| 1.   | "Adjusted Cash Flow" means EBITDA less CAPEX. |
|----------------|-----------------------------------------------|

| 2.   | "Annual Award" means the total annual cash award earned under the provisions of this Plan. |
|----------------|--------------------------------------------------------------------------------------------|

| 3.   | "Board of Directors" or "Board" means the Board of Directors of the Company. |
|----------------|------------------------------------------------------------------------------|

| 4.   | "Chair" means the Chair of the Board of the Company. |
|----------------|------------------------------------------------------|

| 5.   | "Committee" or "Compensation Committee" means a committee appointed by and responsible to the Board to administer this Plan, among other things, and whose  members shall be ineligible to participate in this Plan. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | "Company" means Hickory Tech Corporation, a Minnesota corporation and any successor thereto, including all Subsidiaries. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------|

| 7.   | "EBITDA" means earnings before interest expense, income taxes, depreciation, and amortization, and it includes employee Team Award expense. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| 8.   | "EBITDA Minus CAPEX" means EBITDA minus the capital and expenditures for   property, plant and equipment, and capitalized software and any other capitalized expenditures approved by the Compensation Committee to be included in this definition. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | "Net Income" means after-tax net income as defined by Generally Accepted Accounting Principles. |
|----------------|------------------------------------------------------------------------------------------------------|

| 10.   | "Participant" means an executive of the Company who has been selected to participate in the Plan. |
|-----------------|---------------------------------------------------------------------------------------------------|

| 11.   | "Performance Account" means an account maintained in the name of a Participant with credits in Company stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| 12.   | "Plan" means the HickoryTech Executive Incentive Plan, as stated herein and as further amended from time to time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| 13.   | "Plan Year" means any fiscal year of the Company for which the Plan is in effect. |
|-----------------|-----------------------------------------------------------------------------------|

| 14.   | "Retirement" means termination for any reason (other than death or permanent and total disability) after attaining age 55 with ten years of service or after attaining age 62 irrespective of service. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | "Revenue" means after-elimination operating revenue as defined by Generally Accepted Accounting Principles. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| 16.   | "Subsidiary" means a corporation, the majority of whose stock is owned by the Company. |
|-----------------|---------------------------------------------------------------------------------------------|

| 17.   | "Trustee" means Trustee for the Trust under the HickoryTech Corporation Executive Plan. This Trust holds shares of Company Stock for the eligible Participants’ Performance Award Accounts. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| A. | Annual Award Opportunity |
|----|--------------------------|

----

|   | Position    |   | Base Salary |    |   | Target Award % |   |   | Target Award |   |
|--------|-------------|--------|-------------|---------|--------|----------------|--------|--------|--------------|--------|
|   |        |   |        |    |   |           |   |   |         |   |
|   | Executive A |   | $           | 150,000 |   |           |   | 40     | %            |   | $ | 60,000 |   |
|   | Executive B |   | $           | 120,000 |   |           |   | 30     | %            |   | $ | 36,000 |   |
|   | Executive C |   | $           | 98,000  |   |           |   | 25     | %            |   | $ | 24,500 |   |

| 1.   | Annual Award make-up will reflect the impact of the Participant's position and performance on the operating results of the Company.  As such, award make-up may vary among positions. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |        | Percent of Award Relating to Organizational Performance |                        |
|--------|-------------|---------------------------------------------------------|-----------------------------|
|   | Position    |                                                    | Corporate Financial Results |   |   | Subsidiary or Division Financial Results |   |
|   |        |                                                    |                        |   |   |   |   |
|   | Executive A |                                                    |                        | 100 | % |   |   | -- |   |
|   | Executive B |                                                    |                        | 25 | % |   |   | 75 | % |
|   | Executive C |                                                    |                        | 45 | % |   |   | 55 | % |

|   | 2. | Each award segment will be determined separately, and the resulting awards will be aggregated into a total award. |
|--------|----|-------------------------------------------------------------------------------------------------------------------|

|   | 3. | Organizational performance will reflect equally on Participant awards. |
|--------|----|------------------------------------------------------------------------|

----

| D. | Organizational Goals |
|----|----------------------|

| 1.   | Organizational goals will be established in the areas of financial achievement or  operational achievement.  These areas will be weighted and the weightings will be reviewed annually and may be adjusted at the time of review. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Goals will be established prior to the start of the fiscal year for purposes of the Plan and approved by the Board of Directors.  Such goals will relate to, but may not necessarily be, the Company's annual operating budget goals. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | Organizational performance will be evaluated in terms of actual versus planned results for each result area. |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | (i) | The target award for each result area will be reduced 3% for each 1% by which actual performance is less than planned performance. No award will be paid for a results area if actual performance is less than 85% of planned performance. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The target award for each organizational results area, except for the EBITDA results area, will be increased 3% for each 1% by which actual performance exceeds planned performance. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii) | The target award for the EBITDA results area will be increased 3% for each 1% by which actual performance exceeds planned performance up to 101%. The target award for the EBITDA results area will be increased by 10% for each 1% by which actual performance exceeds planned performance for EBITDA achievement over 101%. |
|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | The sum of awards for all results areas will be payable as the organizational award. |
|--------|----|--------------------------------------------------------------------------------------|

|   | c. | Award calculations will be interpolated where actual results are other than even percentages of the planned amount. |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | d. | There will be a cap, or maximum, for award payments as a result of actual performance that exceeds the planned amount.  This cap shall be 200% payout maximum for each award segment. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 | (Assume $20,000 target organizational award)  |       |
|----------------------|----------------------------------------------------|------------|
|                 |                                               | Net Income |   |   | Revenue |   |   | EBITDA |   |   Total Award |   |
|                 |                                               |       | (45%) |   |   |   | (30%) |   |   |   | (25%) |   |   |   |   |
| Target Award         |                                               | $          | 9,000 |   |   | $ | 6,000 |   |   | $ | 5,000 |   |   |   |   |
| Actual % of Plan     |                                               |       | 95 | % |   |   | 250 | % |   |   | 110.7 | % |   |   |   |
| Adjustment to Target |                                               |       | 85 | % |   |   | 200 | % |   |   | 200 | % |   |   |   |
| Award                |                                               | $          | 7,650 |   |   | $ | 12,000 |   |   | $ | 10,000 |   | $ | 29,650 |   |
|                 |                                               |       |   |   |   |   |   |   |   |   |   |   |   | (148% | )  |

|   | e. | A review of the award payouts will be made by the Compensation Committee.  In the event that a one-time occurrence affects the year-end organization's performance, the Compensation Committee may review and adjust award payouts, if determined appropriate. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                  |   | Executive A  |   |   | Executive B |   |   | Executive C  |   |
|--------|-----------------------|--------|-------------------|--------|--------|-------------|--------|--------|-------------------|--------|
|   | Organization Award I  |   | $                 | 45,000 |   |        | $      | --     |              |   | $ | 2,500 |   |
|   |                  |   |              |   |   |        |   |   |              |   |   |   |   |
|   | Organization Award II |   | $                 | --     |   |        | $      | 19,500 |              |   | $ | 5,000 |   |
|   |                  |   |              |   |   |        |   |   |              |   |   |   |   |
|   | Total Award           |   | $                 | 45,000 |   |        | $      | 19,500 |              |   | $ | 7,500 |   |

| 1.   | Board Approval |
|----------------|----------------|

----

| 2.   | Time and Manner of Payment |
|----------------|----------------------------|

|   | 1. | A deceased Participant's Performance Account shall be distributed beginning no later than March 15 of the following calendar year, according to the provisions in Section VI (F), to the Participant's designated beneficiary.  A Participant may, by written notice to the Company in the form of Attachment B, designate a beneficiary to receive any payments made after his death.  The Participant may select as his beneficiary any person or entity, including a trust.  The Participant may designate multiple, successive or contingent beneficiaries and may change his designation at any time.  If a Participant dies without having any valid beneficiary designation in effect, his estate shall be the beneficiary. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.   | The Performance Account value for a Participant who terminates employment by reason of Retirement or who becomes permanently and totally disabled, shall be distributed beginning no later than March 15 of the calendar year following such termination or disability, according to the provisions of Section VI (F). |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | If a Participant's employment with the Company is terminated for any reason other than his death, retirement, or permanent and total disability, such Participant’s participation in the Plan immediately ceases, and any applicable Performance Award shall be distributed beginning no later than 90 days following such termination of employment, according to the provisions of Section VI (F). |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | If a Participant becomes ineligible for the Plan based on a change of position within the Company where the new position is not eligible for participation in the Plan, any applicable Participant’s Performance Account value shall be distributed commencing no later than March 15 of the calendar year following such change. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | A Performance Account will be distributed in three, approximately equal annual installments, commencing as specified in Section VI (D) or (E) above. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The Performance Account will be paid out in shares of company stock following the Participant’s termination of employment with the company. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | If a Change of Control in the Company occurs, as defined in a Participant’s Change of Control Agreement, the target Annual Award for the calendar year in which the Change of Control occurs will become immediately payable. The full target Annual Award will be automatically and immediately payable to the Participant. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | If a payment becomes due to a Participant under a Change of Control Agreement, the Annual Award would become immediately payable at the target annual award amount. The full target Annual Award will be automatically and immediately payable to the Participant. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | If a payment shall become due to the Participant under a Change of Control Agreement, all applicable Performance Awards shall immediately become distributable to the Participant.  Performance Awards will be paid to the Participant within thirty (30) days after the date of the Participant’s payment being due under a Change of Control Agreement and will be subject to all normal withholding of state and federal taxes. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The provisions of this Section VI (G), shall take precedence over all other provisions of this Plan. |
|----------------|------------------------------------------------------------------------------------------------------|

|   | All payments and distributions shall be subject to applicable withholding requirements. |
|--------|-----------------------------------------------------------------------------------------|

----

|   | 1. | Fiscal-year performance goals may not be altered, amended, suspended or discontinued during any Plan Year with respect to that Plan Year without the approval of the Compensation Committee. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Amendment or termination may not adversely affect the value of any earned Annual Awards. |
|--------|----|------------------------------------------------------------------------------------------|

----

| J. | Headings |
|----|----------|

----

| o   | Target                      $ __________                                           $_________                      $_______ |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | % of Plan                   __________                                            __________                       _______ |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Factor                         __________                                            __________                      _________ |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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