TELEPHONE & DATA SYSTEMS INC VOTING TRUST 1989
SC 13D, EX-99.1, 2000-08-02
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                                                                   EXHIBIT 99.1



                              STOCKHOLDER AGREEMENT

                  This Stockholder Agreement (this "Agreement") dated as of July
23,  2000  among  the  stockholder  listed  on  the  signature  page  hereto  ("
Stockholder"  )  and  Deutsche  Telekom,  an  Aktiengesellschaft  organized  and
existing under the laws of the Federal Republic of Germany ("DT").

                  WHEREAS,  simultaneously with the execution of this Agreement,
VoiceStream Wireless Corporation, a Delaware corporation ("VoiceStream"), and DT
are  entering  into an Agreement  and Plan of Merger (the  "Merger  Agreement"),
dated as of the date hereof, providing,  among other things, for the merger of a
subsidiary of DT with and into VoiceStream.

                  WHEREAS, DT has agreed to enter into the Merger Agreement only
if Stockholder enters into this Agreement with DT;

                  WHEREAS, in the Merger Agreement DT has agreed, subject to the
conditions set forth therein, to acquire all of the shares of VoiceStream Common
Stock (as defined below);

                  NOW  THEREFORE,  in  consideration  of the  foregoing  and the
mutual premises, representations, warranties, covenants and agreements contained
herein and in the Merger Agreement,  the parties hereto, intending to be legally
bound hereby, agree as follows:

         1. Certain Definitions.
            -------------------

         (a) For the purposes of this Agreement,  all capitalized terms used but
not otherwise defined herein,  shall have the respective  meanings given to such
terms in the Merger Agreement.

         (b) For the purposes of this Agreement,  the words "beneficially owned"
or "beneficial  ownership"  shall include,  with respect to any securities,  the
beneficial  ownership by Stockholder and by any direct or indirect Subsidiary of
Stockholder.

         (c) For purposes of this Agreement, the following terms should have the
following meanings:

         "DT  Derivative  Securities"  means any  security  convertible  into or
exchangeable  for DT  Securities or the value of which is derived from the value
of DT Securities.

         "DT  Securities"  means DT Ordinary  Shares and DT American  Depositary
Shares, each representing the right to receive one DT Ordinary Share.

         "Transfer"  means,  with respect to any security,  the sale,  transfer,
pledge,  hypothecation,  encumbrance,  assignment or constructive  sale or other
disposition of such security or the record or beneficial  ownership thereof, the
offer to make such a sale, transfer, constructive sale or other disposition, and
each  agreement,  arrangement  or  understanding  whether or not in writing,  to
effect any of the  foregoing.  The term  "constructive  sale" means a short sale
with  respect  to such  security,  entering  into  or  acquiring  an  offsetting
derivative contract with respect to such security, entering into or acquiring a
futures or forward  contract  to deliver  such  security  or  entering  into any
transaction  that has  substantially  the same  effect as any of the  foregoing;
provided,   however,  that  the  term  "constructive  sale"  shall  not  include
transactions  involving  the  purchase and sale of  securities  tracking a broad
based stock index excluding the DAX index other than a monetization  transaction
permitted by the Side Letter Agreement.

<PAGE>

         2.   Representations;   Warranties   and   Covenants  of   Stockholder.
              ------------------------------------------------------------------
Stockholder hereby represents and warrants to DT as follows:

         (a) Title.  As of the date  hereof,  Stockholder  is the sole record or
beneficial  owner of the number of shares of VoiceStream  Common Stock set forth
on Exhibit A attached  hereto  ("Existing  Shares" and,  together with record or
beneficial  ownership of any shares of VoiceStream  Common Stock or other voting
capital stock of VoiceStream  acquired  after the date hereof,  whether upon the
exercise of warrants or options,  conversion of VoiceStream  Preferred  Stock or
any  convertible  securities  or  otherwise,  "Shares"),  and/or  the  number of
warrants,  options or other rights to acquire or receive such VoiceStream Common
Stock or VoiceStream  Preferred Stock, as the case may be, set forth opposite on
Exhibit A attached  hereto  ("Existing  Rights"  and,  together  with  record or
beneficial  ownership  of any  warrants,  options or other  rights to acquire or
receive such shares of VoiceStream Common Stock or other voting capital stock of
VoiceStream acquired after the date hereof, "Rights"). Stockholder is the lawful
owner of the Existing Shares and Existing  Rights,  free and clear of all liens,
claims, charges,  security interests or other encumbrances,  except as disclosed
on Exhibit A. As of the date hereof,  the Existing Shares  constitute all of the
capital stock of  VoiceStream  owned of record or  beneficially  by  Stockholder
(excluding  the  Existing  Rights)  and  Stockholder  does not own of  record or
beneficially,  or have the right to acquire  (whether  currently,  upon lapse of
time,  following the satisfaction of any conditions,  upon the occurrence of any
event or any  combination of the  foregoing)  any shares of  VoiceStream  Common
Stock or VoiceStream Preferred Stock or any other securities convertible into or
exchangeable  or  exercisable  for shares of  VoiceStream  Common Stock,  except
pursuant to the Existing Rights.

         (b)  Right  to  Vote.   Stockholder   has,   with  respect  to  all  of
Stockholder's  Existing Shares,  and will have at the VoiceStream  Stockholders'
Meeting,  with  respect to all of  Stockholder's  Shares  acquired  prior to the
record date for the VoiceStream  Shareholders'  Meeting, sole voting power, sole
power of  disposition  or sole power to issue  instructions  with respect to the
matters set forth in Section 4 hereof and to fulfill its obligations  under such
Section  and shall not take any action or grant any person any proxy  (revocable
or  irrevocable)  or  power-of-attorney  with  respect  to any  Shares or Rights
inconsistent  with his or its  obligations  as  provided  by  Section  4 hereof.
Stockholder  hereby  revokes any and all proxies with  respect to  Stockholder's
Existing  Shares to the  extent  they are  inconsistent  with the  Stockholders'
obligations under this Agreement.

         (c)  Authority.  Stockholder  has full legal  power,  authority,  legal
capacity and right to execute and deliver, and to perform its obligations under,
this Agreement.  No other  proceedings or actions on the part of Stockholder are
necessary to authorize the execution,  delivery or performance of this Agreement
or the consummation of the transactions  contemplated hereby. This Agreement has
been duly and validly  executed and delivered by Stockholder  and  constitutes a
valid and binding agreement of Stockholder  enforceable  against  Stockholder in
accordance with its terms, subject to (i) bankruptcy, insolvency, moratorium and
other similar laws now or hereafter in effect relating to or affecting creditors
rights  generally and (ii) general  principles of equity  (regardless of whether
considered in a proceeding at law or in equity).

         (d) Conflicting Instruments. Neither the execution and delivery of this
Agreement nor the  performance by Stockholder of its agreements and  obligations
hereunder  will result in any breach or violation  of, or be in conflict with or
constitute a default  under,  any term of any agreement,  judgment,  injunction,
order,  decree,  federal law or regulation to which Stockholder is a party or by
which Stockholder (or any of its assets) is bound.

         (e) DT's Reliance.  Stockholder understands and acknowledges that DT is
entering  into the Merger  Agreement in reliance upon  Stockholder's  execution,
delivery and performance of this Agreement.

         3. Restriction on Transfer; Other Restrictions.
            -------------------------------------------
         Except as set forth in the Side  Letter  Agreement  between  TDS and DT
dated the date hereof (the "Side Letter Agreement"):

         (a) Stockholder  agrees not to Transfer or agree to Transfer any Shares
or Rights owned of record or beneficially  by  Stockholder,  except as otherwise
permitted  by this Section 3 or pursuant to the Merger  Agreement,  Transfers to
any Affiliate of the  Stockholder who agrees in writing to be bound by the terms
of this Agreement or Transfers which occur by operation of law if the transferee
remains, or agrees to remain, bound by the terms of this Agreement,  other than,
in each case, with DT's prior written consent.

                                       2

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         (b) From the date  hereof  until the later of  January  1, 2001 and the
date  of  the  VoiceStream  Stockholders'  Meeting,  Stockholder  agrees  not to
Transfer any Shares or Rights owned of record or  beneficially  by  Stockholder;
provided,  however,  that this  Section  3(b) shall  cease to be of any force or
effect immediately upon termination of the Merger Agreement.

         (c) From the later of January  1, 2001 and the date of the  VoiceStream
Stockholders'   Meeting,  until  the  earlier  of  the  Effective  Time  or  the
termination of the Merger  Agreement,  Stockholder may Transfer only up to 17.5%
of  Stockholder's  Total  Number  of  Shares;  provided,  however,  that  if the
Effective  Time  shall  not have  occurred  by July  31,  2001,  the  percentage
specified  in this  Section  3(c) shall on August 1, 2001 be  increased by 3.75%
and, if the  Effective  Time shall not have  occurred by August 31,  2001,  such
percentage shall on September 1, 2001 be increased by an additional 3.75% for an
aggregate amount from and after September 1, 2001 of 25%.

         (d) From the  Effective  Time  through  and  including  the three month
anniversary  of the Effective  Time,  Stockholder  agrees not to Transfer any DT
Securities or DT Derivative Securities.

         (e) From the day following the three month anniversary of the Effective
Time,  through and including the six month  anniversary  of the Effective  Time,
Stockholder may Transfer only up to 40% of Stockholder's Total Number of Shares,
inclusive of any Transfer of any DT Derivative Securities.

         (f) For the avoidance of doubt,  the portions of a Stockholder's  Total
Number of Shares  permitted  to be  Transferred  pursuant  to  Section  3(c) and
Section 3(e) are (i) separate and not cumulative  such that if Stockholder  does
not fully utilize the permission to Transfer up to 17.5% of Stockholder's  Total
Number of Shares pursuant to Section 3(c), Stockholder shall not be permitted to
Transfer  more than 40% of  Stockholder's  Total  Number of Shares  pursuant  to
Section 3(e) and (ii)  exclusive of any  Transfers  permitted by this  Agreement
which  occur  at any time  after  the date  hereof  and  prior to the end of the
periods specified in such Sections.

         (g) For purposes of Section 3(c),  the  Stockholder's  "Total Number of
Shares" is equal to the sum (such sum,  the  "Initial  Number of Shares") of (i)
the number of shares of Voicestream Common Stock owned of record or beneficially
by the  Stockholder  as of the  later  of  January  1,  2001 and the date of the
Voicestream  Stockholders'  Meeting,  including any shares of Voicestream Common
Stock obtainable by the Stockholder upon conversion of any shares of Voicestream
Preferred  Stock  owned by the  Stockholder  and (ii) the  number  of  shares of
Voicestream Common Stock owned of record or beneficially by the Stockholder as a
result of the exercise or conversion, as applicable, of any options, warrants or
convertible  securities  (other  than  Voicestream  Preferred  Stock) to acquire
shares of Voicestream Common Stock,  during the period from the later of January
1, 2001 and the date of the Voicestream Stockholders' Meeting, until the earlier
of the Effective Time and the termination of the Merger Agreement.  For purposes
of Section 3(e), Stockholder's Total Number of Shares is equal to the sum of (i)
the number of DT Securities  which the  Stockholder  would have been entitled to
receive as Merger  Consideration  in the Merger in respect of the Initial Number
of  Shares  (determined  as if all of the  Stockholders  who have  entered  into
Stockholder  Agreements  with DT in connection  with the Merger had made a Mixed
Election) and (ii) the number of DT Securities  owned of record or  beneficially
by the Stockholder as a result of the exercise or conversion,  as applicable, of
any options,  warrants or convertible securities to acquire DT Securities (other
than any such  options,  warrants  or  convertible  securities  included  in the
calculation  of the  Initial  Number of  Shares),  during the  relevant  periods
specified in such subsection (e).

         (h) The foregoing  limitations set forth in Sections 3(c) and (e) shall
not apply to any  Transfers  pursuant  to a tender  offer,  self  tender  offer,
exchange  offer  or  other  transaction  offered  generally  to  holders  of  DT
Securities and approved or not opposed by DT's Supervisory Board, and securities
subject to a Transfer  made pursuant to this Section 3(h) and Section 3(l) shall
be  deemed  continued  to be  owned  by  the  Stockholder  for  purposes  of the
calculations made under Sections 3(c) and (e).

         (i)  Stockholder  agrees,  prior to the Effective  Time, not to effect,
directly or indirectly,  or through any arrangement  with a third party pursuant
to which such third party may effect, directly or indirectly, any short sales of
any VoiceStream  Common Stock, DT Securities or DT Derivative  Securities except
in  accordance  with the  limitations  of Section 3(c) or in  connection  with a
monetization pursuant to the Side Letter Agreement.

         (j) Stockholder  hereby  irrevocably  waives any rights of appraisal or
rights to dissent from the Merger that Stockholder may have.

                                       3
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         (k) If DT's existing majority  shareholders elect to effect a secondary
offering  of their DT  Securities  during the  period  from the  Effective  Time
through the first  anniversary  of the Effective Time pursuant to a registration
statement filed pursuant to the Securities Act, DT shall use its reasonable best
efforts  to obtain the  agreement  of such  existing  majority  shareholders  to
include in such offering the maximum amount of DT Securities  acquired  pursuant
to the Merger by the  Stockholder  and all other  stockholders  who have entered
into  Stockholders  Agreements  with  DT in  connection  with  the  Merger  (the
Stockholder,  and such other  stockholders,  collectively,  the  "Stockholders")
which such  existing  majority  shareholders  determine  may be included in such
secondary  offering without adversely  affecting such secondary  offering of the
securities being sold by such existing majority shareholders,  on such terms and
conditions as such existing majority shareholders deem appropriate.

         (l) DT has not  entered  into,  and from and after the date hereof will
not enter  into,  an  agreement  of the kind  described  in  Section  3(k) above
pursuant to which DT or its current majority  shareholders would be requested to
grant  registration  rights to any third parties in connection  with a secondary
offering of DT Securities by such existing  majority  shareholders,  unless such
third  parties  will not have the  right  to have any  shares  included  in such
registered  offering  unless all of the shares  requested to be included in such
registered offering by any Stockholders are so included.

         (m) If DT acquires any company after the date hereof for  consideration
valued at more than $15  billion  and, at the time the  agreement  in respect of
such  acquisition  by DT  is  entered  into,  (i)  such  company  has  a  single
stockholder  who  owns  10% or more or a group  of  stockholders  owning  in the
aggregate 20% or more of the outstanding  voting  securities of such company and
(ii) in each case such  stockholders  are (or at any time  within  the prior two
years were) directors of or have the right to designate one or more directors to
the Board of  Directors  of such company or are officers of such company or such
company has any 5% or greater stockholders (other than institutional  investors)
as to whom DT could  reasonably  enter  into an  agreement  in  support  of such
acquisition  and DT  obtains  or could  reasonably  be  expected  to obtain  the
agreement of any such  stockholder or group of stockholders of such company,  as
the case may be, to vote for and support the  acquisition or to limit its powers
of disposition in connection  with the  acquisition,  the transfer  restrictions
specified  in  Sections  3(a)  through  (e) shall be revised to reflect the more
favorable  treatment  of the  stockholders  of such  company  or the  absence of
restrictions,  as the case may be, including the grant or sufferance to exist of
registration rights.

         4.   Agreement to Vote.
              ------------------
Stockholder hereby irrevocably and unconditionally agrees to vote or to cause to
be voted or provide a consent with respect to, all Shares that it owns of record
or beneficially as of the record date for the VoiceStream  Stockholders' Meeting
at the  VoiceStream  Stockholders'  Meeting  and at any other  annual or special
meeting of  stockholders  of VoiceStream or action by written consent where such
matters  arise (a) in favor of the Merger and the Merger  Agreement and approval
of the terms  thereof  and (b)  against,  and  Stockholder  will not consent to,
approval of any  Alternative  Transaction  or the  liquidation  or winding up of
VoiceStream.  The  obligations of each  Stockholder  specified in this Section 4
shall  apply  whether  or not the  Board of  Directors  of  VoiceStream  makes a
Subsequent Determination.

         5. Delivery of Proxy.
            -----------------
In  furtherance  of the  agreements  contained in Section 4 hereof,  Stockholder
hereby  agrees (a) to complete and send the proxy card  received by  Stockholder
with the  VoiceStream  Proxy  Statement,  so that such proxy card is received by
VoiceStream,  as prescribed by the VoiceStream  Proxy Statement,  not later than
the  fifth  Business  Day  preceding  the  day of the  VoiceStream  Stockholders
Meeting,  (b) to vote, by completing such proxy card but not otherwise,  all the
Shares he or it owns of record or  beneficially  as of the  record  date for the
VoiceStream  Stockholder'  Meeting  (i) in favor of the  Merger  and the  Merger
Agreement and (ii) if the  opportunity  to do so is presented to  Stockholder on
the proxy card,  against any  Alternative  Transaction and (c) not to revoke any
such proxy.

         6. No Solicitation.
            ---------------
From and after the date hereof,  the Stockholder  shall not, nor shall it permit
any of its  Subsidiaries  to,  nor shall it  authorize  or  instruct  any of its
officers,  directors, members or employees to, and shall use its reasonable best
efforts to cause any investment banker, financial advisor, attorney, accountants
or  other  representatives  retained  by it or any of its  Subsidiaries  not to,
directly or  indirectly  through  another  person,  on its behalf,  (i) solicit,
initiate or knowingly encourage (including by way of furnishing information), or
knowingly  take  any  other  action  designed  to  facilitate,  any  Alternative
Transaction,  or (ii) participate in any substantive discussions or negotiations
regarding any Alternative Transaction, provided that nothing herein shall affect
the ability of Stockholder in its capacity as an officer, director, employee of,
or advisor or  investment  banker to,  VoiceStream  to take any action  which is
permissible under the Merger Agreement.

                                    4
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         7.  Termination of VoiceStream  Voting  Agreement and other  Agreements
with  Stockholders.
--------------------------------------------------------------------------------
The VoiceStream Voting Agreement,  the Parent Stockholder  Agreement dated as of
September 17, 1999 by and between Stockholder and certain stockholders of Aerial
Communications  Inc. and VoiceStream,  the  Stockholders  Agreement by and among
WWC,  Hutchinson  Telecommunications  PCS (USA)  Limited  and  VoiceStream,  the
Investor  Agreement,  dated  as  of  June  23,  1999  by  and  among  Hutchinson
Telecommunications PCS (USA) Limited and VoiceStream, the Stockholders Agreement
dated  September  17,  1999  by  and  among  Stockholder  and  VoiceStream,  the
Registration Rights Agreement by and among VoiceStream and Stockholder dated May
4, 2000, the Investor Agreement by and among Stockholder and VoiceStream,  dated
as of  May 4,  2000,  the  Investor  Agreement  by and  among  Sonera  Ltd.  and
VoiceStream  dated as of September 17, 1999, the  Registration  Rights Agreement
between  VoiceStream  and  Sonera  Ltd.  dated as of  September  17,  1999,  the
Registration Rights Agreement by and among VoiceStream and certain  stockholders
of  VoiceStream,  dated May 3, 1999,  and the Amended and Restated  Registration
Rights Agreement by and among Omnipoint  Corporation and the other parties named
therein,  dated June 29, 1995, shall, in consideration of the undertakings by DT
under  this  Agreement  and the Merger  Agreement,  be  terminated  and be of no
further force or effect effective at the Effective Time.  Except as set forth in
the Side Letter Agreement,  Stockholder agrees that (a) until the earlier of (x)
the  later of  January  1,  2001 and the date of the  VoiceStream  Stockholders'
Meeting, and (y) the termination of the Merger Agreement,  Stockholder shall not
exercise any registration  rights and (b) from the date hereof until the earlier
of the termination of the Merger  Agreement or the Effective  Time,  Stockholder
shall not be entitled to the benefit of any preemption  rights that  Stockholder
may have under the agreements listed in the immediately  preceding sentence as a
result of the investment  contemplated by the DT Financing  Agreements.  None of
the  agreements so listed shall be amended or modified in a manner  inconsistent
with the terms of this Agreement without DT's prior written approval.

         8. Additional Shares and Additional  Rights.
            ----------------------------------------
If, after the date hereof,  Stockholder  acquires record or beneficial ownership
of any  additional  shares of capital  stock of  VoiceStream  (any such  shares,
"Additional  Shares"),  including,  without  limitation,  upon  exercise  of any
option,  warrant or right to acquire  shares of  capital  stock of  VoiceStream,
through the conversion of the  VoiceStream  Preferred Stock or through any stock
dividend or stock split,  or record or  beneficial  ownership of any  additional
options,  warrants or rights to acquire  shares of capital stock of  VoiceStream
(any such options,  warrants, or rights, "Additional Rights"), the provisions of
this  Agreement  applicable  to the Shares and the Rights shall be applicable to
such  Additional  Shares  and  Additional  Rights  from  and  after  the date of
acquisition thereof. The provisions of the immediately  preceding sentence shall
be effective  with respect to Additional  Shares and  Additional  Rights without
action by any Person  immediately  upon the  acquisition  by any  Stockholder of
record or beneficial ownership of such Additional Shares or Additional Rights.

         9. Miscellaneous.
            -------------
         (a) Entire  Agreement.  This  Agreement  together  with the Side Letter
Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof.

         (b) Costs and Expenses.  All costs and expenses  incurred in connection
with this Agreement and the  transactions  contemplated  hereby shall be paid by
the party incurring such expenses.

         (c) Invalid  Provisions.  If any provision of this  Agreement  shall be
invalid  or  unenforceable   under  applicable  law,  such  provision  shall  be
ineffective to the extent of such invalidity or  unenforceability  only, without
it affecting the remaining provisions of this Agreement.

         (d)  Execution  in  Counterparts.  This  Agreement  may be  executed in
counterparts  transmitted  and delivered by facsimile  each of which shall be an
original with the same effect as if the signatures  hereto and thereto were upon
the same instrument.

         (e) Specific Performance.  Stockholder agrees with DT as to itself that
if for  any  reason  Stockholder  fails  to  perform  any of its  agreements  or
obligations  under  this  Agreement,  irreparable  harm or injury to DT would be
caused as to which money damages would not be an adequate  remedy.  Accordingly,
Stockholder   agrees  that,  in  seeking  to  enforce  this  Agreement   against
Stockholder,  DT shall be entitled, in addition to any other remedy available at
law,  equity or otherwise,  to specific  performance  and  injunctive  and other
equitable relief.  The provisions of this Section 10(e) are without prejudice to
any other  rights or  remedies,  whether at law or in  equity,  that DT may have
against  Stockholder  for  any  failure  to  perform  any of its  agreements  or
obligations under this Agreement.

                                       5
<PAGE>

         (f) Amendments; Termination.

         (i) This Agreement,  including this Section 10(f), may not be modified,
amended,  altered or  supplemented,  except upon the execution and delivery of a
written agreement executed by the parties hereto.

         (ii) The provisions of this Agreement  (other than Sections 3, 4 and 5)
shall  terminate  upon the  earliest  to occur  of (A) the  consummation  of the
Merger,  (B) the date that is two (2) years after the date  hereof,  and (C) the
termination  of the  Merger  Agreement.  The  provisions  of  Section  3 of this
Agreement  shall  terminate  when the  applicable  time period set forth therein
lapses.  The  provisions of Sections 4 and 5 of this Agreement  shall  terminate
upon the earlier of the consummation of the Merger and termination of the Merger
Agreement.

         (g) Governing Law; Submission and Jurisdiction.

         (i) This  Agreement  shall be governed by and  construed in  accordance
with the laws of the State of Delaware  without  giving effect to the principles
of conflicts of laws thereof.

         (ii)  Each of the  parties  hereto  irrevocably  agrees  that any legal
action or  proceeding  with  respect to this  Agreement or for  recognition  and
enforcement  of any judgment in respect hereof brought by the other party hereto
or its successors or assigns shall be brought and determined  only in the United
States  District  Court for the State of Delaware  or, in the event (but only in
the event) that such court does not have subject matter  jurisdiction  over such
action  or  proceeding,  in the  courts of the  State of  Delaware.  Each of the
parties  hereto  hereby  irrevocable  submits  with regard to any such action or
proceeding   for  itself  and  in  respect  to  its   property,   generally  and
unconditionally,  to the personal  jurisdiction of the aforesaid courts. Each of
the parties hereto hereby  irrevocably  waives, and agrees not to assert, by way
of motion, as a defense,  counterclaim or otherwise, in any action or proceeding
with respect to this Agreement,  (A) any claim that it is not personally subject
to the  jurisdiction  of the  above-named  courts for any reason  other than the
failure to serve in  accordance  with this  Section  10(g)(ii) or that it or its
property  is exempt or immune  from  jurisdiction  of any such court or from any
legal  process  commenced  in such courts  (whether  through  service of notice,
attachment  prior to  judgment,  attachment  in aid of  execution  of  judgment,
execution of judgment or otherwise),  and (B) to the fullest extent permitted by
the  applicable  law,  that (x) the suit,  action or proceeding in such court is
brought  in an  inconvenient  forum,  (y) the  venue  of such  suit,  action  or
proceeding is improper and (z) this Agreement, or the subject matter hereof, may
not be enforced in or by such courts. Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section  10(i) shall
be deemed effective service of process on such party.

         (h) Successors and Assigns.  The provisions of this Agreement  shall be
binding upon and inure to the benefit of the parties hereto and their respective
legal successors (including, in the case of Stockholder or any other individual,
any  executors,  administrators,  estates,  legal  representatives  and heirs of
Stockholder or such individual) and permitted assigns;  provided that, except as
otherwise provided in this Agreement, no party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement.

         (i)  Notices.  All  notices  and  other  communications  given  or made
pursuant  hereto shall be in writing and shall be deemed to have been duly given
or made as of the date of receipt and shall be delivered  personally  or sent by
overnight courier or sent by telecopy, to the Parties at the following addresses
or telecopy  numbers (or at such other address or telecopy number for a party as
shall be specified by like notice):

         (i) if to Stockholder,  at Stockholder's address appearing below at any
other address that Stockholder may have provided in writing to DT,

                                   Telephone and Data Systems, Inc.
                                   30 North LaSalle, Suite 4000
                                   Chicago, Illinois 60602
                                   Attention:  LeRoy T. Carlson, Jr., President
                                   Facsimile:  312-630-9299


                                       6
 <PAGE>
                           with a copy to:

                                   Sidley & Austin
                                   Bank One Plaza
                                   10 South Dearborn
                                   Chicago, Illinois  60603
                                   Attention:  Michael G. Hron
                                   Facsimile:  312-853-7036

         (ii) if to DT:

                                   Deutsche Telekom AG
                                   140 Friedrich-Ebert-Allee
                                   53113 Bonn
                                   Germany

                                   Attention: Kevin Copp
                                   Facsimile: +49-228-181-44177

                           with a copy to:

                                   Cleary, Gottlieb, Steen & Hamilton
                                   One Liberty Plaza
                                   New York, New York  10006

                                   Attention:  Robert P. Davis
                                   Facsimile:  (212) 225-3999

         (j) Waiver of Immunity. DT agrees that, to the extent that it or any of
its  property is or becomes  entitled at any time to any immunity on the grounds
of   sovereignty   or   otherwise   based  upon  its  status  as  an  agency  or
instrumentality of government from any legal action,  suit or proceeding or from
setoff or counterclaim  relating to this Agreement from the  jurisdiction of any
competent  court,  from service of process,  from attachment  prior to judgment,
from attachment in aid of execution of a judgment,  from execution pursuant to a
judgment or arbitral award, or from any other legal process in any jurisdiction,
it, for itself  and its  property  expressly,  irrevocably  and  unconditionally
waives, and agrees not to plead or claim, any such immunity with respect to such
matters  arising with respect to this  Agreement  or the subject  matter  hereof
(including any  obligation for the payment of money).  DT agrees that the waiver
in this  provision  is  irrevocable  and is not  subject  to  withdrawal  in any
jurisdiction or under any statute,  including the Foreign  Sovereign  Immunities
Act, 28 U.S.C.  ss. 1602 et seq. The foregoing waiver shall constitute a present
waiver of immunity at any time any action is  initiated  against DT with respect
to this Agreement.

                                       7
<PAGE>




                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Stockholders Agreement as of this 23rd day of July, 2000.

                                   DEUTSCHE TELEKOM AG


                                   By: /s/ Kevin Copp
                                   -------------------
                                    Name:  Kevin Copp
                                    Title:  Head of International Legal Affairs



                                   TELEPHONE AND DATA SYSTEMS, INC.


                                   By: /s/ Sandra L. Helton
                                   ------------------------
                                       Name: Sandra L. Helton
                                       Title: Executive Vice President - Finance
                                       and Chief Financial Officer


<PAGE>


                                                                       EXHIBIT A

Stockholder Name and Address  Number of Existing Shares   Number and Description
                                                          of Existing Rights
----------------------------  -------------------------   ----------------------

Telephone and Data Systems, Inc.       35,570,493
30 North LaSalle, Suite 4000
Chicago, IL 60602
Attention: LeRoy T. Carlson, Jr.,
President
Facsimile: 312-630-9299



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