KCTC LOCAL TELEPHONE Terms of Service

TERMS OF SERVICE. The terms and conditions governing local telephone service provided by KCTC (the
“Company”) are changing. Effective December 31st, 2014 (the “Effective Date”), the Company’s local
exchange services will no longer be governed by tariff, but will instead be governed by the
enclosed Standard Agreement for Local Exchange Service and our other Terms of Service, which are
described in this Notice. If you continue to use local telephone service following the Effective
Date, your use of service will be governed by the Terms of Service contained in our Services
Catalog. Our Terms of Service cancel and supersede (i) the Company’s Local Services Tariff
previously filed with and approved by the Iowa Utilities Board and (ii) any terms and conditions of
service published by the Company and effective prior to the Effective
Date.
ACCEPTANCE. If you WISH TO accept our Terms of Service and continue receiving local telephone
service from the Company, you need not take any action. Acceptance of our Terms of Service occurs
upon any of the following: (a) you provide a written or electronic signature expressly accepting;
(b) you orally or electronically order and/or activate local telephone service, following the
Effective Date; or (c) you use local telephone service, following the Effective Date. IF YOU WISH
TO REJECT OUR TERMS OF SERVICE, PLEASE NOTIFY US PRIOR TO THE EFFECTIVE DATE, AND WE WILL CANCEL
YOUR SERVICE ORDER OR DISCONNECT YOUR
LOCAL TELEPHONE SERVICE. If you elect to cancel service, you will be responsible for all usage
charges, non-recurring charges, and early termination charges applicable to your services and the
pro rata portion of service charges incurred prior to the effective date of the cancellation. WHY
ARE TERMS OF SERVICE REQUIRED? Previously, the Company provided local exchange services and
facilities pursuant to a Local Services Tariff filed with and approved by the Iowa Utilities Board.
As a result of recent changes to applicable law and regulations, the Company will no longer file a
Local Services Tariff with the Iowa Utilities Board. As of the Effective Date, we will provide
Service pursuant the “Terms of Services” identified in our Services Catalog which include the
following documents, each of which may be amended or modified from time to
time as provided therein:
1. Our Standard Agreement for Local Exchange Service;
2. Our Rules and Regulations for Local Exchange Service;
3. Our Service Guide – Local Exchange Service;
4. Our Service Guide – General Exchange Service; and

5. Our Rate Schedules.

CHANGES TO RATES OR TERMS OF SERVICE. We may change rates, terms and conditions or other provisions
in our Services Catalog at any time by giving you notice as required by law. We may decrease prices
without prior notice. Notice of increases to the prices or material changes to the Terms of Service
will be given to affected customers. The notice may be provided on your monthly bill, as a bill
insert, by email, on our website, or by other written communication or notice as permitted or
required by applicable law or regulation. If you elect not to cancel your service and continue to
use service after the communicated effective date of any such changes, your continued use of
service will constitute acceptance of the modified Terms of Service.

STANDARD AGREEMENT FOR LOCAL EXCHANGE SERVICE

1. SERVICE AGREEMENT. This standard agreement (this “Agreement”) governs your service relationship
with KCTC(together with any subsidiaries or affiliates providing your service or related
facilities, “we,” “us,” or the “Company”) for regulated local exchange services and facilities
(“Service”). Previously, the Company provided Service pursuant to a Local Services Tariff filed
with and approved by the Iowa Utilities Board. As a result of recent changes to applicable law and
regulations, the Company no longer files or maintains a Local Services Tariff. Instead, we now
provide Service pursuant this Agreement, including the additional Terms of Service incorporated
herein by reference.

2. ACCEPTANCE. Your acceptance of this Agreement occurs upon any of the following: (a) you provide
a written or electronic signature expressly accepting this Agreement; (b) you orally or
electronically order and/or activate Service; or (c) you use Service, following notification that
this Agreement will apply to your ongoing use of such Service.
3. ADDITIONAL TERMS OF SERVICE. We provide Service pursuant to a certificate of public convenience
and necessity issued by the Iowa Utilities Board. We provide Service subject to our “Services
Catalog”, including: (a) this Agreement (b) our Rules and Regulations for Local Exchange Service,
which are incorporated herein by reference; (c) our applicable Service Guides and Rate Schedules,
which are incorporated herein by reference and (d) applicable rules and regulations of the Iowa
Utilities Board. Current versions of our Rules and Regulations, Service Guides and Rate Schedules
are available in electronic form on our website at KCTC.net. Current versions of these documents
are also available at our business office(s) and will be provided or made available to you upon
request. Our Rules and Regulations, Service Guides and Rate Schedules contain the specific prices
and charges, service descriptions and other terms and conditions not set forth herein which apply
to Service.

4. RIGHTS AND RESPONSIBILITIES. This Agreement is our standard service agreement. Under this
Agreement, we agree to provide and bill for Service, and you agree to use and pay for Service, as
provided herein and in our other applicable Terms of Service. Our rights and responsibilities, and
your rights and responsibilities, are as set forth in this Agreement and our other applicable Terms
of Service.

5. TERM. This Agreement shall commence on the date of your acceptance and shall continue
month-to-month (or, in some cases for an established minimum term) as provided in our applicable
Terms of Service. Either party may terminate this Agreement or any Service in accordance with our
applicable Terms of Service. Termination of this Agreement or any Service shall not waive or
release your obligation to pay for Service provided prior to such termination as well as any other
applicable fees and charges, as provided in our Terms of Service.

6. RATES; PAYMENT. Nonrecurring and recurring charges for Service are as set forth in our
applicable Terms of Service. Except as otherwise noted, Service pricing is exclusive of applicable
local, state and federal taxes and regulatory fees, assessments and surcharges. All Service
charges, along with applicable local, state and federal taxes and regulatory fees, assessments and
surcharges, will be itemized on your invoice. Failure to pay invoices when due may result in late
payment penalties or suspension or disconnection of Service as provided in our applicable Terms of
Service.
7. CHANGES TO TERMS. We reserve the right to change our Terms of Service (including rates or any
other terms and conditions of Service) upon written notice to you. The notice may be provided on
your monthly bill, as a bill insert, by email, on our website, or by other written communication or
other form of notice permitted or required by applicable laws and regulations. If you elect not to
cancel your Service and continue to use Service after the communicated effective date of any such
changes, your continued use of Service will constitute acceptance of the modified Terms of Service.

8. CHANGES TO SERVICE. We may, from time to time, modify the Service to reflect improvements and
other changes and modifications to our network. In addition, we reserve the right to discontinue or
limit Service as required to comply with or satisfy our obligations under applicable laws or
regulations, including when changes to or interpretations of such laws and regulations have a
material, adverse effect on the business, technical or economic feasibility of providing Service,
as determined by us in our reasonable judgment.

9. ACCESS TO SERVICE PREMISES. We may enter into, upon and over your Service premises periodically
during the term of this Agreement to install, connect, inspect, maintain, repair, alter, disconnect
and remove our facilities and equipment used to provide Service. To the extent the same is
consistent with your ownership of the premises, you grant the Company a temporary and permanent
easement to construct, install, maintain, and/or replace Service facilities and to install,
connect, inspect, maintain, repair, alter, disconnect and remove all
facilities and equipment necessary to provide Service. In the event you are not the owner of the
premises upon which installation is requested, you warrant to the Company that you have

obtained the consent of the owner of the premises for the Company to install and maintain its
facilities and equipment as contemplated herein.
10. CREDIT CHECK; DEPOSITS. In connection with your request or application for any Service, we may
conduct an investigation into your credit-worthiness, including obtaining one or more reports or
ratings from one or more independent credit reporting or credit scoring agencies. We may require a
deposit for you to establish or maintain Service. The deposit amount, the length of time we hold
the deposit and changes to the deposit amount are determined based on your credit and payment
history, our Terms of Service and any applicable laws or regulations. If Service is canceled or
disconnected for any reason, we may, subject to our Terms of Service and applicable law and
regulations, apply your deposit toward payment of outstanding charges.

11. SERVICE ACCOUNTS. Service accounts are assigned to customers only, and the customer in whose
name the account is established will be treated as the account owner for all purposes. Account
owners may designate one or more “authorized users” who will have access to account information and
may make certain account changes in accordance with our policies and applicable laws and
regulations. As the owner of the account, you are responsible for designating (or changing the
designation) of any authorized users. You will hold the Company harmless from any claims arising
from account instructions given or inquiries made by you or any authorized user. You are
responsible for keeping all account and billing data with the Company up-to-date and accurate.
Furnishing false data to the Company is grounds for immediate disconnection of Service and may
subject you to civil or criminal liability.

12. FEDERAL LIFELINE PROGRAM. The Company is an eligible telecommunications carrier (ETC) within
all or portions of its service area, meaning that it provides certain services supported by the
federal Universal Service Fund, including the federal “Lifeline” program for qualifying low- income
consumers. Single line, local residential service is a Lifeline-eligible service. Lifeline is a
government benefit program which provides a monthly credit toward a qualified low-income
subscriber’s telephone bill. Only eligible low-income consumers may enroll in the Lifeline program.
Consumers who meet eligibility criteria must also complete documentation necessary for enrollment.
Lifeline assistance is non-transferable, and eligible subscribers may receive assistance from only
one wireline or wireless telecommunications provider per household. If you believe you may qualify
for the Lifeline program, please visit our website at www.kctc.net or contact us to discuss program
details, eligibility requirements or to request a Lifeline application. Consumers who willfully
make false statements in order to obtain the benefit can be punished by fine or imprisonment or can
be barred from the program. To report Lifeline fraud, you may contact the Federal Communications
Commission Lifeline Fraud Tip Line: 1-855- 4LL-TIPS (or 1-855-455-8477) or Lifeline@fcc.gov.
13. DISCLAIMER OF WARRANTIES. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN OUR TERMS OF SERVICE, WE
MAKE NO WARRANTIES WITH RESPECT TO ANY SERVICE OR FACILITIES, EXPRESS OR IMPLIED, INCLUDING ANY
WARRANTIES CONCERNING THE SPECIFIC FUNCTION OF ANY SERVICE OR FACILITIES, OR THEIR RELIABILITY,
AVAILABILITY, OR ABILITY TO MEET YOUR SPECIFIC NEEDS. TO THE EXTENT PERMITTED BY LAW, WE EXPRESSLY
DISCLAIM ALL IMPLIED

WARRANTIES, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF SATISFACTORY QUALITY,
NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
14. LIMITATION ON REMEDIES. In addition to any other limitation on remedies or limitations of
liability set forth in our Terms of Service or in applicable law or regulations, the Company shall
not be liable for any delay or failure to provide Service at any time or from time to time, or any
interruption or degradation of Service quality that is caused by any of the following: (a) an act
or omission of an underlying carrier, service provider, vendor or other third party; (b) equipment,
network or facility failure, including failure caused by the loss of power; (c) equipment, network
or facility upgrade or modification; (d) force majeure events such as (but not limited to) acts of
God, acts of nature, strikes, fire, war, riot, acts of terrorism and government actions; (e)
equipment or facility shortage; (f) equipment or facility relocation; (g) any act or omission by
you or any person using your Service; (h) theft, fraud or abuse of Service; or (i) any other cause
that is beyond the Company’s reasonable control.
THE EXTENT PERMITTED BY LAW, OUR TOTAL LIABILITY FOR ANY CLAIM UNDER THIS AGREEMENT, INCLUDING FOR
ANY EXPRESS OR IMPLIED WARRANTIES, IS LIMITED TO THE AMOUNT YOU PAID US FOR THE AFFECTED SERVICE OR
FACILITIES, WHETHER SUCH CLAIM OR REMEDY IS SOUGHT IN CONTRACT OR TORT, INCLUDING NEGLIGENCE,
STRICT LIABILITY OR OTHERWISE. TO THE EXTENT PERMITTED BY LAW, WE SHALL NOT BE LIABLE TO YOU FOR
ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE, SPECIAL OR TREBLED OR ENHANCED DAMAGES,
INCLUDING, BUT NOT LIMITED TO LOST PROFITS, LOST BUSINESS, OR OTHER COMMERCIAL OR ECONOMIC LOSS,
WHETHER SUCH DAMAGES ARE CLAIMED FOR BREACH OF CONTRACT, NEGLIGENCE OR OTHERWISE AND WHETHER OR NOT
WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

15. INDEMNIFICATION. You agree to indemnify the Company and our affiliates, officers, agents and
employees from any liability or expense arising from claims, losses, damages, suits, judgments,
litigation costs and attorneys’ fees arising from or related to your abuse or misuse of Service, or
any other violation of this Agreement or our other Terms of Service.

16. ADDITIONAL SERVICES. Our telecommunications and communications services are diverse, and not
all services we provide are regulated services. This Agreement and the other Terms of Service
identified herein apply only to local exchange services regulated by the Iowa Utilities Board. The
Company may also offer or provide other products and services, including unregulated
telecommunications or communications services. Unless otherwise specified, such products and
services are not covered by this Agreement or our other Terms of Service referenced herein, but may
be subject to other service contracts or terms and conditions of service provided or made available
to customers in connection with those products and services.

17. GOVERNING LAW. This Agreement, and our contractual and service relationship with you, shall be
deemed to have been made in and shall be governed by and construed in accordance with the
substantive laws of the State of Iowa, without regard to the principles of conflicts of law.

18. INCORPORATION AND INTEGRATION. Our Terms of Service are incorporated into this Agreement. This
Agreement, along with our other Terms of Service, constitute the entire agreement between the
parties concerning our contractual service relationship, there being no prior written or oral
promises or representations not incorporated herein or therein.

19. NO IMPLIED WAIVER. Our failure to exercise or enforce any provision of or rights under this
Agreement or our other Terms of Service shall not constitute a waiver of any such provision or
right.
20. SEVERABILITY. If any part or provision of this Agreement or our other Terms of Service is held,
in whole or in part, to be invalid, illegal, or unenforceable by any law or regulation of any
governmental or regulatory authority, or by the final determination of any court of competent
jurisdiction, that part or provision will be construed consistent with applicable law or regulation
as nearly as possible, and the remaining parts and provisions will remain in full force and effect.
Such invalidity or non-enforceability will not invalidate or render unenforceable any other part or
provision of this Agreement or our other Terms of Service.

21. ASSIGNMENT; BINDING EFFECT. This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and assigns; provided, however, you may not
assign or transfer your rights or obligations under this Agreement without our express written
consent. Unless consent is granted, all accounts must be closed and reopened under
the name of a new customer for issuance of a new account number.