Document:

EX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT 

OF JOSEPH G. SOLARI 
 This second amendment (the
“Amendment”) to the Employment Agreement of Joseph G. Solari is entered into effective as of August 31, 2013, by and between Capital Senior Living Corporation (the “Company”) and Joseph G. Solari (“Employee”). 

WHEREAS, the Company and Employee entered into the Employment Agreement dated July 22, 2010, as amended by the Amendment to Employment Agreement
(collectively, the “Employment Agreement”), and 
 WHEREAS, the Company and Employee desire to amend the Employment Agreement. 

NOW, THEREFORE, in consideration of the foregoing, the mutual promises of the parties hereto and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. All capitalized terms used herein which are not otherwise defined
herein shall have the meaning ascribed to such terms in the Employment Agreement. 
 2. The first sentence of Paragraph 2 of the Employment Agreement shall
be amended to read as follows: 
 The term of this Agreement shall be for a two (2) year period ending on August 31, 2015. 

3. Paragraph 7(A)(i) shall be amended in its entirety to read as follows: 

CSL shall pay Employee in accordance with its Corporate Policies and Procedures Manual his base salary for two (2) years from the date of
termination plus any earned bonus up to and through the date of termination, and Employee shall retain all of his Company stock awards that are vested; provided, however, the benefits described in this Paragraph 7(A)(i) shall terminate at such time
as Employee materially breaches any of the provisions of Paragraphs 7(D), 8 or 10 hereof. 
 4. Except as expressly provided herein, all of the terms and
provisions of the Employment Agreement shall remain in full force and effect and unchanged. 
 IN WITNESS WHEREOF, this Amendment has been duly executed to
be effective as of the date first referenced above. 
  

			
	COMPANY: CAPITAL SENIOR LIVING CORPORATION
		
	By:		/s/ Lawrence A. Cohen
	
	EMPLOYEE:
		
	By:		/s/ Joseph G. Solari
			Joseph G. SolariExhibit

Exhibit 10.1

AMENDMENT NO. 2

TO

WARRANT TO PURCHASE COMMON STOCK

This Amendment No. 2 (the “Warrant Amendment”) to the Warrant to Purchase Common Stock (as amended, the “Warrant”) dated as of January 21, 2014 is entered into to be effective as of May 1, 2015, by and among Advanced Cannabis Solutions, Inc., a Colorado corporation (the “Company”), and the holder of the Warrant, Full Circle Capital Corporation, a Maryland corporation (the “Holder”). Capitalized terms used herein and not defined shall have the meanings set forth in the Securities Purchase Agreement entered into by the Company and the Holder and dated as of January 21, 2014 (the “SPA”). 

WHEREAS, pursuant to the SPA, the Company sold to the Holder a Warrant to purchase up to 1,000,000 shares of Common Stock; 

WHEREAS, subject to certain conditions in the SPA, the Company may issue to the Holder a promissory note or series of promissory notes in the principal amount of up to $7,500,000 and subsequent additional promissory notes in the amount of up to $22,500,000 (each a “Note”); 

WHEREAS, pursuant to Amendment No.1 to Warrant to Purchase Common Stock dated September __, 2014, the Company and the Holder amended the Warrant whereupon, among other things, the amount of shares issuable upon the exercise of the Warrant was increased to 1,400,000 shares of Common Stock; 

WHEREAS, the Holder partially exercised the Warrant and currently holds 185,000 warrants; and 

WHEREAS, the Holder and the Company desire to further amend the terms of the Warrant to better reflect current market conditions for the Company’s Common Stock and the business and industry as a whole. 

NOW THEREFORE, in consideration of the above, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 

			
	 
	1.1

	Notwithstanding the terms of the Warrant, Holder grants Company the ability to cashless exercise 160,000 warrants and for such cashless exercise, Holder shall receive 100,000 shares of the Company’s Common Stock (the “Cashless Shares”);

	 
	 
	 

	 
	1.2

	Company shall endeavor to deliver the 100,000 Cashless Shares to Holder as book entry securities (in accordance with Holder’s delivery instructions), without any restrictive legend and thus not restricted from sale or transfer by Holder (except as limited by securities laws in general with respect to common stock).

	 
	 
	 

	 
	1.3

	In the event Company is unable to deliver the 100,000 Cashless Shares as set forth in section 1.2 above, Company shall deliver the Cashless Shares to Holder in a manner similar to the prior cashless exercise by Holder whereby the Cashless Shares were delivered to Holder in certificated form and counsel to Company (at the request and expense of Company) issued a Rule 144 opinion (the “Opinion”) in favor of Holder with respect to the Cashless Shares. Company shall provide an electronic copy of the share certificate and Opinion on the date hereof.

	 
	 
	 

	 
	1.4

	All other terms and provisions of the Warrant in direct conflict with the amendment specifically set forth herein are hereby amended to conform to this Warrant Amendment; and except for this Warrant Amendment, all other terms and conditions of the Warrant shall remain unamended hereby and in full force and effect.

	 
	 
	 

	 
	1.5

	This Warrant Amendment, together with the Warrant, embodies the entire agreement and understanding between the Company and the Holder relating to the subject matter hereof and supersedes all prior agreements and understandings relating to such subject matter.

	 
	 
	 

	 
	1.6

	If any provision of this Warrant Amendment, or the application of such provisions to any Person or circumstance, shall be held invalid, the remainder of this Warrant Amendment, or the application of such provision to Persons or circumstances other than those to which it is held invalid, shall not be affected thereby.

	 
	 
	 

	 
	1.7

	This Warrant Amendment may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed an original, but all of which taken together shall constitute one and the same agreement. A facsimile transmission of this signed Warrant Amendment shall be legal and binding on all parties hereto.

[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have duly caused this Warrant Amendment to be executed and delivered on the date first written above.

					
	COMPANY:

	 
	HOLDER:

	ADVANCED CANNABIS SOLUTIONS, INC.

	 
	FULL CIRCLE CAPITAL CORPORATION

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:

	 
	 
	By:

	 

	Title:

	 
	 
	Title:EXHIBIT 10.1

TELEPHONE AND DATA
SYSTEMS, INC.

2011 LONG-TERM
INCENTIVE PLAN

<<YEAR>> STOCK OPTION AWARD AGREEMENT

 

Telephone and Data Systems, Inc., a Delaware corporation (the “Company”),
hereby grants to «FNAME» «LNAME» (the “Optionee”), as of <<GRANT DATE>>
(the “Option Date”), pursuant to the provisions of the Telephone and Data
Systems, Inc. 2011 Long-Term Incentive Plan, as amended (the “Plan”), a
Non-Qualified Stock Option (the “Option”) to purchase from the Company «STKO» shares of Common Stock at the price of
$<<PRICE>> per share upon and subject to the terms and conditions
set forth below.  Capitalized terms not defined herein shall have the meanings
specified in the Plan.

1.             Time
and Manner of Exercise of Option. 

1.1.         Exercise
of Option.  (a)  In General.  Except as otherwise provided in this
Award Agreement, the Option shall become exercisable in its entirety on the
third annual anniversary of the Option Date.  The Option may not be exercised,
in whole or in part, after the tenth annual anniversary of the Option Date (the
“Expiration Date”).

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

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

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

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(e)  Resignation with Prior
Consent of the Board.  If the Optionee ceases to be employed by the
Employers and Affiliates by reason of the Optionee’s resignation of employment
with the prior consent of the board of directors of such Optionee’s Employer
(as evidenced in the Employer’s minute book), 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 such effective
date or until the Expiration Date, whichever period is shorter.  If the
Optionee shall die within such exercise period, the Option shall be exercisable
by the beneficiary or beneficiaries duly designated by the Optionee, to the
same extent the Option was exercisable by the Optionee on the date of the
Optionee’s death, for a period ending on the earlier of (i) the 180 day
anniversary of the Optionee’s death and (ii) the Expiration Date.

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

(g)  Other Termination of Employment.  If the Optionee ceases to
be employed by the Employers and Affiliates for any reason other than
Disability, Special Retirement, Retirement, resignation of employment with the
prior consent of the board of directors of the Optionee’s Employer (as
evidenced in the Employer’s minute book) or death, the Option shall be
exercisable only to the extent it is exercisable on the effective date of the
Optionee’s termination of employment, and may be exercised by the Optionee (or
the Optionee’s Legal Representative) for a period of 30 days after the
effective date of the Optionee’s termination of employment or until the
Expiration Date, whichever period is shorter.  If the Optionee shall die within
such exercise period, the Option shall be exercisable only to the extent it is
exercisable on the date of death and 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.  Notwithstanding subsections (c) and (d) of this Section 1.1
and any other provision in this Award Agreement to the contrary, if the
Optionee ceases to be employed by the Employers and Affiliates on account of
the Optionee’s negligence or willful misconduct, in each case as determined by
the Company in its sole discretion, the Option shall terminate immediately upon
such termination of employment, unless such Option terminates earlier pursuant
to Section 1.2.

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

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

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

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

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

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For the 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
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 or broadband 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 the purposes of this Award Agreement, “Misappropriation” shall mean
that the Optionee (i) uses Confidential Information (as defined below) for the
benefit of anyone other than 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 the 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 the 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.

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1.3.         Method of Exercise. 
The Option may be exercised by the holder of the Option (1) by giving written
notice or notice by electronic means approved by the Company to the Vice
President-Human Resources of the Company (or such other Person as may be
designated by the Vice President-Human Resources) specifying the number of
whole shares of Common Stock to be purchased and by accompanying such notice
with payment therefor in full (unless another arrangement for such payment
which is satisfactory to the Company has been made) and (2) by executing such
documents and taking any other actions as the Company may reasonably request. 
Payment made be made either (i) in cash, (ii) by delivery (either actual
delivery or by attestation procedures established by 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, (iii) by authorizing the Company to
withhold whole shares of Common Stock which otherwise would be delivered 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, (iv) to the
extent legally permissible, in cash by a broker-dealer acceptable to the
Company to whom the holder has submitted an irrevocable notice of exercise or
(v) by a combination of (i), (ii) and (iii).  If payment of the purchase price
is made pursuant to clause (ii) or (iii) of the second sentence of this Section
1.3, then 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 delivered until the full purchase price therefor and the
withholding taxes thereon 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.  The Option shall
become null and void unless the Optionee accepts this Award Agreement by
executing it in the space provided at the end hereof and returning it to the
Vice President-Human Resources of the Company.

2.2.         Nontransferability of Option.  The Option may not be
transferred other than (i) to a beneficiary upon the Optionee’s death (as
designated on a form prescribed by the Company or under the terms of the Plan)
or (ii) by gift by the Optionee to a Permitted Transferee.  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.  

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By accepting the Option, the Optionee
agrees that if all beneficiaries designated on a beneficiary designation 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 beneficiary designation 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 Optionee.  As a condition precedent to
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 shares of Common Stock and, in connection
therewith, shall execute any documents which the Committee shall in its sole
discretion deem necessary or advisable.

2.4.         Withholding
Taxes.  (a) As a condition precedent to any issuance or delivery of shares
of Common Stock upon exercise of the Option, the holder shall, upon request by
the Company, 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.  If the holder shall fail to
advance the Required Tax Payments after request by the Company, the Company
may, in its discretion, deduct any Required Tax Payments from any amount then
or thereafter payable by the Company to the holder.

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(b)  The holder may elect to satisfy
his or her obligation to advance the Required Tax Payments by any of the
following means:  (1) a cash payment to the Company, (2) delivery (either
actual delivery or by attestation procedures established by the Company) to the
Company of previously-owned whole shares of Common Stock, the Fair Market Value
of which shall be determined as of the date the obligation to withhold or pay
taxes first arises in connection with the Option (the “Tax Date”), (3)
authorizing the Company to withhold whole shares of Common Stock which would
otherwise be delivered to the holder upon exercise of the Option, the Fair
Market Value of which shall be determined as of the Tax Date, (4) to the
extent legally permissible, a cash payment by a broker-dealer acceptable to the
Company to whom the holder has submitted an irrevocable notice of exercise or
(5) any combination of (1), (2) and (3).  Shares of Common Stock to be
delivered or withheld may not have an aggregate Fair Market Value in excess of
the minimum amount of the Required Tax Payments.  Any fraction of a share of
Common Stock which would be required to satisfy the aggregate of such tax
withholding obligation and the purchase price of the Option shall be
disregarded and the remaining amount due shall be paid in cash by the holder. 
The Optionee agrees that if by the pay period that immediately follows the date
that the Option is exercised, no cash payment attributable to any such
fractional share shall have been received by the Company, then the Optionee
hereby authorizes the Company to deduct such cash payment from any amount
payable by the Company or any Affiliate to the Optionee, including without
limitation any amount payable to the Optionee as salary or wages.  The Optionee
agrees that this authorization may be reauthorized via electronic means
determined by the Company.  The Optionee may revoke this authorization by
written notice to the Company prior to any such deduction.  No share of Common
Stock shall be delivered until the Required Tax Payments have been satisfied in
full (or arrangement has been made for such payment to the Company’s
satisfaction).

2.5.         Adjustment.  In the event of any conversion, stock
split, stock dividend, recapitalization, reclassification, reorganization,
merger, consolidation, spin-off, combination, exchange of shares, liquidation
or other similar change in capitalization or event, or any distribution to
holders of Common Stock other than a regular cash dividend, the number and
class of shares 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.  Such adjustment shall be made in compliance with the requirements
of Section 409A of the Code applicable to stock rights, including without
limitation the requirements of Treasury Regulation §1.409A-1(b)(5)(v)(D), and shall
be final, binding and conclusive.  If such adjustment would result in a
fractional security being subject to the Option, the Company shall pay the
holder, in connection with the first exercise of the Option occurring after
such adjustment, an amount in cash determined by multiplying (i) the fraction
of such security (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 the Option.  

2.6.         Change in Control.  (a)  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 such 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:

(1)  causing the Option to
immediately become exercisable in whole or in part; and/or

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(2) 
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 such Change in Control; provided,
however, that in the event of such a substitution, the purchase price
per share of stock then subject to the Option shall be appropriately adjusted
by the Committee (whose determination shall be final, binding and conclusive),
but in no event shall the aggregate purchase price for such shares be greater
than the aggregate purchase price for the shares of Common Stock subject to the
Option prior to the Change in Control; and/or 

(3)  requiring that the Option, in
whole or in part, be surrendered to the Company by the holder, and be
immediately cancelled by the Company, and providing for the holder to receive
(i) 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 as of the date of the Change in Control, over the purchase price per share
of Common Stock subject to the Option, (ii) shares of capital stock of the
corporation resulting from or succeeding to the business of the Company
pursuant to such Change in Control, or a parent corporation thereof, having a
fair market value not less than the amount determined under clause (i) above;
or (iii) a combination of the payment of cash pursuant to clause (i) above and
the issuance of shares pursuant to clause (ii) above.

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

9

 

 

 

 

(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 13(d)(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 July 29, 2011, constituted 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 after July 29,
2011, 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;

10

 

 

 

 

(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, or 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 hereunder, 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.

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 the shares of Common Stock purchased against full payment
therefor.  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.

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2.9.         Option Confers No
Rights as 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.  

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 any Employer
or any subsidiary or affiliate of an Employer.

3.2.         Decisions of Committee.  The Committee or its
delegate 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 or its delegate 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 acquire any rights hereunder in accordance with
this Award Agreement or the Plan.

12

 

 

 

 

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 telecopy with confirmation
of receipt or (d) by electronic mail, utilizing notice of undelivered
electronic mail features.  The notice, request or other communication shall be
deemed to be received (a) in the case of delivery, on the date of its actual
receipt by the party entitled thereto, (b) in the case of mailing by certified
or registered mail, five days following the date of such mailing, (c) in the
case of telecopy, on the date of confirmation of receipt or (d) in the case of
electronic mail, on the date of mailing, but only if a notice of undelivered
electronic mail is not received.

3.6.         Governing Law.  The Option, this Award Agreement, and
all determinations made and actions taken pursuant thereto and hereto, 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 regard to principles of conflicts of laws.

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

 

 

	
    

  	
    

  	
    

  	
  TELEPHONE AND
  DATA SYSTEMS, INC.

  
	
    

  	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  LeRoy T. Carlson, Jr.

  
	
    

  	
    

  	
    

  	
    

  	
  President and CEO

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Accepted this
  ___ day of

  	
    

  	
    

  	
    

  
	
    

  	
  ___________,
  20__.

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Optionee

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  

 

13

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