Document:

Key Employee Severance Plan

 Exhibit 10.2 
 Appendix A 
 Commonwealth Telephone Enterprises, Inc. 
 Key Employee Severance Plan 
 (Effective September 17, 2006) 
  

	1.	Intent. Commonwealth Telephone Enterprises, Inc. (the “Company”) has determined that in the event of a transaction or other event which might result in a Change in
Control (as defined below) of the Company, it is desirable and in the best interest of the Company to have established arrangements to help ensure that Key Employees remain focused and appropriately incented with respect to the successful completion
of such Change in Control and the transition and ongoing activities thereafter regarding the continued business of the Company following such Change in Control. In order to accomplish these objectives, the Company has put a Key Employee Severance
Plan (the “Plan”) in place as of the effective date set forth above. 

  

	2.	Scope. This Plan extends to those employees of the Company listed on Exhibit I attached hereto (“Eligible Employees”). 

  

	3.	Policy. 

  

	 	(a)	Severance Benefits Upon Termination Following a Change in Control. 

 If a Change in Control occurs and an Eligible Employee’s employment with the Company (or a successor employer in connection with the Change in Control) is terminated without Cause (as defined below), or an
Eligible Employee terminates employment with Good Reason (as defined below), in either case within one (1) year following the effective date of such Change in Control, an Eligible Employee will, in lieu of any other severance benefits which
might or might not otherwise be available to him or her, be eligible to receive the following severance benefits (“Severance Benefits”): 
  

	 	(i)	A one-time cash payment equal to one (1) year’s base salary in effect immediately prior to the termination; and 

  

	 	(ii)	Payment by Company of the Eligible Employee’s health care premiums (less employee contribution) for the first twelve (12) months following the termination; and

  

	 	(iii)	Base salary through the date of such termination and any other accrued benefits to which the Eligible Employee is entitled under the terms of the Company’s employee benefit
plans and programs. 

  

	 	(b)	The receipt of any Severance Benefits is conditioned upon the Eligible Employee’s execution of a general release of claims against the Company in a form acceptable to the
Company. 

	4.	Definition of Cause. For purposes of this Plan, the term “Cause” shall mean any one of the following: 

  

	 	(a)	A breach of the Eligible Employee’s fiduciary duty to the Company in his or her capacity as an officer of the Company; 

  

	 	(b)	Any action or failure to act on the part of the Eligible Employee which results in material injury to the assets, business prospects or reputation of the Company or any Affiliate
(as defined below) of the Company; 

  

	 	(c)	The appropriation of a material business opportunity of the Company or any Affiliate of the Company, including attempting to secure or securing any personal profit in connection
with any transaction entered into by, or on behalf of, the Company; or 

  

	 	(d)	The Eligible Employee’s indictment for a felony or breach of the Company’s Code of Conduct or a material employment policy or rule of the Company governing employee
conduct. 

  

	5	Definition of Good Reason. For purposes of this Plan, “Good Reason” shall mean any one of the following occurrences, unless consented to in writing by the Eligible
Employee: 

  

	 	(a)	The Eligible Employee’s base salary as in effect immediately prior to the Change in Control, or as it may be increased subsequent to the Change in Control, is reduced by more
than fifteen (15%) percent; 

  

	 	(b)	The Eligible Employee’s business location is changed by more than 60 miles from his or her present location; 

  

	 	(c)	Any successor to the Company in connection with a Change in Control does not, prior to the Change in Control, expressly assume this Plan. 

  

	 	(d)	Under no circumstances shall death, disability or normal retirement qualify as “Good Reason” for purposes of this provision. 

  

	6.	Definition of Change in Control. For purposes of this Plan, “Change in Control” shall mean any “change in the ownership or effective control” of the
Company within the meaning of Internal Revenue Code Section 409A and related Treasury guidance and regulations (collectively, “Section 409A”). 

  

	7.	Funding. The Company (or its successor) shall pay Severance Benefits from its current operating funds. No property of the Company is or shall be, by reason of this Plan, held
in trust for any employee of the Company, nor shall any person have any interest in or 

  

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 any lien or prior claim upon any property of the Company by reason of this Plan or the Company’s
obligations to make payments under this Plan. 
  

	8.	Set-off. Any Severance Benefits to any Eligible Employee shall be reduced by any other severance benefits, pay in lieu of notice or other similar benefits payable to the
Eligible Employee from or on behalf of the Company or any prior employer of the Eligible Employee, which becomes payable on account of his or her cessation of employment pursuant to: 

  

	 	(a)	any applicable law, statute, regulation, court order or other legal requirement, including without limitation, the Worker Adjustment and Retraining Notification Act, as amended from
time to time; 

  

	 	(b)	any written employment, severance or similar agreement with the Company; 

  

	 	(c)	any Company policy providing for an employee to remain on the payroll for a limited period of time after he or she is given notice of his or her termination of employment; or

  

	 	(d)	any other obligation by any other individual or entity other than the Company to provide a payment to the Eligible Employee in the event of an involuntary termination of his or her
employment. 

  

	9.	Tax Indemnity. If it is determined that any payments and benefits that the Eligible Employee receives from the Company or an Affiliate under this Agreement will result in him
or her being subject to an excise tax under Section 4999 of the Code, then the Company will make a Gross-Up Payment (as defined below) to or on behalf of the Eligible Employee and when any such determination is made; provided he or she
takes such action (other than waiving his or her right to any payments or benefits) as the Company reasonably requests under the circumstances to mitigate or challenge such tax. Any such determination will be made in accordance with Sections 280G
and 4999 of the Code and any other applicable law, regulations, rulings or case law. If the Company reasonably requests that he or she takes action to avoid assessment of, or to mitigate or challenge, any such tax or assessment, including
restructuring, his or her rights to receive any payments or benefits to which he or she is entitled (other than under this paragraph), he or she agrees to consider such request (but in no event to waive or limit his or her right to any payments or
benefits in a manner that would not be neutral to him or her from a financial point of view), and in connection with any such consideration, the Company will provide such information and advice as he or she may reasonably request and will pay for
all reasonable expenses incurred in effecting his or her compliance with such request and any related taxes, fines, penalties, interest and other assessments. The term “Gross-Up Payment” means an additional amount such that he or she will,
on an after-tax basis (including any income tax, payroll tax, further excise tax, interest, penalties and other assessments levied on any payment or benefit) receive the full amount of the payments and benefits for which the Company is liable, as if
there was no excise tax under Section 4999 of the Code on any of his or her payments or benefits. To the extent 

  

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 permitted by applicable law, he or she agrees to return to the Company the excess of any Gross-Up Payment
made to him or her over the payment which would have been sufficient to put him or her in such same after-tax position. Nothing in this Section 13 is intended to violate the Sarbanes-Oxley Act and to the extent that any advance or payment
obligation hereunder would do so, such obligation will be modified so as to make the advance a nonrefundable payment to him or her and the payment obligation null and void. This Section 13 will continue in effect until he or she agrees that all
of the Company’s obligations to him or her under this Section l3 have been satisfied in full or a court of competent jurisdiction makes a final determination that the Company has no further obligations to him or her under this Section 13,
whichever comes first. 
  

	10.	Administration. This Plan shall be administered by the Board of Directors of the Company (“Board of Directors”). For purposes of the Employee Retirement Income
Security Act of 1974, as amended from time to time (“ERISA”), the Board of Directors shall be the “administrator” and the “named fiduciary” with respect to the general administration of this Plan. The Board of Directors
may, in its discretion, delegate its duties to a Committee of the Board of Directors or to one or more named administrator or administrators. 

 The Board of Directors shall have absolute discretion to construe and interpret any and all provisions of this Plan and to decide all matters of fact in granting or denying benefit claims, including without
limitation, the discretion to resolve ambiguities, inconsistencies or omissions conclusively; provided, however, that all such discretionary interpretations and decisions shall be applied in a uniform and nondiscriminatory manner to all Eligible
Employees who are similarly situated. The decisions of the Board of Directors upon all matters within the scope of its authority shall be binding and conclusive upon all persons. 
 No member of the Board of Directors shall have any right to vote or decide upon any matter relating solely to himself or herself under this Plan or to
vote in any case in which his or her individual right to claim any benefit under this Plan is particularly involved. 
 In any case in which a
member of the Board of Directors is so disqualified to act, the Board of Directors shall appoint a temporary substitute member to exercise all the powers of the disqualified member concerning the matter from which he or she is disqualified.

 The members of the Board of Directors shall not receive compensation with respect to their services for the Board of Directors solely with
respect to administering this Plan. To the extent required by ERISA or other applicable law, or required by the Company, members of the Board of Directors shall furnish bond or security for the performance of their duties under this Plan, which
shall be paid pursuant to the last paragraph of this Section. 
 The reasonable expenses incident to the administration of this Plan,
including the compensation of legal counsel, advisors, other technical or clerical assistance as may be required, the payment of any bond or security pursuant to this Plan and any other expenses incidental to the operation of this Plan, which the
Board of Directors determines are proper, shall be paid by the Company (or its successor). 
  

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	11.	Indemnification. The Company shall indemnify and hold harmless each member of the Board of Directors and each employee of the Company who is a fiduciary under this Plan
against any and all expenses and liabilities arising out of his or her administrative functions or fiduciary responsibilities relating to this Plan, including any expenses and liabilities that are caused by or result from an act or omission
constituting the negligence of such individual in the performance of such functions or responsibilities, but excluding expenses and liabilities arising out of such individual’s own gross negligence or willful misconduct. Expenses against which
such person shall be indemnified under this Plan include, without limitation, the amounts of any settlement or judgment, costs, counsel fees and related charges reasonably incurred in connection with a claim asserted or a proceeding brought or
settlement thereof. 

  

	12.	Claims Procedures. The Board of Directors shall determine the rights of any Eligible Employee to any Severance Benefits under this Plan. Any such individual who believes that
he or she has been denied Severance Benefits under this Plan to which he or she believes that he or she is entitled may file a claim in writing with the Board of Directors. The Board of Directors shall, within 90 days after receipt of a claim,
either allow or deny the claim in writing. If a claimant does not receive written notice of the decision on his or her claim within 90 days, the claim shall be deemed to have been denied in full. 

 Within 60 days after any denial of a claim, the denial may be appealed by filing a written request with the Board of Directors, which shall conduct a
review and file a written decision thereof. Written decisions shall be written in a manner intended to be understood by the claimant and shall state the specific reasons for the decision and the Plan provisions on which the decision was based and
shall, to the extent permitted by law, be binding on all interested persons. 
  

	13.	Amendment or Termination of this Plan. Notwithstanding any communication, either oral or written, made by the Company, the Board of Directors or any other individual or
entity, the Company reserves the absolute and unconditional right to amend this Plan from time to time, including without limitation, the right to reduce or eliminate benefits provided pursuant to the provisions of this Plan as such provisions
currently exist or may hereafter exist. All amendments to this Plan shall be (a) authorized or ratified by the Board of Directors and (b) in writing and signed by an authorized officer of the Company. Any oral statements or representations
made by the Company, the Board of Directors or any other individual or entity that alter, modify, amend or are inconsistent with the written terms of this Plan shall be invalid and unenforceable and may not be relied upon by any person.

 Notwithstanding any communication, either oral or written, made by the Company, the Board of Directors or any other
individual or entity, the Company reserves the absolute and unconditional right to terminate this Plan, in whole or in part with respect to some or all Eligible Employees. Any such termination of this Plan shall be authorized or ratified by the
Board of Directors. 
 In the event of an amendment to or termination of this Plan as provided under this Section, no affected Eligible
Employee shall have any further rights under this Plan, and 
  

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 the Company shall have no further obligations under this Plan, except as otherwise specifically provided
under this Plan; provided, however, that no amendment or termination shall be made that would reduce any accrued benefits arising from incurred but unpaid claims of Eligible Employees existing prior to the effective date of such amendment or
termination and no amendment or termination shall be made on or prior to the first anniversary of the effective date of the Change of Control without the consent of affected Eligible Employees. 
  

	14.	Miscellaneous. Neither this Plan nor any provisions contained in this Plan shall be construed to be a contract between the Company and an Eligible Employee, or to be
consideration for, or an inducement of, the employment of any Eligible Employee by the Company. Nothing contained in this Plan shall grant any Eligible Employee the right to be retained in the service of the Company or limit in any way the right of
the Company to discharge or to terminate the service of any Eligible Employee at any time, without regard to the effect such discharge or termination may have on any rights under this Plan. 

 Except as the Board of Directors may otherwise permit by rule or regulation, no interest in or benefit payable under this Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any action by an Eligible Employee to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void and of no
effect, nor, subject to Section 8, shall any interest in or benefit payable under this Plan be in any way subject to any legal or equitable process, including without limitation, garnishment, attachment, levy or seizure, or to the lien of any
person. This provision shall be construed to provide each Eligible Employee, or other person claiming any interest or benefit in this Plan through an Eligible Employee, with the maximum protection permitted by law against alienation, encumbrance and
any legal and equitable process, including without limitation, attachment, garnishment, levy, seizure or other lien, afforded his or her interest in this Plan (and the benefits provided under this Plan) by law and any applicable regulations.
Notwithstanding the preceding sentence, however, the Company may withhold from any amounts payable under this Plan such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 Notwithstanding any provision of this Plan to the contrary, if at the time of the termination of employment of an Eligible Employee, such Eligible
Employee is a “specified employee” as defined in Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), no payment or benefit will be provided under this Plan until the earliest of (a) the date
which is 6 months after such cessation of employment for any reason, other than death or “disability” (as such term is used in Section 409A(a)(2)(C) of the Code, (b) the date of such Eligible Employee’s death or
“disability” (as such term is used in Section 409A(2)(C) of the Code), or (c) the effective date of a Change in Control. The provisions of this section shall only apply to the extent required to avoid such Eligible
Employee’s incurrence of any additional tax or interest under Section 409A. In addition, if any provision of this Plan would cause such Eligible Employee to incur any additional tax or interest under Section 409A, the Company may
reform such provision without violating the provisions of Section 409A. 
  

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 In case any provision of this Plan is held to be illegal, invalid or unenforceable for any reason, such
illegal, invalid or unenforceable provision shall not affect the remaining provisions of this Plan, but this Plan shall be construed and enforced as if illegal, invalid or unenforceable provision had not been included in this Plan. 
 Except to the extent that ERISA or any other federal law applies to this Plan and preempts state law, this Plan shall be construed, enforced and
administered according to the laws of the state of Pennsylvania. 
  

			
	Commonwealth Telephone Enterprises, Inc.
		
	By:	 	 /s/ Michael J. Mahoney

		 	Michael J. Mahoney
	Title:	 	President and Chief Executive Officer

  

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 Exhibit 1 
  

			
	 Eligible Employee
	  	 Title

	Eileen Odum	  	EVP and COO
		
	Donald Cawley	  	EVP and CAO
		
	Kevin O’Hare	  	Group VP – Strategic Dev.
		
	Raymond Ostroski	  	SVP and General Counsel
		
	Rita Brown	  	SVP and General Mgr, CTSI
		
	DG Gulati	  	SVP and General Mgr, CT
		
	Todd Hanson	  	SVP, Network Services
		
	Steve Letts	  	VP and General Mgr, CC
		
	Scott Burnside	  	SVP – Regulatory
		
	Joe Laffey	  	VP – Regulatory
		
	Darryl Varnado	  	VP – Human Resources
		
	David Weselcouch	  	SVP – Investor Relations
		
	Tom M. Davis	  	VP – Information Technology
		
	Christine Feeley	  	VP – Marketing
		
	Chris McCorkendale	  	VP – Operations Strategy and Development

  

 8Amended Restricted Stock Units Agreement

 Exhibit 10.3 
 COMMONWEALTH TELEPHONE ENTERPRISES INC.  
 AMENDED RESTRICTED STOCK UNITS AGREEMENT 

This Amended Restricted Stock Unit Agreement (“Amended Agreement”), effective as of September 29, 2006, is made between Commonwealth
Telephone Enterprises, Inc. (the “Company” or “CTE”) and
                                 (“Grantee”). This Amended Agreement amends the
Restricted Stock Units Agreement previously executed by Grantee and CTE on March 10, 2006. 
  

	 	1	Definitions. As used herein: 

  

	 	(a)	“Award” means the award of Restricted Stock Units hereby granted. Awards are characterized into two categories: 

  

	 	i.	“Long Term Incentive Award” – represents the award that an employee will receive for their continuing contributions to CTE. 

  

	 	ii.	“Performance Level Award” – represents an award the Grantee shall receive only if CTE meets certain performance metrics as set forth on Exhibit A.

 The formula corresponding to the award as well as the application of this formula is illustrated by example in Exhibit A,
attached hereto and incorporated herein. 
  

	 	(b)	“Board” means the Board of Directors of the Company. 

  

	 	(c)	“Code” means the Internal Revenue Code of 1986, as amended. 

  

	 	(d)	“Committee” means the Compensation/Pension Committee of the Board. 

  

	 	(e)	“Date of Grant” means the date first set forth above on which the Company awarded the Restricted Stock Units. 

  

	 	(f)	“Deferral Date” means the date to which Grantee has elected to defer the receipt of CTE stock with respect to any vesting or previously deferred Restricted Stock
Units. 

  

	 	(g)	“Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code. 

  

	 	(h)	“EBITDA” means Earnings Before Interest, Taxes, Depreciation, and Amortization; and is intended to function within this Agreement as a performance metric by which
Grantee may be awarded additional Restricted Stock Units as set forth on Exhibit A. 

  

	 	(i)	“Employer” means the Company or the subsidiary or affiliate of the Company for which Grantee is performing services on the Vesting Date. 

 

	 	(j)	“Normal Retirement” means age 65 and five years of service or an age greater than 65 when 5 years of service are attained. 

  

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	 	(k)	“Plan” means the Commonwealth Telephone Enterprises, Inc. Equity Incentive Plan, incorporated herein by reference. 

  

	 	(l)	“Restricted Period” means, with respect to each Restricted Stock Unit, the period beginning on the Date of Grant and ending on the Vesting Date.

  

	 	(m)	“Restricted Stock Units” means any or all of the Units which are the subject of any Award hereby granted or achieved. Units represent an unfunded promise by the
Company to deliver Shares at a future date. 

  

	 	(n)	“Shares” means shares of the Company’s common stock, par value $1.00 per share, or any substitute securities issued in substitution for the Company’s
common stock pursuant to Paragraph 12. 

  

	 	(o)	“Vesting Date” means the date on which the restrictions imposed under Paragraph 4 on a Restricted Stock Unit lapse, as provided in Paragraph 5.

  

	 	2.	Grant of Long Term Incentive Awards. 

 Subject to
the terms and conditions set forth herein and in the Plan, the Company hereby grants to Grantee 3,000 Restricted Stock Units as a “Long Term Incentive Award.” 
  

	 	3.	Grant of Performance Level Awards. 

 In addition to
the Long Term Incentive Awards, Grantee has the opportunity to receive up to 5,000 additional RSUs through a Performance Level Award. Grantee shall only receive the Performance Level Award according to the parameters and metrics set forth on Exhibit
A. 
  

	 	4.	Restrictions on Restricted Stock Units. 

 Subject to
the terms and conditions set forth herein and in the Plan, during the Restricted Period, Grantee shall not be permitted to sell, transfer, pledge or assign any of the Restricted Stock Units granted hereunder. 
  

	 	5	Lapse of Restrictions. 

 (a) Subject to the terms
and conditions set forth herein and in the Plan, the restrictions set forth in Paragraph 4 on each Restricted Stock Unit that has not been forfeited, shall lapse on the Vesting Date; provided, however, that on the Vesting Date, Grantee is, and has
from the Date of Grant continuously been, an employee of the Company during the Restricted Period. 
 (b) Subject to paragraph 5(a), a
Vesting Date for Shares of Restricted Stock Units awarded to Grantee as a Long Term Incentive Award shall occur in accordance with the following schedule: 
  

	 	(i)	As to 750 Shares of the Restricted Stock Units, March 10, 2007, 

  

	 	(ii)	As to an additional 750 Shares of the Restricted Stock Units, March 10, 2008, 

  

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	 	(iii)	As to an additional 750 Shares of the Restricted Stock Units, March 10, 2009, 

  

	 	(iv)	As to an additional 750 Shares of the Restricted Stock Units, March 10, 2010. 

 (c) If Restricted Stock Units are awarded to Grantee as a Performance Level Award in accordance with paragraph 3, then subject to paragraph 5(a), a Vesting Date for Shares of Restricted Stock Units shall occur in
accordance with the following schedule: 
 (i) As to one-third of the Restricted Stock Units issued as a Performance Level Award, one year
from the determination date noted in paragraph 5(e), 
 (ii) As to one-third of the Restricted Stock Units issued as a Performance Level
Award, two years from the determination date noted in paragraph 5(e), 
 (iii) As to one-third of the Restricted Stock Units issued as a
Performance Level Award, three years from the determination date noted in paragraph 5(e). 
 (d) Any Restricted Stock Unit regardless of the
manner of the Award (and any related Dividend Equivalents) not yet vested as of the date that a Grantee’s employment terminates due to death, Disability or Normal Retirement, shall become immediately vested. Any vested portion shall be paid as
soon as practicable subject to the provisions of the Plan. 
 (e) The number of shares awarded as Performance Level Award shall be determined
on or before February 28, 2007 (the 2006 “determination date”). If a Performance Level award is determined to be less than the number of shares indicated in Section 3 above, the number of shares representing the
difference shall be forfeited as of February 28, 2007. 
  

	 	6.	Deferral of Restricted Stock Units. 

 (a) Grantee
shall have the right, on an annual basis, to defer receipt of CTE stock relative to any vesting or deferred vested Restricted Stock Units provided the election to defer is properly executed sufficiently in advance of the applicable vesting or
deferral date to satisfy IRS guidelines with respect to deferral of compensation. Any election to defer shall be for a minimum of one year. 
 (b) Grantee shall be notified by the Company in advance of any pending vesting or deferral date to accommodate the election to receive, or defer receipt of, shares on any vesting or deferred Restricted Stock Units. 
  

	 	7.	Forfeiture of Restricted Stock Units. 

 (a) Subject
to the terms and conditions set forth herein and in the Plan, if Grantee terminates employment with the Company or any of its Subsidiaries during the Restricted Period for any reason other than death, Normal Retirement or Disability, 
  

 Page 3 of 7 

 Grantee shall forfeit the Restricted Stock Units as of the date of such termination of employment. Upon
a forfeiture of the Restricted Stock Units as provided in this Paragraph 7, such Restricted Stock Units shall be deemed cancelled. 
 (b) The
provisions of this Paragraph 7 shall not apply to Shares of Restricted Stock Units as to which the restrictions of Paragraph 4 have lapsed. 
  

	 	8.	Rights of Grantee. 

 (a) Dividends – If the
Company issues a dividend, Grantees shall earn dividends in the form of Dividend Equivalents corresponding to the aggregate Restricted Share Units awarded and issued hereunder. Grants of Dividend Equivalents issued during the Restricted Period and
prior to the receipt of CTE Common Stock by Grantee, remain subject to vesting and risk of forfeiture on the same basis as the corresponding Restricted Share Units. 
 (b) Voting – Holders of Restricted Stock Units will not have voting rights with respect to Restricted Share Units until such time as the Restricted Share Unit Award is fully vested and converted to CTE Common
Stock. 
  

	 	9	Notices. 

 Any notice to the Company under this
Agreement shall be made in care of the Committee at the Company’s main office at 100 CTE Drive, Dallas, PA 18612. All notices under this Agreement shall be deemed to have been given when hand-delivered or mailed, first class postage prepaid,
and shall be irrevocable once given. 
  

	 	10.	Securities Laws. 

 The Committee may from time to
time impose any conditions on the Restricted Stock Units as it deems necessary or advisable to ensure that any Shares issued with respect to the Restricted Stock Units are issued and resold in compliance with applicable federal and state securities
laws. 
  

	 	11.	Delivery of Shares. 

 Upon a Vesting Date, the
Company shall notify Grantee that the restrictions on the Restricted Stock Units have lapsed. Unless a prior election has been made to defer receipt of the specified Shares, within ten (10) business days of a Vesting Date, the Company shall,
without payment from Grantee for the Restricted Stock Units, deliver to Grantee a certificate for CTE Shares equal to the Restricted Stock Units subject to such Vesting Date. Said certificate shall be delivered, without any legend or restrictions,
except for such restrictions as may be imposed by the Committee, in its sole judgment, under Paragraph 10, provided that no certificates for Shares will be delivered to Grantee until appropriate arrangements have been made with the Employer for the
withholding of any taxes which may be due with respect to such Shares. The Company may condition delivery of certificates for Shares upon the prior receipt from Grantee of any undertakings which it may determine are required to assure that the
certificates are being issued in compliance with federal and state securities laws. The right to payment of any fractional Shares shall be satisfied in cash, measured by the product of the fractional amount multiplied by the fair market value of a
Share on the Vesting Date, as determined by the Committee. 
  

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	 	12	Awards Not to Affect Employment. 

 None of the
Awards granted hereunder shall confer upon Grantee any right to continue in the employment of the Company or any subsidiary or affiliate of the Company. 
  

	 	13	Effect of Change of Control. 

 In the event of a
Change of Control (as defined in the Plan), notwithstanding the vesting schedule set forth in paragraph 5 above, all of the Restricted Stock Units shall be come immediately vested. 
  

	 	14	Miscellaneous. 

 (a) The address for Grantee to
which notice, demands and other communications to be given or delivered under or by reason of the provisions hereof shall be the Grantee’s address as reflected in the Company’s personnel records. 
 (b) The validity, performance, construction and effect of this Award shall be governed by the laws of the Commonwealth of Pennsylvania, without giving
effect to principles of conflicts of law. 
  

			
	COMMONWEALTH TELEPHONE ENTERPRISES, INC.
		
	BY:	 	 /s/ Michael J. Mahoney

		 	Michael J. Mahoney
		 	President and Chief Executive Officer
	
	X                                      
                                 /    /
    
	Date            

  

 Page 5 of 7 

 Exhibit A 
 PERFORMANCE-BASED RSU AWARD EXAMPLE 
 Plan Design 
  

					
	Original 2006 RSU Grant	  	 Original 2006 RSU Performance Targets

		  	                                    (Threshold –
Maximum)
			
	 1) Long-Term Incentive RSUs
	  	 None
	  	
	 2) Performance Level I RSUs
	  	 Consolidated EBITDA
	  	$152,664 - $158,664
	 3) Performance Level II RSUs
	  	 Consolidated EBITDA
	  	$158,664 - $162,664
			
	 Modified 2006 RSU Grant
	  	 Modified 2006 RSU Performance Targets
	  	
		  	                                    (Threshold –
Maximum)	  	
			
	 1) Long-Term Incentive RSUs
	  	 None
	  	
	 2) Performance Level RSUs
	  	 Consolidated EBITDA
	  	$152,664 - $157,801

 Long-Term Incentive Award 
 The Long-Term Incentive Award previously granted in 2006 remains in place to be vested in accordance with the terms of the Amended Agreement. Should a change of control occur, the vesting will change in accordance
with Paragraph 13 of the Amended Agreement. 
 Performance Level Award 
 The Performance Level Awards previously communicated in 2006 remain in place and can still be achieved with the modified performance criteria as noted above. 
 Formula 
 (Actual EBITDA less
Threshold EBITDA / Performance Level EBITDA less Threshold EBITDA) x Total Performance Level RSUs 
 Examples

 2006 Consolidated EBITDA Performance: 
 A =
$157,801 
 Individual granted 2,000 Long Term Incentive and 3,500 Performance Level Awards. 
  

												
		  	$	157,801	  	less	  	$152,664	  	=	  	$5,137
		  	$	157,801	  	less	  	$152,664	  	=	  	$5,137
	 Therefore,
	  	 	5,137	  	divided by	  	5,137	  	=	  	1.0
	 Accordingly,
	  	 	1.0	  	times	  	3,500	  	=	  	3,500

 Total Employee RSU grant in this example: 
  

				
	 Long Term Incentive Award
	  	2,000	 
	 Performance Level Award
	  	3,500	 
		  	 	 
	 Total RSUs Granted
	  	5,500	*

	*	Maximum RSU Award is 5,500 (2,000 Long Term Incentive and 3,500 Performance Level Awards) 

  

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 B = $157,000 
 Individual granted 1,500 Long Term Incentive and 2,500 Performance Level Awards. 
  

												
		  	$	157,000	  	less	  	$152,664	  	=	  	$4,336
		  	$	157,801	  	less	  	$152,664	  	=	  	$5,137
	 Therefore;
	  	 	4336	  	divided by	  	5137	  	=	  	0.8441
	 Accordingly,
	  	 	0.8441	  	times	  	2,500	  	=	  	2,111

 Total Employee RSU grant in this example: 
  

			
	 Long Term Incentive Award
	  	1,500
	 Performance Level Award
	  	2,111
		  	 
	 Total RSUs Granted
	  	3,611

  

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