Document:

Exhibit 10.3

              

 

 

 

2013 LONG-TERM
INCENTIVE PLAN

<<YEAR>> STOCK OPTION AWARD
AGREEMENT

 

United States Cellular Corporation, a Delaware
corporation (the “Company”), hereby grants to Kenneth R. Meyers (the
“Optionee”), as of <<DATE>>  (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.  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 <<One year anniversary of  Option
Date>>

·       
1/3 of grant vests on <<Two year anniversary of Option
Date>>

·       
Remaining 1/3 of grant vests on <<Three year anniversary
of Option Date>>

In no event may
the Option be exercised, in whole or in part, after <<Ten year
anniversary of Option Date>> (the “Expiration Date”).

1.2.             
Termination of Employment after June 22, 2019. 

(a)                
Termination without Cause.  If the Optionee’s employment with the
Employers and Affiliates terminates after June 22, 2019 without Cause (as
defined in the Letter Agreement between the Optionee and the Company executed
on July 25, 2013 (the “Letter Agreement”) and determined by the Company in its
sole discretion), regardless of whether such termination is due to death,
disability, resignation or other reason, then after such date the Option may be
exercised by the Optionee (or the Optionee’s Legal Representative or duly
designated beneficiary or beneficiaries, as applicable) until the third annual
anniversary of the effective date of the Optionee’s termination of employment,
or until the Expiration Date, whichever period is shorter (the “Post-Retirement
Exercise Period”).  If the Optionee shall die following his termination of
employment after June 22, 2019 and during the Post-Retirement 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 the Post-Retirement Exercise Period and (ii) the 180 day
anniversary of the Optionee’s death (but in no event later than the Expiration
Date).

(b)                
Termination with Cause.  If the Optionee’s employment with the
Employers and Affiliates is terminated by the Employers and Affiliates after
June 22, 2019 for Cause (as defined in the Letter Agreement and determined by
the Company in its sole discretion), then the Option shall terminate
immediately and be forfeited upon such termination of employment, unless such
Option terminates earlier pursuant to Section 1.6.

(c)                
Failure to Satisfy Equity Conditions.  Notwithstanding the
foregoing provisions of this Section 1.2 and any other provision of this Award
Agreement, the Option shall terminate immediately and be forfeited upon the
failure by the Optionee during the Post-Retirement Exercise Period to satisfy
the Equity Conditions (as defined in the Letter Agreement and determined by the
Company in its sole discretion).

1.3.             
Termination of Employment On or Prior to June 22, 2019. 

 

 

 

(a)                
Disability.  If the Optionee’s employment by the Employers and
Affiliates terminates on or prior to June 22, 2019 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 (the “Disability Exercise Period”).  If the Optionee shall
die within the Disability 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 the Disability
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.

(b)                
Special Retirement.  If the Optionee’s employment by the Employers
and Affiliates terminates on or prior to June 22, 2019 by reason of Special
Retirement (as defined below), 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 (the “Special Retirement Exercise
Period”).  If the Optionee shall die within the Special Retirement 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 the Special Retirement 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 Optionee’s attainment of age 62.

(c)                
Resignation with Prior Consent of the Board.  If the Optionee’s
employment by the Employers and Affiliates terminates on or prior to June 22,
2019 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 (the “Resignation Exercise
Period”).  If the Optionee shall die within the Resignation 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.

(d)                
Death.  If the Optionee’s employment by the Employers and
Affiliates terminates on or prior to June 22, 2019 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.

(e)                
Other Termination of Employment.  If the Optionee’s employment by
the Employers and Affiliates terminates on or prior to June 22, 2019 for any
reason other than Disability, Special 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 (the “Other Termination Exercise Period”).  If the Optionee
shall die within the Other Termination 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’s
employment is terminated by the Employers and Affiliates for Cause (as defined
in the Letter Agreement and determined by the Company in its sole discretion),
then the Option shall terminate immediately and be forfeited upon such
termination of employment, unless such Option terminates earlier pursuant to
Section 1.6.

1.4.             
Expiration of Option during Blackout Period.  If the Option shall
expire under Section 1.2 or 1.3 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).

1.5.             
Expiration of Option during Suspension Period.  If the Option
shall expire under Section 1.2 or 1.3 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).

 

 

 

1.6.             
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 1.6 below), (ii) Misappropriation (as defined in this Section
1.6 below), (iii) Solicitation (as defined in this Section 1.6 below), or (iv)
Disparagement (as defined in this Section 1.6 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 1.7 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 1.6(a) is
therefore fair and reasonable, and not a penalty.

(b)                
The Optionee may be released from the Optionee's obligations under this
Section 1.6 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 1.6(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, telephone,
broadband or information technology 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.

 

 

 

 

1.7.             
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. 
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:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  LeRoy T.
  Carlson, Jr.

  
	
    

  	
    

  	
    

  	
    

  	
  Chairman

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Accepted this
  ___ day of

  	
    

  	
    

  	
    

  
	
    

  	
  ___________,
  20__.

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Kenneth R.
  MeyersExhibit 10.4

              

 

 

 

2013
LONG-TERM INCENTIVE PLAN

<<YEAR>> RESTRICTED STOCK UNIT AWARD
AGREEMENT

 

United
States Cellular Corporation, a Delaware corporation (the "Company"),
hereby grants to 

Kenneth R.
Meyers (the "Employee") as of <<DATE>>>  (the
"Grant Date"), pursuant to the provisions of the United States
Cellular Corporation 2013 Long-Term Incentive Plan (the "Plan"), a
Restricted Stock Unit Award (the "Award") with respect to <<#
OF SHARES>> shares of Common Stock, upon and subject to the
restrictions, terms and conditions set forth below.  Capitalized terms not
defined herein shall have the meanings specified in the Plan.

 

1.     Award
Subject to Acceptance of Award Agreement

 

The
Award shall become null and void unless the Employee accepts this Award
Agreement by executing it in the space provided at the end hereof and returning
it to the Company.

 

2.     Restriction
Period and Forfeiture

 

(a) 
In General.  Except as otherwise provided in this Award Agreement, the
Award shall become nonforfeitable and the Restriction Period with respect to
the Award shall terminate on the third annual anniversary of the Grant Date
(the “Three-Year Anniversary Date”), provided that the Employee remains
continuously employed by the Employers and Affiliates until the Three-Year
Anniversary Date.  Within sixty (60) days following the Three-Year Anniversary
Date, the Company shall issue to the Employee in a single payment the shares of
Common Stock subject to the Award on the Three-Year
Anniversary Date. 

 

(b) 
Death.  If the Employee separates from employment with the Employers and
Affiliates prior to the Three-Year Anniversary Date by reason of death, then on
the date of the Employee’s death the Award shall become nonforfeitable and the
Restriction Period with respect to the Award shall terminate.  Within sixty
(60) days following the date of the Employee’s death, the Company shall issue
to the Employee’s designated beneficiary in a single payment the shares of
Common Stock subject to the Award. 

 

(c) 
Disability.  If the Employee separates from employment with the
Employers and Affiliates prior to the Three-Year Anniversary Date by reason of
Disability, then on the date of the Employee’s separation the Award shall
become nonforfeitable and the Restriction Period with respect to the Award
shall terminate.  The Company shall issue the shares of Common Stock subject to
the Award in a single payment within sixty (60) days following the date of the
Employee’s separation.  For purposes of this Award
Agreement, “Disability” shall mean a total physical disability which, in the
Committee’s judgment, prevents the Employee from performing substantially his
or her employment duties and responsibilities for a continuous period of at
least six months.

 

(d) 
Other Separation from Employment.  If the Employee separates from
employment with the Employers and Affiliates prior to the Three-Year
Anniversary Date for any reason other than death or Disability (including if
the Employee’s employment is separated by the Employers and Affiliates prior to
the Three-Year Anniversary Date for Cause (as defined in the Letter Agreement
between the Employee and the Company executed on July 25, 2013 and determined
by the Company in its sole discretion)), then on the date of the Employee’s
separation the Award shall be forfeited and shall be canceled by the Company. 

 

 

 

 

(e)  Forfeiture of Award and
Award Gain upon Competition, Misappropriation, Solicitation or Disparagement. 
Notwithstanding any other provision herein, if the Employee engages in (i) Competition
(as defined in this Section 2(e) below); (ii) Misappropriation (as defined in
this Section 2(e) below); (iii) Solicitation (as defined in this Section 2(e)
below) or (iv) Disparagement (as defined in this Section 2(e) below), in each
case as determined by the Company in its sole discretion, then (i) on the date
of such Competition, Misappropriation, Solicitation or Disparagement, the Award
immediately shall be forfeited and shall be canceled by the Company and (ii) in
the event that the Award became nonforfeitable within the twelve months
immediately preceding such Competition, Misappropriation, Solicitation or
Disparagement, the Employee shall pay the Company, within five business days of
receipt by the Employee of a written demand therefore, an amount in cash
determined by multiplying the number of shares of Common Stock subject to the
Award (without reduction for any shares of Common Stock delivered by the
Employee or withheld by the Company pursuant to Section 4.3) by the Fair Market
Value of a share of Common Stock on the date that the Award became
nonforfeitable.  The Employee acknowledges and agrees that the Award, 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 Employers or an Affiliate.  The
Employee acknowledges and agrees that this Section 2(e) is therefore fair and
reasonable, and not a penalty.

 

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

 

The
Employee agrees that by executing this Award Agreement the Employee authorizes
the Employers and any Affiliate to deduct any amount owed by the Employee
pursuant to this Section 2(e) from any amount payable by the Employers or any
Affiliate to the Employee, including, without limitation, any amount payable to
the Employee as salary, wages, vacation pay or bonus.  The Employee 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 Employee fail
to do so and the Employers and/or any Affiliate institute a legal action
against the Employee to recover the amounts due, the Employee agrees to
reimburse the Employers and/or any Affiliate for their reasonable attorneys’
fees and litigation costs incurred in recovering such amounts from the
Employee.  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 Employee shall not constitute a waiver of
this right of setoff with respect to any other amount payable to the Employee
or any other remedy.  

 

For
purposes of this Award Agreement, “Competition” shall mean that the Employee,
directly or indirectly, individually or in conjunction with any Person, during
the Employee’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 Employee’s employment with the
Employers and the Affiliates; or (ii) becomes employed in the business or
engages in the business of providing wireless, telephone, broadband or
information technology 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 Employee’s employment with the Employers and the Affiliates
or had plans to do so within the twelve month period immediately following the
Employee’s termination of employment.  

For purposes of this Award Agreement, “Misappropriation” shall mean that the
Employee (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 Employee’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
Employee, directly or indirectly, individually or in conjunction with any
Person, during the Employee’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
Employee 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.

 

 

 

3.     Change
in Control

 

(a)   In
General.  Notwithstanding any provision in the Plan or any other provision
of this Award Agreement, in the event of a Change in Control, the Board (as
constituted prior to such Change in Control)  may in its discretion, but shall
not be required to, make such adjustments to the Award as it deems appropriate,
including, without limitation:  (i) causing the Award to become nonforfeitable
in whole or in part; and/or (ii) to the extent permitted by section 409A of the
Code (if applicable thereto), causing the Restriction Period with respect to
the Award to lapse in full or in part and payment of the Award, to the extent
the Restriction Period has lapsed, to occur within sixty (60) days following
the occurrence of the Change in Control (the “Change in Control Payment
Period”); and/or (iii) substituting for some or all of the shares of Common
Stock subject to the Award 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 Award as
determined by the Committee in accordance with Section 4.5 below and/or (iv) to
the extent permitted under section 409A of the Code (if applicable thereto),
requiring that the Award, in whole or in part, be surrendered to the Company by
the holder thereof and be immediately canceled by the Company and providing
that the holder of the Award receive, within the Change in Control Payment
Period, (X) a cash payment in an amount equal to the number of shares of Common
Stock then subject to the portion of the Award surrendered, to the extent the
Restriction Period on the Award has lapsed or will lapse pursuant to this
Section 3(a), multiplied by the Fair Market Value of a share of Common Stock as
of the date of the Change in Control; (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, a
"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 3(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.  

 

4.     Additional
Terms and Conditions of Award

 

4.1. 
Transferability of Award.  Except pursuant to a beneficiary designation
effective on the Employee's death, the Award 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 Award, the Award and all
rights hereunder shall immediately become null and void.

 

By
accepting the Award, the Employee agrees that if all beneficiaries designated
on a form prescribed by the Company predecease the Employee 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 Employee’s death, or if the Employee fails to
properly designate a beneficiary on a form prescribed by the Company, then the
Employee hereby designates the following Persons in the order set forth herein
as the Employee’s beneficiary or beneficiaries:  (i) the Employee’s spouse, if
living, or if none, (ii) the Employee’s then living descendants, per stirpes,
or if none, (iii) the Employee’s estate.

 

4.2. 
Investment Representation.  The Employee hereby represents and covenants
that (a) any shares of Common Stock acquired upon the lapse of
restrictions with respect to the Award will be acquired for investment and not
with a view to the distribution thereof within the meaning of the Securities
Act of 1933, as amended (the "Securities Act"), unless such
acquisition has been registered under the Securities Act and any applicable
state securities laws; (b) any subsequent sale of any such shares shall be
made either pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws, or pursuant to an
exemption from registration under the Securities Act and such state securities
laws; and (c) if requested by the Company, the Employee shall submit a
written statement, in a form satisfactory to the Company, to the effect that
such representation is true and correct as of the date of acquisition of
any shares hereunder or is true and correct as of the date of sale of any such
shares, as applicable.  As a condition precedent to the issuance or delivery to
the Employee of any shares subject to the Award, the Employee 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.

 

4.3. 
Tax Withholding.  The Employee timely shall pay to the Company 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 the
Award.  The Employee may elect to satisfy his or her obligation to advance the
Required Tax Payments by (a) authorizing the Company to withhold whole shares
of Common Stock which otherwise would be delivered to the Employee pursuant to
the Award, having an aggregate Fair Market Value determined as of the date the
obligation to withhold or pay taxes arises in connection with the Award or (b)
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 the obligation
to withhold or pay taxes arises in connection with the Award.  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 pay the Required Tax Payments shall be disregarded and the
remaining amount due shall be paid in cash by the Employee.  

 

 

 

 

4.4.  Award Confers No Rights
as a Stockholder.  The Employee shall not be entitled to any privileges of
ownership with respect to the shares of Common Stock subject to the Award
unless and until the restrictions on the Award lapse and the Employee becomes a
stockholder of record with respect to such shares.

 

4.5. 
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 Award shall be appropriately and equitably adjusted by the Committee. 
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 and 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 Award, the Company shall pay the holder
of the Award, on the date that the shares with respect to the Award are issued,
an amount in cash determined by multiplying (i) the fraction of such share
(rounded to the nearest hundredth) by (ii) the Fair Market Value of a share on
the date that the Restriction Period with respect to the Award terminates.

 

4.6. 
Compliance with Applicable Law.  The Award is subject to the condition
that if the listing, registration or qualification of the shares of Common
Stock subject to the Award 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 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.

 

4.7. 
Delivery of Shares.  On the date of payment of the Award, the Company
shall deliver or cause to be delivered to the Employee the shares of Common
Stock subject to the Award.  The Company may require that the shares of Common
Stock delivered pursuant to the Award bear a legend indicating that the sale,
transfer or other disposition thereof by the Employee is prohibited except in
compliance with the Securities Act of 1933, as amended, and the rules and
regulations thereunder.  The holder of the Award 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.

 

4.8. 
Award Confers No Rights to Continued Employment or Service.  In no event
shall the granting of the Award or the acceptance of this Award Agreement and
the Award by the Employee give or be deemed to give the Employee any right to
continued employment by or service with the Company or any of its subsidiaries
or affiliates. 

 

4.9. 
Decisions of Committee.  The Committee shall have the right to resolve
all questions which may arise in connection with the Award.  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.

 

4.10. 
Company to Reserve Shares.  The Company shall at all times prior to the
cancellation of the Award 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 Award from time to time.

 

4.11. 
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 Employee hereby acknowledges
receipt of a copy of the Plan.  

 

4.12. 
Award Subject to Clawback.  The Award and any shares of Common Stock
delivered pursuant to the Award 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.

 

5.             Miscellaneous
Provisions

 

5.1. 
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 Employee, acquire any rights hereunder.

 

 

 

 

5.2.  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.  

 

5.3. 
Governing Law.  The Award, 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.

 

5.4. 
Compliance with Section 409A of the Code.  It is intended that this Award Agreement and the Plan be
exempt from the requirements of section 409A of the Code to the maximum
extent possible.  To the extent section 409A of the Code applies to this Award
Agreement and the Plan, it is intended that this Award Agreement and the Plan
comply with the requirements of section 409A of the Code to the maximum extent
possible.  This Award Agreement and the Plan shall be administered and
interpreted in a manner consistent with this intent.  In the event that
this Award Agreement or the Plan does not comply with section 409A of the Code
(to the extent applicable thereto), the Company shall have the authority to
amend the terms of this Award Agreement or the Plan (which amendment may be
retroactive to the extent permitted by section 409A of the Code and may be made
by the Company without the consent of the Employee) to avoid taxes and other
penalties under section 409A of the Code, to the extent possible. 
Notwithstanding the foregoing, no particular tax result for the Employee with
respect to any income recognized by the Employee in connection with this Award
Agreement is guaranteed, and the Employee solely shall be responsible for any
taxes, penalties, interest or other losses or expenses incurred by the Employee
under section 409A of the Code in connection with this Award Agreement.

 

5.5. 
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:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  LeRoy T. Carlson, Jr.

  
	
    

  	
    

  	
    

  	
    

  	
  Chairman

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Accepted this ___ day of

  	
    

  	
    

  	
    

  
	
    

  	
  ___________, 20__.

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Kenneth R. Meyers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00241-of-00352.parquet"}]]