Document:

Exhibit 10.1

 

SIXTH AMENDMENT TO CREDIT
AGREEMENT

 

This Sixth Amendment
to Credit Agreement (this “Amendment”) is entered into effective as of the 1st day of June, 2017
by and among Gran Tierra Energy International Holdings Ltd., an exempted company incorporated with limited liability under the
laws of the Cayman Islands (“Borrower”), Gran Tierra Energy Inc., a corporation duly formed and existing under
the laws of the State of Delaware (f/k/a Gran Tierra Energy Inc., a corporation duly formed and existing under the laws of the
State of Nevada, “Parent”), The Bank of Nova Scotia, as administrative agent (“Administrative Agent”)
and Lenders party hereto.

 

W I T N E S S E T H:

 

WHEREAS, Borrower, Parent,
Administrative Agent, and Lenders are parties to that certain Credit Agreement dated as of September 18, 2015 (as amended, supplemented
or otherwise modified prior to the date hereof, the “Credit Agreement”) (unless otherwise defined herein, all
terms used herein with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement as amended
by this Amendment);

 

WHEREAS, pursuant to
the Credit Agreement, Lenders have made certain Loans to Borrower and provided certain other credit accommodations to Borrower;

 

WHEREAS, Borrower has
requested that Administrative Agent and Lenders enter into this Amendment to amend the Credit Agreement to, among other things,
exclude cash collateralized Letters of Credit from the definition of “Total Debt” and to reaffirm Shell Colombia S.A.
as an Eligible Buyer and to amend the pricing for Letters of Credit;

 

WHEREAS, the Lenders
have agreed to increase the Borrowing Base from $250,000,000.00 to $300,000,000.00, which redetermination of the Borrowing Base
shall constitute the May 1, 2017 Scheduled Redetermination of the Borrowing Base;

 

WHEREAS, Administrative
Agent, Borrower and Lenders have agreed to enter into this Amendment to amend the Credit Agreement as more particularly set forth
herein;

 

NOW THEREFORE, for and
in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged and confessed, Borrower, Administrative Agent and Lenders hereto hereby agree
as follows:

 

Section
1.      Amendments.
In reliance on the representations, warranties, covenants and agreements contained in this Amendment, and subject to the satisfaction
of the conditions precedent set forth in Section 3 hereof, the Credit Agreement shall be amended, effective as of the
Sixth Amendment Effective Date, as follows:

 

1.1          
New Definitions. Section 1.02 of the Credit Agreement is hereby amended by inserting the following definitions thereto
in appropriate alphabetical order:

 

    1 

     

    

 

“Financial
Letter of Credit” means a stand-by Letter of Credit if it serves as a payment guarantee of the Borrower’s financial
obligations and is treated as a direct credit substitute in the Administrative Agent’s reasonable opinion.

 

“Performance
Letter of Credit” means any Letter of Credit that is not a Financial Letter of Credit.

 

“Sixth
Amendment Effective Date” means June 1, 2017.

 

1.2          
Amended and Restated Definition. Section 1.02 of the Credit Agreement is hereby amended by amending and restating
the definition of “Total Debt” in its entirety to read in full as follows:

 

“Total
Debt” means, at any date, all Debt of the Parent and the Consolidated Restricted Subsidiaries on a consolidated basis
of the type described in clauses (a), (b), (d), (e), (g), (k), (l) and (m) of the definition of “Debt”; provided that
(a) Debt of the type described in clause (g) shall only be considered “Total Debt” to the extent that such guaranty
covers Debt of the type described in clauses (a), (b), (d), (e), (k), (l) or (m) of the definition of “Debt” and (b)
Debt of the type described in clause (b) shall not be considered “Total Debt” to the extent that such Debt has been
cash collateralized; provided that the Parent shall, upon request by the Administrative Agent, provide the Administrative
Agent executed copies of the definitive documentation relating to any such cash collateralization.

 

1.3          
Amendment to Definition. Section 1.02 of the Credit Agreement is hereby amended by amending the definition of “Eligible
Buyer” by deleting “and (f)” and inserting in lieu thereof “(f) Shell Colombia S.A., (g) Trafigura Pte
Ltd, (h) C.I. Trafigura Petroleum Colombia S.A.S. and (i)”.

 

1.4          
Amendment to Section 3.05(b)(i) of the Credit Agreement. Section 3.05(b)(i) of the Credit Agreement is hereby amended
and restated in its entirety to read in full as follows:

 

(i) to the
Administrative Agent for the account of each Revolving Credit Lender a participation fee with respect to its participations (A)
in Financial Letters of Credit Letters of Credit, which shall accrue at a rate equal to the Applicable Margin used to determine
the interest rate applicable to Eurodollar Loans on the average daily amount of such Revolving Credit Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the date of
this Agreement to but excluding the later of the date on which such Revolving Credit Lender’s Commitment terminates and the
date on which such Revolving Credit Lender ceases to have any LC Exposure and (B) in Performance Letters of Credit, which shall
accrue at a rate equal to sixty-six and two-thirds percent (66 2/3%) of the Applicable Margin used to determine the interest rate
applicable to Eurodollar Loans on the average daily amount of such Revolving Credit Lender’s LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from and including the date of this Agreement to but excluding
the later of the date on which such Revolving Credit Lender’s Commitment terminates and the date on which such Revolving
Credit Lender ceases to have any LC Exposure,

 

    2 

     

    

 

Section
2.      Redetermination
of Borrowing Base. The Lenders hereby agree that for the period from and including the Sixth Amendment Effective Date,
but until the next Scheduled Redetermination Date, the next Interim Redetermination Date or the next adjustment to the Borrowing
Base under Section 2.08(e), Section 2.08(f) or Section 9.11(d) of the Credit Agreement, whichever occurs first, the amount of the
Borrowing Base shall be increased from $250,000,000 to $300,000,000, which redetermination of the Borrowing Base shall constitute
the May 1, 2017 Scheduled Redetermination of the Borrowing Base. This Section 2 constitutes the New Borrowing Base Notice
for the May 1, 2017 Scheduled Redetermination.

 

Section
3.      Conditions
Precedent. This Amendment shall be effective on the date that each of the following conditions precedent is satisfied or
waived in accordance with Section 12.02 of the Credit Agreement (the “Sixth Amendment Effective Date”):

 

3.1          
Counterparts. Administrative Agent shall have received from Lenders, Parent and Borrower, counterparts (in
such number as may be requested by Administrative Agent) of this Amendment signed on behalf of such Persons.

 

3.2             
Upfront Fee. The Administrative Agent shall have received, for the ratable account of each of the Lenders
party to this Sixth Amendment (including, without limitation, The Bank of Nova Scotia) upfront fees (the “Upfront Fees”)
in an aggregate amount of $113,631.00.

 

3.3             
Expenses. Borrower shall have paid to Administrative Agent any and all expenses payable to Administrative
Agent (including counsel of Administrative Agent) or Lenders pursuant to or in connection with this Amendment or as required by
the Credit Agreement.

 

3.4          
No Default/No Event of Default/No Borrowing Base Deficiency. No Default or Event of Default shall have occurred
and be continuing and no Borrowing Base Deficiency shall exist.

 

    3 

     

    

 

Section
4.      Reaffirmation
of Loan Documents by Parent. Parent hereby ratifies, confirms, and acknowledges that its obligations under the Credit Agreement
and each other Loan Document are in full force and effect and that Parent continues to unconditionally and irrevocably, jointly
and severally, guarantee the full and punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise,
of all of the Secured Obligations, as such Secured Obligations may have been amended by this Amendment pursuant to the Guaranty
Agreement. Parent hereby acknowledges that its execution and delivery of this Amendment does not indicate or establish an approval
or consent requirement by Parent in connection with the execution and delivery of amendments to the Credit Agreement or any of
the other Loan Documents.

 

Section
5.      Representations
and Warranties of Parent and Borrower. To induce Lenders and Administrative Agent to enter into this Amendment, Parent
and Borrower each hereby represents and warrants to Lenders and Administrative Agent as follows: 

 

5.1          
Reaffirm Existing Representations and Warranties. Each representation and warranty of Parent or Borrower,
as applicable, contained in the Credit Agreement and the other Loan Documents is true and correct in all material respects (except
to the extent any such representation or warranty is qualified by materiality or Material Adverse Effect, in which case it shall
be true and correct in all respects) on the date hereof after giving effect to the amendments set forth herein, except to the extent
any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties
shall continue to be true and correct in all material respects (except to the extent any such representation or warranty is qualified
by materiality or Material Adverse Effect, in which case it shall be true and correct in all respects) as of such specified earlier
date.

 

5.2          
Due Authorization; No Conflict. The execution, delivery and performance by Parent and Borrower of this Amendment
are within Parent’s or Borrower’s, as applicable, corporate powers and have been duly authorized by all necessary corporate
and, if required, stockholder or shareholder action (including, without limitation, any action required to be taken by any class
of directors of Parent or Borrower or any other Person, whether interested or disinterested, in order to ensure the due authorization
of this Amendment). The execution, delivery and performance by Parent and Borrower of this Amendment (a) do not require any consent
or approval of, registration or filing with, or any other action by, any Governmental Authority or any other third Person (including
shareholders or any class of directors, whether interested or disinterested, of Parent, Borrower or any other Person), nor is any
such consent, approval, registration, filing or other action necessary for the validity or enforceability of this Amendment, except
such as have been obtained or made and are in full force and effect other than those third party approvals or consents which, if
not made or obtained, would not cause a Default hereunder, could not reasonably be expected to have a Material Adverse Effect or
do not have an adverse effect on the enforceability of this Amendment, (b) will not violate any applicable law or regulation or
the charter, by-laws or other organizational documents of any Credit Party or any order of any Governmental Authority, (c) will
not violate or result in a default under any Material Document or any indenture, agreement or other instrument binding upon Borrower
or any other Credit Party or its Properties, or give rise to a right thereunder to require any payment to be made by any Credit
Party, and (d) will not result in the creation or imposition of any Lien on any Property of Borrower or any other Credit Party
(other than the Liens created by the Loan Documents).

 

    4 

     

    

 

5.3          
Validity and Enforceability. This Amendment constitutes a legal, valid and binding obligation of Parent and
Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

 

5.4          
Acknowledgment of No Defenses. Parent and Borrower each acknowledges that it has no defense to (a) Borrower’s
obligation to pay the Obligations when due, or (b) the validity, enforceability or binding effect against Borrower or any other
Credit Party of the Credit Agreement or any of the other Loan Documents (to the extent a party thereto) or any Liens intended to
be created thereby.

 

Section
6.      Miscellaneous.

 

6.1          
Reaffirmation of Loan Documents. Any and all of the terms and provisions of the Credit Agreement and the Loan
Documents shall, except as amended and modified hereby, remain in full force and effect. This Amendment shall not limit or impair
any Liens securing the Obligations, each of which are hereby ratified, affirmed and extended to secure the Obligations as it may
be increased pursuant hereto. This Amendment constitutes a Loan Document.

 

6.2          
Parties in Interest. All of the terms and provisions of this Amendment shall bind and inure to the benefit
of the parties hereto and their respective successors and assigns.

 

6.3          
Counterparts. This Amendment may be executed in counterparts, including, without limitation, by electronic
signature, and all parties need not execute the same counterpart. Facsimiles or other electronic transmissions (e.g. pdfs) of such
executed counterparts shall be effective as originals.

 

6.4          
Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

6.5          
Headings. The headings, captions and arrangements used in this Amendment are, unless specified otherwise,
for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.

 

6.6          
Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be duly executed by their respective authorized officers on the date and year
first above written.

 

    5 

     

    

 

[Signature Pages Follow]

 

    6 

     

    

 

	BORROWER:	gran tierra energy international holdings ltd.
	 	 
	 	 
	 	By:	/s/ Adrian Coral Pantoja
	 	Name:	Adrian Coral Pantoja
	 	Title:	Director

 

 

	PARENT:	GRAN TIERRA ENERGY INC.
	 	 
	 	 
	 	By:	/s/ Adam Smith
	 	Name:	Adam Smith
	 	Title:	Treasurer

 

 

Signature Page – Sixth Amendment

    	 

     

    

	ADMINISTRATIVE AGENT:  	THE BANK OF NOVA SCOTIA,
	 	 
	 	 
	 	By:  	/s/ Clement Yu
	 	Name:	Clement Yu
	 	Title:	Director
	 	 	 
	 	 	 
	 	By:  	/s/ Ryan Moonilai
	 	Name:  	Ryan Moonilai
	 	Title:	Analyst

 

 

Signature Page – Sixth Amendment

    	 

     

    

 

	LENDERS:	THE BANK OF NOVA SCOTIA, as a Lender
	 	 
	 	 
	 	By:  	/s/ Jabar J. Singh
	 	Name:	Jabar J. Singh
	 	Title:	Director, International Banking
	 	 	 
	 	 	 
	 	By:  	/s/ Enrique Lopez
	 	Name:	Enrique Lopez
	 	Title:	Vice-President, International Banking

 

 

Signature Page – Sixth Amendment

    	 

     

    

 

	 	SOCIÉTÉ GÉNÉRALE,
	 	as a Lender
	 	 
	 	 	 
	 	By:  	/s/ Max Sonnonstine
	 	Name:	Max Sonnonstine
	 	Title:	Director

 

 

Signature Page – Sixth Amendment

    	 

     

    

 

	 	HSBC Bank Canada,
	 	as a Lender
	 	 
	 	 
	 	By:	/s/ Dieter Stefely
	 	Name:	Dieter Stefely
	 	Title:	Director, Banking
	 	 	 
	 	By:	/s/ Adam Lamb
	 	Name:	Adam Lamb
	 	Title:	Vice-President, Global Banking

 

 

Signature Page – Sixth Amendment

    	 

     

    

 

	 	Export Development Canada,
	 	as a Lender
	 	 	 
	 	 	 
	 	By:	/s/ Tristan Glynn-Morris
	 	Name:	Tristan Glynn-Morris
	 	Title:	Senior Associate, Structured and Project Finance
	 	 	 
	 	By:	/s/ Frank Kelly
	 	Name:	Frank Kelly
	 	Title:	Director, Extractive Industries, Structured and Project Finance

 

 

Signature Page – Sixth Amendment

    	 

     

    

	 	Natixis, New York Branch,
	 	as a Lender
	 	 
	 	 	 
	 	By:	/s/ David Pershad
	 	Name:	David Pershad
	 	Title:	Managing Director
	 	 	 
	 	By:  	/s/ Paul Goncharoff
	 	Name:	Paul Goncharoff
	 	Title:	Vice President

 

 

Signature Page – Sixth Amendment

    	 

     

    

	  	Royal Bank of Canada,
	 	as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Maria E. Hushovd
	 	Name:	Maria E. Hushovd
	 	Title:	Authorized Signatory

 

 

Signature Page – Sixth AmendmentExhibit 10.1

            	
                        

                    

            UNITED STATES CELLULAR CORPORATION

            2017 EXECUTIVE OFFICER ANNUAL INCENTIVE PLAN

            Effective January 1, 2017

            I. PURPOSE

            	To provide incentive for the executive officers of U.S. Cellular to extend their best efforts towards achieving superior results in relation to key business performance targets;
	To reward U.S. Cellular executive officers in relation to their success in meeting and exceeding the performance targets; and
	To attract and retain talented leaders in positions of critical importance to the success of the Company.

             

            II. ELIGIBLE PARTICIPANTS 

            All U.S. Cellular Executive Officers are eligible to participate in this 2017 Executive Officer Annual Incentive Plan (“Plan”).  Executive officers include all Executive Vice Presidents and the Senior Vice President - Chief Human Resources Officer.  

             

            III. PERFORMANCE MEASURES & WEIGHTINGS

             

            	
                        Performance Measures

                    	
                        Component Weighting

                    	
                        Overall Plan Weighting

                    
	
                        Consolidated Total Revenues

                    	
                        35%

                    	
                        21%

                    
	
                        Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

                    	
                        30%

                    	
                        18%

                    
	
                        Consolidated Capital Expenditures

                    	
                        20%

                    	
                        12%

                    
	
                        Customer Engagement

                    	
                        15%

                    	
                        9%

                    
	
                        Company Performance

                    	
                         

                    	
                        60%

                    
	
                        Chairman Assessment on Strategic Initiatives

                    	
                         

                    	
                        10%

                    
	
                        Individual Performance

                    	
                         

                    	
                        30%

                    

             

            IV. PERFORMANCE MEASURES DEFINITIONS

             

            Company Performance – Weighting: 60%: Actual performance will be assessed against the targeted performance for each performance measure.  The performance measures are defined below.       

             

            Consolidated Total Revenues: Total revenues determined on a consolidated company-wide basis and in a manner consistent to U.S. Cellular’s presentation of total revenues for external reporting purposes.   

             

            Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA):  Adjusted EBITDA determined on a consolidated company-wide basis and in a manner consistent to U.S. Cellular’s presentation of Adjusted EBITDA for external reporting purposes.   

             

            Consolidated Capital Expenditures:  Capital expenditures determined on a consolidated company-wide basis and in a manner consistent to U.S. Cellular’s presentation of capital expenditures for external reporting purposes.  The measurement of actual capital expenditures against targeted capital expenditures may not be sufficiently comprehensive because it would measure actual expenditures, but not necessarily the efficiency and/or productivity of those expenditures.  Therefore, if appropriate, the measurement of actual expenditures against targeted expenditures could incorporate an adjustment for spending efficiency/productivity which could include an assessment of the degree of completion of certain projects.  The determination of whether such an adjustment is appropriate and the amount of the adjustment will be made by the President and CEO and will be subject to the review and approval of the Chairman.

             

            Customer Engagement:  Loyalty Index Score determined from the Customer Engagement Total Experience survey.  The Loyalty Index Score is a calculated score of customer responses based on customers’ overall experience of the company, including overall brand, network and customer experience, laddering to overall satisfaction, likelihood to recommend and likelihood to continue to do business with USCC.

             

            Notes:

            	Results associated with acquisitions and / or divestitures will be evaluated on a case-by-case basis to determine whether adjustments to target or actual results are warranted. 
	The Chairman in his discretion may adjust targets to reflect unanticipated events. 

             

            

        
            

                 

                	
                             

                        

                 

            

        

        

        

        
        
                 

            

        

            Chairman Assessment on Strategic Initiatives - Weighting: 10%:     

             

            The Chairman in his qualitative and subjective assessment of U.S. Cellular’s overall company performance during the year will consider the following key factors and any other information he deems relevant in determining the level of attainment for this measure:

             

            	Achievement of key goals and objectives provided to the U.S. Cellular board of directors.  
	Accomplishing / making commendable progress on major initiatives for the year to the extent not covered under the key goals and objectives provided to the board of directors. 
	Developing and enhancing strategies and plans that strengthen the Company’s ability to successfully compete in the marketplace. 

             

            Individual Performance - Weighting: 30%:     

             

            Each executive officer’s individual performance for the year will be assessed by the President and CEO based on such executive officer’s effectiveness/success with regard to:

             

            	Carrying out his/her ongoing responsibilities and key initiatives during the performance year. 
	Executive level leadership and teamwork.
	Identification and development of key talent for succession planning purposes.
	Executive officer engagement as measured in large part by the Company’s culture survey.

             

            In making these assessments, the President and CEO also will take into consideration:

             

            	Performance feedback received on the executive officer.  
	The executive officer’s report on his/her activities/accomplishments for the performance year.

             

            V. MISCELLANEOUS PROVISIONS

             

            The Plan is subject to the Administrative Guidelines attached hereto as Exhibit A.  There are no oral or written agreements or understandings between U.S. Cellular and the participants affecting or relating to this Plan not referenced herein.  If the participant fails to adhere to the ethical and legal standards as referenced by U.S. Cellular policy, U.S. Cellular shall have the right to revoke this Plan, reduce or eliminate compensation as it applies to the violator, or any other remedy as provided by corporate policy or law.

             

            Any compensation earned or paid pursuant to this Plan is subject to forfeiture, recovery by U.S. Cellular or other action pursuant to any clawback or recoupment policy which U.S. Cellular may adopt from time to time, including without limitation any such policy which U.S. Cellular 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.

             

            This Plan shall not be construed as an employment contract or as a promise of continuing employment between U.S. Cellular and the executive officer.  Employment with U.S. Cellular is terminable at will, i.e., either the participant or U.S. Cellular may terminate the relationship at any time, with or without cause.  

             

            The Executive Officer Annual Incentive Plan, as set forth in this document, represents the general guidelines U.S. Cellular intends to utilize to determine what executive officer bonus payments, if any, will be paid.  U.S. Cellular reserves the right to modify or terminate the Plan at its sole discretion, at any time and for any reason, with or without written notification and without regard to the effect that any such action may have on any executive officer’s bonus or potential bonus.  U.S. Cellular shall have the full power and authority to interpret and administer the Plan and shall be the sole arbiter of all matters of interpretation and application of the Plan.

             

            VI. BONUS RANGES AS A PERCENT OF TARGET

             

            The bonus ranges were set to reinforce the Company’s pay for performance philosophy.  Minimum performance levels for each component need to be achieved before any bonus is earned for that component.  The ranges result in substantial reductions in bonuses when targets are not achieved, and greater rewards for above target performance.

             

            Company Performance Measures:

             

            	
                        Performance Measure

                    	
                        Minimum 

                    	
                        Maximum 

                    
	
                        Consolidated Total Revenues

                    	
                        90%

                    	
                        110%

                    
	
                        Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

                    	
                        80%

                    	
                        120%

                    
	
                        Consolidated Capital Expenditures

                    	
                        110%

                    	
                        80%

                    
	
                        Customer Engagement

                    	
                        95%

                    	
                        110%

                    

             

        
            

                 

                	
                             

                        

                 

            

        

        

        
        
                 

            

        

            Bonus Payouts as a Percent of Target at Minimum and Maximum Performance Levels:

             

            	
                        Performance Measure

                    	
                        Minimum

                    	
                        Target

                    	
                        Maximum

                    
	
                        Consolidated Total Revenues

                    	
                        50%

                    	
                        100%

                    	
                        225%

                    
	
                        Consolidated Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

                    	
                        50%

                    	
                        100%

                    	
                        225%

                    
	
                        Consolidated Capital Expenditures

                    	
                        50%

                    	
                        100%

                    	
                        225%

                    
	
                        Customer Engagement1

                    	
                        50%

                    	
                        100%

                    	
                        225%

                    
	
                         

                    	
                         

                    	
                         

                    	
                         

                    
	
                        1 The target for Customer Engagement incorporates a year-over-year improvement in performance, and the payout will be determined based on actual performance against the target.

                    

             

            Bonus payouts between the minimum and target performance levels and between the target and maximum performance levels will be computed by interpolation.  

             

            Any bonus for performance below the minimum level will be determined and approved at the discretion of the Chairman.

             

            Chairman Assessment on Strategic Initiatives:  

             

            	
                        Performance Criteria

                    	
                        % Payout Range

                    
	
                        Far exceeds target performance: Performance greatly exceeded that which was planned and expected.

                    	
                        150% - 200%

                    
	
                        Significantly exceeds target performance: Performance significantly exceeded that which was planned and expected.

                    	
                        120% - 150%

                    
	
                        Somewhat exceeds/fully meets/almost fully meets target performance: Performance was essentially equivalent to that which was planned and expected.

                    	
                        80% - 120%

                    
	
                        Partially meets target performance: Given the conditions that prevailed, performance was sufficient to merit a partial bonus.

                    	
                        Up to 80%

                    
	
                        Well below target performance: Given the conditions that prevailed, performance was not sufficient across all components of the Plan to merit any bonus. 

                    	
                        0%

                    

             

            Individual Performance:  

             

            	
                        Performance Criteria 

                    	
                        % Payout Range

                    
	
                        Far Exceeds Expectations (FE)

                    	
                        130% - 150%

                    
	
                        Exceeds Expectations (EE)

                    	
                        110% - 130%

                    
	
                        Meets Expectations (ME)

                    	
                        80% - 110%

                    
	
                        Partially Meets Expectations (PM)

                    	
                        0%

                    
	
                        Fails to Meet Expectations (FM)

                    	
                        0%

                    

             

            	
                        /s/ Kenneth R. Meyers

                    	
                         

                    	
                        5/15/2017

                    
	
                        President and CEO

                    	
                         

                    	
                        Date

                    
	
                         

                    	
                         

                    	
                         

                    
	
                        /s/ LeRoy T. Carlson, Jr.

                    	
                         

                    	
                        5/15/2017

                    
	
                        Chairman

                    	
                         

                    	
                        Date

                    

             

        
            

                 

                	
                             

                        

                 

            

        

        

        
        
                 

            

        

            Exhibit A

            Administrative Guidelines

             

            	
                        PLAN YEAR EFFECTIVE DATES

                    	
                        January 1, 2017 – December 31, 2017

                    
	
                        GENERAL ADMINISTRATION

                         

                    	
                        The target annual bonus payout for plan participants will be based on the executive officer’s base earnings paid during the bonus period.  Base earnings include base wages, paid time off, and any differential pay (excludes short-term disability pay, bonuses and any additional compensation not related to base earnings).

                    
	
                        VESTING

                    	
                        The bonus does not vest and no bonus shall be paid unless the executive officer remains employed through the actual bonus payout date. Special rules apply to those executive officers who retire or die before the actual bonus payout date (see below).

To the extent and only to the extent that any bonus is paid for the plan year, such bonus shall be deemed to have been earned on December 31, 2017.  

                    
	
                        NEW HIRE ELIGIBILITY

                         

                    	
                        Eligibility for participation in this plan and any payout will be determined at the discretion of the President and CEO.

                    
	
                        SEPARATION PRIOR TO PAYOUT VESTING DATE

                    	
                        Not eligible for a payout unless separation is due to retirement or death (see below), or unless approved by the President and CEO.

                    
	
                         

                        RETIREMENT 
Prior to Payout Vesting Date

                    	
                         

                        Executive officer must be at least age 55 and have a minimum of 10 years of 401(k) vesting service at time of retirement to be eligible for a payout (unless otherwise approved by the President and CEO).

                    
	
                         

                        DEATH
Prior to Payout Vesting Date

                         

                    	
                         

                        In the event of death or retirement during the plan year (1/1 – 12/31) a prorated bonus for time worked at target (100% plan attainment) will be paid.  The payout will be made as soon as administratively possible following the date of the event (but no later than the Bonus Payout Date, as described below).

In the event of death or retirement after the plan year, but before the payout date for the plan year, a participant will be eligible to receive a bonus for time worked in the prior year based upon actual plan attainment (company, chairman assessment and individual performance), or if actual plan attainment is not available on the date of the event, at target (100% plan attainment).  The payout will be made as soon as administratively possible following the date of the event (but no later than the Bonus Payout Date, as described below).

                    
	
                        LEAVE OF ABSENCE

                         

                    	
                        A leave of absence includes the following:  Short-term Disability, FMLA Leave of Absence, Unpaid Medical Leave of Absence, Military Service Leave of Absence and Personal Leave of Absence.  Bonus payouts will be prorated for any portion of the plan year for which the executive officer had unpaid hours.  Unpaid hours are defined as those hours where accrued benefit time (i.e. sick, vacation, personal, etc.) was NOT applied to the leave of absence.

                    
	
                        TRANSFERS/PROMOTIONS DURING PLAN YEAR

                         

                    	
                        Within/ Between Annual Plans:
If an executive officer is promoted / transferred within or between annual incentive plan(s), no prorations will be made in determining the executive officer’s bonus.  The executive officer’s bonus will be based on the executive officer’s plan as of 12/31/17.  

Between an Annual Plan and a Quarterly or Monthly Plan:
Prorated payouts from both positions/plans will be determined following the end of the plan year.  The following factors will be considered in the determination of the payout: both plan’ attainment percentages, individual performance in each job/plan, the last base salary from each position occupied during the plan year (if applicable), target incentive assigned for each position’s pay grade, and percentage of time worked in each position/plan during the plan year.

                    
	
                        TRANSFERS TO/ FROM TDS DURING THE PLAN YEAR

                         

                    	
                        If an executive officer transfers to/from another TDS business unit, he/she will be eligible to receive a prorated payout based on the factors listed above. 

                    
	
                        BONUS PAYOUT DATE

                         

                    	
                        Bonuses are to be paid during the period commencing on January 1, 2018 and ending on March 15, 2018. Historically, bonuses have been paid in March on or before March 15th of the year following the end of the plan year (12/31).  Notwithstanding the foregoing, in the event that payment by March 15, 2018 is administratively impracticable and such impracticability was unforeseeable (in each case, such that the payment continues to qualify as a “short-term deferral” within the meaning of section 409A of the Internal Revenue Code), payment will be made as soon as administratively practicable after March 15, 2018, but in no event later than December 31, 2018.  Payment will be in the form of a lump sum.

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