Document:

Exhibit 10.18.3

 Exhibit 10.18.3 
 MCLEODUSA INCORPORATED 
 STOCK OPTION AGREEMENT 
 STOCK OPTION AGREEMENT (the “Agreement”) by and between McLeodUSA Incorporated (the “Company”) and [NAME] (the “Optionee”),
dated as of [DATE] (the “Date of Grant”) under the McLeodUSA Incorporated 2006 Omnibus Equity Plan (the “Plan”). 
  

	1.	Definitions. Capitalized terms which are not defined herein shall have the meaning set forth in the Plan. 

  

	2.	Number of Shares and Exercise Price. The Company hereby grants to the Optionee an option (the “Option”), subject to the terms and conditions set forth herein and in
the Plan, to purchase [            ] shares of Company Stock (“Shares”), subject to adjustment in accordance with Section 3 of the Plan, at a price (the “Exercise
Price”) of $[AMOUNT] per Share (subject to adjustment in accordance with Section 3 of the Plan). The Option is a nonqualified stock option. 

  

	3.	Term of Option and Conditions of Exercise. 

  

	 	(a)	Term of Option. Unless the Option is earlier terminated pursuant to this Agreement, the term of the Option shall commence on the Date of Grant and terminate upon the tenth
anniversary of the Date of Grant. 

  

	 	(b)	Option Vesting. Subject to the provisions of this Agreement and the Plan and the Optionee’s continued employment (or in the case of a nonemployee director, service) with
the Company on the applicable vesting dates, the Option will become exercisable with respect to [one fourth of Shares subject thereto immediately on the Date of Grant and with respect to an additional one fourth of such shares on each of the first
three anniversaries of the Date of Grant] [one fourth of Shares subject thereto on each of the first four anniversaries of the Date of Grant].(1) 

  

	 	(c)	Vesting Upon Change in Control. Notwithstanding the foregoing, any outstanding and unvested portion of the Option shall become fully vested and exercisable upon the
occurrence of a Change in Control. 

  

	 	(d)	Condition to Acceptance; Exercise. If, at the time of exercise of all or any portion of the Option, the Board or Committee determines that it is desirable to require the
Optionee to enter into the Company’s Stockholders Agreement, it shall be a condition to the exercise of the Option that the Optionee join such Stockholders Agreement by executing a joinder agreement in the form provided by the Company.

  
  

	(1)	Vesting schedule to be customized. 

  

	4.	Rights and Obligations Upon Termination of Employment or Service. 

  

	 	(a)	The entire Option (whether or not vested and exercisable) shall terminate and expire (and may not be exercised) at the commencement of business on the date of termination of the
Optionee’s employment (or in the case of a nonemployee director, service) with the Company for Cause. For purposes of this Agreement, “Cause” shall have the meaning set forth in an employment or similar agreement between the Company
and the Optionee, or, if no such agreement is in effect, shall mean a termination by the Company following the Optionee’s (i) engaging in a criminal act involving the Company; (ii) engaging in willful misconduct that the Committee
determines in its good faith discretion is, or has the potential to be, materially injurious to the Company, monetarily or otherwise including, without limitation, reputation; (iii) breach of fiduciary duty involving personal profit, including,
without limitation, embezzlement, misappropriate or conversion of assets or opportunities of the Company or any of its affiliates or subsidiaries; or (iv) material breach of the Company’s Code of Business Conduct and Ethics or other
Company policy. 

  

	 	(b)	If the Optionee’s employment (or in the case of a nonemployee director, service) terminates due to the Optionee’s death or Disability, the Option will become fully vested
immediately prior to such termination and shall remain exercisable for one year thereafter (subject to Section 3(a)). For purposes of this Agreement, “Disability” shall have the meaning set forth in the Company’s long-term
disability plan in which the Optionee participates, or, if there is no such plan, shall be determined by the Committee in good faith. 

  

	 	(c)	If the Optionee’s employment (or in the case of a nonemployee director, service) with the Company terminates for any reason other than Cause, death or Disability, the vested
portion of the Option shall remain exercisable for ninety (90) days following the date of such termination (subject to Section 3(a)), and at the end of such period the vested portion of the Option shall terminate, unless such termination
occurs prior to the first anniversary of the Date of Grant, in which case (i) both the vested and unvested portion of the Option shall terminate immediately upon termination of employment (or in the case of a nonemployee director, service) and
(ii) notwithstanding the provisions of Section 9(a)(2) of the Plan, the Repurchase Price shall be the Original Cost, rather than the Fair Market Value. The unvested portion of the Option shall terminate and may not be exercised following
the termination of the Optionee’s employment (or in the case of a nonemployee director, service) with the Company. 

  

	5.	Nontransferability of Option; Conditions to Transfer of Option Shares. The Option shall not be assignable or transferable otherwise than by a duly executed and attested will
or by the laws of descent and distribution; and the Option may be exercised, during the lifetime of the Optionee, only by the Optionee or the Optionee’s legal representative. 

  

	6.	 Exercise of Option. The Option shall be exercised by a written notice delivered to the Secretary of the Company at the Company’s principal executive
offices in accordance 

  

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with Section 8, specifying the portion of the Option to be exercised and accompanied by payment therefor. The exercise price for any Shares purchased
pursuant to the exercise of the Option shall be paid in the manner set forth in the Plan. 

  

	7.	Rights as a Shareholder. 

  

	 	(a)	By accepting the Option, the Optionee acknowledges that the Optionee is and will be subject to the applicable provisions of the Plan with respect to Shares acquired pursuant to such
exercise, including, without limitation, the provisions of Section 9 of the Plan, and that the Optionee has read and understood such provisions and the provisions referenced therein. 

  

	 	(b)	Other Restrictions. Notwithstanding anything to the contrary contained herein, all repurchases of and payments for the Shares by the Company shall be subject to applicable
legal restrictions and any restrictions in the Company’s and its Affiliates’ debt and equity financing agreements. If any such restrictions prohibit the repurchase of or payment for the Shares hereunder, the Company shall make such
repurchases or payments as soon as it is permitted to do so under such restrictions. 

  

	8.	Notices. All notices and other communications under this Agreement shall be in writing and shall be given by hand delivery to the other party, by confirmed facsimile
transmission or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

 If to the
Optionee: 
 If to the Company:
                  One Martha’s Way 
 Hiawatha, Iowa 52233 
 Attention: Option Plan Administrator-HR 
 Either party may furnish to the other in writing a substitute address and phone and fax numbers for delivery of notice in accordance with Section 8. Notices and
communications shall be effective when actually received by the addressee. 
  

	9.	Incorporation of Plan; Acknowledgment. The Plan is hereby incorporated herein by reference and made a part hereof, and the Option and this Agreement are subject to all terms
and conditions of the Plan. In the event of any inconsistency between the Plan and this Agreement, the provisions of the Plan shall govern. By signing this Agreement, the Optionee acknowledges having received and read a copy of the Plan.

  

	10.	Adjustment of Option. The Option shall be subject to the adjustment provisions set forth in Section 3 of the Plan. 

  

	11.	Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without regard to the conflicts of law rules thereof.

  

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	12.	Amendment and Termination. Rights and obligations under this Agreement shall not be adversely altered or impaired by termination or amendment of the Plan, except with the
consent of the Optionee. 

  

	13.	Representations. 

  

	 	(a)	The Optionee hereby represents and warrants that, upon exercise of the Option, the Optionee will be acquiring Shares for investment solely for his own account and not with a view
to, or for resale in connection with, the distribution or other disposition thereof. The Optionee agrees and acknowledges that he will not, directly or indirectly, offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of any
Shares, or solicit any offers to purchase or otherwise acquire or take a pledge of any Shares, unless such offer, transfer, sale, assignment, pledge, hypothecation or other disposition complies with (A) the provisions of the Plan and this
Agreement and (B) the Securities Act or an exemption therefrom. 

  

	 	(b)	The Optionee acknowledges and represents that he has been advised by the Company that (i) the offer and sale of the Shares have not been registered under the Securities Act;
(ii) if acquired, the Shares must be held indefinitely and the Optionee must continue to bear the economic risk of the investment in the Shares; (iii) a restrictive legend with respect to the foregoing shall be placed on the certificates
representing the Shares; and (iv) a notation shall be made in the appropriate records of the Company indicating that the Shares are subject to restrictions on transfer and, if the Company should at some time in the future engage the services of
a securities transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the Shares. 

  

	14.	Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original and said counterparts shall constitute but one and the same
instrument. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year set forth first
above. 
  

			
	MCLEODUSA INCORPORATED
		
	By:	 	 
	Title:	 	

  

	
	
	  
	Optionee

  

 4Exhibit 10.20

 Exhibit 10.20 
 Description of Non-Employee Director Compensation 
 Directors who are also PAETEC officers or
employees do not receive any additional compensation for serving on PAETEC’s board of directors or any of its committees. Prior to October 2007, each non-employee director was entitled to annual fees of $50,000, payable in cash in four equal
quarterly installments in arrears. 
 In October 2007, the compensation committee of the board of directors recommended, and the board of
directors approved, the following revised policies relating to the compensation of directors for their service on the board of directors and its committees. Under the new policies, the audit committee chairman is entitled to annual cash fees of
$80,000 and an annual grant of stock options for 10,000 shares of common stock and restricted stock units for 10,000 shares of common stock. The other audit committee members are entitled to annual cash fees of $60,000 and an annual grant of stock
options for 7,000 shares of common stock and restricted stock units for 7,000 shares of common stock. The compensation committee chairman is entitled to annual cash fees of $70,000 and an annual grant of stock options for 8,000 shares of common
stock and restricted stock units for 8,000 shares of common stock. The other compensation committee members are entitled to annual cash fees of $50,000 and an annual grant of stock options for 5,000 shares of common stock and restricted stock units
for 5,000 shares of common stock. The Vice Chairman is entitled for his board service to annual cash fees of $70,000 and an annual grant of stock options for 8,000 shares of common stock and restricted stock units for 8,000 shares of common stock.
All cash fees are payable in four equal quarterly installments in arrears. All equity grants vest with respect to one-third of the underlying shares of common stock on each of the first, second and third anniversaries of the grant date. 

All directors are reimbursed for their reasonable out-of-pocket expenses incurred in connection with their board service. In addition,
Mr. Tansukh Ganatra is entitled to participate in the company’s health insurance plan in which the company covers a portion of the expenses.

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