Document:

exv4wb

Exhibit 4(b)

     This Security is in global form within the meaning of the Indenture hereinafter referred to
and is registered in the name of The Depository Trust Company, a New York corporation (“DTC”), or a
nominee of DTC, which may be treated by the Company, the Trustee and any agent thereof as owner and
holder of this Security for all purposes.

     Unless this certificate is presented by an authorized representative of DTC to the Company or
its agent for registration of transfer, exchange, or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Securities in definitive form in the
limited circumstances referred to in the Indenture, this global Security may not be transferred
except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of
DTC or by DTC or any such nominee to a successor depositary or a nominee of such successor
depositary.

					
	 	 	 	 	 
	Registered
	 	 
	 	Principal Amount: $500,000,000
	CUSIP No. 73755L AH0	 	 	 	 

POTASH CORPORATION OF SASKATCHEWAN INC.

4.875% Notes due March 30, 2020

     POTASH CORPORATION OF SASKATCHEWAN INC., a Canadian corporation (hereinafter called the
“Company,” which term shall include any successor entity under the Indenture), for value received,
hereby promises to pay to Cede & Co., as nominee for DTC, or registered assigns, upon presentation,
the principal sum of FIVE HUNDRED MILLION DOLLARS ($500,000,000) on March 30, 2020 and to pay
interest thereon from September 28, 2009 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on March 30 and September 30
in each year, commencing March 30, 2010, at the rate of 4.875% per annum, until the entire
principal amount hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest, which shall be March 15 or September 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may
either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the

 

 

payment of Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Securities of this series not more than 15 days and not less than 10 days prior to such
Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in the Indenture.

     Payment of the principal of, interest on and Additional Amounts, if any, with respect to this
global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and
interest received by it in respect of this global Security to the accounts of the beneficial owners
thereof; provided, however, that if this Security is not a global Security, payment of the
principal of, interest on and Additional Amounts, if any, with respect to this Security will be
made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in
the Indenture, in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts; and provided, further, that at the option
of the Company payment of interest may be made by (a) check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (b) transfer to an
account of the Person entitled thereto located inside the United States.

     Additional provisions of this Security are set forth following the signature page hereof,
which provisions shall for all purposes have the same effect as if set forth at this place.

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          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed this 28th day of
September, 2009.

	 	 	 	 	 	 	 
	 	 	POTASH CORPORATION OF
	 	 	SASKATCHEWAN INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Wayne R. Brownlee
	 	 
	 

	 	Title:
	 	Executive Vice President, Treasurer

and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joseph A. Podwika	 	 
	 

	 	Title:
	 	Senior Vice President, General

Counsel and Secretary	 	 

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one or all of the Securities of the series designated “4.875% Notes due March 30,
2020” pursuant to the within-mentioned Indenture.

THE BANK OF NOVA SCOTIA TRUST COMPANY OF NEW YORK,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Authorized Signatory

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4.875% Notes due March 30, 2020

     This Security is one or all of a duly authorized issue of securities of the Company (herein
called the “Securities”) issued and to be issued in one or more series under an Indenture, dated as
of February 27, 2003 (herein called the “Indenture”), between the Company and The Bank of Nova
Scotia Trust Company of New York, as trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one or all of the series designated as the “4.875% Notes due March 30, 2020.”

     The Securities in this series are redeemable, in whole or in part, at the Company’s option at
any time and from time to time at a Redemption Price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed and (ii) the sum of the present values of the
Remaining Scheduled Payments discounted to the relevant Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 25
basis points, together with, in each case, accrued interest on the principal amount of the
Securities to be redeemed to the Redemption Date.

     In connection with such optional redemption, the following defined terms apply:

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately
preceding that Redemption Date) or interpolated (on a day count basis) of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that Redemption Date.

     “Comparable Treasury Issue” means the United States Treasury security or securities selected
by the Independent Investment Banker that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Securities of this series.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the average of the
Reference Treasury Dealer Quotations for that Redemption Date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker
for the Securities obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such quotations.

     “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the
Company to act as the “Independent Investment Banker.”

     “Reference Treasury Dealer” means Banc of America Securities LLC and HSBC Securities (USA)
Inc. and their respective successors and two other nationally recognized investment banking firms,
each of which is a primary U.S. Government securities dealer in New York City (herein called a
“Primary Treasury Dealer”) specified from time to time by the

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Company; provided, however, that if any of the foregoing shall cease to be a Primary Treasury
Dealer, the Company shall substitute therefor another nationally recognized investment banking firm
that is a Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date, the average, as determined by the Independent Investment Banker, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Independent Investment Banker by such Reference
Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding that
Redemption Date.

     “Remaining Scheduled Payments” means, with respect to each Security to be redeemed, the
remaining scheduled payments of the principal thereof and interest thereon that would be due after
the related Redemption Date but for such redemption; provided, however, that, if that Redemption
Date is not an Interest Payment Date with respect to such Security, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued
thereon to that Redemption Date.

     Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
Redemption Date to each Holder of the Securities in this series to be redeemed. On and after any
Redemption Date, interest will cease to accrue on the Securities in this series or any portion
thereof called for redemption. On or before any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent money sufficient to pay the Redemption Price of and accrued interest
on the Securities in this series to be redeemed on such date. If less than all the Securities in
this series are to be redeemed, the Securities to be redeemed shall be selected by the Trustee at
the Company’s direction by such method as the Company and the Trustee shall deem fair and
appropriate. The Redemption Price shall be calculated by the Independent Investment Banker, and the
Company, the Trustee and any Paying Agent for the Securities of this series shall be entitled to
rely on such calculation.

     If a Change of Control Triggering Event occurs, unless the Company has exercised its right to
redeem the Securities as described above, it will be required to make an offer to repurchase all,
or any part (equal to $1,000 or an integral multiple thereof), of each Holder’s Securities pursuant
to the offer described below (the “Change of Control Offer”) on the terms set forth herein. In the
Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the
aggregate principal amount of Securities repurchased plus accrued and unpaid interest, if any, on
the Securities repurchased, to the date of purchase (the “Change of Control Payment”).

     Within 30 days following any Change of Control Triggering Event, the Company will be required
to mail a notice to Holders of Securities describing the transaction or transactions that
constitute the Change of Control Triggering Event and offering to repurchase the Securities on the
date specified in the notice, which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed (the “Change of Control Payment Date”), pursuant to the
procedures required herein and described in such notice. The Company must comply with the
requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”) and any other securities laws and regulations thereunder to the extent those

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laws and regulations are applicable in connection with the repurchase of the Securities as a result
of a Change of Control Triggering Event. To the extent that the provisions of any applicable
securities laws or regulations conflict with the Change of Control provisions herein, the Company
will be required to comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the Change of Control provisions herein by virtue of
such conflicts.

     On the Change of Control Payment Date, the Company will be required, to the extent lawful, to:

     (a) accept for payment all Securities or portions of Securities properly tendered pursuant to
the Change of Control Offer;

     (b) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect
of all Securities or portions of Securities properly tendered; and

     (c) deliver or cause to be delivered to the Trustee the Securities properly accepted together
with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of
Securities being purchased by the Company.

     The Paying Agent will be required to mail promptly to each Holder who properly tendered
Securities the purchase price for such Securities and the Trustee will be required to authenticate
and mail (or cause to be transferred by book entry) promptly to each such Holder a new Security
equal in principal amount to any unpurchased portion of the Securities surrendered, if any;
provided that each new Security will be in a principal amount of $1,000 or an integral multiple
thereof.

     For purposes of the foregoing discussion of a repurchase at the option of Holders, the
following definitions are applicable:

     “Below Investment Grade Rating Event” means the rating on the Securities is changed from an
Investment Grade Rating to below an Investment Grade Rating by each of the Rating Agencies (as
defined below) on any date from the date of the public notice of an arrangement that could result
in a Change of Control until the end of the 60-day period following public notice of the occurrence
of the Change of Control (which 60-day period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by any of the Rating
Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger, amalgamation,
arrangement or consolidation), in one or a series of related transactions, of all or substantially
all of the Company’s properties or assets and those of its subsidiaries taken as a whole to any
Person other than the Company or one of its subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger, amalgamation, arrangement or consolidation) the result
of which is that any Person becomes the beneficial owner, directly or indirectly, of more than 50%
of the total voting power in the aggregate of all classes of the

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Company’s voting stock normally entitled to vote in elections of directors; or (3) the first day on
which a majority of the members of the Company’s Board of Directors are not Continuing Directors.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Company’s
Board of Directors who (1) was a member of such Board of Directors on September 28, 2009; or (2)
was nominated for election or elected to such Board of Directors with the approval of a majority of
the Continuing Directors who were members of such Board of Directors at the time of such nomination
or election (either by a specific vote or by approval of the Company’s proxy statement in which
such member was named as a nominee for election as a director, without objection to such
nomination).

     “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by
Moody’s and BBB- (or the equivalent) by S&P.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Person” means any individual, partnership, corporation, limited liability company, joint
stock company, business trust, trust, unincorporated association, joint venture or other entity, or
a government or political subdivision or agency thereof.

     “Rating Agencies” means (1) each of Moody’s and S&P; and (2) if either Moody’s or S&P ceases
to rate the Securities or fails to make a rating of the Securities publicly available for reasons
outside of the Company’s control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as
certified by a resolution of its Board of Directors) as a replacement agency for Moody’s or S&P, or
both of them, as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     The failure by the Company to comply with its obligations in the event of a Change of Control
Triggering Event described above will constitute an Event of Default with respect to the
Securities.

     The Indenture contains provisions for defeasance of (a) the entire indebtedness of the Company
on this Security and (b) certain restrictive covenants and the related defaults and Events of
Default applicable to the Company, in each case, upon compliance by the Company with certain
conditions set forth in the Indenture, which provisions apply to this Security. This Security is
not subject to repayment at the Holder’s option.

     If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the

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manner and with the effect provided in the Indenture. Notwithstanding the previous sentence,
if an Event of Default occurs as a result of the failure by the Company to comply with its
obligations in the event of a Change of Control Triggering Event as described above, the principal
of, and any premium and accrued interest on the Notes will become immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder of the Securities.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default and offered the Trustee reasonable
indemnity and the Trustee shall not have received from the Holders of a majority in principal
amount of the Securities of this series at the time Outstanding a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the
Holder of this Security for the enforcement of any payment of principal hereof or any interest on
or after the respective due dates expressed herein.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities under the Indenture at any time by the Company and the Trustee with the consent of the
Holders of not less than a majority in principal amount of the Outstanding Securities. The
Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities at the time Outstanding, on behalf of the Holders of all Securities, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future Holders of this
Security and of any Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any Place of Payment where
the principal of and interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar for
the Securities duly executed by the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series, of authorized denomination and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

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     The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations set forth therein, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series of a different
authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and none of the Company, the Trustee or any such agent shall be affected by notice to the
contrary.

     The obligations of the Company under the Indenture and this Security and all documents
delivered in the name of the Company in connection herewith and therewith do not and shall not
constitute personal obligations of the directors, officers, employees, agents or shareholders of
the Company or any of them, and shall not involve any claim against or personal liability on the
part of any of them, and all persons including the Trustee shall look solely to the assets of the
Company for the payment of any claim thereunder or for the performance thereof and shall not seek
recourse against such directors, officers, employees, agents or shareholders of the Company or any
of them or any of their personal assets for such satisfaction. The performance of the obligations
of the Company under the Indenture and this Security and all documents delivered in the name of the
Company in connection therewith shall not be deemed a waiver of any rights or powers of the Company
or its directors or its shareholders under the Company’s Articles of Continuance.

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     The Indenture and the Securities, including this Security, shall be governed by and construed
in accordance with the law of the State of New York.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused “CUSIP” numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the correctness or accuracy of
such CUSIP numbers as printed on the Securities, and reliance may be placed only on the other
identification numbers printed hereon.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

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ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

the within Security of Potash Corporation of Saskatchewan Inc. and                     
hereby does irrevocably constitute and appoint

 

Attorney to transfer said Security on the books of the within-named Company
with full power of substitution in the premises

	 	 	 
	Dated:

	 	 
	 

	 	 

	 	 	 
	Signature
	 	 
	 

	 	 

NOTICE: The signature to this assignment must correspond with the name as it
appears on the first page of the within Security in every particular, without
alteration or enlargement or any change whatever.

	 	 	 
	Signature Guaranteed:
	 	 
	 

	 	 

NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution”
that is a member or participant in a “signature guarantee program” (e.g., the
Securities Transfer Agents Medallion Program, the Stock Exchange Medallion
Program and the New York Stock Exchange Medallion Program).

11exv10w1

Exhibit 10.1

IOWA TELECOMMUNICATIONS SERVICES, INC.

EMPLOYMENT AGREEMENT

     THIS AGREEMENT (this “Agreement”) is made and entered into this 24th day of
September, 2009, by and between IOWA TELECOMMUNICATIONS SERVICES, INC., an Iowa corporation (the
“Company”) and ALAN L. WELLS, an Iowa resident (“Executive”).

WITNESSETH:

     WHEREAS, the Company and the Executive desire to enter this Agreement to embody the agreement
between the parties relating to the terms and conditions of Executive’s employment as President and
Chief Executive Officer of the Company.

     NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the
Executive agree as follows:

     1. Employment. The Company hereby employs Executive and Executive hereby accepts
employment for a term commencing on the date hereof (the “Effective Date”), and ending
December 31, 2012, at which time this Agreement shall be automatically extended for successive
terms of one year each unless terminated effective at the end of the then current term by either
party upon at least one hundred eighty (180) days advance written notice to the other party prior
to the end of the then current term (as so extended, the “Term”); provided,
however, that either Executive or the Company may terminate the employment of Executive
during the Term in accordance with Section 6 and subject to the right of Executive to receive
payments and other benefits that may be due pursuant to Section 8.

     2. Duties. Executive shall serve as President and Chief Executive Officer of the
Company and shall have ultimate responsibility to the Company’s Board of Directors (the “Board
of Directors”) for the strategic position of the Company in the telecommunications industry.
Executive agrees to devote his full time and best efforts to the Company’s business and affairs and
to the performance of the following services and such other services as may be assigned to him from
time to time by the Board of Directors:

	 	(a)	 	provide direction, oversight and general management to the
staff of the Company and the Company’s subsidiaries;
	 
	 	(b)	 	assist the Board of Directors in development of the Company’s
strategic planning through evaluation of opportunities, analysis of operational
methodologies and competitive analysis;
	 
	 	(c)	 	identify, research and quantify new products and services which
will assist in expanding the Company’s strategic position;

 

 

	 	(d)	 	communicate regularly and effectively to the Board of Directors
regarding the Company’s economic, operational and strategic position in the
telecommunications industry;
	 
	 	(e)	 	Executive shall fully comply with all applicable laws, rules
and regulations, the failure to fully comply with which could reasonably be
expected to have a material adverse effect upon the Company; and
	 
	 	(f)	 	perform such other duties as may be assigned by the Board of
Directors which are consistent with the position of President/CEO.

Notwithstanding the above, Executive shall be free to devote reasonable time and attention to
personal, public and charitable affairs so long as such activities do not interfere with his
full-time employment hereunder and which do not violate any other provision of this Agreement.
Executive, at all times during his employment with the Company, shall comply with the Company’s
reasonable standards, regulations and policies as determined or set forth by the Board of Directors
from time to time and as applicable and communicated to all employees and/or executive employees of
the Company.

     3. Compensation. As compensation for all services rendered under this Agreement,
Executive shall be paid the following:

	 	(a)	 	Base Salary. Executive shall receive an annual base
salary of not less than $420,000 (which is Executive’s current base salary),
subject to review at least annually by the Compensation Committee for possible
increases but not reductions as provided in Section 3(c) (as so adjusted, the
“Base Salary”). The Base Salary shall be payable bi-weekly or
semi-monthly in accordance with the Company’s normal payroll processes and
procedures.
	 
	 	(b)	 	Bonus.

(i) Executive shall receive an annual bonus equal to a percentage of
Executive’s Base Salary contingent upon Executive’s attainment of at least
the “threshold” level of performance goals as established by the
Compensation Committee (the “Compensation Committee”) of the Board
of Directors in its sole and absolute discretion. The “target” bonus shall
be 100% of Executive’s Base Salary and the “maximum” bonus shall be 200% of
Executive’s Base Salary (i.e., in no event shall Executive’s bonus exceed
200% of Executive’s Base Salary). One-half of such potential bonus shall be
based on the Company’s “Adjusted EBITDA” (as defined below) performance
goals to be determined by the Compensation Committee on an annual basis. If
the Company’s Adjusted EBITDA is between the “threshold” and “target”
levels, the Adjusted EBITDA-based portion of Executive’s bonus shall equal a
prorated portion (on a straight line basis) of between 0% and 50% of
Executive’s Base Salary. If the Company’s Adjusted EBITDA is between the
“target” and “maximum” levels, the Adjusted EBITDA-based portion of
Executive’s bonus shall

2

 

equal a prorated portion (on a straight line basis) of between 50% and 100%
of Executive’s Base Salary. The other half of such potential bonus shall be
determined by the Compensation Committee in its sole and absolute
discretion. For purposes of this Agreement, “Adjusted EBITDA” shall
mean the Company’s earnings before income taxes, depreciation and
amortization, as adjusted pursuant to the same formula used by the Company
in connection with the bonus compensation plans of the other senior
executives of the Company. The Adjusted EBITDA thresholds required to earn
a bonus at each given level shall be provided to Executive no later than the
first ninety (90) days of the fiscal year to which such formula relates,
except that the thresholds for 2009 shall be as previously provided to
Executive. The bonus for any fiscal year will be earned and accrued if
Executive is employed by the Company on the last day of such fiscal year,
regardless of whether Executive’s employment terminates thereafter due to
Executive’s death or “Disability”, termination by the Company without
“Cause” or by Executive for “Good Reason,” or the term expires because the
Company has given notice of nonrenewal pursuant to Section 1 hereof;
provided that such bonus shall be forfeited if, prior to the date the bonus
is paid, Executive’s employment with the Company is terminated by the
Company for “Cause” or by Executive without “Good Reason” or if the Term
expires because Executive has given notice of nonrenewal pursuant to Section
1 hereof and Executive does not remain employed on an “at-will” basis
through the date the bonus is paid.

(ii) Except for any portion of the bonus paid in restricted stock pursuant
to paragraph (iii) below, the bonus shall be payable in cash after the last
day of the fiscal year to which the bonus criteria relate promptly following
the availability of financial statements for such fiscal year, but in no
event later than the last day of the following fiscal year.

(iii) Bonus amounts in excess of 100% of Executive’s Base Salary may, in
the sole and absolute discretion of the Compensation Committee be paid in
Company restricted stock valued at the fair market value as of the date of
grant in accordance with the Company’s 2005 Equity Incentive Plan, or other
equity compensation plans which may be adopted in the future, and vesting
over three years as follows: 50% on the second anniversary and 50% on the
third anniversary of the last day of the fiscal year to which the bonus
criteria relates, subject to accelerated vesting immediately upon any of the
following events: (A) if Executive’s employment with the Company is
terminated by the Company without “Cause” (as defined in Section 6), (B) if
Executive’s employment with the Company is terminated due to Executive’s
death or “Disability” (as defined in Section 7), (C) if Executive’s
employment with the Company is terminated by Executive for “Good Reason” (as
defined in Section 6), or (D) if the Term shall expire because the Company
has given notice of nonrenewal pursuant to Section 1 hereof. The date of
grant of each such

3

 

restricted stock grant shall be promptly following the availability of
financial statements for such fiscal year, but in no event later than the
last day of the following year. Such grant shall be made if the Executive
is employed by the Company on the date of grant or if the Executive is
entitled to accelerated vesting under Clause (A), (B), (C) or (D) above.
Unless and until such shares of restricted stock are forfeited, dividends
payable to common shareholders of record of the Company on or after the
grant date of such restricted stock shall be paid to Executive whether or
not such shares are vested.

	 	(c)	 	Restricted Stock. Executive shall receive, upon the
Effective Date, a one-time grant of 100,000 shares of restricted stock under
the Company’s 2005 Stock Incentive Plan (the “2005 Plan”) vesting over
three years as follows: 331/3%
on the first anniversary of the Effective Date;
331/3%
on the second anniversary of the Effective Date; 331/3% on the third
anniversary of the Effective Date; and, subject to accelerated vesting
immediately upon any of the following events: (i) if Executive’s employment
with the Company is terminated by the Company without Cause “in connection with
a Change of Control” (as defined below), or (ii) if Executive’s employment is
terminated by Executive for Good Reason “in connection with a Change of
Control;” provided that, if another Company executive receives a restricted
stock grant under the 2005 Plan that accelerates upon such executive’s death or
disability, then Executive’s restricted stock grant under this Section 3(c)
shall also accelerate upon the occurrence of the same such event(s) with
respect to Executive. Unless and until such shares of restricted stock are
forfeited, dividends payable to shareholders of record of the Company on or
after the grant date of such restricted stock shall be paid to Executive
whether or not such shares are vested.

     For purposes of this Agreement, a “Change of Control” of the
Company shall be deemed to have occurred if:

     (1) any “person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934 (the “Exchange Act”)) is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 50% or
more of the combined voting power (with respect to the election of
directors) of the Company’s then outstanding securities;

     (2) at any time after the execution of this Agreement, individuals who
as of the date of the execution of this Agreement constitute the Board of
Directors (and any new director whose election to the Board or nomination
for election to the Board by the Company’s shareholders was approved by a
vote of at least two-thirds (2/3) of the members of the Board of Directors
then still in office) cease for any reason to constitute a majority of the
Board;

4

 

     (3) the consummation of a merger or consolidation of the Company with
or into any other corporation, other than a merger or consolidation
which results in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity or a parent company of the surviving entity) more than 50% of the
combined voting power (with respect to the election of directors) of the
securities of the Company or of such surviving entity or parent company
thereof outstanding immediately after such merger or consolidation; or

     (4) the consummation of a plan of complete liquidation of the Company
or of an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s business or assets.

     For purposes of this Agreement, termination of Executive’s employment
shall be considered “in connection with a Change of Control” if such
termination occurs (i) upon or after a Change of Control and prior to the
second anniversary of a Change of Control, (ii) after the Company enters
into an agreement for a transaction, the consummation of which would result
in a Change of Control, and before termination or expiration of such
agreement, or (iii) after a third party announces a tender or exchange offer
or proxy contest that, if completed, would result in a Change of Control and
before expiration or termination of such offer or contest.

	 	(d)	 	Review of Base Salary and Restricted Stock. The
Compensation Committee will review and evaluate, in its sole and absolute
discretion, increases to the Executive’s Base Salary and potential additional
grants to Executive under the Company’s 2005 Stock Incentive Plan, or other
equity compensation plans which may be adopted in the future, on an annual
basis. Without limitation of the Compensation Committee’s discretion, such
review is expected to consider factors including Executive’s contributions to
the success and prosperity of the Company during the previous year, the then
current and projected financial condition of the Company, general economic and
market conditions, and the need to remain competitive with regard to
compensation for senior executives within the telecommunications industry.

     4. Business Expense Reimbursement. During the Term, Executive shall be entitled to
prompt reimbursement by the Company for all reasonable, ordinary and necessary travel,
entertainment and other business related expenses incurred by Executive (in accordance with the
policies and procedures established by the Company from time to time) in the performance of his
duties and responsibilities under this Agreement, including expenditures for professional meetings,
seminars, training, business travel and social membership at the Des Moines Golf and Country Club
or similar business luncheon club; provided, however, that Executive shall properly
account for such expenses in accordance with federal, state and local tax requirements and the
Company’s policies and procedures; and provided, further, that in the case of taxable
reimbursements or in-kind benefits that are subject to Section 409A of the Internal Revenue Code:
such reimbursements or in-

5

 

kind benefits shall be pursuant to an objectively determinable nondiscretionary definition of
expenses eligible for reimbursement or the in-kind benefits to be provided; the amount of such
expenses that are eligible for reimbursement, or in-kind benefits provided, during Executive’s
taxable year may not affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year; the reimbursement must be paid to Executive promptly following
Executive’s submission of the expense report, but no later than the last day of the Executive’s
taxable year following the taxable year in which the expense was incurred; and the right to
reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

     5. Employee Benefits. The Company shall provide such pension, life insurance,
disability insurance, health insurance and other benefits, including a deferred compensation plan,
to Executive as the Company provides for the Company’s senior executive officers generally,
including the following:

	 	(a)	 	Vacation. Executive shall receive five weeks’ paid
vacation each year, plus all holidays in accordance with the Company’s policies
in effect from time to time. Executive shall not be entitled to carry unused
vacation forward from one employment year to the next. Executive shall not be
entitled to compensation in any form in lieu of use of vacation and/or holiday
time off.
	 
	 	(b)	 	Vehicle. During the Term, Executive shall be entitled
to the use of a leased or Company-owned vehicle. Executive may select a new car
when permitted by the Compensation Committee of the Board of Directors. Any
new car selected by Executive shall have a cost not materially greater than the
then current cost of a new car that is of comparable make and model to
Executive’s current car provided by the Company. Executive may use the vehicle
for personal as well as business purposes, and Executive’s spouse may also use
and operate the vehicle. Executive shall assume any tax liability arising from
non-business use. Executive shall maintain the vehicle in accord with the
manufacturer’s or lessor’s maintenance schedule, and the Company shall pay all
costs associated with required maintenance, repair and use of the vehicle.
	 
	 	(c)	 	401(k) Plan. Executive shall be entitled to
participate in the Company’s 401(k) defined contribution retirement plan up to
the amounts permitted by applicable laws.
	 
	 	(d)	 	Deferred Compensation Plan. In accordance with the
Company’s Deferred Compensation Plan, for each calendar year during the Term,
the Company will credit Executive’s deferred compensation account with the
difference between 3% of Executive’s base salary and annual cash bonus
compensation for that calendar year, and the amount of the Company’s
contributions (other than matching contributions and elective deferrals) made
to Executive’s account under the Iowa Telecom Savings Plan for that calendar
year. In addition, the Company shall also credit Executive’s deferred
compensation account with the matching contribution that Executive would have
received

6

 

	 	 	 	if Executive’s deferrals under the Company’s Deferred Compensation Plan had
instead been made to the Iowa Telecom Savings Plan, without regard to the
annual compensation limits then in effect under Section 401(a)(17) of the
Internal Revenue Code or any other Code section or rule. Furthermore, the
Company will also credit Executive’s deferred compensation account in a
dollar amount equal to five percent (5%) of the sum of Executive’s base
salary and annual cash bonus. Such deferrals shall all be credited to
Executive’s deferred compensation account during the year in accordance with
the Company’s payroll cycles, and shall vest immediately. No amendment to
the Deferred Compensation Plan shall make the economic benefits of the plan
less favorable to Executive except as required by law. Following a Change
of Control, payment under the Deferred Compensation Plan will not be
accelerated (such as, for example, in an immediate lump sum as a result of
plan termination) without Executive’s written consent.
	 
	 	(e)	 	Limit on Other Compensation. Notwithstanding the
foregoing, the amount of the Company’s matching or discretionary contributions
for Executive’s account under the Company’s defined contribution retirement
plans and deferred compensation plans shall not exceed $100,000 per year.

     6. Termination.

          (a) Termination for Cause. The Company shall have the right to terminate Executive’s
employment for “Cause,” effective upon approval by the Company’s Board of Directors pursuant to
Section 21 and upon thirty (30) days written notice to Executive. Such notice shall state in
reasonable detail the nature of the Cause, and, if such stated Cause is of the type described in
paragraphs (iii) or (vi) below, during such thirty (30) day period Executive shall have the
opportunity to cure the stated Cause. Unless Executive cures such stated Cause described in
paragraphs (iii) or (vi) below, Executive’s employment shall terminate at the end of such thirty
(30) day period, but without prejudice to Executive’s right to contest the existence of such Cause
or to contest the fact that the Cause has not been cured. For the purposes of this Agreement,
“Cause” shall mean only:

	 	(i)	 	a conviction of Executive of, or a guilty or
nolo contendere plea by Executive with respect to, any crime punishable
as a felony or involving moral turpitude, or any bar against Executive
from serving as a director, officer or employee of any publicly-traded
company;
	 
	 	(ii)	 	any act of dishonesty either involving his
employment or which is harmful to the Company or any subsidiary, or to
employees of the Company or any subsidiary;
	 
	 	(iii)	 	any failure of Executive to materially comply
with this Agreement or with the reasonable policies, regulations and
directives of the Company as in effect from time to time;

7

 

	 	(iv)	 	any act or omission on the part of Executive
which is clearly and materially harmful to the reputation or business
of the Company, including, but not limited to, conduct which is
inconsistent with federal and state laws respecting harassment of, or
discrimination against, one or more of the Company’s employees;
	 
	 	(v)	 	any material violation by Executive of the
provisions of any confidentiality and/or non-compete agreement between
the Company and Executive; or
	 
	 	(vi)	 	any willful failure to perform the duties
described in Section 2 hereof, unless occasioned by illness, injury or
“Disability” as defined in Section 7.

          (b) Termination for Convenience. The Company shall have the right to terminate
Executive’s employment for convenience and without Cause, effective upon thirty (30) days written
notice to Executive.

          (c) Resignation for Good Reason. Executive shall have the right to terminate his
employment with the Company for “Good Reason,” effective upon thirty (30) days written notice to
the Company. Such notice shall state in reasonable detail the nature of the Good Reason and,
during such thirty (30) day period, the Company shall have the opportunity to cure the stated Good
Reason. Unless the Company cures such stated Good Reason, Executive’s employment shall terminate
at the end of such thirty (30) day period, but without prejudice to the Company’s right to contest
the existence of such Good Reason or to contest the fact that the Good Reason has not been cured.
Any such resignation shall be for “Good Reason” only if due to one or more of the following
circumstances:

	 	(i)	 	any material breach by the Company of this
Agreement, including without limitation, any failure by the Company to
pay any amount that is due under this Agreement or to take any action
that is required under this Agreement, or any reduction in Executive’s
Base Salary or in the bonus plan described in Section 3(b) of this
Agreement;
	 
	 	(ii)	 	any action that materially diminishes
Executive’s position, authority, duties or responsibilities as Chief
Executive Officer of the Company, including without limitation a
requirement that Executive report to anyone other than the Board of
Directors of the Company, the creation of a new executive position
reporting directly to the Board of Directors (except as required by
law) or a change by the Company whereby any executive position which
reports to Executive thereafter reports directly to the Board of
Directors (except as required by law); for purposes of this paragraph,
if the Company becomes a direct or indirect subsidiary of an ultimate
parent company in an unbroken chain of companies ending with the
Company, with each company (other than the

8

 

	 	 	 	Company) owning stock possessing fifty percent or more of the total
combined power of all classes of stock in one of the other companies
in the chain, and if Executive is not the Chief Executive Officer of
such parent company or is required to report to anyone other than the
Board of Directors of such parent company, that shall be considered
to be an action that materially diminishes Executive’s position and
gives rise to a “Good Reason” event;
	 
	 	(iii)	 	any requirement that Executive regularly
render his services at a location other than one that is within
forty-five (45) miles of Newton, Iowa, other than necessary business
travel occasioned by the performance of the duties described in Section
2; provided, however, that Executive may refuse to render his services
from such other location and need not actually render his services from
such other location in order to invoke the protection of this paragraph
(iii), it being sufficient that the Company has required the Executive
to perform his services from such other location;
	 
	 	(iv)	 	any material reduction in the aggregate value
of the Company’s non-stock related benefit plans provided to Executive;
or
	 
	 	(v)	 	any failure of the Board of Directors to
renominate Executive as a member of the Board of Directors.

Any of the foregoing reasons may be waived by Executive. If Executive consents in writing to such
foregoing circumstance or if Executive does not resign for Good Reason within three (3) months
after the later of the date Executive acquires actual knowledge of the occurrence of any of the
foregoing reasons or the effective date of the change giving rise to Good Reason (e.g. in the case
of paragraph (ii), the effective date of a diminishment in responsibilities, or in the case of
paragraph (iii), the date as of which Executive is required to actually begin performing his
services from another location), then such Good Reason, but only as to such specific event, shall
be deemed waived.

          (d) Resignation for Convenience. Executive shall have the right to terminate his
employment for convenience and without Good Reason, effective upon thirty (30) days written notice
to the Company.

          (e) Death. This Agreement shall terminate immediately upon Executive’s death if that
occurs during the Term while he is employed by the Company.

          (f) Return of the Company Property. In the event of termination of Executive’s
employment with the Company, all corporate documents, records, files, credit cards, computer disks
and tapes, computer access cards, codes and keys, file access codes and keys, building and office
access cards, codes and keys, materials, equipment and other property of the Company which is in
Executive’s possession (and any copies thereof) shall be returned to the Company at its principal
business office on the date of termination of Executive’s employment, or within five days
thereafter if termination occurs without notice.

9

 

          (g) Effect of Termination of Employment. Upon any termination of employment
(regardless of the reason including by way of death or Disability), Executive shall be entitled to
prorated Base Salary earned and unpaid to the effective date of such termination, and reimbursement
of expenses incurred to the date of termination pursuant to Section 4 hereof. Any rights to which
Executive may be entitled under any compensation or benefit plans or agreements maintained by the
Company shall be governed by such plans or agreements. If such termination is due to Executive’s
death or Disability, by the Company without “Cause,” by Executive for “Good Reason,” or if the Term
expires because the Company has given notice of nonrenewal pursuant to Section 1 hereof, then
Executive shall also receive any earned, accrued and unpaid bonus for a prior completed fiscal year
pursuant to Section 3(b) hereof. If such termination is due to Executive’s death or Disability, by
the Company without “Cause” or by Executive for “Good Reason,” then Executive shall also receive a
bonus for the year of termination based on actual results for the year, but prorated based on days
of employment during the year. Except for any other rights specifically provided in this
Agreement, Executive shall have no further rights to any compensation whatsoever under this
Agreement from and after the effective date of such termination of employment.

     7. Disability.

          (a) Subject to Section 7(f) below, if Executive is unable to substantially perform the
majority of the duties of the President/CEO for more than one hundred eighty (180) consecutive
calendar days at any one time, by reason of physical or mental illness or injury, as determined by
an examining physician or mental health professional selected by the Executive and reasonably
acceptable to the Company, then Executive shall be deemed “Disabled” and subject to a Disability
for the purposes of this Agreement. In such event, Executive’s employment shall be terminated.
Notwithstanding anything herein to the contrary, such 180 calendar day period shall begin to run
from the date such disability is determined to have occurred, regardless of whether Executive has
any unused vacation. Executive shall not be entitled to any payments for unused vacation in
conjunction with the application of this Section 7, except to the extent any leave taken by
Executive under this Section 7 qualifies as a leave under the Family and Medical Leave Act, 29
U.S.C. Section 2601, et seq., in which event Executive may choose to use unused vacation instead of
disability under this Section 7. If Executive exercises such right, any unused vacation taken
shall offset any period of disability leave that otherwise would have been paid under this Section
7.

          (b) If prior to any termination of Executive’s employment under this Section 7 Executive is
able to resume performance of his duties under this Agreement, and if within one hundred eighty
(180) calendar days of the resumption of such duties Executive is again unable to substantially
perform the majority of the duties of the President/CEO by reason of physical or mental illness or
injury for a period of more than thirty (30) consecutive calendar days, then such subsequent
disability period shall be deemed to be a continuation of the immediately preceding disability
period.

          (c) Any disability period commencing after Executive has returned to his employment hereunder
and has given reasonable and proper attention to his duties for a continuous period of 180 calendar
days shall be deemed a new period of disability for purposes of this Section 7.

10

 

          (d) Any disability compensation payable under this Section 7 shall be reduced by:

	 	(i)	 	any amount which is paid to Executive under any
private disability benefit plan or arrangement to which the Company
contributes or has contributed;
	 
	 	(ii)	 	any benefits paid or payable to Executive on
account of the disability of Executive under any worker’s compensation
law, occupational disease law, or similar legislation of any state or
of the federal government; and
	 
	 	(iii)	 	50% of the amount of any related benefit which
Executive would be entitled to receive under the Federal Social
Security Act as in effect at the time the payment hereunder is made.

          (e) In the event of Executive’s partial disability (physical or mental, or both), as
determined by a reasonable standard to be set by the Company, if Executive is able to perform a
substantial portion of Executive’s duties, Executive may, if Executive so desires, with the consent
of the Company, work part-time on a basis of compensation and other terms mutually acceptable to
the Company and Executive. In considering any request by Executive to work part-time, the Company
may require information from Executive’s treating physician and/or mental health professional
and/or a physician and/or mental health professional chosen by the Company.

          (f) The Company shall comply with all applicable state and federal laws relating to the
disability of an employee, including laws regarding reasonable accommodation requirements and laws
governing the granting of medical leaves of absence.

     8. Severance. In the event of Executive’s Severance during the Term, in consideration
of Executive’s obligations under Section 11 (Non-Compete), the Company shall provide to Executive:

          (a) two (2) times the sum of his Base Salary plus the amount of “target” bonus pursuant to
Section 3(b), payable in substantially equal installments over a period of twenty-four (24) months
from the date of Severance, and group health plan (including vision and dental if offered by the
Company to its active executive officers) coverage for Executive, his spouse, and dependents until
the earlier of (i) twenty-four (24) months after the date of such Severance, or (ii) the date
Executive obtains coverage under a subsequent employer’s group health plan; and

          (b) if Executive’s Severance is “in connection with a Change of Control,” in addition to the
payments in Subsection (a), (i) one (1) times the sum of his Base Salary plus “target” bonus
pursuant to Section 3(b), payable in one lump sum within sixty (60) days after the date of
Severance, (ii) if Executive has not obtained coverage under a subsequent employer’s group health
plan, group health plan coverage (including vision and dental if offered by the Company to its
active executive officers) for Executive, his spouse, and minor dependents beginning twenty-four
(24) months after the date of such Severance and continuing until the

11

 

earlier of (A) thirty-six (36) months after the date of such Severance, or (B) the date Executive
obtains coverage under a subsequent employer’s group health plan, and (iii) within sixty (60) days
following the Severance, the title to the vehicle Executive is then using pursuant to Section 5(b).

          If the Executive’s Severance is “in connection with a Change of Control,” all cash amounts
that are not to be paid within sixty (60) days after the Executive’s Severance under Subsections
(a) and (b) shall within sixty (60) days after the Executive’s Severance be placed in escrow
pursuant to an escrow agreement among the Company, Executive and an independent escrow agent
selected by mutual agreement of the Company and Executive, which agreement will provide for an
unconditional release of funds from escrow to pay Executive when required by this Agreement,
subject to Section 11(b), and which funds may not be otherwise released from escrow, except that
the funds will be subject to the claims of the Company’s general creditors under federal and state
law in the event the Company is unable to pay its debts as they become due or the Company is
subject to a pending proceeding as a debtor under the United States Bankruptcy Code.

          (c) The Company shall provide the group health plan coverage pursuant to Subsection (a) and
(b) to Executive on the same terms and conditions and at the same cost as it provides coverage to
similarly situated active executive officers of the Company. If the Executive dies during the
period that he is entitled to coverage hereunder, his spouse and minor dependents shall be
permitted to continue coverage on the same basis as if Executive had survived. Notwithstanding the
foregoing, to the extent that the group health plan benefits provided under this Section would be
taxable to Executive, his spouse or minor dependents under Section 105(h) of the Internal Revenue
Code, then the Company shall pay Executive (or his spouse and minor dependents if they survive him)
a monthly payment equal to the amount Executive (or his spouse and minor dependents if they survive
him) must pay to purchase such group health plan coverage from the Company, and the Executive (or
his spouse and minor dependents if they survive him) shall be required to use such payments for
such purposes.

          (d) Payments to be paid or taxable benefits to be provided (including, without limitation,
continued group health plan coverage, if it is taxable) to the Executive under Subsections (a)
through (c) will be paid or provided, as applicable, within sixty (60) days of Severance, and
payments or benefits due to the Executive on or after the date of Severance, but before the date
the first payment is paid or benefit is provided within such sixty (60) day period (the “First
Payment Date”) will accrue and be paid or provided, as applicable, on the First Payment Date.
Notwithstanding the foregoing, payments and taxable benefits hereunder for the first six (6) months
following such Severance shall be deferred until the completion of such six month period and then
shall be paid in an immediate lump sum, if and to the extent required to avoid a tax under Section
409A of the Internal Revenue Code. In this regard, the parties intend that an amount of severance
pay under Subsection (a) equal to two (2) times the lesser of the sum of Executive’s annualized
compensation based on his rate of pay for the preceding calendar year or the maximum amount that
may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal
Revenue Code for the year in which the Severance occurs shall qualify as a separation pay plan
described in Treas. Reg. Section 1.409A-1(b)(9)(iii), so that such amount can be paid without a six
month delay. In addition, the parties intend that the lump sum

12

 

in Subsection (b)(i) qualify as a short-term deferral under Treas. Reg. Section 1.409A-1(b)(4)
so that such amount can be paid without a six month delay.

     For purposes of this Agreement, “Severance” shall mean Executive’s “separation from
service” (within the meaning of Section 409A of the Internal Revenue Code) by reason of resignation
for “Good Reason,” or discharge from employment by the Company for any reason other than “Cause”.
“Severance” shall not include Executive’s resignation without “Good Reason,” expiration of
the Term, or Executive’s death or “Disability.” All payments made to Executive under this Section
8 shall be reduced by amounts (i) required to be withheld in accordance with federal, state and
local laws and regulations in effect at the time of payment, or (ii) owed to the Company by
Executive for any amounts advanced, loaned or misappropriated.

     9. Inventions, Plans and Ideas.

          (a) “Inventions, plans and ideas” as used in this Section 9 means any discoveries,
ideas, plans and improvements (whether or not they are in writing or reduced to writing or embodied
solely in practices of the Company) or works of authorship (whether or not they are or can be
patented or copyrighted) that Executive makes, authors or conceives (either alone or with others)
and that:

	 	(i)	 	concern the Company’s business or the Company’s
research or development or planning that can be demonstrated to relate
to the Company’s then-current business or any planned business which
the Company is actively exploring; or
	 
	 	(ii)	 	result from and relate to any work Executive
performs for the Company; or
	 
	 	(iii)	 	use the Company’s trade secret information.

          (b) Executive agrees that all “inventions, plans and ideas” he makes during the term of this
Agreement will be the Company’s sole and exclusive property. Executive will, with respect to any
such “invention, plan or idea”:

	 	(i)	 	keep current, accurate and complete records
which will belong to the Company and be kept and stored on the
Company’s premises while Executive is employed by the Company;
	 
	 	(ii)	 	promptly and fully disclose the existence and
describe the nature of the invention, plan or idea to the Company in
writing (upon request);
	 
	 	(iii)	 	assign, and Executive hereby does assign, to
the Company all of his rights to any such “invention, plan or idea” and
any applications which he may make for patents, copyrights, trademarks
or service marks in any country; and

13

 

	 	(iv)	 	acknowledge and deliver promptly to the Company
any written instruments, and perform any other acts necessary in the
Company’s reasonable opinion, to preserve property rights in any
invention, plan or idea against forfeiture, abandonment or loss, and to
obtain and maintain letters patent and/or copyrights and/or marks on
any invention, plan or idea and to vest the entire right and title to
such “invention, plan or idea” in the Company.

          (c) Executive does not have, and will not assert, any claims to or rights under any
“inventions, plans or ideas” as having been made, conceived, offered or acquired by Executive prior
to his employment by the Company. Further, and without limiting the foregoing, Executive has
contributed and assigned, and hereby does contribute and assign, to the Company all such
“inventions, plans and ideas.”

     10. Confidentiality and Non-Disclosure. Executive agrees to keep confidential, except
as may be required by his job responsibilities or as the Company may otherwise consent in writing,
and not to make any use of, except for the benefit of the Company, at any time either during or
subsequent to Executive’ employment, any trade secrets or other confidential information of the
Company that Executive may produce, obtain or otherwise acquire during the course of his
employment. Upon termination of Executive’s employment with the Company, Executive shall return to
the Company all records of such trade secrets or confidential information, including copies thereof
in Executive’ possession, whether prepared by Executive or others. The provisions of this Section
10 shall not apply to any of the following: (a) information that, at the time it was disclosed by
the Company, was in the general public knowledge; (b) information that, after being disclosed by
the Company, becomes in the general public knowledge other than through Executive’s unauthorized
disclosures; (c) information in Executive’s possession at the time the information was disclosed by
the Company; (d) information received in good faith by Executive independently from a third party;
and (e) information independently developed by Executive other than in the course of Executive’s
employment.

     11. Non-Compete.

          (a) Executive agrees that during his employment with the Company and for a period of
twenty-four months after the termination of Executive’s employment for any reason, Executive will
not, directly or indirectly:

	 	(i)	 	engage in any manner or capacity (e.g., as an
advisor, principal, agent, partner, officer, director, stockholder,
employee, member of any association or otherwise) in the business of
providing local exchange telecommunications services, long distance or
Internet access in the State of Iowa or any local telephone exchange
area in which the Company provides local exchange services;
	 
	 	(ii)	 	in any way interfere or attempt to interfere
with the Company’s relationships with any of the Company’s then-current
customers with
the Company with whom Executive has had material contact within the
last year, suppliers, vendors or investors; or

14

 

	 	(iii)	 	employ or attempt to employ any of the
Company’s employees, or the employees of any enterprise managed or
owned by the Company, on behalf of any other entity competing with the
Company;

Notwithstanding the foregoing, if the Term ends because the either party gives notice of nonrenewal
pursuant to Section 1 (whether or not Executive remains employed by the Company on an “at-will”
basis), then the restrictions in this Subsection (a) shall continue for a period of six months.

          (b) If it is determined by a final non-appealable judgment of a court of law or equity that
Executive has breached this Section 11, the Company shall be relieved of further severance payments
to Executive pursuant to Section 8, and Executive shall repay to the Company all severance payments
previously received pursuant to Section 8.

          (c) Executive will, prior to accepting employment with any new employer, inform that employer
of this Agreement and provide that employer with a copy of this Section 11 if Section 11 remains in
effect pursuant to the terms of this Agreement as of the first day of Executive’s employment with
the new employer.

     12. Enforcement of Confidentiality and Non-Compete Covenants. The parties acknowledge
that the Company will suffer irreparable harm if Executive breaches Section 9, 10 or 11 of this
Agreement, either during or after the Term. Accordingly, the Company shall be entitled to any
right or remedy it may have, under this Agreement or otherwise, at law or equity, including but not
limited to an injunction, enjoining or restraining Executive from any violation of Section 9, 10 or
11 of this Agreement, without any requirement that the Company post a bond or other security.
However, such right of equitable relief shall not be construed to be in lieu of any other rights,
including, but not limited to, the right to seek a remedy at law for damages plus costs and
reasonable attorney fees.

     13. Survival of Obligations. Except as provided in Section 11, Executive’s
obligations under Sections 6(f), 9, 10 and 11 shall not be terminated upon termination or
expiration of this Agreement or of Executive’s employment for any reason. The Company’s
obligations under Sections 6(g), 8, 14 and 23 shall not be terminated upon termination or
expiration of this Agreement or of Executive’s employment for any reason.

     14. Director and Officer Insurance and Indemnification. The Company shall procure and
maintain in force during the Term of this Agreement Director and Officer liability insurance in
such amount or amounts as the Company may determine, which insurance shall include coverage of the
office of the President/CEO. The Company shall indemnify Executive to the maximum extent
authorized by the provisions of the Iowa Business Corporation Act. In the event that the Company
and Executive enter into a separate agreement relating to indemnification, during the period of
time that such agreement remains in effect the provisions of this Section shall be superseded
thereby to the extent such agreement gives Executive greater rights; provided, however there shall
be no obligation of the Company to enter into such separate indemnification agreement.

15

 

     15. Notices. Any notice required or permitted to be given under this Agreement shall
be in writing and (i) hand delivered, (ii) sent by registered or certified mail, return receipt
requested, or (iii) sent by overnight courier requiring signature for delivery to the Company or
Executive, as appropriate, at the following addresses:

	 	 	 
	If to the Company:

	 	General Counsel
	 

	 	Iowa Telecommunications Services, Inc.
	 

	 	403 W. Fourth Street North
	 

	 	Newton, IA 50208
	 
	 	 
	If to Executive:

	 	To the last address the Company has on file for Executive

The parties shall notify each other in writing of any changes in the notification addresses at the
time such changes occur.

     16. Assignment. This Agreement shall inure to the benefit of and be binding upon the
Company, and the Company’s legal successors. Executive shall not have any right to assign or
delegate his obligations under this Agreement; provided, however, that in the event of Executive’s
death, any amounts owed to Executive hereunder shall be paid to his estate, except for those rights
pursuant to Section 8 which extend, and shall be provided, to his spouse and dependents.

     17. Modification. This Agreement shall not be changed, modified or amended in any
respect except by a written instrument signed by both parties.

     18. Entire Agreement. All prior employment discussions, negotiations and employment
agreements, including Executive’s current employment agreement, between the Company and Executive,
whether written or oral, are hereby terminated and superseded in their entirety by this Agreement.
In addition, if and to the extent Section 11 (Non-Compete) is inconsistent with any provision
contained in any other prior agreement between Executive and Company, the provisions of Section 11
shall control.

     19. Choice of Law. This Agreement shall be governed by the applicable laws of the
State of Iowa.

     20. Savings Clause. Any provision of this Agreement which is held by any court having
jurisdiction of the parties and this subject matter to be unlawful shall be modified and made
lawful by such court to the extent permitted by law, and in accordance with the decisions of Iowa
courts.

     21. Action by Board of Directors. Any action required by the Company’s Board of
Directors under this Agreement may be taken by the affirmative vote of a majority of the members of
the Board, or of a duly authorized committee having authority over the matter in question, present
at a meeting thereof, not counting Executive; provided that termination for “Cause”

16

 

pursuant to Section 6(a) shall require the approval of two-thirds of the members of the Board of
Directors present at a meeting thereof, not counting Executive.

     22. IRC Section 280G Cutback. Notwithstanding any other provision of this Agreement,
if any payments or benefits in the nature of compensation pursuant to this Agreement or otherwise
would in the aggregate result in Executive receiving a “parachute payment” within the meaning of
Section 280G of the Internal Revenue Code, then such payment or benefits shall be cut back to the
minimum extent necessary to avoid an excise tax under Section 4999 of the Internal Revenue Code,
but if and only if applying such cutback would result in Executive retaining a larger after-tax
amount. In determining the extent to which such payments or benefits would result in a parachute
payment or such cutback is necessary, an appropriate portion of the Severance shall be treated as
reasonable compensation for Executive’s obligations pursuant to Sections 9 through 11. The
determination of such portion shall be by mutual agreement of the Company and Executive, or if
requested by Executive, the determination will be made by a valuator mutually acceptable to the
Company and Executive whose fees and expenses shall be paid by the Company. If any payments or
benefits are to be cut back, the payments and benefits to be paid latest in time shall be cut back
first, and in the event that payments and benefits to be cut back are to be paid at the same time,
non-cash payments and benefits shall be cut back before cash payments.

     23. Legal Fees. The Company shall reimburse Executive’s reasonable legal fees and
expenses incurred in negotiating and documenting this Agreement. In the event of any dispute
between Executive and the Company following a Change of Control of the Company, the Company shall
reimburse Executive for attorneys’ fees and expenses reasonably incurred by Executive in such
dispute within thirty (30) days after the Executive remits invoices for such fees and expenses,
provided Executive remits invoices for such fees and expenses within sixty (60) days after he
incurs such fees and expenses; provided, however, Executive shall be required to reimburse the
Company, within thirty (30) days following such determination, for the fees and expenses
attributable to those issues upon which Executive is judicially determined not to have prevailed
upon the merits.

     24. Withholding Taxes. The Company shall deduct from all payments or benefits
provided for under this Agreement any federal, state or local income and employment-related taxes
required by law to be withheld with respect to such payments or benefits.

     25. Release. Notwithstanding anything contained herein to the contrary, the Company
shall only be obligated to pay or provide any benefits under Section 8 if: (i) within the 50-day
period after the date of Severance, Executive first executes a release substantially in the form
attached hereto as Exhibit A; and (ii) Executive does not revoke the release during the seven-day
revocation period prescribed by the Age Discrimination in Employment Act of 1967, as amended, or
any similar revocation period, if applicable. Within twenty-five days (25) after the date of
Severance giving rise to an obligation to make payments or provide benefits under Section 8, the
Company shall deliver to Executive such form of release.

17

 

     IN WITNESS WHEREOF, this Employment Agreement has been executed by the parties effective as of
the day and year first above written.

	 	 	 	 	 
	 	IOWA TELECOMMUNICATIONS SERVICES, INC.

 
	 	By:  	/s/ Donald G. Henry
 	 
	 
	 	Its:  	Vice President and General Counsel 	 
	 	 	 	 
	 
	 	/Alan L. Wells 
	 	ALAN L. WELLS	 
	 	 	 
	 	 	 
	 

18

 

EXHIBIT A

WAIVER AND RELEASE AGREEMENT

(Pursuant to Section 25 of Employment Agreement)

     THIS WAIVER AND RELEASE AGREEMENT (this “Agreement”) is made and entered into this
___day of                     , 20___, by and between IOWA TELECOMMUNICATIONS SERVICES, INC., an Iowa
corporation (the “Company” or “Iowa Telecommunications”) and ALAN L. WELLS, an Iowa
resident (“Executive”).

     WHEREAS, the parties have entered into a Employment Agreement dated September ___, 2009 (the
“Employment Agreement”); and

     WHEREAS, Executive’s employment has been or will be terminated at the close of business on
                                        ; and

     WHEREAS, Executive is required to sign this Waiver and Release in order to receive the payment
of certain severance benefits under the Employment Agreement following termination of employment.

     NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, it is
agreed as follows:

     1. Release of Claims. Specifically in consideration of the payments to be made and
the benefits to be received by Executive pursuant to Section 8 of the Employment Agreement (the
“Severance Benefits”) which Executive acknowledges are in addition to payments and benefits to
which Executive would be entitled absent the Employment Agreement (except as otherwise provided in
the Employment Agreement), by signing this Agreement Executive, for himself and anyone who has or
obtains legal rights or claims through Executive, agree to the following:

     (a) Executive, for himself, his heirs, representatives, agents, successors and assigns hereby
releases and forever discharges Iowa Telecommunications from any and all manner of past, present,
or future claims, demands, actions, causes of action, administrative claims, liability, damages,
claims for punitive or liquidated damages, claims for attorney’s fees, costs and disbursements, any
individual or class action claims, or demands of any kind whatsoever, including but not limited to
any claims for salary, vacation, PTO, severance, incentive compensation, deferred compensation,
benefits, bonus, expenses, notice pay, commission, or any claims for other compensation, any claims
for fraud, misrepresentation, fraudulent inducement, promissory estoppel, any claims under the
Employment Agreement, breach of covenant of good faith and fair dealing, implied contract,
defamation, any other claims arising by statute, in tort or contract, any federal or state
constitutional claims, any claims for discrimination based on sex, race, color, creed, religion,
age, national origin, sexual orientation, gender identity, disability, veteran’s status, or any
other protected class status, any claims for unlawful sexual or other harassment, retaliation or
reprisal, any claims arising under Title VII of the Civil Rights Act, 42 U.S.C. § 2000e et
seq., the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq.,
the

A-1

 

Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., the Employee
Retirement Income Security Act (ERISA), 29 U.S.C. §1001, et seq., the Family and
Medical Leave Act, 29 U.S.C. § 2601, et seq., the Sarbanes-Oxley Act, 15 U.S.C. §
7201 et seq., the Iowa Civil Rights Act, any other claims under any Iowa law, or
any other claims arising under any federal, any state or local statute, law or regulation, or any
claims in any manner relating to his employment, association with or separation from the Company,
arising in law or equity, whether known, suspected or unknown, and however originating or existing,
from the beginning of time to the date of the signing of this Agreement.

     (b) Executive agrees to and hereby does release and discharge the Company not only from any
and all claims that Executive could make on his own behalf, but also those that may or could be
brought by any other person, entity or organization on his behalf or for his benefit, and Executive
specifically waives any right to become, and agrees not to become, a member of any class in any
proceeding or case in which a claim or claims against the Company arises, in whole or in part, from
any event which occurred from the beginning of time to the date of this Agreement.

     (c) Executive does not, by signing this Agreement, release or waive (i) any rights or claims
that may arise after it is signed; (ii) any vested interest Executive may have in any 401(k) by
virtue of his employment with the Company; (iii) any state unemployment compensation to which
Executive may be entitled; (iv) any rights of indemnification under Section 14 of the Employment
Agreement according to the terms of such section or any other rights to indemnification the
Executive may have pursuant to the Company’s Articles of Incorporation or bylaws or any separate
indemnification agreement (if any); (v) any rights under and directors and officers liability
insurance policy which provides for coverage for the Executive, including, without limitation, the
Directors and Officers liability insurance described in Section 14 of the Employment Agreement;
(vi) any rights the Executive has under Section 3(b)(iii), 3(c), 6(g), 8 or 23 of the Employment
Agreement; or (vii) the right to file a charge of discrimination with a governmental agency,
including the Equal Employment Opportunity Commission, although Executive agrees that Executive
will not be entitled to recover any award of money, compensation, attorneys’ fees or damages,
whatsoever, if Executive file a charge of discrimination or other claim or if Executive has a
charge or other claim filed on his behalf.

     (d) Iowa Telecommunications and the Company, as used in this Section 1 and Section 2 below,
shall mean the Iowa Telecommunications Services, Inc., and any parent, subsidiary, division,
affiliated and related entities, and in both their individual and corporate or official capacities,
its and their present and former officers, directors, shareholders, trustees, employees, agents,
attorneys, insurers, representatives and consultants, and the current and former trustees or
administrators of any pension or other benefit plan applicable to the employees or former employees
of the Company, and the predecessors, successors and assigns of all of the above.

     2. Non-Admission. It is expressly understood that this Agreement does not constitute,
nor shall it be construed as, an admission by the Company or Executive of any liability or unlawful
conduct whatsoever. The Company and Executive specifically deny any liability or unlawful conduct.

     3. Notification of Rights under the Federal Age Discrimination in Employment Act (29
U.S.C. § 621 et seq.). Executive is hereby notified of his right to rescind the release of

A-2

 

claims in regard to claims arising under the Federal Age Discrimination in Employment Act, 29
U.S.C. § 621, et seq., within seven (7) calendar days of his signing of this
Agreement. The rescission must be in writing and delivered or mailed to: General Counsel, Iowa
Telecommunications Services, Inc., 403 W. Fourth Street North, Newton, IA 50208. If delivered by
mail, the rescission must be post-marked within the required period, properly addressed to the
individual noted above at the above address, and sent by certified mail, return receipt requested.
It is further understood that, if Executive rescinds the release of claims in accordance with this
Section, Executive will not be entitled to the separation pay set forth in Section 8 of the
Employment Agreement, and Executive must immediately reimburse the Company for any such payments if
they have already been made to Executive or on his behalf. This Agreement will be effective upon
the expiration of the 7-day period noted in this Section if not rescinded by the Executive within
such 7-day period.

     4. Notice of Right to Consult Attorney and Twenty-One (21) Calendar Day Consideration
Period. By signing this Agreement, Executive acknowledges and agrees that the Company has
informed Executive by this Agreement that (i) Executive has the right to consult with an attorney
of his choice prior to signing this Agreement, and (ii) Executive is entitled to twenty-one (21)
calendar days from the receipt of this Agreement to consider whether the terms are acceptable to
Executive. The Company encourages Executive to use the full 21-day period to consider this
Agreement but Executive has the right, if he chooses, to sign this Agreement prior to the
expiration of the twenty-one (21) day period.

     5. Return of Property. Executive acknowledges, by his signature to this Agreement,
that Executive has complied with his obligations under Section 6(f) of the Employment Agreement.

     6. Nondisparagement. Executive agrees that Executive will not make any disparaging or
negative remarks, whether oral or in writing, regarding the Company, its officers, directors or
employees. The Company agrees that it will not make any disparaging or negative remarks, whether
oral or in writing, regarding Executive.

     7. Communications with Prospective Employers. The Company and Executive agree that
all inquiries from prospective employers should be directed to                                                             , at the
Company, and Mr./Ms. ___will inform the individual inquiring that it is the policy of the
Company to confirm only dates of employment and position last held of former employees.

     8. Noncompetition Obligations. Executive understands and agrees that his obligations
under Sections 9, 10, 11, and the corresponding provisions of Sections 12-13 and 15-25 of the
Employment Agreement remain in full force according to their terms, and survive the termination of
his employment.

     9. Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and assigns of the Company.

     10. Entire Agreement. This Agreement states the entire agreement of the parties with
respect to the subject matter hereof and supersedes and merges all prior negotiations, agreements,
and understandings, if any, with respect to the subject matter hereof. No

A-3

 

modification, release, discharge, or waiver, of any provision of this Agreement shall be of
any force or effect unless made in writing and signed by the parties hereto, and specifically
identified as a modification, release, or discharge, of this Agreement. If any term, clause, or
provision of this Agreement shall for any reason be adjudged invalid, unenforceable, or void, the
same shall not impair or invalidate any of the other provisions of the Agreement, all of which
shall be performed in accordance with their respective terms.

     Executive acknowledges that Executive has not relied on any representations or statements,
whether oral or written, other than the express statements of this Agreement, in signing this
Agreement.

     11. Acknowledgment of Reading and Understanding. By signing this Agreement, Executive
acknowledges that he has read this Agreement, including the release of claims contained in Section
1, and understands that the release of claims is a full and final release of all claims
Executive may have against the Company and the other entities and individuals covered by the
release. By signing, Executive also acknowledges and agrees that he has entered into this
Agreement knowingly and voluntarily.

     IN WITNESS WHEREOF, this Waiver and Release Agreement has been executed by the parties effective as
of the day and year first above written.

	 	 	 	 	 
	 	IOWA TELECOMMUNICATIONS SERVICES, INC.

 	 
	 	By:  	 	 
	 
	 	Its:  	 	 
	 	 	 	 
	 
	 	 
	 	ALAN L. WELLS	 
	 	 	 
	 	 	 
	 

A-4

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