Exhibit 10.1


              


 


 


2013 LONG-TERM
INCENTIVE PLAN


<<YEAR>> STOCK OPTION AWARD
AGREEMENT


 


United States Cellular Corporation, a Delaware
corporation (the “Company”), hereby grants to <<NAME>> (the
“Optionee”), as of <<DATE OF GRANT>> (the “Option Date”),
pursuant to the provisions of the United States Cellular Corporation 2013
Long-Term Incentive Plan (the “Plan”), a Non-Qualified Stock Option (the
“Option”) to purchase from the Company <<# OF SHARES>> shares
of Common Stock at the price of $<<PRICE>> per share upon
and subject to the terms and conditions set forth below.  Capitalized terms not
defined herein shall have the meanings specified in the Plan.


 


1.                 
Time and Manner of Exercise of Option


1.1.             
Exercise of Option.  (a)  In general.  Except as otherwise
provided in this Award Agreement, the Option shall become exercisable according
to the following vesting schedule:


·       
1/3 of grant vests on <<ANNUAL ANNIVERSARY OF OPTION
DATE>>


·       
1/3 of grant vests on <<SECOND ANNUAL ANNIVERSARY OF
OPTION DATE>>


·       
Remaining 1/3 of grant vests on <<THIRD ANNUAL
ANNIVERSARY OF OPTION DATE>>


In no event may
the Option be exercised, in whole or in part, after <<TENTH ANNUAL
ANNIVERSARY OF OPTION DATE>> (the “Expiration Date”).


(b)                
Disability.  If the Optionee’s employment by the Employers and
Affiliates terminates by reason of Disability (as defined below), then the
Option shall be exercisable only to the extent it is exercisable on the
effective date of the Optionee’s termination of employment and after such date
may be exercised by the Optionee (or the Optionee’s Legal Representative) for a
period of 12 months after the effective date of the Optionee’s termination of
employment, or until the Expiration Date, whichever period is shorter.  If the
Optionee shall die within such exercise period, then the Option shall be
exercisable by the beneficiary or beneficiaries duly designated by the Optionee
to the same extent the Option was exercisable by the Optionee on the date of
the Optionee’s death, for a period ending on the later of (i) the last day of
such exercise period and (ii) the 180 day anniversary of the Optionee’s death
(but in no event later than the Expiration Date).  For
purposes of this Award Agreement, “Disability” shall mean a total physical disability
which, in the Committee’s judgment, prevents the Optionee from performing
substantially his or her employment duties and responsibilities for a
continuous period of at least six months.


(c)                
Special Retirement.  If the Optionee’s employment by the Employers
and Affiliates terminates by reason of Special Retirement (as defined below),
then the Option immediately shall become exercisable in full if (i) the
Optionee has attained age 66 as of the effective date of the Optionee’s Special
Retirement and (ii) the effective date of the Optionee’s Special Retirement
occurs on or after January 1, <<YEAR FOLLOWING YEAR OF GRANT>>.  If
the Optionee’s employment by the Employers and Affiliates terminates by reason
of Special Retirement and either (i) the Optionee has not attained age 66 as of
the effective date of the Optionee’s Special Retirement or (ii) the effective
date of the Optionee’s Special Retirement occurs before January 1, <<YEAR
FOLLOWING YEAR OF GRANT>>, then the Option shall be exercisable only to
the extent it is exercisable on the effective date of the Optionee’s Special
Retirement.  The Option, to the extent then exercisable, may be exercised by
the Optionee (or the Optionee’s Legal Representative) for a period of 12 months
after the effective date of the Optionee’s Special Retirement, or until the
Expiration Date, whichever period is shorter.  If the Optionee shall die within
such exercise period, then the Option shall be exercisable by the beneficiary
or beneficiaries duly designated by the Optionee to the same extent the Option
was exercisable by the Optionee on the date of the Optionee’s death, for a
period ending on the later of (i) the last day of such exercise period and (ii)
the 180 day anniversary of the Optionee’s death (but in  no event later than
the Expiration Date).  For purposes of this Award Agreement, “Special
Retirement” shall mean an Optionee’s termination of employment with the
Employers and Affiliates on or after the later of (i) the Optionee’s attainment
of age 62 and (ii) the Optionee’s Early Retirement Date or Normal Retirement
Date, as such terms are defined in the Telephone and Data Systems, Inc. Pension
Plan.


 


 

(d)                
Retirement.  If the Optionee’s employment by the Employers and
Affiliates terminates by reason of Retirement (as defined below), then the
Option immediately shall become exercisable in full if (i) the Optionee has
attained age 66 as of the effective date of the Optionee’s Retirement and (ii)
the effective date of the Optionee’s Retirement occurs on or after January 1,
<<YEAR FOLLOWING YEAR OF GRANT>>.  If the Optionee’s employment by
the Employers and Affiliates terminates by reason of Retirement and either (i)
the Optionee has not attained age 66 as of the effective date of the Optionee’s
Retirement or (ii) the effective date of the Optionee’s Retirement occurs
before January 1, <<YEAR FOLLOWING YEAR OF GRANT>>, then the Option
shall be exercisable only to the extent it is exercisable on the effective date
of the Optionee’s Retirement.  The Option, to the extent then exercisable, may
be exercised by the Optionee (or the Optionee’s Legal Representative) for a
period of 90 days after the effective date of the Optionee’s Retirement, or
until the Expiration Date, whichever period is shorter.  If the Optionee shall
die within such exercise period, then the Option shall be exercisable by the
beneficiary or beneficiaries duly designated by the Optionee to the same extent
the Option was exercisable by the Optionee on the date of the Optionee’s death,
for a period ending on the earlier of (i) the 180 day anniversary of the
Optionee’s death and (ii) the Expiration Date.  For purposes of this Award
Agreement, “Retirement” shall mean an Optionee’s termination of employment with
the Employers and Affiliates on or after the Optionee’s attainment of age 65
that does not satisfy the definition of “Special Retirement” set forth in
Section 1.1(c).


(e)                
Resignation with Prior Consent of the Board.  If the Optionee’s
employment by the Employers and Affiliates terminates by reason of the
Optionee’s resignation of employment with the prior consent of the Board (as
evidenced in the Company’s minute book), then the Option shall be exercisable
only to the extent it is exercisable on the effective date of the Optionee’s
resignation and after such date may be exercised by the Optionee (or the
Optionee’s Legal Representative) for a period of 90 days after the effective
date of the Optionee’s resignation, or until the Expiration Date, whichever
period is shorter.  If the Optionee shall die within such exercise period, then
the Option shall be exercisable by the beneficiary or beneficiaries duly
designated by the Optionee to the same extent the Option was exercisable by the
Optionee on the date of the Optionee’s death, for a period ending on the
earlier of (i) the 180 day anniversary of the Optionee’s death and (ii) the
Expiration Date.


(f)                 
Death.  If the Optionee’s employment by the Employers and
Affiliates terminates by reason of death, then the Option shall be exercisable
only to the extent it is exercisable on the date of death and after such date
may be exercised by the beneficiary or beneficiaries duly designated by the
Optionee for a period ending on the earlier of (i) the 180 day anniversary of
the Optionee’s death and (ii) the Expiration Date.


(g)                
Other Termination of Employment.  If the Optionee’s employment by
the Employers and Affiliates terminates for any reason other than Disability,
Special Retirement, Retirement, resignation of employment with the prior
consent of the Board (as evidenced in the Company’s minute book) or death, then
the Option shall be exercisable only to the extent it is exercisable on the
effective date of the Optionee’s termination of employment and after such date
may be exercised by the Optionee (or the Optionee’s Legal Representative) for a
period of 30 days after the effective date of the Optionee’s termination of
employment, or until the Expiration Date, whichever period is shorter.  If the
Optionee shall die within such exercise period, then the Option shall be
exercisable by the beneficiary or beneficiaries duly designated by the Optionee
to the same extent the Option was exercisable by the Optionee on the date of
the Optionee’s death, for a period ending on the earlier of (i) the 180 day
anniversary of the Optionee’s death and (ii) the Expiration Date. 
Notwithstanding any other provision in this Award Agreement, if the Optionee
ceases to be employed by the Employers and Affiliates on account of the
Optionee’s negligence or willful misconduct, in each case as determined by the
Company in its sole discretion, then the Option shall terminate immediately
upon such termination of employment, unless such Option terminates earlier
pursuant to Section 1.2.


(h)                
Expiration of Option during Blackout Period.  If the Option shall
expire under any of subsections (b) through (g) of this Section 1.1 during a
period when the Optionee and family members or other persons living in the
household of such persons are prohibited from trading in securities of the
Company pursuant to the Telephone and Data Systems, Inc. Policy Regarding
Insider Trading and Confidentiality (or any successor policy thereto) (a
“Blackout Period”), the period during which the Option is exercisable shall be
extended to the date that is 30 days after the date of the termination of the
Blackout Period (but in no event later than the Expiration Date).


(i)                  
Expiration of Option during Suspension Period.  If the Option
shall expire under any of subsections (b) through (g) of this Section 1.1
during a period when the exercise of the Option would violate applicable
securities laws (a “Suspension Period”), the period during which the Option is
exercisable shall be extended to the date that is 30 days after the date of the
termination of the Suspension Period (but in no event later than the Expiration
Date).


 




 







 

1.2.             
Termination of Option and Forfeiture of Option Gain upon Competition,
Misappropriation, Solicitation or Disparagement.  (a)  Notwithstanding any
other provision herein, if the Optionee engages in (i) Competition (as defined
in this Section 1.2 below), (ii) Misappropriation (as defined in this Section
1.2 below), (iii) Solicitation (as defined in this Section 1.2 below), or (iv)
Disparagement (as defined in this Section 1.2 below), in each case as
determined by the Company in its sole discretion, then (i) as of the date of
such Competition, Misappropriation, Solicitation or Disparagement, the Option
granted pursuant to this Award Agreement immediately shall terminate and
thereby be forfeited to the extent it has not been exercised and (ii) the Optionee
shall pay the Company, within five business days of receipt by the Optionee of
a written demand therefore, an amount in cash determined by multiplying the
number of shares of Common Stock purchased pursuant to each exercise of the
Option within the twelve months immediately preceding such Competition,
Misappropriation, Solicitation or Disparagement (without reduction for any
shares of Common Stock delivered by the Optionee or withheld by the Company
pursuant to Section 1.3 or Section 2.4) by the difference between (i) the Fair
Market Value of a share of Common Stock on the date of such exercise and (ii)
the purchase price per share of Common Stock set forth in the first paragraph
of this Award Agreement.  The Optionee acknowledges and agrees that the Option,
by encouraging stock ownership and thereby increasing an employee’s proprietary
interest in the Company’s success, is intended as an incentive to participating
employees to remain in the employ of the Company or an Affiliate.  The Optionee
acknowledges and agrees that this Section 1.2(a) is therefore fair and
reasonable, and not a penalty.


(b)                
The Optionee may be released from the Optionee's obligations under this
Section 1.2 only if and to the extent the Committee determines in its sole
discretion that such release is in the best interests of the Company.


(c)                
The Optionee agrees that by executing this Award Agreement the Optionee
authorizes the Employers and any Affiliate to deduct any amount owed by the
Optionee pursuant to Section 1.2(a) from any amount payable by the Employers or
any Affiliate to the Optionee, including, without limitation, any amount
payable to the Optionee as salary, wages, vacation pay or bonus.  The Optionee
further agrees to execute any documents at the time of setoff required by the
Employers and any Affiliate in order to effectuate the setoff.  Should the
Optionee fail to do so and the Employers and/or any Affiliate institute a legal
action against the Optionee to recover the amounts due, the Optionee agrees to
reimburse the Employers and/or any Affiliate for their reasonable attorneys’
fees and litigation costs incurred in recovering such amounts from the
Optionee.  This right of setoff shall not be an exclusive remedy and an
Employer’s or an Affiliate’s election not to exercise this right of setoff with
respect to any amount payable to the Optionee shall not constitute a waiver of
this right of setoff with respect to any other amount payable to the Optionee
or any other remedy.  



                For purposes of this Award Agreement, “Competition” shall mean
that the Optionee, directly or indirectly, individually or in conjunction with
any Person, during the Optionee’s employment with the Employers and the
Affiliates and for the twelve months after the termination of that employment
for any reason, other than on any Employer’s or Affiliate’s behalf (i) has
contact with any customer of an Employer or Affiliate or with any prospective
customer which has been contacted or solicited by or on behalf of an Employer
or Affiliate for the purpose of soliciting or selling to such customer or
prospective customer the same or a similar (such that it could substitute for)
product or service provided by an Employer or Affiliate during the Optionee’s
employment with the Employers and the Affiliates; or (ii) becomes employed in
the business or engages in the business of providing wireless products or
services in any county or county contiguous to a county in which an Employer or
Affiliate provided such products or services during the Optionee’s employment
with the Employers and the Affiliates or had plans to do so within the twelve
month period immediately following the Optionee’s termination of employment.  



                For purposes of this Award Agreement, “Misappropriation” shall
mean that the Optionee (i) uses Confidential Information (as defined below) for
the benefit of anyone other the Employers or an Affiliate, as the case may be,
or discloses the Confidential Information to anyone not authorized by the
Employers or an Affiliate, as the case may be, to receive such information;
(ii) upon termination of employment, makes any summaries of, takes any notes
with respect to or memorizes any Confidential Information or takes any
Confidential Information or reproductions thereof from the facilities of the
Employers or an Affiliate or (iii) upon termination of employment or upon the
request of the Employers or an Affiliate, fails to return all Confidential
Information then in the Optionee’s possession.  “Confidential information”
shall mean any confidential and proprietary drawings, reports, sales and
training manuals, customer lists, computer programs and other material
embodying trade secrets or confidential technical, business or financial
information of the Employers or an Affiliate.  


For purposes of
this Award Agreement, “Solicitation” shall mean that the Optionee, directly or
indirectly, individually or in conjunction with any Person, during the
Optionee’s employment with the Employers and the Affiliates and for the twelve
months after the termination of that employment for any reason, other than on
any Employer’s or Affiliate’s behalf, solicits, induces or encourages (or
attempts to solicit, induce or encourage) any individual away from any
Employer’s or Affiliate’s employ or from the faithful discharge of such
individual’s contractual and fiduciary obligations to serve the Employers’ and
Affiliates’ interests with undivided loyalty.



                For purposes of this Award Agreement, “Disparagement” shall
mean that the Optionee has made a statement (whether oral, written, or
electronic) to any Person other than to an officer of an Employer or an
Affiliate that disparages or demeans the Employers, any Affiliate, or any of
their respective owners, directors, officers, employees, products or services. 


 


 

1.3.             
Method of Exercise.  The Option may be exercised by the holder of
the Option (a) by giving notice to the Chief Financial Officer of the Company
(or such other Person as may be designated by him or her) at least seven (7)
days prior to the exercise date specified in such notice (or in accordance with
such shorter period of prior notice consented to by the Chief Financial Officer
of the Company (or such other Person as may be designated by him or her)),
which notice shall specify the number of whole shares of Common Stock to be
purchased and (b) by executing such documents and taking any other actions as
the Company may reasonably request.  The holder of the Option may pay for the
shares of Common Stock to be purchased (i) by authorizing the Company to withhold
whole shares of Common Stock which otherwise would be delivered to the holder
having an aggregate Fair Market Value, determined as of the date of exercise,
equal to the aggregate purchase price payable by reason of such exercise or
(ii) by delivery (either actual delivery or by attestation procedures
established by the Company) to the Company of previously-owned whole shares of
Common Stock having an aggregate Fair Market Value, determined as of the date
of exercise, equal to the aggregate purchase price payable by reason of such
exercise.  Any fraction of a share of Common Stock which would be required to
satisfy the aggregate of such purchase price and the withholding taxes with
respect to the Option, as described in Section 2.4, shall be disregarded and
the remaining amount due shall be paid in cash by the holder.  No share of
Common Stock shall be issued or delivered until the full purchase price
therefore and the withholding taxes thereon, as described in Section 2.4, have
been paid (or arrangement has been made for such payment to the Company’s
satisfaction).


2.                 
Additional Terms and Conditions of Option


2.1.             
Option subject to Acceptance of Award Agreement.  The Option
shall become null and void unless the Optionee shall accept this Award
Agreement by executing it in the space provided at the end hereof and returning
it to the Company.


2.2.             
Transferability of Option.  The Option may not be transferred
other than (i) pursuant to a beneficiary designation on a form prescribed by
the Company and effective on the Optionee’s death or (ii) by gift to a
Permitted Transferee.  During the Optionee’s lifetime, the Option is
exercisable only by the Optionee (or the Optionee’s Legal Representative) or a
Permitted Transferee, and during a Permitted Transferee’s lifetime, the Option
is exercisable only by the Permitted Transferee (or the Permitted Transferee’s
Legal Representative).  Except as permitted by the foregoing, the Option may
not be sold, transferred, assigned, pledged, hypothecated, encumbered or
otherwise disposed of (whether by operation of law or otherwise) or be subject
to execution, attachment or similar process.  Upon any attempt to so sell,
transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the
Option, the Option and all rights hereunder shall immediately become null and
void.  


By
accepting the Option, the Optionee agrees that if all beneficiaries designated
on a form prescribed by the Company predecease the Optionee or, in the case of
corporations, partnerships, trusts or other entities which are designated
beneficiaries, are terminated, dissolved, become insolvent or are adjudicated
bankrupt prior to the date of the Optionee’s death, or if the Optionee fails to
properly designate a beneficiary on a form prescribed by the Company, then the Optionee
hereby designates the following Persons in the order set forth herein as the
Optionee’s beneficiary or beneficiaries:  (i) the Optionee’s spouse, if living,
or if none, (ii) the Optionee’s then living descendants, per stirpes, or if
none, (iii) the Optionee’s estate.


 


2.3.             
Agreement by Holder.  As a condition precedent to the issuance or
delivery of any shares of Common Stock upon any exercise of the Option, the
holder shall comply with all regulations and requirements of any regulatory
authority having control of or supervision over the issuance or delivery of the
shares and, in connection therewith, shall execute any documents which the
Committee shall in its sole discretion deem necessary or advisable.


2.4.             
Tax Withholding.  As a condition precedent to the issuance or
delivery of any shares of Common Stock upon the exercise of the Option, the
holder shall pay to the Company in addition to the purchase price of the shares
of Common Stock, such amount as the Company may be required, under all
applicable federal, state, local or other laws or regulations, to withhold and
pay over as income or other withholding taxes (the “Required Tax Payments”)
with respect to such exercise of the Option.  The holder may elect to satisfy
his or her obligation to advance the Required Tax Payments by (i) authorizing the
Company to withhold whole shares of Common Stock which otherwise would be
delivered to the holder upon the exercise of the Option, the aggregate Fair
Market Value of which shall be determined as of the date of exercise or (ii)
delivery (either actual delivery or by attestation procedures established by
the Company) to the Company of previously-owned whole shares of Common Stock,
the aggregate Fair Market Value of which shall be determined as of the date of
exercise.  Shares of Common Stock to be withheld or delivered may not have an
aggregate Fair Market Value in excess of the amount determined by applying the
minimum statutory withholding rate.  Any fraction of a share of Common Stock
which would be required to satisfy the aggregate of the tax withholding obligation
and the purchase price of the shares of Common Stock shall be disregarded and
the remaining amount due shall be paid in cash by the holder.  The Optionee
agrees that if by the pay period that immediately follows the date that the
Optionee exercises the Option, no cash payment attributable to any such
fractional share shall have been received by the Company, then the Optionee
hereby authorizes the Company to deduct such cash payment from any amount
payable by the Company or any Affiliate to the Optionee, including without
limitation any amount payable to the Optionee as salary or wages.  The Optionee
agrees that this authorization may be reauthorized via electronic means
determined by the Company.  The Optionee may revoke this authorization by written
notice to the Company prior to any such deduction.  No share of Common Stock
shall be delivered until the Required Tax Payments have been satisfied in full
(or arrangement has been made for such payment to the Company’s
satisfaction).    


 


 





 





2.5.             
Adjustment.  In the event of any equity restructuring (within the
meaning of Financial Accounting Standards Board Accounting Standards
Codification Topic 718, Compensation—Stock Compensation) that causes the per
share value of shares of Common Stock to change, such as a stock dividend,
stock split, spinoff, rights offering or recapitalization through an
extraordinary dividend, the number and class of shares of Common Stock subject
to the Option and the purchase price per share shall be appropriately and
equitably adjusted by the Committee, such adjustment to be made without an
increase in the aggregate purchase price and in accordance with Section 409A of
the Code.  In the event of any other change in corporate capitalization,
including a merger, consolidation, reorganization, or partial or complete
liquidation of the Company, such adjustment described in the foregoing sentence
may be made as determined to be appropriate or equitable by the Committee to
prevent dilution or enlargement of rights of participants.  In either case,
such adjustment shall be final,
binding and conclusive.  If such adjustment would result in a fractional share
being subject to the Option, the Company shall pay the holder of the Option, in
connection with the first exercise of the Option in whole or in part occurring
after such adjustment, an amount in cash determined by multiplying (i) the
fraction of such share (rounded to the nearest hundredth) by (ii) the excess,
if any, of (A) the Fair Market Value on the exercise date over (B) the purchase
price of such Option.


2.6.             
Change in Control.  (a)  In General.  Notwithstanding any
provision of the Plan or any other provision of this Award Agreement, in the
event of a Change in Control, the Board (as constituted prior to the Change in
Control) may in its discretion, but shall not be required to, make such
adjustments to the Option as it deems appropriate, including, without
limitation: (i) causing the Option to immediately become exercisable in whole
or in part and/or (ii) substituting for some or all of the shares of Common
Stock subject to the Option the number and class of shares into which each
outstanding share of Common Stock shall be converted pursuant to the Change in
Control, with an appropriate and equitable adjustment to the Option as determined
by the Committee in accordance with Section 2.5; and/or (iii) requiring that
the Option, in whole or in part, be surrendered to the Company by the holder
thereof and immediately canceled by the Company and providing for the holder of
the Option to receive, within sixty (60) days following the occurrence of the
Change in Control, (X) a cash payment in an amount equal to the number of
shares of Common Stock then subject to the portion of the Option surrendered,
to the extent the Option is then exercisable or becomes exercisable pursuant to
this Section 2.6(a), multiplied by the excess, if any, of the Fair Market Value
of a share of Common Stock on the date of the Change in Control, over the
purchase price per share of Common Stock subject to the Option; (Y) shares of
capital stock of the corporation resulting from or succeeding to the business
of the Company pursuant to the Change in Control, or a parent corporation
thereof, having a fair market value not less than the amount determined under
clause (X) above; or (Z) a combination of the payment of cash pursuant to
clause (X) above and the issuance of shares pursuant to clause (Y) above.


(b)                
Definition of Change in Control.  For purposes of the Plan and
this Award Agreement, “Change in Control” shall mean:


(1)             
the acquisition by any Person, including any “person” within the meaning
of section 13(d)(3) or 14(d)(2) of the Exchange Act, of beneficial ownership
within the meaning of Rule 13d-3 promulgated under the Exchange Act, of the
then outstanding securities of the Company (the “Outstanding Voting
Securities”) (x) having sufficient voting power of all classes of capital stock
of the Company to elect at least 50% or more of the members of the Board or (y)
having 50% or more of the combined voting power of the Outstanding Voting
Securities entitled to vote generally on matters (without regard to the
election of directors), excluding, however, the following:  (i) any acquisition
directly from the Company or an Affiliate (excluding any acquisition resulting
from the exercise of an exercise, conversion or exchange privilege, unless the
security being so exercised, converted or exchanged was acquired directly from
the Company or an Affiliate), (ii) any acquisition by the Company or an
Affiliate, (iii) any acquisition by an employee benefit plan (or related trust)
sponsored or maintained by the Company or an Affiliate, (iv) any acquisition by
any corporation pursuant to a transaction which complies with clauses (i), (ii)
and (iii) of subsection (3) of this Section 2.6(b), or (v) any acquisition by
the following Persons:  (A) LeRoy T. Carlson or his spouse, (B) any child of
LeRoy T. Carlson or the spouse of any such child, (C) any grandchild of LeRoy
T. Carlson, including any child adopted by any child of LeRoy T. Carlson, or
the spouse of any such grandchild, (D) the estate of any of the Persons
described in clauses (A)-(C), (E) any trust or similar arrangement (including
any acquisition on behalf of such trust or similar arrangement by the trustees
or similar Persons) provided that all of the current beneficiaries of
such trust or similar arrangement are Persons described in clauses (A)-(C) or
their lineal descendants, or (F) the voting trust which expires on June 30,
2035, or any successor to such voting trust, including the trustees of such
voting trust on behalf of such voting trust (all such Persons, collectively,
the “Exempted Persons”);


(2)             
individuals who, as of March 6, 2013, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of
such Board; provided that any individual who becomes a director of the
Company subsequent to March 6, 2013, and whose election or nomination for
election by the Company’s stockholders was approved by the vote of at least a
majority of the directors then comprising the Incumbent Board, shall be deemed
a member of the Incumbent Board; and provided further, that any individual
who was initially elected as a director of the Company as a result of an actual
or threatened solicitation by a Person other than the Board for the purpose of
opposing a solicitation by any other Person with respect to the election or
removal of directors, or any other actual or threatened solicitation of proxies
or consents by or on behalf of any Person other than the Board shall not be
deemed a member of the Incumbent Board;


 


 





 





(3)             
consummation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of the Company (a
"Corporate Transaction"), excluding, however, a Corporate Transaction
pursuant to which (i) all or substantially all of the Persons who are the
beneficial owners of the Outstanding Voting Securities immediately prior to
such Corporate Transaction will beneficially own, directly or indirectly, (x)
sufficient voting power to elect at least a majority of the members of the
board of directors of the corporation resulting from the Corporate Transaction
and (y) more than 50% of the combined voting power of the outstanding
securities which are entitled to vote generally on matters (without regard to
the election of directors) of the corporation resulting from such Corporate
Transaction (including in each of clauses (x) and (y), without limitation, a
corporation which as a result of such transaction owns, either directly or
indirectly, the Company or all or substantially all of the Company's assets),
in substantially the same proportions relative to each other as the shares of
Outstanding Voting Securities are owned immediately prior to such Corporate
Transaction, (ii) no Person (other than the following Persons:  (v) the Company
or an Affiliate, (w) any employee benefit plan (or related trust) sponsored or
maintained by the Company or an Affiliate, (x) the corporation resulting from
such Corporate Transaction, (y) the Exempted Persons, and (z) any Person which
beneficially owned, immediately prior to such Corporate Transaction, directly
or indirectly, 50% or more of the Outstanding Voting Securities) will
beneficially own, directly or indirectly, 50% or more of the combined voting
power of the outstanding securities of such corporation entitled to vote
generally on matters (without regard to the election of directors) and (iii)
individuals who were members of the Incumbent Board will constitute at least a
majority of the members of the board of directors of the corporation resulting
from such Corporate Transaction; or


(4)             
approval by the stockholders of the Company of a plan of complete
liquidation or dissolution of the Company.


2.7.             
Compliance with Applicable Law.  The Option is subject to the
condition that if the listing, registration or qualification of the shares of
Common Stock subject to the Option upon any securities exchange or under any
law, the consent or approval of any governmental body or the taking of any
other action is necessary or desirable as a condition of, or in connection
with, the delivery of shares, such shares will not be delivered, in whole or in
part, unless such listing, registration, qualification, consent, approval or
other action shall have been effected or obtained, free of any conditions not
acceptable to the Company.  The Company agrees to use reasonable efforts to
effect or obtain any such listing, registration, qualification, consent,
approval or other action.


2.8.             
Delivery of Shares.  Upon the exercise of the Option, in whole or
in part, the Company shall, subject to Section 2.4, deliver or cause to be
delivered to the holder the shares of Common Stock purchased against full
payment therefore.  The Company may require that the shares of Common Stock
delivered pursuant to the Option bear a legend indicating that the sale,
transfer or other disposition thereof by the holder is prohibited except in
compliance with the Securities Act of 1933, as amended, and the rules and
regulations thereunder.  The holder of the Option shall pay all original issue
or transfer taxes and all fees and expenses incident to such delivery, unless
the Company in its discretion elects to make such payment.


2.9.             
Option Confers No Rights as a Stockholder.  The holder of the
Option shall not be entitled to any privileges of ownership with respect to
shares of Common Stock subject to the Option unless and until such shares are
purchased and delivered upon an exercise of the Option and the holder becomes a
stockholder of record with respect to such delivered shares.  The holder shall
not be considered a stockholder of the Company with respect to any shares not
so purchased and delivered.


2.10.          
Company to Reserve Shares.  The Company shall at all times prior
to the expiration or termination of the Option reserve and keep available,
either in its treasury or out of its authorized but unissued shares of Common
Stock, the full number of shares subject to the Option from time to time.


2.11.          
Option subject to Clawback.  The Option and any shares of Common
Stock delivered pursuant to the Option are subject to forfeiture, recovery by
the Company or other action pursuant to any clawback or recoupment policy which
the Company may adopt from time to time, including without limitation any such
policy which the Company may be required to adopt under the Dodd-Frank Wall
Street Reform and Consumer Protection Act and implementing rules and regulations
thereunder, or as otherwise required by law.


3.                 
Miscellaneous Provisions


3.1.             
Option Confers No Rights to Continued Employment or Service.  In
no event shall the granting of the Option or the acceptance of this Award
Agreement and the Option by the Optionee give or be deemed to give the Optionee
any right to continued employment by or service with the Company or any of its
subsidiaries or affiliates.


3.2.             
Decisions of Committee.  The Committee shall have the right to
resolve all questions which may arise in connection with the Option or its
exercise.  Any interpretation, determination or other action made or taken by
the Committee regarding the Plan or this Award Agreement shall be final,
binding and conclusive.


 




 







 

3.3.             
Award Agreement subject to the Plan.  This Award Agreement is
subject to the provisions of the Plan, as it may be amended from time to time,
and shall be interpreted in accordance therewith.  The Optionee hereby
acknowledges receipt of a copy of the Plan.


3.4.             
Successors.  This Award Agreement shall be binding upon and inure
to the benefit of any successor or successors of the Company and any Person or
Persons who shall, upon the death of the Optionee or transfer of such Option,
acquire any rights hereunder.


3.5.             
Notices.  All notices, requests or other communications provided
for in this Award Agreement shall be made in writing either (a) by actual
delivery to the party entitled thereto, (b) by mailing in the
United States mails to the last known address of the party entitled thereto,
via certified or registered mail, postage prepaid and return receipt requested,
(c) by electronic mail, utilizing notice of undelivered electronic mail
features or (d) by telecopy with confirmation of receipt.  The notice, request
or other communication shall be deemed to be received (a) in case of delivery,
on the date of its actual receipt by the party entitled thereto, (b) in case of
mailing by certified or registered mail, five days following the date of such
mailing, (c) in case of electronic mail, on the date of mailing, but only if a
notice of undelivered electronic mail is not received or (d) in case of
telecopy, on the date of confirmation of receipt.


3.6.             
Governing Law.  The Option, this Award Agreement and all
determinations made and actions taken pursuant thereto, to the extent otherwise
not governed by the Code or the laws of the United States, shall be governed by
the laws of the State of Delaware and construed in accordance therewith without
giving effect to principles of conflicts of laws.


3.7.             
Counterparts.  This Award Agreement may be executed in two
counterparts each of which shall be deemed an original and both of which
together shall constitute one and the same instrument.


 


	
    

  	
    

  	
    

  	
  UNITED STATES
  CELLULAR CORPORATION

  
	
    

  	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  <<NAME>>

  
	
    

  	
    

  	
    

  	
    

  	
  <<TITLE>>

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Accepted this
  ___ day of

  	
    

  	
    

  	
    

  
	
    

  	
  ___________,
  20__.

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Optionee