thereafter, the Borrower shall repay the principal amount of the Loan in 36
consecutive payments equal to the amount of principal scheduled to be repaid on
such date as set forth on Schedule 7(A) hereto, with the last such quarterly
                          -------------
principal payment installment due and payable on April 20, 2011 (the "Maturity
Date"). If any repayment date is not a Business Day, then the principal
repayment then due shall be paid on the next Business Day and shall continue to
accrue interest until paid. If not sooner required to be repaid, all advances
under the Loan and all other amounts due and owning hereunder and under the
other Loan Documents relating to the Loan shall be due and payable on the
Maturity Date.

          (B)  Mandatory Repayments from Net Proceeds of Asset Dispositions.
Within 180 days following receipt of the Net Proceeds (as hereafter defined),
from any Asset Disposition (as hereinafter defined), the Borrowers shall repay
the outstanding principal balance of the Loan in an amount equal to such Net
Proceeds to the extent that such proceeds are not reinvested within such period
in similar equipment or assets that are used or useful in the business of the
Borrower. "Asset Disposition" means the disposition, whether by sale, lease,
transfer, loss, damage, destruction, condemnation, or otherwise of any or all of
the assets of the Borrowers or any of their subsidiaries other than (i) sales of
inventory in the ordinary course of business, (ii) dispositions of obsolete
equipment not used or useful in the business of the Borrowers or any of their
subsidiaries and (iii) sales of Investments permitted under Subsection 8(E) of
the MLA for fair value. "Net Proceeds" means cash proceeds received by the
Borrowers or any of their subsidiaries from any Asset Disposition (including
insurance proceeds, awards of condemnation, and payments under notes or other
debt securities received in connection with any Asset Disposition), net of (i)
the costs of such sale, lease, transfer or other disposition (including taxes
attributable to such sale, lease, transfer or other disposition) and (ii)
amounts applied to repayment of Indebtedness (other than Indebtedness
outstanding hereunder) secured by a lien on the asset or property disposed and
permitted under Section 8(A)(ii) of the MLA.

          (C)  Application of Repayments; Related Interest and Surcharge
Payments. All repayments made pursuant to this Section 7 shall be applied to
such Portions of the Loan as the Borrowers shall direct in writing and, in the
absence of such direction, shall first be applied to the Portion of the Loan
accruing interest pursuant to the Variable Rate option and then to such Portions
of the Loan accruing interest at either of the fixed rate options as the
Borrowers and CoBank shall agree. At the time of each mandatory repayment
pursuant to this Section 7, the Borrowers shall pay all accrued and unpaid
interest on the amount repaid, and any Surcharge or LIBOR Surcharge due pursuant
to Section 7 in connection with such repayment.

     SECTION 8. Security. The Loan is secured by (i) that certain Stock Pledge
Agreement, dated as of even date herewith, made by and between Globe
Telecommunications, Inc. ("Globe") and CoBank (as the same may be amended,
modified, supplemented, extended or

                                       6
<PAGE>

restated from time to time, the "Globe Pledge Agreement"), pursuant to which
Globe has granted to CoBank a first-priority lien and security interest in all
of its now owned or hereafter acquired capital stock or voting securities in ITC
Globe, (ii) that certain Security Agreement, dated as of even date herewith,
made by and between the Borrowers and CoBank (as the same may be amended,
modified, supplemented, extended or restated from time to time, the "Borrowers
Security Agreement"), pursuant to which the Borrowers have granted to CoBank a
first-priority lien and security interest in substantially all of their now-
owned and hereafter-acquired personal property, (iii) that certain Continuing
Guaranty, dated as of even date herewith, made by ITC Globe for the benefit of
CoBank (as the same may be amended, modified, supplemented, extended or restated
from time to time, the "ITC Globe Guaranty"), (iv) that certain Stock Pledge
Agreement, dated as of even date herewith, made by and between Knology and
CoBank (as the same may be amended, modified, supplemented, extended or restated
from time to time, the "Knology Pledge Agreement"), pursuant to which Knology
has granted to CoBank a first-priority lien and security interest in all of its
now owned or hereafter acquired capital stock or voting securities in the
Borrowers, and (v) those certain Deeds to Secure Debt, dated as of even date
herewith, made by each of Valley Telephone Company, Inc. and Interstate
Telephone Company, Inc. in favor of CoBank (as the same may be amended,
modified, supplemented, extended or restated from time to time, the "Deeds to
Secure Debt"), pursuant to which each of Valley Telephone Company, Inc. and
Interstate Telephone Company, Inc. has granted to CoBank a first-priority lien
and security interest in substantially all of its now-owned and hereafter-
acquired real property.

     The ITC Globe Guaranty is secured by that certain Security Agreement, dated
as of even date herewith, made by and between ITC Globe and CoBank (as the same
may be amended, modified, supplemented, extended or restated from time to time,
the "ITC Globe Security Agreements"), pursuant to which ITC Globe has granted to
CoBank a first-priority lien and security interest in certain of its personal
property.

     To the extent that the Borrowers shall use the proceeds of the Loan for the
purpose set forth in Section 2(i) hereof, the Loan shall be further secured by
that certain Security Agreement, made by and between Knology of Knoxville and
CoBank (as the same may be amended, modified, supplemented, extended or restated
from time to time, the "Knology of Knoxville Security Agreement"), pursuant to
which Knology of Knoxville has granted to CoBank a first-priority lien and
security interest in all personal property acquired under the terms and
conditions of Section 8(H) of the MLA, substantially in the form set forth on
Exhibit 8(H) of the MLA.
------------

     SECTION 9. Additional Conditions Precedent. In addition to the conditions
precedent set forth in the MLA, CoBank's obligation to make an advance under the
Loan shall be conditioned upon the satisfaction of each of the following
conditions precedent:

          (A)   No Material Adverse Change; Due Diligence. That from March 31,
2001, to the date of such advance, there shall not have occurred any event which
has had or would be reasonably likely to have a Material Adverse Effect on the
Borrowers, taken as a whole, and CoBank shall have been satisfied, in its sole
discretion, of the results of any due diligence review made by CoBank or its
agents or attorneys in connection with the Loan.

                                       7
<PAGE>

          (B)  Representations and Warranties. That the representations and
warranties of the Borrowers and any other party (except CoBank) contained in the
MLA, this Supplement and the other Loan Documents are true and correct in all
material respects on and as of the date of such advance, as though made on and
as of such date.

          (C)  Advance Certificate. That CoBank receive a certificate, in the
form of Exhibit A attached hereto, dated as of the Funding Date, from an
        ---------
appropriate officer of each of the Borrowers as to, among other things, the
continuing truth and accuracy of the representations and warranties of the
Borrowers under the Loan Documents to which it is a party and the satisfaction
of each of the conditions applicable to the making of the advance under the
Loan.

          (D)  Capital Contribution to CoBank. That the Borrowers have acquired
non-voting participation certificates in CoBank in an initial amount of $1,000.

          (E)  Other Information. That CoBank receive such other information
regarding the condition, financial or otherwise, and operations of the Borrowers
as CoBank shall reasonably request and such other certificates or documents as
CoBank shall reasonably request.

                   [Signatures appear on the following page]

                                       8
<PAGE>

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

CoBANK, ACB                            GLOBE TELECOMMUNICATIONS, INC.

By:__________________________________  By:______________________________________
   Rick Freeman, Vice President        Name:____________________________________
                                          Title:________________________________

                                       Attest:__________________________________
                                              Name:_____________________________
                                              Title:____________________________

                                                          [CORPORATE SEAL]

                                       INTERSTATE TELEPHONE COMPANY

                                       By:______________________________________
                                       Name:____________________________________
                                          Title:________________________________

                                       Attest:__________________________________
                                              Name:_____________________________
                                              Title:____________________________

                                                          [CORPORATE SEAL]

                                       VALLEY TELEPHONE CO., INC.

                                       By:______________________________________
                                       Name:____________________________________
                                          Title:________________________________

                                       Attest:__________________________________
                                              Name:_____________________________
                                              Title:____________________________

                                                          [CORPORATE SEAL]
<PAGE>

                                   EXHIBIT A

                              ADVANCE CERTIFICATE

     THIS CERTIFICATE is given by _______________, the _________________________
of each of GLOBE TELECOMMUNICATIONS, INC., INTERSTATE TELEPHONE COMPANY and
VALLEY TELEPHONE CO., INC. (the "Borrowers"), pursuant to Section 5 of that
certain Master Loan Agreement, dated as of June 29, 2001 (the "MLA"), and
pursuant to Section 9(C) of that certain First Supplement to the Master Loan
Agreement, dated as of June 29, 2001 (the "First Supplement"), by and between
CoBank, ACB ("CoBank") and the Borrowers. Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the MLA and
in the First Supplement.

     I hereby certify as follows:

     1.   I am the ______________________ of each of the Borrowers and as such
possess the knowledge and authority to certify to the matters herein set forth,
and the matters herein set forth are true and accurate to the best of our
present knowledge, information and belief after due inquiry;

     2.   All representations and warranties of the Borrowers contained in the
MLA and the other Loan Documents are true and correct in all material respects
on and as of the date hereof;

     3.   No Potential Default or Event of Default exists as of the date hereof
or will result from the making of the advance with respect to which this
Certificate is delivered; and

     4.   Each of the conditions specified in Section 5 of the MLA, and in
Section 9 of the First Supplement, required to be satisfied on or prior to the
date of the making of the advance under the Loan has been fulfilled as of the
date hereof.
<PAGE>

     IN WITNESS WHEREOF, I have executed in my corporate, not individual
capacity, this Certificate as of ________, 2001.

                                       GLOBE TELECOMMUNICATIONS, INC.

                                       By:______________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                       INTERSTATE TELEPHONE COMPANY

                                       By:______________________________________
                                          Name:_________________________________
                                          Title:________________________________

                                       VALLEY TELEPHONE COMPANY., INC.

                                       By:______________________________________
                                          Name:_________________________________
                                          Title:________________________________
<PAGE>

                                 Schedule 7(A)

                             AMORTIZATION SCHEDULE

                      Principal Payment Date       Amount
                      ----------------------       ------

                  July 20, 2002                      $787,984
                  October 20, 2002                    802,759
                  January 20, 2003                    817,811
                  April 20, 2003                      833,145
                  July 20, 2003                       848,766
                  October 20, 2003                    864,680
                  January 20, 2004                    880,893
                  April 20, 2004                      897,410
                  July 20, 2004                       914,236
                  October 20, 2004                    931,378
                  January 20, 2005                    948,842
                  April 20, 2005                      966,632
                  July 20, 2005                       984,757
                  October 20, 2005                  1,003,221
                  January 20, 2006                  1,022,031
                  April 20, 2006                    1,041,194
                  July 20, 2006                     1,060,717
                  October 20, 2006                  1,080,605
                  January 20, 2007                  1,100,867
                  April 20, 2007                    1,121,508
                  July 20, 2007                     1,142,536
                  October 20, 2007                  1,163,959
                  January 20, 2008                  1,185,783
                  April 20, 2008                    1,208,016
                  July 20, 2008                     1,230,667
                  October 20, 2008                  1,253,742
                  January 20, 2009                  1,277,249
                  April 20, 2009                    1,301,198
                  July 20, 2009                     1,325,595
                  October 20, 2009                  1,350,450
                  January 20, 2010                  1,375,771
                  April 20, 2010                    1,401,567
                  July 20, 2010                     1,427,846
                  October 20, 2010                  1,454,618
                  January 20, 2011                  1,481,892
                  April 20, 2011                    1,509,675
                                                  -----------

                  Total                           $40,000,000

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