Document:

Exhibit
10.3

 

 

 

2005 LONG-TERM INCENTIVE PLAN

 

<<YEAR>> STOCK OPTION AWARD
AGREEMENT

 

United States Cellular
Corporation, a Delaware corporation (the “Company”), hereby grants to <<NAME>> (the “Optionee”), as of <<DATE>> (the “Option Date”), pursuant to the
provisions of the United States Cellular
Corporation 2005 Long-Term Incentive Plan, as amended (the “Plan”),
a Non-Qualified Stock Option (the “Option”) to purchase from the Company <<# OF SHARES>> shares of Stock at the price of <<STRIKE PRICE>> per share upon and subject to
the terms and conditions set forth below. 
Capitalized terms not defined herein shall have the meanings specified
in the Plan.

 

1.                                       Time and Manner
of Exercise of Option

 

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

 

·                  1/3 of grant
vests on <<FIRST ANNIVERSARY OF GRANT DATE>>

 

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

 

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

 

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

 

(b)                                 Disability.  If the Optionee’s employment by or service
with the Employers and Affiliates terminates by reason of Disability, then the
Option shall be exercisable only to the extent it is exercisable on the
effective date of the Optionee’s termination of employment or service 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 service, or until the Expiration Date,
whichever period is shorter.  If the
Optionee shall die within such exercise period, then the Option shall be
exercisable by the beneficiary or beneficiaries duly designated by the Optionee
to the same extent the Option was exercisable by the Optionee on the date of
the Optionee’s death, for a period ending on the later of (i) the last day
of such exercise period and (ii) the 180 day anniversary of the Optionee’s
death.

 

(c)                                  Special
Retirement.  If the Optionee’s
employment by or service with the Employers and Affiliates terminates by reason
of Special Retirement (as defined below), then the Option immediately shall
become exercisable in full if (i) the Optionee has attained age 66 as of
the effective date of the Optionee’s Special Retirement and (ii) the
effective date of the Optionee’s Special Retirement occurs on or after January 1,
<<CALENDAR YEAR COMMENCING AFTER OPTION
DATE>>.  If the Optionee’s
employment by or service with the Employers and Affiliates terminates by reason
of Special Retirement and either (i) the Optionee has not attained age 66
as of the effective date of the Optionee’s Special Retirement or (ii) the
effective date of the Optionee’s Special Retirement occurs before January 1,
<<CALENDAR YEAR COMMENCING AFTER OPTION
DATE>>, then the Option shall be exercisable only to the
extent it is exercisable on the effective date of the Optionee’s Special
Retirement.  The Option, to the extent
then exercisable, may be exercised by the Optionee (or the Optionee’s Legal
Representative) for a period of 12 months after the effective date of the
Optionee’s Special Retirement, or until the Expiration Date, whichever period
is shorter.  If the Optionee shall die
within such exercise period, then the Option shall be exercisable by the
beneficiary or beneficiaries duly designated by the Optionee to the same extent
the Option was exercisable by the Optionee on the date of the Optionee’s death,
for a period ending on the later of (i) the last day of such exercise
period and (ii) the 180 day anniversary of the Optionee’s death.  For purposes of this Award Agreement, “Special
Retirement” shall mean an Optionee’s termination of employment or service with
the Employers and Affiliates on or after the later of (i) the Optionee’s
attainment of age 62 and (ii) the Optionee’s Early 

 

 

 

Retirement
Date or Normal Retirement Date, as such terms are defined in the Telephone and
Data Systems, Inc. Pension Plan.

 

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

 

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

 

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

 

(g)                                 Other
Termination of Employment or Service.  If the Optionee’s employment by or service
with the Employers and Affiliates terminates for any reason other than
Disability, Special Retirement, Retirement, resignation of employment or
service 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 or service 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 service, or until
the Expiration Date, whichever period is shorter.  If the Optionee shall die within such
exercise period, then the Option shall be exercisable by the beneficiary or
beneficiaries duly designated by the Optionee to the same extent the Option was
exercisable by the Optionee on the date of the Optionee’s death, for a period
ending on the 180 day anniversary of the Optionee’s death.  Notwithstanding the first sentence of this
subsection (g), if the Optionee ceases to be employed by or to perform services
for the Employers and Affiliates on account of the Optionee’s negligence,
willful misconduct, competition with an Employer or other Affiliate or
misappropriation of confidential information of an Employer or other Affiliate,
then the Option shall 

 

 

2

 

 

terminate
on the date the Optionee’s employment or service terminates, 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 (a) 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.

 

(i)                                     Expiration
of Option During Suspension Period.  If the Option shall expire under any of
subsections (a) 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.

 

1.2.                              Termination of
Option and Forfeiture of Option Gain Upon Competition or Misappropriation of
Confidential Information.  (a) 
Notwithstanding any other provision herein, if the Optionee enters into
competition with an Employer or other Affiliate or misappropriates confidential
information of an Employer or other Affiliate, as determined by the Committee
or the Company in its sole discretion, then (i) as of the date of such
competition or misappropriation, the Option granted pursuant to this Award
Agreement automatically 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
Stock purchased pursuant to each exercise of the Option within the six months
immediately preceding such competition or misappropriation (without reduction
for any shares of 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 Stock on the date of such exercise and (ii) the
purchase price per share of 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 an Employer or other Affiliate.  The
Optionee acknowledges and agrees that this Section 1.2(a) is therefore
fair and reasonable, and not a penalty.

 

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

 

(c)                                  The
Optionee agrees that by executing this Award Agreement the Optionee authorizes
the Employers and any Affiliate to deduct any amount owed by the Optionee
pursuant to Section 1.2(a) from any amount payable by the Employers
or any Affiliate to the Optionee, including, without limitation, any amount
payable to the Optionee as salary, wages, vacation pay or bonus.  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 Section 1.2(a), the
Optionee shall be treated as entering into competition with an Employer or
other Affiliate if the Optionee (i) directly or indirectly, individually
or in conjunction with any person, firm or corporation, has contact with any
customer of an Employer or other Affiliate or any prospective customer which
has been contacted or solicited by or on behalf of an Employer or other
Affiliate for the purpose of soliciting or selling to such customer or
prospective customer any product or service, except to the extent such contact
is made on behalf of an Employer or other Affiliate; (ii) directly or
indirectly, individually or in conjunction with any person, firm or
corporation, becomes employed in the business or engages in the 

 

 

3

 

 

business
of providing wireless products and services in any geographic territory in
which an Employer or other Affiliate offers such products or services or has
plans to do so within the next twelve months or (iii) otherwise competes
with an Employer or other Affiliate in any manner or otherwise engages in the
business of an Employer or other Affiliate. 
The Optionee shall be treated as misappropriating confidential
information of an Employer or other Affiliate if the Optionee (i) uses
confidential information (as described below) for the benefit of anyone other
than an Employer or such Affiliate, as the case may be, or discloses the
confidential information to anyone not authorized by an Employer or such
Affiliate, as the case may be, to receive such information, (ii) upon termination
of employment or service, makes any summaries of, takes any notes with respect
to or memorizes or takes any confidential information or reproductions thereof
from the facilities of an Employer or other Affiliate or (iii) upon
termination of employment or service or upon the request of an Employer or
other 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 an Employer or other Affiliate.

 

1.3.                              Method of
Exercise.  The Option
may be exercised by the holder of the Option (a) by giving notice to the
Chief Financial Officer of the Company (or such other person as may be
designated by him or her) at least seven (7) days prior to the exercise
date specified in such notice (or in accordance with such shorter period of
prior notice consented to by the Chief Financial Officer of the Company (or
such other person as may be designated by him or her)), which notice shall
specify the number of whole shares of 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 Stock to be purchased (i) by authorizing
the Company to withhold whole shares of Stock which otherwise would be
delivered to the holder having a 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 to the Company of previously-owned whole
shares of Stock (which the holder has held for at least six months prior to the
delivery of such shares of Stock or which the holder purchased on the open
market and for which the holder has good title, free and clear of all liens and
encumbrances) having a 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 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 Stock shall be
delivered until the full purchase price therefore has 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 effective on the Optionee’s death or (ii) by gift to a
Permitted Transferee.  During the
Optionee’s or holder’s lifetime, the Option is exercisable only by the Optionee
or holder (or the Optionee’s or holder’s Legal Representative) or 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.

 

By
accepting the Option, the Optionee agrees that if all beneficiaries designated
on a beneficiary designation form predecease the Optionee or, in the case of
corporations, partnerships, trusts or other 

 

 

4

 

 

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 designate a beneficiary on a beneficiary designation
form, 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 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 Stock upon the exercise of the Option, the holder
shall pay to the Company in addition to the purchase price of the shares of
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 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 to the Company of previously-owned whole shares
of Stock, the aggregate Fair Market Value of which shall be determined as of
the date of exercise.  Shares of 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 Stock
which would be required to satisfy the aggregate of the tax withholding
obligation and the purchase price of the shares of Stock shall be disregarded
and the remaining amount due shall be paid in cash by the holder.  The Optionee agrees that if by the pay period
that immediately follows the date that the Optionee exercises the Option, no
cash payment attributable to any such fractional share shall have been received
by the Company, then the Optionee hereby authorizes the Company to deduct such
cash payment from any amount payable by the Company or any Affiliate to the
Optionee, including without limitation any amount payable to the Optionee as
salary or wages.  The Optionee agrees
that this authorization may be reauthorized via electronic means determined by
the Company.  The Optionee may revoke
this authorization by written notice to the Company prior to any such
deduction.  No share of 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, combination of shares in a reverse stock split, exchange of
shares, liquidation, spin-off or other similar change in capitalization or
event, or any distribution to holders of Stock other than a regular cash
dividend, the number and class of shares of 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.  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 exercise price of such
Option.

 

2.6.                              Change in
Control.  (a)(1)  Notwithstanding
any provision in the Plan or in this Award Agreement, in the event of a Change
in Control, the Board may, 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 full or (ii) electing that
the Option be surrendered to the Company by the holder thereof, that the Option
be immediately canceled by the Company and that the 

 

 

5

 

 

holder of the Option receive, within a
specified period of time from the occurrence of the Change in Control, a cash
payment from the Company in an amount equal to the number of shares of Stock
then subject to the Option, multiplied by the excess, if any, of the greater of
(x) the highest per share price offered to stockholders of the Company in
any transaction whereby the Change in Control takes place or (y) the Fair
Market Value of a share of Stock on the date of the occurrence of the Change in
Control, over the purchase price per share of Stock subject to the Option.

 

(2)                                  In the event of a Change in Control pursuant to Section (b)(3) or
(4) below in connection with which the holders of Stock receive shares of
common stock that are registered under Section 12 of the Exchange Act, the
Board may, but shall not be required to, substitute for each share of Stock
available under the Plan, whether or not then subject to an outstanding option,
the number and class of shares into which each outstanding share of Stock shall
be converted pursuant to such Change in Control.  In the event of any such substitution, the
purchase price per share with respect to the Option shall be appropriately
adjusted by the Committee (whose determination shall be final, binding and
conclusive), such adjustment to be made without an increase in the aggregate
purchase price.

 

(b)                                 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 25% or more of the combined voting power of the then
outstanding securities of the Company entitled to vote generally on matters
(without regard to the election of directors) (the “Outstanding Voting
Securities”), 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 February 22, 2005, 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 February 22,
2005, 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
individuals or entities 

 

 

6

 

 

who
are the beneficial owners of the Outstanding Voting Securities immediately
prior to such Corporate Transaction will beneficially own, directly or
indirectly, more than 50% of the combined voting power of the outstanding
securities of the corporation resulting from such Corporate Transaction
(including, 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) which are entitled to vote generally
on matters (without regard to the election of directors), 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, 25% or more of the Outstanding Voting
Securities) will beneficially own, directly or indirectly, 25% 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 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 may 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 Certificates.  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 one or more certificates representing the number of
shares of Stock purchased against full payment therefore.  The Company may require that certificates
evidencing shares of 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 Company shall pay all original issue or transfer taxes and all fees
and expenses incident to such delivery, except as otherwise provided in Section 2.4.

 

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 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 Stock, the full number of shares subject to the Option from
time to time.

 

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 

 

 

7

 

 

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
regard to principles of conflicts of laws.

 

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

 

 

UNITED
STATES CELLULAR CORPORATION

 

 

	
  By:

  	
   

  
	
   

  	
  <<NAME>>

  
	
   

  	
  <<TITLE>>

  

 

	
   

  	
  Accepted this           
  day of

  
	
   

  	
   

  
	
   

  	
                              ,
  20      .

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Optionee

  

 

 

8Exhibit 10.4

 

2005 LONG-TERM INCENTIVE PLAN

 

<<YEAR>>
RESTRICTED STOCK UNIT AWARD AGREEMENT

 

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

 

<<NAME>> (the “Employee”) as of <<DATE>>
(the “Grant Date”), pursuant to the provisions of the

 

United
States Cellular Corporation 2005 Long-Term Incentive Plan, as amended (the “Plan”),
a Restricted Stock Unit Award (the “Award”) with respect to <<NUMBER>> shares of 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 restrictions on the Award shall terminate
in their entirety on <<THIRD ANNIVERSARY
OF GRANT DATE>>, provided that the Employee remains
continuously employed by or of service to the Employers and Affiliates until
such date.

 

(b) 
Disability or Death.  If the
Employee’s employment by or service to the Employers and Affiliates terminates
prior to <<THIRD ANNIVERSARY OF GRANT DATE>> by
reason of Disability or death, the restrictions on the Award shall terminate in
their entirety upon such termination of employment or service.

 

(c) 
Retirement at or after Attainment of Age 66.  If the Employee’s employment by or service to
the Employers and Affiliates terminates on or after January 1, <<CALENDAR YEAR COMMENCING AFTER GRANT DATE>>
but prior to <<THIRD ANNIVERSARY OF GRANT
DATE>> by reason of retirement at or after attainment of age
66, the restrictions on the Award shall terminate in their entirety upon such
termination of employment or service.  If
the Employee’s employment by or service to the Employers and Affiliates
terminates prior to January 1, <<CALENDAR YEAR
COMMENCING AFTER GRANT DATE>> by reason of retirement at or
after attainment of age 66, the Award shall be forfeited and shall be canceled
by the Company.

 

(d) 
Other Termination of Employment or Service.  If the Employee’s employment by or service to
the Employers and Affiliates terminates prior to <<THIRD
ANNIVERSARY OF GRANT DATE>> for any reason other than
Disability, death or retirement at or after attainment of age 66, the Award
shall be forfeited and shall be canceled by the Company.

 

(e) 
Forfeiture of Award upon Competition or Misappropriation of Confidential
Information.  Notwithstanding any
other provision herein, if the Employee (i) enters into competition with
an Employer or other Affiliate or (ii) misappropriates confidential
information of an Employer or other Affiliate, as determined by the Committee
or the Company in its sole discretion, then the Award shall be forfeited and
shall be canceled by the Company.  For
purposes of the preceding sentence, the Employee shall be treated as entering
into competition with an Employer or other Affiliate if the Employee (i) directly
or indirectly, individually or in conjunction with any person, firm or
corporation, has contact with any customer of an Employer or other Affiliate or
any prospective customer which has been contacted or solicited by or on behalf
of an Employer or other Affiliate for the purpose of soliciting or selling to
such customer or prospective customer any product or service, except to the
extent such contact is made on behalf of an Employer or other Affiliate; (ii) directly
or indirectly, individually or in conjunction with any person, firm or
corporation, becomes employed in the business 

 

 

 

 

 

or
engages in the business of providing wireless products and services in any
geographic territory in which an Employer or other Affiliate offers such
products or services or has plans to do so within the next twelve months or (iii) otherwise
competes with an Employer or other Affiliate in any manner or otherwise engages
in the business of an Employer or other Affiliate.  The Employee shall be treated as
misappropriating confidential information of an Employer or other Affiliate if
the Employee (i) uses confidential information (as described below) for
the benefit of anyone other than an Employer or such Affiliate, as the case may
be, or discloses the confidential information to anyone not authorized by an
Employer or such Affiliate, as the case may be, to receive such information, (ii) upon
termination of employment or service, makes any summaries of, takes any notes
with respect to or memorizes or takes any confidential information or
reproductions thereof from the facilities of an Employer or other Affiliate or (iii) upon
termination of employment or service or upon the request of an Employer or
other 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 an Employer or other Affiliate.

 

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 an Employer or other Affiliate. 
Employee acknowledges and agrees that this Section 2(e) is
therefore fair and reasonable, and not a penalty.

 

3.              Change in Control

 

(a)   (1)  Notwithstanding any provision in
the Plan or in this Award Agreement, in the event of a Change in Control, the
Board may, but shall not be required to, make such adjustments to the Award as
it deems appropriate, including, without limitation, (i) causing the
restrictions on the Award to immediately terminate or (ii) electing that
the Award be surrendered to the Company by the holder thereof, that the Award
be immediately canceled by the Company and that the holder of the Award
receive, within a specified period of time from the occurrence of the Change in
Control, a cash payment from the Company in an amount equal to the number of
shares of Stock then subject to the Award, multiplied by the greater of (x) the
highest per share price offered to stockholders of the Company in any
transaction whereby the Change in Control takes place or (y) the Fair
Market Value of a share of Stock on the date of the occurrence of the Change in
Control.

 

(2)  In the event of a Change in Control
pursuant to Section (b)(3) or (4) below in connection with which
the holders of Stock receive shares of common stock that are registered under Section 12
of the Exchange Act, the Board may, but shall not be required to, substitute
for each share of Stock available under the Plan, whether or not then subject
to an outstanding award, the number and class of shares into which each
outstanding share of Stock shall be converted pursuant to such Change in
Control.

 

(b)         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 25% or more of the combined voting power
of the then outstanding securities of the Company entitled to vote generally on
matters (without regard to the election of directors) (the “Outstanding Voting
Securities”), 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 

 

 

2

 

 

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 February 22,
2005, 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 February 22, 2005, 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 individuals or entities who are the beneficial owners of the Outstanding
Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 50% of the combined voting
power of the outstanding securities of the corporation resulting from such Corporate
Transaction (including, 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) which are entitled to vote generally
on matters (without regard to the election of directors), 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, 25% or more of the
Outstanding Voting Securities) will beneficially own, directly or indirectly,
25% 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.  The Award may not be transferred other than (i) pursuant
to a beneficiary designation effective on the Employee’s death or (ii) by
gift to a Permitted Transferee, after obtaining the consent of the Committee to
such gift, which may be given or withheld by the Committee in its sole
discretion.  Except as permitted by the
foregoing, 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.

 

 

3

 

 

By
accepting the Award, the Employee agrees that if all beneficiaries designated
on a beneficiary designation form 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
designate a beneficiary on a beneficiary designation form, 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 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 law; (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 further 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.  As a condition precedent to the issuance or
delivery of any shares of Stock subject to the Award, the Employee 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 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 to the Company of
previously-owned whole shares of 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
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 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.  The Employee agrees that if by
the pay period that immediately follows the date that the restrictions on the
Award terminate in their entirety, no cash payment attributable to any such
fractional share shall have been received by the Company, then the Employee
hereby authorizes the Company to deduct such cash payment from any amount
payable by the Company or any Affiliate to the Employee, including without
limitation any amount payable to the Employee as salary or wages.  The Employee agrees that this authorization
may be reauthorized via electronic means determined by the Company.  The Employee may revoke this authorization by
written notice to the Company prior to any such deduction.  No shares of 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).

 

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 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

 

 

4.5.  Adjustment.  In the event of any conversion, stock split,
stock dividend, recapitalization, reclassification, reorganization, merger,
consolidation, combination of shares in a reverse stock split, exchange of
shares, liquidation, spin-off or other similar change in capitalization or
event, or any distribution to holders of Stock other than a regular cash
dividend, the number and class of shares of Stock subject to the Award shall be
appropriately and equitably adjusted by the Committee.  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, in connection with the first vesting of the Award 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 Fair Market Value on the vesting date.

 

4.6.  Compliance with Applicable Law.  The Award is subject to the condition that if
the listing, registration or qualification of the shares of 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 issuance
or delivery of shares, such shares may not be issued or 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.

 

4.7.  Delivery of Certificates.  As soon as practicable after the termination
of the restrictions on the Award, the Company shall, subject to Section 4.3,
deliver or cause to be delivered to the Employee one or more certificates
representing the number of shares of Stock subject to the Award.  The Company may require that the certificates
evidencing shares of 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 Company shall pay all original issue or transfer taxes and all fees
and expenses incident to such delivery, except as otherwise provided in Section 4.3.

 

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 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.

 

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 or transfer of such
Award, 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 

 

 

5

 

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
regard to principles of conflicts of laws.

 

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

 

 

 

	
  UNITED
  STATES CELLULAR CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  <<NAME>>

  
	
   

  	
   

  	
  <<TITLE>>

  

 

 

	
   

  	
  Accepted
  this   day of

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
            , 20 
  .

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  

 

 

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]