EX-10.9 9 usm331202210qex109.htm EX-10.9
Exhibit 10.9
2013 LONG-TERM INCENTIVE PLAN
2016 STOCK OPTION AWARD AGREEMENT
United States Cellular Corporation, a Delaware corporation (the "Company"), hereby grants to <<NAME>> (the "Optionee"), as of April 1, 2016 (the "Option Date"), pursuant to the provision s of th e United States Cellular Corporation 2013 Long-Term Incentive Plan, as amended from time to time (the ''Plan"), a Non-Qualified Stock Option (the "Option") to purcha s e from the Company <<# OF SHARES>> shares of Common Stock at the price of $<<PRICE>> per share upon and subject to th e 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 thi s Award Agreement, the Option shall become exercisable according to the following vesting schedule:
• 1/3 of grant vests on April 1, 2017
• 1/3 of grant vests on April 1, 2018
• Remaining 1/3 of grant vests on April 1, 2019
In no event may the Option be exercised, in whole or in part, after April 1, 2026 (the "Expiration Date").
(b) Disability. If the Optionee's employment by the Employers and Affiliates terminates by reason of Disability (as defined below), then the Option immediately shall become exercisable in full and after such dat e may be exercised by the Optionee (or the Optionee' s Legal Representative) for a period of 12 months after the effective date of the Optione e' s termination of employment, 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 d es ignated by the Optionee to the sa me extent the Option w as exercisable by the Optionee on the date of th e Option ee' s death, for a period ending on the later of (i) the la s t day of s uch exercise period and (ii) the 180 day anniversary of the Optionee's death (but in no event later than th e Expiration Date). For purposes of this Award Agreement, "Disability" s hall mean a total physical disability which, in the Committee's judgment, prevents the Optionee from performing substantially his or her employment duties and re spo nsibilitie s for a continuous p e riod of at least six months.
(c) Special Retirement. If the Optionee's employment by the Employers and Affiliates terminates by reason of Special Retirement (as defin ed be l ow), th e n th e Option imm e diately shall b ec ome exercisable in full if (i) the Optionee has attained age 66 as of the effective date of the Optione e's Special Retirement and (ii) the effective date of the Optionee' s Special Retirement occurs on or after January 1, 2017. If the Optionee's employment by the Employer s and Affiliates terminate s by reason of Special Retirement and either (i) the Option ee 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, 2017, then the Option shall be exercisable only to the extent it is exercisable on th e effective date of the Option ee' s Special R e tirement. The Option, to the extent then exercisable, may be exercised by the Optione e (or th e Optionee's Legal Repre se ntative) for a p e riod of 12 month s after the effective date of the Optionee's Sp ec ial Retirem e nt, or until the Expiration Date, which eve r p erio d i s shorter. If the Optionee shall die within such exercise period, then the Option s hall be e xerci sa ble 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's employment by 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, 2017. If the Optionee's employment by 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, 2017, 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 Optione e' 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 exercisabl e by the b e neficiary 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).

(e) Resignation with Prior Consent of the Board. If the Optionee's employment by the Employers and Affiliates terminates by reason of the Optionee's resignation of employment with the prior consent of the Board (as evidenced in the Company's minute book), then the Option shall be exercisable only to the extent it is exercisable on the effective date of the Optionee' s resignation and after such date may be exercised by the Optionee (or the Optionee's Legal Representative) for a period of 90 days after the eff e ctive date of the Optionee's resignation, or until the Expiration Date, whichever period is shorter. If the Optionee shall die within such exercise p e riod, then the Option shall be exercisable by the beneficiary or beneficiaries duly designated by the Optionee to the same extent the Option was exercisable by the Optionee on the date of the Optionee' s death, for a period ending on the earlier of (i) the 180 day anniversary of the Optionee's death and (ii) the Expiration Date.
(f) Death. If the Optionee's employm e nt by the Employers and Affiliates terminates by reason of death, then the Option immediately shall become exercisable in full and after such dat e 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's employment by the Employers and Affiliates terminates for any reason other than Disability, Special Retirement, Retirement, resignation of employment with the prior consent of the Board (as evidenced in the Company's minute book) or death, then the Option shall be exercisable on l y to the extent it is exercisable on the effective date of the Optionee's termination of employment and after such date may be exercised by the Optionee (or the Optionee's Legal Representative) for a period of 30 days after the effective date of the Optionee's termination of employment, or until the Expiration Date, whichever period is shorter. 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 earlier of (i) the 180 day anniversary of the Optionee's death and (ii) the Expiration Date. Notwi t hstanding any other provision in this Award Agreement, 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, then 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).
(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 b e released from the Optionee's obligations under this Section 1.2 only if and to the extent the Committee determine s in it s sole di sc retion that such release is in the be s t interests of the Company.
(c) The Optionee agrees that by executing thi s Award Agreement the Optionee authorizes the Employers and any Affi li ate to deduct any amount owed by the Optionee pursuant to Sect ion 1.2(a) from any amount payable by the Employers or any Affiliate to the Optionee, including, without limitation, any amoun t payable to the Optionee as sa lary, wages, vacation pay or bonus. The Optionee further agrees to execute any documents at th e time of setoff required by th e Employers and any Affi li ate 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 du e, the Optionee agrees to reimburse the Employers and/or any Affiliate for their reasonable attorneys' fees and litigation costs incurred in r ecove ring such amounts from the Optionee. This right of setoff s hall not b e an exclusive remedy and an Employer's or an Affiliate's election not to exercise this right of setoff with r es pect to any amount payable to the Optionee shall not constitute a waiver of this right of setoff with resp ec t to any other amount payable to the Optionee or any other remedy.

For purpo ses of thi s Award Agreement, "Competition" s hall mean that th e Optionee, directly or indir ect ly, 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 c u sto mer of an Emp loyer or Affiliate or with any prospective customer which ha s been contacted or solicited by or on behalf of an Employer or Affiliate for the purpos e of so liciting or se lling to such customer or prosp ec tiv e customer the same or a similar (such that it could substitute for) product or service provided by an Employer or Affiliate during the Optionee's employment with the Employers and the Affiliates; or (ii) becomes employed in the business or engages in the bu s iness of providing wireless product s or se rvi ces in any county or county contiguous to a county in which an Employer or Affiliate provided such products or se rvic es during the Optionee's em ploym e nt with the E mploy e r s and the Affiliates or had plan s to do so within th e twelve-month period immediately following the Optionee's termination of employment.
For purposes of this Award Agreement, "Misappropriation" s hall mean that the Optionee (i) uses Confidential Information (as defined b e low) for th e benefit of anyone other than the E mploy e rs 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 re spec t to or m e mori zes any Confidential Information or takes a n y Confidential Information or reproductions th ereof from the facilities of the Employers or an Affiliate or (iii) upon termination of e mployment 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 drawing s, reports, sa le s and training manual s, customer li sts, computer programs and other mat eria l e mbodying trade secrets or confidential technical, business or financial information of the Employ e rs or an Affiliate.
For purposes of this Award Agreement, "Solicitation" shall mean that the Optionee, directly or indirectly, individually or in conjunction with any Person, during the Optionee's employment with the Employers and the Affiliates and for the twelve months after the termination of that employment for any reason, other than on any Employer' s or Affiliate's behalf, solicits, induces or encourages (or attempts to solicit, induce or encourage) any individual away from any Employer's or Affiliate's employ or from the faithful discharge of such individual's contractual and fiduciary obligations to serve the Employers' and Affiliate s' interests with undivided loyalty.
For purposes of this Award Agreement, "Disparagement" shall mean that the Optionee has made a statement (whether oral, written, or electronic) to any P e rson other than to an officer of an Employer or an Affiliate that di s parages or demeans the Employers, any Affiliate, or any of their respective owners, directors, officers, employees, products or services.
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 s uch other Person as may be designated by him or her) at least seven (7) days prior to the exercise date specified in such notic e (or in accordance with such shorter period of prior notice consented to by the Chief Financial Officer of the Company (or such other Person as may be designated by him or her)), which notice shall specify the number of whole shares of Common Stock to be purchased and (b) by executing such documents and taking any other actions as the Company may reasonably request. The holder of the Option may pay for the shares of Common Stock to be purchased (i) by authorizing the Company to withhold whole shares of Common Stock which otherwise would be delivered to the holder having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise or (ii) by delivery (either actual delivery or by attestation procedures established by the Company) to the Company of previously-owned whole shares of Common Stock having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable by reason of such exercise. No share of Common Stock shall be issued or delivered until the full purcha se price therefore and the withholding taxes thereon, as described in Section 2.4, have been paid (or arrangement ha s be e n made for s uch payment to the Company's sa tisfaction).
2. Additional Terms and Conditions of Option
2.1. Option subject to Acceptance of Award Agreement. The Option shall become null and void unless the Optionee shall accept this Award Agreement by executing it in the space provided at the end hereof and returning it to the Company.
2.2. Transferability of Option. The Option may not be transferred other than (i) pursuant to a beneficiary designation on a form prescribed by the Company and effective on the Optionee's death or (ii) by gift to a Permitted Transferee. During the Optionee's lifetime, the Option is exercisable only by the Optionee (or the Optionee's Legal representative) or a Permitted Transferee, and during a Permitted Transferee's lifetime, the Option is exercisable only by the Permitted Transferee (or the Permitted Transferee' s Legal Representative). Except as permitted by the foregoing, the Option may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the Option, the Option and all rights hereunder shall immediately become null and void.
By accepting the Option, the Optionee agrees that if all beneficiaries de sig nated on a form prescribed by the Company predecease the Option ee or, in th e case of corporations, partnerships, trusts or other e ntities which are designated beneficiarie s, are terminated, dissolved, become insolvent or are adjudicated bankrupt prior to the date of the Optionee's death, or if the Optionee fails to properly designate a beneficiary on a form prescribed by th e Company, then the Optionee hereby designates the following Persons in the order set forth her ein as the Optionee's beneficiary or beneficiaries: (i) the Optionee's spouse, if livin g, or if none, (ii) the Optionee' s th en li ving descendants, per stirpes, or if non e, (iii) the Optionee's estate.

2.3. Agreement by Holder. As a condition precedent to the issuance or delivery of any s har es of Common Stock upon any exercise of the Option, the hold er s hall comply with all re gu lation s and requirements of any regulatory authority having contro l of or supervis ion over the issuance or delivery of the s hare s and, in connection therewith, sha ll execute any documents which the Committee shall in its sole discretion deem nec essa ry or advisable.
2.4. Tax Withholding. As a condition precedent to t he is sua nce or d e liv ery of any shares of Common Stock upon the exercise of the Option, the holder shall pay to the Company in addition to the purchase price of the shares of Common Stock, suc h 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 th e Option. The holder may e l ect to sat i sfy hi s or her obligation to advance the Required Tax Payments by (i) authorizing the Company to withhold whole shares of Common Stock which otherwise would be delivered to th e holder upon the exercise of the Option, the aggregate Fair Market Value of which s hall be determined as of the date of exercise or (ii) delivery (e ither actual delivery or by attestation procedures estab li s hed by the Company) to th e Company of previously-owned whole shares of Common Stock, the aggregate Fair Market Value of which s h all be determined as of the date of exercise. To the extent required by applicable accounting rules to avoid liability account in g treatment or by law, shares of Common Stock to be withheld or delivered may not have an aggregate Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate; provided, however, that in the case of withholding of such shares, the number of shares to be withheld to satisfy the Required Tax Payments shall be rounded up to the nearest whole share, and the Company shall reimburse the Optionee in cash for any such excess tax withholding as soon as practicable thereafter. No share of Common Stock shall be delivered until the Required Tax Payments have been satisfied in full (or arrangement ha s been made for s uch payment to the Company's sat i sfaction).
2.5. Adjustment. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation Stock Compensation) that causes the per share value of shares of Common Stock to change, suc h as a stock dividend, stock sp lit, spinoff, ri gh t s offering or recapitalization through an extraordi n a ry dividend, the number and class of shares of Common Stock subject to the Option and the purchase price per sha r e shall be appropriately and equitably adjusted by the Committee, such adjustment to be made without an increase in the aggregate purchase price and in accordance with Section 409A of the Code. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such adjustment de sc ribed in the foregoing sentence may be made as determined to be appropriate or equitable by the Committee to prev e nt dilution or enlargement of rights of participants. In either case, such adjustment shall be final, binding and conclusive. If such adjustment would result in a fractional share being subject to the Option, the Company shall pay the holder of the Option, in connection with the first exercise of the Option in whole or in part occurring after such adjustment, an amount in cash determined by multiplying (i) the fraction of such share (rounded to the nearest hundredth) by (ii) the excess, if any, of (A) the Fair Market Value on the exercise date over (B) the purchase price of such Option.
2.6. Change in Control. (a) In General. Notwithstanding any provision of the Plan or any other provision of this Award Agreement, in the event of a Change in Control, the Board (as constituted prior to the Change in Control) may in its discretion, but shall not be required to, make s uch adjustments to the Option as it deem s appropriate, including, without limitation: (i) causing the Option to immediately become exercisable in whole or in part and/or (ii) substituting for some or all of the s har es of Common Stock subject to the Option the number and class of shares into which each outstanding share of Common Stock shall be converted pursuant to the Change in Control, with an appropriate and equitable adjustment to the Option as determined by the Committee in accordance with Section 2.5; and/or (iii) requiring that the Option, in whole or in part, be surrendered to the Company by th e h o lder thereof and immediately canceled by the Company and providing for the holder of the Option to receive, within s ixty (60) days following the occurrence of the Change in Control, (X) a cash payment in an amount equal to the number of shares of Common Stock then subject to the portion of the Option s urrendered, to the extent the Option is then exercisable or b eco mes exercisable pur s uant to thi s Section 2.6(a), multiplied by the excess, if any, of the Fair Market Value of a share of Common Stock on the date of the Change in Control, over the purchase price per share of Common Stock subject to th e Option; (Y) s hare s of ca pital stock of the corporation resulting from or succeeding to the business of the Company pursuant to the Change in Control, or a parent corporation thereof, having a fair market value not less than the amount determined under clause (X) above; or (Z) a combination of the payment of cash pursuant to clause (X) above and the issuance of shares pursuant to clau se (Y) above.

(b) Definition of Change in Control. Fo r purpo ses of the Plan and this Award Agreement, "C hange 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 th e Exchange Act, of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of the then outstanding sec uritie s of the Company (the "Outstanding Voting Securities") (x) having sufficient voting power of all classes of capital stock of th e Company to elect at least 50% or more of the members of the Board or (y) having 50% or mor e of th e combined voting power of th e Outstanding Voting Securities entitled to vote generally on matter s (without regard to the election of directors), excluding, howev er, the following: (i) any acquisition directly from the Company or an Affiliate (excluding any acquisition r es ulting from the exercise of an exercise, conversion or exchange privilege, unle ss the sec urity 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 tru st) 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 suc h child, (C) a ny grandchild of LeRoy T. Carlson, including any child adopted by any child of LeRoy T. Carlson, or the spouse of any such grandchild, (D) the estate of any of the Persons described in clauses (A)-(C), (E) any trust or similar arrangement (including any acquisition on behalf of such trust or similar arrangement by the trustees or similar Persons) provided that all of the current beneficiaries of such trust or similar arrangement are Persons described in clauses (A)-(C) or their lineal descendants, or (F) the voting trust which expires on June 30, 2035, or any successor to such voting trust, including the trustees of such voting trust on behalf of such voting trust (all such Persons, collectively, the "Exempted Persons");
(2) individuals who, as of March 15, 2016, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of such Board; provided that any individual who becomes a director of the Company subsequent to March 15, 2016, 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;
(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 ben e ficially 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) individual s who were members of the Incumbent Board will con s titute at least a majority of the memb e rs 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 complet e 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 s hare s of Common Stock subject to th e Option upon any s ecurities 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 conn e ction with, the delivery of shares, such shares will not be delivered, in whole or in part, unless such listing, registration, qualification, consent, approval or other action shall have been effected or obtained, free of any conditions not acceptable to the Company. The Company agrees to use reasonable efforts to effect or obtain any such listing, registration, qualification, consent, approval or other action.
2.8. Delivery of Shares. Upon the exercise of the Option, in whole or in part, the Company shall, subject to Section 2.4, deliver or cause to be delivered to the hold e r the shares of Common Stock purchased against full payment therefore. The Company may requir e that th e sha r es of Common Stock delivered pursuant to the Option bear a le gend indicating that the sa le, tran sfer or other disposition thereof by the holder is prohibited except in compliance with the Securities Act of 1933, as amended, and the rules and regulations thereunder. The holder of the Option shall pay all original i ssue or tran sfer taxes and all fees and expenses incident to such delivery, unless the Company in its discretion elects to make such payment.
2.9. Option Confers No Rights as a Stockholder. The holder of the Option shall not b e e ntitl ed to any privileges of ownership with respect to s hare s of Common Stock su bject to the Option unless and until suc h shares are purchased and delivered upon an exercise of the Option and the holder becomes a stockholder of record with respect to such delivered s hare s. The holder s hall not be considered a stockho lder of the Company with re spect to any s hare s 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 s hares of Common Stock, the full number of shares s ubject 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 s ubje ct to forfeiture, recovery by the Company or other action pursuant. to any clawback or r ecoupmen t policy which the Company may adopt from time to time, including without limitation any s uch policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and impl ement in g rul es 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 g ive th e Optionee a ny right to continued employment by or service with the Company or any of its subsidiaries or affiliates.
3.2. Decisions of Committee. The Committee sha ll hav e the right to resolve all questions which may arise in connection with the Option or its exercise. Any int erpretat ion, determination or o the r action made or taken by the Committee regarding the Plan or this Award Agreement shall be final, binding and co nclu sive.
3.3. Award Agreement subject to the Plan. This Award Agreement is subject to the provisions of the Plan, and shall be interpreted in acco rdan ce therewith. The Optionee hereby acknowledges receipt of a copy of the Plan.
3.4. Successors. This Award Agreement s hall be binding upon and inure to the benefit of any successor or successors of the Company a nd any Person or Persons who shall, upon th e death of the Optionee or transfer of such Option, acquire any rights hereunder.
3.5. Notices. All notices, requests or other communications provided for in this Award Agreement shall be made in writing either (a) by actual delivery to the party entitled thereto, (b) by mailing in the United States mails to the last known address of the party entitled thereto, via certified or registered mail, postage prepaid and return receipt requested, (c) by electronic mail, utilizing notice of undelivered electronic mail features or (d) by telecopy with confirmation of receipt. The notice, request or other communication shall be deemed to be received (a) in case of delivery, on the date of its actual receipt by the party entitled thereto, (b) in case of mailing by certified or registered mail, five days following the date of such mailing, (c) in case of electronic mail, on the date of mailing, but only if a notice of undelivered electronic mail is not received or (d) in case of telecopy, on the date of confirmation of receipt.
3.6. Governing Law. The Option, this Award Agreement and all determinations made and actions taken pursuant thereto, to the extent otherwise not governed by the Code or the laws of the United States, shall be governed by the laws of the State of Delaware and construed in accordance therewith without giving effect to principles of conflicts of laws.
3.7. Counterparts. This Award Agreement may be executed in two counterparts each of which shall be deemed an original and both of which together shall constitute one and the same instrument.

UNITED STATES CELLULAR CORPORATION |
By: |  |
| Kenneth R. Meyers |
| President and Chief Executive Officer |

Accepted this day of
| , 20___.
Optionee