Document:

Exhibit 10.2

 

TELEPHONE AND DATA
SYSTEMS, INC.

 

GUIDELINES FOR THE
DETERMINATION OF ANNUAL BONUS

FOR PRESIDENT AND
CHIEF EXECUTIVE OFFICER

(Effective for
Performance Years Commencing

On or After January 1,
2008)

 

I.    PURPOSE

 

·                  To
provide incentive for the President and Chief Executive Officer (the
“President”) of Telephone and Data Systems, Inc. (the “Company”) to extend
his best efforts toward achieving superior results with respect to Company and
business unit performance;

·                  To
reward the President in relation to his success in meeting and exceeding
performance targets and otherwise contributing to the success of the Company
and its business units; and

·                  To
help the Company retain the President, a talented leader in a position of
critical importance to the success of the Company and its business units.

 

II.   BONUS AMOUNT

 

The Compensation
Committee of the Board of Directors of the Company (the “Committee”) in its
sole discretion determines whether an annual bonus will be payable to the
President for a performance year and, if so, the amount of such bonus.  Factors that may be considered by the
Committee in making such determination include the following:

 

·                  the
level of achievement of the Company and its business units, on a short-term and
long-term basis, measured against performance objectives and compared with that
of peer companies;

·                  the
President’s individual performance, on a short-term and long-term basis, with
respect to his leadership of the Company and its business units, the
development and maintenance of effective working relationships across the
enterprise, his stated personal objectives and his other duties and
responsibilities;

·                  the
total cash compensation paid to chief executive officers of publicly-held peer
companies and other publicly-held companies; and

·                  other
factors that the Committee in the exercise of its judgment and discretion
determines relevant.

 

No single factor shall be
determinative and no factor shall be applied mechanically to calculate any
portion of the President’s bonus.  The
entire amount of the bonus is discretionary. 
The President shall have no right or expectation with respect to any
bonus until the Committee has determined whether a bonus will be paid for a
performance year, and any such bonus is not earned or vested until the date the
bonus is paid.

 

III.  BONUS PAYMENT

 

Any bonus awarded with
respect to a performance year shall be paid during the period commencing on the
January 1 immediately following the performance year and ending on the March 15
immediately following the performance year. 
Notwithstanding the foregoing, in the 

 

 

event that payment by
such March 15th is administratively impracticable and such
impracticability was unforeseeable (in each case, such that the payment
continues to qualify as a “short-term deferral” within the meaning of section
409A of the Internal Revenue Code), payment will be made as soon as
administratively practicable after such March 15th, but in no
event later than the December 31 immediately following the performance
year.  Payment will be in the form of a
lump sum.

 

Notwithstanding any
provision of these guidelines to the contrary, the President does not have a
legally binding right to a bonus unless and until the bonus amount, if any, is
paid.

 

IV.  AMENDMENT AUTHORITY

 

The Committee reserves
the right to amend the guidelines set forth herein at any time for any reason.

 

APPROVED by the
TELEPHONE AND DATA SYSTEMS, INC. COMPENSATION COMMITTEE on this ____________
day of __________________, 2008.

 

 

	
   

  	
   

  	
   

  
	
  Gregory P. Josefowicz

  	
   

  	
  George W. Off

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Christopher D. O’Leary

  	
   

  	
  Herbert S. Wander

  

 

2Exhibit 10.3

 

TELEPHONE AND DATA
SYSTEMS, INC.

 

GUIDELINES FOR THE
DETERMINATION OF ANNUAL BONUS

FOR CHAIRMAN
EMERITUS

(Effective for
Performance Years Commencing

On or After January 1,
2008)

 

I.    PURPOSE

 

·                  To
reward the Chairman Emeritus of Telephone and Data Systems, Inc. (the
“Company”) for his contributions to the success of the Company and its business
units.

 

II.   BONUS AMOUNT

 

The Compensation
Committee of the Board of Directors of the Company (the “Committee”) in its
sole discretion determines whether an annual bonus will be payable to the
Chairman Emeritus for a performance year and, if so, the amount of such
bonus.  Factors that may be considered by
the Committee in making such determination include the following:

 

·                  the
historical and current responsibilities and activities of the Chairman Emeritus
(including the fact that the Chairman Emeritus was the founder of the Company);

·                  the
insights, value, experience, inspiration, mentoring and motivational effects
that the Chairman Emeritus contributes to the Company, its business units and
its employees; and

·                  other
factors that the Committee in the exercise of its judgment and discretion
determines relevant.

 

No single factor shall be
determinative and no factor shall be applied mechanically to calculate any
portion of the bonus of the Chairman Emeritus. 
The entire amount of the bonus is discretionary.  The Chairman Emeritus shall have no right or
expectation with respect to any bonus until the Committee has determined
whether a bonus will be paid for a performance year, and any such bonus is not
earned or vested until the date the bonus is paid.

 

III.  BONUS PAYMENT

 

Any bonus awarded with
respect to a performance year shall be paid during the period commencing on the
January 1 immediately following the performance year and ending on the March 15
immediately following the performance year. 
Notwithstanding the foregoing, in the event that payment by such March 15th
is administratively impracticable and such impracticability was unforeseeable
(in each case, such that the payment continues to qualify as a “short-term
deferral” within the meaning of section 409A of the Internal Revenue Code),
payment will be made as soon as administratively practicable after such March 15th,
but in no event later than the December 31 immediately following the
performance year.  Payment will be in the
form of a lump sum.

 

Notwithstanding any
provision of these guidelines to the contrary, the Chairman Emeritus does not
have a legally binding right to a bonus unless and until the bonus amount, if
any, is paid.

 

 

IV.  AMENDMENT AUTHORITY

 

The Committee reserves
the right to amend the guidelines set forth herein at any time for any reason.

 

APPROVED by the
TELEPHONE AND DATA SYSTEMS, INC. COMPENSATION COMMITTEE on this ____________ day
of ___________________, 2008.

 

 

	
   

  	
   

  	
   

  
	
  Gregory P. Josefowicz

  	
   

  	
  George W. Off

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Christopher D. O’Leary

  	
   

  	
  Herbert S. Wander

  

 

2Exhibit 10.4

 

TELEPHONE AND DATA SYSTEMS, INC.

 

AMENDMENT TO

SALARY CONTINUATION AGREEMENT

FOR LEROY T. CARLSON

 

THIS AMENDMENT TO AGREEMENT, entered into this ___________
day of ________________, 2008, by and between TELEPHONE AND DATA SYSTEMS, INC.,
a Delaware corporation (the “Corporation”) and LEROY T. CARLSON (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Corporation and the Executive heretofore have
entered into a Salary Continuation Agreement, dated as of May 20, 1977 and
amended as of May, 1981 and May 29, 1984 (the “Agreement”);

 

WHEREAS, section 409A of the Internal Revenue Code of 1986,
as amended (“section 409A”), sets forth certain requirements with respect to
nonqualified deferred compensation arrangements, which for this purpose may include
the Agreement; and

 

WHEREAS, the Corporation and the Executive desire to amend
the Agreement to reflect the requirements of section 409A.

 

NOW, THEREFORE, it hereby is agreed that the Agreement be amended,
effective as of January 1, 2009, as follows:

 

1.  Paragraph 1 hereby is amended to add the
following two sentences at the end thereof:

 

For
all purposes of this Agreement, the Executive’s “retirement” shall be his
separation from service with the Company and all entities treated as a single
employer with the Company under sections 414(b) and (c) of the Internal
Revenue Code of 1986, as amended (but substituting a 50% ownership level for
the 80% ownership level set forth therein). 
“Separation from service” for this purpose shall mean a termination of
employment within the meaning of Treasury Regulation §1.409A-1(h) (without
regard to any permissible alternative definition thereunder).

 

 

2.  Paragraph 4.1 hereby is amended to add the
following two sentences at the end thereof:

 

Notwithstanding
the foregoing, if the Executive is a “specified employee” (within the meaning
of the Section 409A Specified Employee Policy of Telephone and Data
Systems, Inc. and its Affiliates) as of the date of his retirement, no
payment to the Executive under this Agreement as a result of his retirement shall
be made before the date which is six months after the date of the Executive’s
retirement.  Payments delayed pursuant to
the immediately preceding sentence shall be paid to the Executive in a lump sum
during the seventh calendar month following the calendar month of the Executive’s
retirement (or, if earlier, to the Executive’s wife, Margaret D. Carlson (or,
if designated by the Executive in writing delivered to the Company before his death,
to a trust over which Margaret D. Carlson has a general power of appointment), during
the calendar month following the calendar month of the Executive’s death).

 

3.  The second sentence of paragraph 5 hereby is
amended to replace the phrase “termination of his employment” set forth therein
with the phrase “the Executive’s retirement”.

 

4.  Paragraph 7.2 hereby is amended to replace
the phrase “If the Company discharges the Executive prior to his retirement,” set
forth therein with the phrase “If the Executive retires as a result of discharge
by the Company,”.

 

FURTHER AGREED, that in all other respects, the provisions of
the Agreement hereby are affirmed.

 

IN WITNESS WHEREOF, the Corporation and the
Executive have executed this Amendment to Agreement as of the day and year
first above written.

 

	
   

  	
  TELEPHONE
  AND DATA SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Herbert
  S. Wander

  
	
   

  	
   

  	
  Chairperson,
  Compensation Committee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LeRoy
  T. Carlson

  

 

2

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