Document:

Exhibit (10)(c)(9)(a)

 

AGREEMENT

 

This Agreement, dated
January 22, 2004, is made by and between ALLTEL Corporation, a Delaware
corporation (as hereinafter defined, the “Corporation”), and Scott H.
Settelmyer (as hereinafter defined, the “Executive”).

 

WHEREAS, the
Corporation recognizes that the possibility of a Change in Control (as
hereinafter defined) of the Corporation exists and that such possibility, and
the uncertainty it may cause, may result in the departure or distraction of key
management employees of the Corporation or of a Subsidiary to the detriment of
the Corporation and its stockholders; and

 

WHEREAS, the
Executive is a key management employee of the Corporation or of a Subsidiary;
and

 

WHEREAS, the
Corporation desires to encourage the continued employment of the Executive by
the Corporation or a Subsidiary and the continued dedication of the Executive
to the Executive’s assigned duties without distraction as a result of the
circumstances arising from the possibility of a Change in Control;

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants herein contained, the
Corporation and the Executive hereby agree as follows:

 

1.  Defined Terms.  For purposes of this Agreement, the
following terms shall have the meanings indicated below:

 

(A)                              “ALLTEL
Group” shall mean, collectively, the Corporation and each Subsidiary of the
Corporation from time to time, and a “member” of the ALLTEL Group shall mean
the Corporation or any of such entities.

 

(B)                                “Board”
shall mean the Board of Directors of the Corporation, as constituted from time
to time.

 

(C)                                “Cause”
for termination by the Corporation of the Executive’s employment shall mean (i)
the willful failure by the Executive substantially to perform the Executive’s
duties with the Corporation or a Subsidiary, other than any failure resulting
from the Executive’s incapacity due to physical or mental illness or any actual
or anticipated failure after the issuance of a Notice of Termination for Good
Reason by the Executive in accordance with paragraph (A) of Section 6,
that continues for at least 30 days after the Board delivers to the Executive a
written demand for performance that identifies specifically and in detail the
manner in which the Board believes that the Executive willfully has failed
substantially to perform the Executive’s duties, or (ii) the willful engaging
by the Executive in misconduct that is demonstrably and materially injurious to
the Corporation or any Subsidiary, monetarily or otherwise, or (iii) a breach
by the

 

 

Executive of any of the
Executive’s covenants set forth in Section 7.  For purposes of clause (i) and clause (ii) of this definition, no
act, or failure to act, on the Executive’s part shall be deemed “willful” unless
done, or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive’s act, or failure to act, was in the best
interest of the Corporation and its Subsidiaries.

 

(D)                               A
“Change in Control” shall mean, if subsequent to the date of this Agreement:

 

(i)                                     Any
“person,” as defined in Section 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), other than the Corporation, any
of its subsidiaries, or any employee benefit plan maintained by the Corporation
or any of its subsidiaries, becomes the “beneficial owner” (as defined in Rule
l3d-3 under the Exchange Act) of (A) l5% or more, but no greater than 50%, of
the outstanding voting capital stock of the Corporation, unless prior thereto,
the Continuing Directors approve the transaction that results in the person
becoming the beneficial owner of 15% or more, but no greater than 50%, of the
outstanding voting capital stock of the Corporation or (B) more than 50% of the
outstanding voting capital stock of the Corporation, regardless whether the
transaction or event by which the foregoing 50% level is exceeded is approved
by the Continuing Directors;

 

(ii)                                  At
any time Continuing Directors no longer constitute a majority of the directors
of the Corporation; or

 

(iii)                               The
consummation of (A) a merger or consolidation of the Corporation, statutory
share exchange, or other similar transaction with another corporation,
partnership, or other entity or enterprise in which either the Corporation is
not the surviving or continuing corporation or shares of common stock of the
Corporation are to be converted into or exchanged for cash, securities other
than common stock of the Corporation, or other property, (B) a sale or
disposition of all or substantially all of the assets of the Corporation, or (C)
the dissolution of the Corporation.

 

(E)                                 “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

(F)                                 “Continuing
Directors” means directors who were directors of the Corporation at the
beginning of the 12-month period ending on the date the determination

is made or whose
election, or nomination for election by the Corporation’s stockholders, was
approved by at least a majority of the directors who are in office at the time
of the election or nomination and who either (i) were directors at the
beginning of the period, or (ii) were elected, or nominated for election, by at
least a majority of the directors who were in office at the time of the
election or nomination and were directors at the beginning of the period.

 

 

(G)                                “Corporation”
shall mean ALLTEL Corporation and any successor to its business or assets, by
operation of law or otherwise.

 

(H)                               “Date
of Termination” shall have the meaning stated in paragraph (B) of
Section 6 hereof.

 

(I)                                    “Disability”
shall be deemed the reason for the termination by the Corporation of the
Executive’s employment, if, as a result of the Executive’s incapacity due to
physical or mental illness, the Executive shall have been absent from the
full-time performance of the Executive’s duties with the Corporation or a
Subsidiary for a period of six consecutive months, the Corporation shall have
given the Executive a Notice of Termination for Disability, and, within 20
business days after the Notice of Termination is given, the Executive shall not
have returned to the full-time performance of the Executive’s duties.

 

(J)                                   “Executive”
shall mean the individual named in the first paragraph of this Agreement.

 

(K)                               “Good
Reason” for termination by the Executive of the Executive’s employment shall
mean the occurrence, without the Executive’s express written consent, of any
one of the following:

 

(i)                                     a
substantial adverse alteration in the nature or status of the Executive’s
responsibilities from those in effect immediately prior to the Change in
Control;

 

(ii)                                  a
reduction by the Corporation in the Executive’s annual base salary to any
amount less than the Executive’s annual base salary as in effect immediately
prior to the Change in Control;

 

(iii)                               the
Corporation’s requiring the Executive to be based more than 35 miles from the
location of the Executive’s principal office immediately prior to the Change in
Control, except for required business travel to an extent substantially
consistent with the Executive’s business travel obligations immediately prior
to the Change in Control;

 

(iv)                              if
the Executive was based at the principal executive offices of the Corporation
or of a Subsidiary, as the case may be, immediately prior to the Change in
Control, the Corporation’s requiring the Executive to be based anywhere other
than the principal executive offices of the Corporation or Subsidiary, as the
case may be, except for required business travel to an extent substantially
consistent with the Executive’s business travel obligations immediately prior
to the Change in Control;

 

 

(v)                                 the
failure by the Corporation to pay to the Executive any portion of the
Executive’s current compensation, or to pay to the Executive any deferred
compensation under any deferred compensation program of the Corporation, within
five days after the date the compensation is due or to pay or reimburse the
Executive for any expenses incurred by the Executive for required business
travel;

 

(vi)                              the
failure by the Corporation to continue in effect any compensation plan in which
the Executive participates immediately prior to the Change in Control that is
material to the Executive’s total compensation, including but not limited to,
stock option, restricted stock, stock appreciation right, incentive
compensation, bonus, and other plans, unless an equitable alternative
arrangement embodied in an ongoing substitute or alternative plan has been
made, or the failure by the Corporation to continue the Executive’s
participation therein (or in a substitute or alternative plan) on a basis not
materially less favorable, both in terms of the amount of compensation provided
and the level of the Executive’s participation relative to other participants,
than existed immediately prior to the Change in Control;

 

(vii)                           the
failure by the Corporation to continue to provide the Executive with benefits
substantially similar to those enjoyed by the Executive under any of the
Corporation’s pension, profit-sharing, life insurance, medical, health and
accident, disability, or other employee benefit plans in which the Executive was
participating immediately prior to the Change in Control; the failure by the
Corporation to continue to provide the Executive any material fringe benefit or
perquisite enjoyed by the Executive immediately prior to the Change in Control;
or the failure by the Corporation to provide the Executive with the number of
paid vacation days to which the Executive is entitled in accordance with the
Corporation’s normal vacation policy in effect immediately prior to the Change
in Control; or

 

(viii)                        any
purported termination by the Corporation of the Executive’s employment that is
not effected in accordance with a Notice of Termination satisfying the
requirements of paragraph (A) of Section 6 hereof.

 

(L)                                 “Notice
of Termination” shall have the meaning stated in paragraph (A) of
Section 6 hereof.

 

(M)                            “Payment
Trigger” shall mean the occurrence of a Change in Control during the term of
this Agreement coincident with or followed at any time before the end of the
12th month immediately following the month in which the Change in Control
occurred, by the termination of the Executive’s employment with the Corporation
or a Subsidiary for any reason other than (A) by the Executive without Good
Reason, (B) by

 

 

the Corporation as a
result of the Disability of the Executive or with Cause, or (C) as a result of
the death of the Executive.

 

(N)  “Person” shall have the meaning given in
Section 3(a)(9) of the Securities Exchange Act of 1934, as amended from
time to time, as modified and used in Sections 13(d) and 14(d) thereof; except
that, a Person shall not include (i) the Corporation or any Subsidiary, (ii) a
trustee or other fiduciary holding securities under an employee benefit plan of
the Corporation or any Subsidiary, or (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities.

 

(O)                               “Subsidiary”
shall mean any corporation or other entity or enterprise, whether incorporated
or unincorporated, of which at least a majority of the securities or other
interests having by their terms ordinary voting power to elect a majority of
the board of directors or others serving similar functions with respect to such
corporation or other entity or enterprise is owned by the Corporation or other
entity or enterprise of which the Corporation directly or indirectly owns
securities or other interests having all the voting power.

 

2.  Term of Agreement.  This Agreement shall become effective on the
date hereof and, subject to the second sentence of this Section 2, shall
continue in effect until the earliest of (i) a Date of Termination in
accordance with Section 6 or the death of the Executive shall have
occurred prior to a Change in Control, (ii) the reassignment of the Executive
prior to a Change in Control to any position with the Corporation whose job
grade or classification is less than 90 (or its equivalent in the event the
Corporation’s job classification system is changed after the date of this
Agreement), (iii) if a Payment Trigger shall have occurred during the term of
this Agreement, the performance by the Corporation of all its obligations, and
the satisfaction by the Corporation of all its obligations and liabilities,
under this Agreement, (iv) any date the Corporation may, in its sole and
absolute discretion, designate which is on or after the third year anniversary
of the date on which notice in writing is given by ALLTEL to the Executive in
accordance with Section 11 that this Agreement will so terminate
(hereinafter,  the “Nonrenewal Date”),
if, as of the Nonrenewal Date, a Change in Control shall not have occurred and
be continuing, or (v) in the event, as of the Nonrenewal Date, a Change in
Control shall have occurred and be continuing, either the expiration of such
period thereafter within which a Payment Trigger does not or can not occur or
the ensuing occurrence of a Payment Trigger and the performance by the
Corporation of all of its obligations and liabilities under this
Agreement.  Any Change in Control during
the term of this Agreement that for any reason ceases to constitute a Change in
Control or is not followed by a Payment Trigger shall not effect a termination
or lapse of this Agreement.

 

3.  General Provisions.

 

(A)                              The
Corporation hereby represents and warrants to the Executive as follows:  The execution and delivery of this Agreement
and the performance by the Corporation of the actions contemplated hereby have
been duly authorized by all

 

 

necessary corporate
action on the part of the Corporation. 
This Agreement is a legal, valid and legally binding obligation of the
Corporation enforceable in accordance with its terms.  Neither the execution or delivery of this Agreement nor the
consummation by the Corporation of the actions contemplated hereby (i) will
violate any provision of the certificate of incorporation or bylaws (or other charter
documents) of the Corporation, (ii) will violate or be in conflict with any
applicable law or any judgment, decree, injunction or order of any court or
governmental agency or authority, or (iii) will violate or conflict with or
constitute a default (or an event of which, with notice or lapse of time or
both, would constitute a default) under or will result in the termination of,
accelerate the performance required by, or result in the creation of any lien,
security interest, charge or encumbrance upon any of the assets or properties
of the Corporation under, any term or provision of the certificate of
incorporation or bylaws (or other charter documents) of the Corporation or of
any contract, commitment, understanding, arrangement, agreement or restriction
of any kind or character to which the Corporation is a party or by which the
Corporation or any of its properties or assets may be bound or affected.  The Corporation shall not at any time assert
that any provision of this Agreement is invalid or unenforceable in any respect
or to any extent, irrespective of the outcome of any action, suit, or
proceeding.

 

(B)                                No
amount or benefit shall be payable under Section 4 or Section 5
unless there shall have occurred a Payment Trigger during the term of this Agreement.  In no event shall payments in accordance
with this Agreement be made in respect of more than one Payment Trigger.  Any transfer of the Executive’s employment
from the Corporation to a Subsidiary, from a Subsidiary to the Corporation, or
from one Subsidiary to another Subsidiary shall not constitute a termination of
the Executive’s employment for purposes of this Agreement and shall not limit,
reduce or terminate any of the Executive’s rights or benefits under this
Agreement.

 

(C)                                This
Agreement shall not be construed as creating an express or implied contract of
employment, and, except to the extent (if any) otherwise agreed in writing
between the Executive and the Corporation, the Executive shall not have any
right to be retained in the employ of the Corporation or of a Subsidiary and
the Corporation and any Subsidiary may in its sole and absolute discretion at
any time terminate the Executive’s employment for any reason (but the
Corporation shall be obligated, subject to the provisions of this Agreement, to
make the payments described in Section 4 and Section 5 if a Payment
Trigger occurred during the term of this Agreement, including, without
limitation, a Payment Trigger that occurs as a result of any such termination
of the Executive’s employment).  
Notwithstanding the immediately preceding sentence or any other
provision of this Agreement, no purported termination of the Executive’s
employment that is not effected in accordance with a Notice of Termination
satisfying paragraph (A) of Section 6 shall be effective for purposes of
this Agreement.  The Executive’s right,
following the occurrence of a Change in Control, to terminate the Executive’s
employment under this Agreement for Good Reason shall not be affected by the
Executive’s Disability or incapacity. 
The Executive’s continued employment shall not

 

 

constitute consent to, or
a waiver of rights with respect to, any act or failure to act constituting Good
Reason under this Agreement.

 

4.  Payments Due Upon a Payment Trigger.

 

(A)                              The
Corporation shall pay to the Executive the payments described in this
Section 4 upon the occurrence of a Payment Trigger during the term of this
Agreement.

 

(B)                                Upon
the occurrence of a Payment Trigger during the term of this Agreement, the
Corporation shall pay to the Executive a lump sum payment, in cash, equal to
the product of:

 

(i)                                     two
multiplied by

 

(ii)                                  the
sum of —

 

(a)             the higher of the
Executive’s annual base salary in effect immediately prior to the occurrence of
the Change in Control or the Executive’s annual base salary in effect
immediately prior to the Payment Trigger, plus

 

(b)            the higher of the
aggregate maximum amounts payable to the Executive pursuant to all incentive
compensation plans for the fiscal year or other measuring period commencing coincident
with or most recently prior to the date on which the Change in Control occurs
or the aggregate maximum amounts payable to the Executive pursuant to all
incentive compensation plans for the fiscal year or other measuring period
commencing coincident with or most recently prior to the date on which the
Payment Trigger occurs, in each case, assuming that the Executive were
continuously employed by the Corporation or a Subsidiary on the terms and
conditions, including, without limitation, the terms of the incentive plans, in
effect immediately prior to the Change in Control or Payment Trigger, whichever
applies, until the last day of that fiscal year or other measuring period.

 

The amount determined
under the foregoing provisions of this paragraph (B) shall be reduced by any
cash severance benefit otherwise paid to the Executive under any applicable
severance plan or other severance arrangement. 
For purposes of this paragraph (B), amounts payable to the Executive
pursuant to an incentive compensation plan for the fiscal year or other
measuring period commencing coincident with or most recently prior to the date
on which the Change of Control or Payment Trigger, as applicable, occurs (the
“applicable year/period”) shall not include amounts attributable to a fiscal
year or other measuring period that commenced prior to the applicable
year/period and that become payable during the applicable year/period.  For purposes of this paragraph (B),
incentive compensation plans shall include, without limitation, the

 

 

ALLTEL Corporation
Performance Incentive Compensation Plan as in effect from time to time, the
ALLTEL Corporation Long-Term Performance Incentive Compensation Plan as in
effect from time to time, and any incentive bonus plan or arrangement that provides
for payment of cash compensation, and shall exclude, without limitation, the
ALLTEL Corporation Executive Deferred Compensation Plan as in effect from time
to time, any plan qualified or intended to be qualified under
Section 401(a) of the Code and any plan supplementary thereto, executive
fringe benefits, and any plan or arrangement under which stock, stock options,
stock appreciation rights, restricted stock or similar options, stock, or
rights are issued.

 

(C)                                Notwithstanding
any provision of any incentive compensation plan, including, without
limitation, any provision of any incentive plan requiring continued employment
after the completed fiscal year or other measuring period, the Corporation
shall pay to the Executive a lump sum amount, in cash, equal to the amount of
any incentive compensation that has been allocated or awarded to the Executive
for a completed fiscal year or other measuring period preceding the occurrence
of a Payment Trigger under any incentive compensation plan but has not yet been
paid to the Executive.

 

(D)                               The
payments provided for in paragraphs (B) and (C) of this Section 4 shall be
made not later than the fifth day following the occurrence of a Payment
Trigger, unless the amounts of such payments cannot be finally determined on or
before that day, in which case, the Corporation shall pay to the Executive on
that day an estimate, as reasonably determined in good faith by the
Corporation, of the minimum amount of the payments to which the Executive is
clearly entitled and shall pay the remainder of the payments (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code) as
soon as the amount thereof can be determined but in no event later than the
thirtieth day after the occurrence of a Payment Trigger.  In the event the amount of the estimated
payments exceeds the amount subsequently determined to have been due, the
excess shall constitute a loan by the Corporation to the Executive, payable on
the fifth business day after demand by the Corporation (together with interest
at the rate provided in Section l274(b)(2)(B) of the Code).  At the time that payments are made under
this Section 4, the Corporation shall provide the Executive with a written
statement setting forth the manner in which the payments were calculated and
the basis for the calculations including, without limitation, any opinions or
other advice the Corporation has received from outside counsel, auditors or
consultants (and any opinions or advice that are in writing shall be attached
to the statement).

 

5.  Gross-Up Payments.

 

(A)                              This
Section 5 shall apply if a Payment Trigger shall have occurred during the
term of this Agreement.

 

 

(B)                                In
the event it shall be determined that any payment or distribution by the
Corporation or other amount with respect to the Corporation to or for the
benefit of the Executive, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this
Section 5 (a “Payment”), is (or will be) subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are (or will be)
incurred by the Executive with respect to the excise tax imposed by
Section 4999 of the Code with respect to the Corporation (the excise tax,
together with any interest and penalties, are hereinafter collectively referred
to as the “Excise Tax”), the Executive shall be entitled to receive an
additional cash payment (a “Gross-Up Payment”) from the Corporation in an
amount equal to the sum of the Excise Tax and an amount sufficient to pay the
cumulative Excise Tax and all cumulative income taxes (including any interest
and penalties imposed with respect to such taxes) relating to the Gross-Up
Payment so that the net amount retained by the Executive is equal to all
payments received pursuant to the terms of this Agreement or otherwise less
income taxes (but not reduced by the Excise Tax).

 

(C)                                Subject
to the provisions of paragraph (D) of this Section 5, all determinations
required to be made under this Section 5, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at the determination, shall be made by a
nationally recognized certified public accounting firm designated by the
Executive (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Corporation and the Executive within 30 days after the
receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Corporation.  In the event that at any time relevant to this Agreement the
Accounting Firm is serving as accountant or auditor for the individual, entity
or group or Person effecting the Change in Control, the Executive shall appoint
another nationally recognized certified public accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder). 
All fees and expenses of the Accounting Firm shall be borne solely by
the Corporation.  Any Gross-Up Payment,
as determined in accordance with this Section 5, shall be paid by the
Corporation to the Executive within five days after the receipt of the
Accounting Firm’s determination.  If the
Accounting Firm determines that no Excise Tax is payable by the Executive, it
shall so indicate to the Executive in writing. 
Any determination by the Accounting Firm shall be binding upon the
Corporation and the Executive.  As a
result of uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Accounting Firm, it is possible
that Gross-Up Payments that the Corporation should have made will not have been
made (an “Underpayment”), consistent with the calculations required to be made
hereunder.  In the event the Corporation
exhausts its remedies in accordance with paragraph (D) of this Section 5
and the Executive thereafter is required to make a payment of any Excise Tax,
the Accounting Firm shall determine the amount of Underpayment that has
occurred and the Underpayment shall be promptly paid by the Corporation to or
for the benefit of the Executive.

 

 

(D)                               The
Executive shall notify the Corporation in writing of any claim by the Internal
Revenue Service that, if successful, would require a Gross-Up Payment (that has
not already been paid by the Corporation). 
The notification shall be given as soon as practicable but no later than
ten business days after the Executive is informed in writing of the claim and
shall apprize the Corporation of the nature of the claim and the date on which
the claim is requested to be paid.  The
Executive shall not pay the claim prior to the expiration of the 30-day period following
the date on which the Executive gives notice to the Corporation or any shorter
period ending on the date that any payment of taxes with respect to the claim
is due.  If the Corporation notifies the
Executive in writing prior to the expiration of the 30-day period that it
desires to contest the claim, the Executive shall:

 

(i)                                     give
the Corporation any information reasonably requested by the Corporation
relating to the claim;

 

(ii)                                  take
any action in connection with contesting the claim as the Corporation shall
reasonably request in writing from time to time, including, without limitation,
accepting legal representation with respect to the claim by an attorney
reasonably selected by the Corporation;

 

(iii)                               cooperate
with the Corporation in good faith in order effectively to contest the claim;
and

 

(iv)                              permit
the Corporation to participate in any proceedings relating to the claim.

 

The Corporation shall
bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in connection with the contest and shall indemnify and hold
the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties with respect thereto) imposed as a result of
the representation and payment of costs and expenses.  Without limitation of the foregoing provisions of this
Section 5, the Corporation shall control all proceedings taken in
connection with the contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings, and conferences with the
taxing authority in respect of the claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute the
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Corporation
shall determine.  If the Corporation
directs the Executive to pay the claim and sue for a refund, the Corporation
shall advance the amount of the payment to the Executive, on an interest-free
basis, and shall indemnify and hold the Executive harmless, on an after-tax
basis, from any Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to the advance or with respect to any
imputed income with respect to the advance; and any extension of the statute of
limitations relating to payment of taxes for the taxable year of the

 

 

Executive with respect to
which the contested amount is claimed to be due shall be limited solely to the
contested amount.  The Corporation’s
control of the contest shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and the Executive shall be entitled
to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

 

(E)                                 If,
after the receipt by the Executive of an amount advanced by the Corporation
pursuant to paragraph (D) of this Section 5, the Executive becomes
entitled to receive any refund with respect to the claim, the Executive shall,
subject to the Corporation’s compliance with the requirements of paragraph (D)
of this Section 5, promptly pay to the Corporation the amount of the
refund (together with any interest paid or credited thereon after taxes
applicable thereto).  If, after the
receipt by the Executive of an amount advanced by the Corporation pursuant to
paragraph (D) of this Section 5, a determination is made that the
Executive shall not be entitled to any refund with respect to the claim and the
Corporation does not notify the Executive in writing of its intent to contest
the denial of refund prior to the expiration of 30 days after the
determination, then the advance shall be forgiven and shall not be required to
be repaid and the amount of the advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

 

(F)                                 Notwithstanding
any other provision of this Section 5, to the extent that the Executive is
entitled to a tax “gross-up” payment with respect to a Payment from the
Corporation, any Subsidiary, or any affiliate of the Corporation under any
other agreement, the foregoing provisions of this Section 5 shall not
apply to that Payment.

 

6.  Termination Procedures.

 

(A)                              During
the term of this Agreement, any purported termination of the Executive’s
employment (other than by reason of death) shall be communicated by written
Notice of Termination from one party hereto to the other party hereto in
accordance with Section 11 hereof. 
For purposes of this Agreement, a “Notice of Termination” shall mean a
written notice that sets forth the effective date of termination (subject to
the provisions of Section 11(B) below) and, if for Cause, Disability, or
Good Reason, the facts and circumstances providing the basis for termination of
the Executive’s employment for Cause or for Disability or Good Reason, as the
case may be.

 

(B)                                “Date
of Termination” with respect to any purported termination of the Executive’s
employment during the term of this Agreement (other than by reason of death)
shall mean (i) if the Executive’s employment is terminated for Disability, 20
business days after Notice of Termination is given (provided that the Executive
shall not have returned to the full-time performance of the Executive’s duties
during that 20 business day period) and (ii) if the Executive’s employment is
terminated for any other reason, the date specified in the Notice of
Termination, which, in the case of a termination by the Corporation, shall not
be less than ten business days except in the case

 

 

of a termination for
Cause, and, in the case of a termination by the Executive, shall not be less
than ten business days nor more than 20 business days, respectively, after the
date such Notice of Termination is given.

 

7.  Protective Covenants By The Executive.

 

(A)                              Return
of Property.  Within five days after the
date of termination of the Executive’s employment with the ALLTEL Group, the
Executive shall deliver to the Corporation all of the ALLTEL Group’s property
in the Executive’s possession, custody or control, including, without
limitation, all keys and credit cards, all computers and fax machines, and all
files, documents, data and information in any medium relating in any way to the
ALLTEL Group or its employees, suppliers, customers or business.

 

(B)                                Non-Disclosure.  The Executive acknowledges that in the
course of the Executive’s employment with the ALLTEL Group he has had and will
have access to confidential information and trade secrets proprietary to ALLTEL
Group, including but not limited to, information relating to the ALLTEL Group’s
products, suppliers, and customers, the sources, nature, processes, costs and
prices of the ALLTEL Group’s products, the names, addresses, contact persons,
purchasing and sales histories, and preference of the ALLTEL Group’s suppliers
and customers, the ALLTEL Group’s business plans and strategies, and the names
and addresses of, amounts of compensation paid to, and the trading and sales
performance of the ALLTEL Group’s employees and agents (hereinafter referred to
as the “Confidential Information”).  The
Executive further acknowledges that the Confidential Information is proprietary
to the ALLTEL Group, that the unauthorized disclosure of any of the Confidential
Information to any person or entity could result in immediate and irreparable
competitive injury to the ALLTEL Group, that could not adequately be remedied
by an award of monetary damages. 
Accordingly, the Executive shall not disclose at any time any
Confidential Information to any person or entity who is not properly authorized
by the Corporation to receive the information, without the prior written
permission of the Corporation’s Chief Executive Officer.

 

(C)                                Non-Interference.  The Executive shall not during the
Executive’s employment with the ALLTEL Group and thereafter until the
expiration of 12 calendar months immediately following the calendar month in
which occurs the Executive’s termination of employment with the ALLTEL Group
knowingly employ, or knowingly assist any person or entity other than the
ALLTEL Group in employing, any employee of any member of the ALLTEL Group.  The Executive shall not during the term of
the Executive’s employment with the ALLTEL Group and thereafter until the expiration
of 12 calendar months immediately following the calendar month in which occurs
the Executive’s termination of employment with the ALLTEL Group knowingly
solicit, or knowingly assist any person or entity to solicit, any employee of
any member of the ALLTEL Group to leave the ALLTEL Group’s employment or to
become employed by any entity that is not a member of the ALLTEL Group.

 

 

(D)                               Harmful
Statements.  The Executive shall not at
any time knowingly disseminate any information or knowingly make any
statements, whether written, oral or otherwise, that are negative, disparaging
or critical of the Corporation, any other member of the ALLTEL Group, or any of
their parents, subsidiaries, affiliates, or their respective officers,
directors, employees, shareholders, trustees, administrators, or employee
benefit plans, or the representatives, employees, agents, predecessors,
successors, heirs, or assigns of any of the foregoing (hereinafter, the “ALLTEL
Parties”), or their business or operations, or that place any of the ALLTEL
Parties in a bad light, other than any such statement or information that is
made or disseminated by the Executive in a good faith belief as to their truth
or accuracy and is either required by law or is reasonably necessary to the enforcement
by the Executive of any right the Executive has related to the Executive’s
employment with the ALLTEL Group.

 

(E)                                 Resignations.  Within five days after the termination of
the Executive’s employment with the ALLTEL Group, the Executive shall execute
and deliver to the Chief Executive Officer of the Corporation such resignations
as a director and officer of the Corporation and any other members of the
ALLTEL Group, in such form, as may be reasonably requested by the Corporation’s
Chief Executive Officer.

 

(F)                                 Challenge
to Validity.  The Executive shall not at
any time assert that any provision of this Agreement is invalid or
unenforceable in any respect or to any extent, irrespective of the outcome of
any action, suit or proceeding.

 

(G)                                Executive
Assistance.  If a Payment Trigger occurs
during the term of this Agreement and if the Corporation is not in breach of
any of the Corporation’s covenants set forth in this Agreement, the Executive
shall, until the expiration of 12 calendar months immediately following the
calendar month in which the Payment Trigger occurred, provide such information
and assistance as the Corporation may reasonably request as necessary or
appropriate to assist any ALLTEL Group member in the arbitration or litigation
or potential arbitration or litigation of any claim, action, suit or proceeding
by any person or entity other than the Executive against any ALLTEL Group
member arising from events occurring during the Executive’s employment with the
ALLTEL Group, if the Corporation pays all out-of-pocket expenses incurred by
the Executive in complying with this paragraph (G).  The Executive shall not, however, be required to provide
assistance that would interfere with any activity for remuneration or profit in
which the Executive is then actively engaged.

 

8.  No Mitigation.  The Executive shall not be required to seek
other employment or to attempt in any way to reduce any amounts payable to the
Executive by the Corporation pursuant to this Agreement.  Further, the amount of any payment or
benefit provided for in this Agreement shall not be reduced by any compensation
earned by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the
Executive to the Corporation or a Subsidiary, or otherwise.

 

 

9.  Disputes; Remedies.

 

(A)                              If a
dispute or controversy arises out of or in connection with this Agreement, the
parties shall first attempt in good faith to settle the dispute or controversy
by mediation under the Commercial Mediation Rules of the American Arbitration
Association before resorting to arbitration or litigation.  Thereafter, any remaining unresolved dispute
or controversy arising out of or in connection with this Agreement shall, upon
a written notice from the Executive to the Corporation either before suit
thereupon is filed or within 20 business days thereafter, be settled
exclusively by arbitration in accordance with the Commercial Arbitration Rules
of the American Arbitration Association in a city located within the
continental United States designated by the Executive.  Judgment may be entered on the arbitrator’s
award in any court having jurisdiction. 
Notwithstanding the foregoing provisions of this paragraph (A):

 

(i)                                     The
Executive shall be entitled to seek specific performance of the Corporation’s
obligations hereunder during the pendency of any dispute or controversy arising
under or in connection with this Agreement; and

 

(ii)                                  The
Corporation shall be entitled to seek the injunctive relief described in
paragraph (E) of this Section 9 during the pendency of any dispute or
controversy arising under or in connection with this Agreement.

 

(B)                                Any
legal action concerning this Agreement, other than a mediation or an
arbitration described in paragraph (A) of this Section 9, whether
instituted by the Corporation or the Executive, shall be brought and resolved
only in a state court of competent jurisdiction located in the territory that
encompasses the city, county, or parish in which the Executive’s principal
residence is located at the time such action is commenced.  The Corporation hereby irrevocably consents
and submits to and shall take any action necessary to subject itself to the
personal jurisdiction of that court and hereby irrevocably agrees that all
claims in respect of the action shall be instituted, heard, and determined in
that court. The Corporation agrees that such court is a convenient forum, and
hereby irrevocably waives, to the fullest extent it may effectively do so, the
defense of an inconvenient forum to the maintenance of the action.  Any final judgment in the action may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

 

(C)                                The
Corporation shall pay all costs and expenses, including attorneys’ fees and
disbursements, of the Corporation and, at least monthly, all reasonable costs
and expenses, including reasonable attorney’s fees and disbursements, of the
Executive in connection with any legal proceeding (including arbitration), whether
or not instituted by the Corporation or the Executive, relating to the
interpretation or enforcement of any provision of this Agreement.  The Corporation shall pay prejudgment
interest on any money judgment obtained by the Executive as a result of any
such proceeding, calculated

 

 

at the rate provided in
Section 1274(b)(2)(B) of the Code. 
Notwithstanding the foregoing provisions of this paragraph (C):

 

(i)                                     If
the Executive instituted the legal proceeding and the judge, arbitrator, or
other individual presiding over the proceeding affirmatively finds that the
Executive instituted the proceeding in bad faith, no reimbursement pursuant to
this paragraph (C) shall be due to the Executive, the Executive shall repay the
Corporation for any amounts previously paid by it pursuant to this paragraph
(C), and the Executive shall pay all reasonable costs and expenses, including
reasonable attorney’s fees and disbursements, of the Corporation in connection
with the proceeding;

 

(ii)                                  With
respect to any dispute in which the Executive challenges the validity or
enforceability of any provision of this Agreement in any respect or to any
extent, no reimbursement or no further reimbursement pursuant to this paragraph
(C) shall be due to the Executive, and the Executive shall repay the
Corporation for any amounts previously paid by it pursuant to this paragraph
(C); and

 

(iii)                               With
respect to any dispute or controversy regarding the provisions of
Section 7, other than a dispute to which the immediately preceding clause
(ii) applies, if the Executive does not prevail (after exhaustion of all
available remedies), no further reimbursement pursuant to this paragraph (C)
shall be due to the Executive, and the Executive shall repay the Corporation
for any amounts previously paid by it pursuant to this paragraph (C) in respect
of such dispute.

 

(D)                               The
Executive acknowledges and agrees that the Executive’s sole and exclusive
remedy with respect to any and all claims arising under this Agreement or for
breach hereof by the Corporation shall be the right to receive such amounts as
are provided for under Section 4, Section 5, and paragraph (C) of
this Section 9, to which the Executive is otherwise entitled pursuant to
the terms and conditions of this Agreement.

 

(E)                                 The
Executive acknowledges and agrees that each and every covenant contained in
Section 7 (hereinafter, the “Protective Covenants “) is reasonable and is
necessary to protect the trade secrets, confidential information, and other
business interests of the ALLTEL Group and that the Executive’s compliance with
each of the Protective Covenants is necessary to protect the ALLTEL Group from
unfair injury.  The Executive
acknowledges that the Protective Covenants are a principal inducement for the
willingness of the Corporation to enter into this Agreement and make the
payments and provide the benefits to the Executive under this Agreement and
that the Corporation and the Executive intend the Protective Covenants to be
binding upon and enforceable against the Executive in accordance with their
terms, notwithstanding any common or statutory law to the contrary.  Notwithstanding any other provision of this
Agreement, the obligations of the Corporation under this Agreement are
conditioned upon compliance by

 

 

the Executive with each
of the Protective Covenants, and failure by the Executive to comply, in all
material respects, with the Protective Covenants shall entitle the Corporation
to all rights and remedies available at law or in equity.  The Executive acknowledges that a breach, in
any material respect, of the Protective Covenants could result in irreparable
and continuing harm and damage to the ALLTEL Group for which there may be no
adequate remedy at law.  In the event of
a breach, in any material respects, of any of the Protective Covenants, each
and every member of the ALLTEL Group shall be entitled to injunctive relief in
addition to any other remedy or relief to which any of them may be entitled.

 

10.  Successors; Binding Agreement

 

(A)                              In
addition to any obligations imposed by law upon any successor to the
Corporation, the Corporation shall require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business or assets of the Corporation expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Corporation would be required to perform it if no such
succession had taken place.  Failure of
the Corporation to obtain the assumption and agreement prior to the
effectiveness of any succession shall be a breach of this Agreement and shall
entitle the Executive to compensation from the Corporation in the same amount
and on the same terms as the Executive would be entitled to hereunder if the
Executive were to terminate the Executive’s employment for Good Reason
immediately after a Change in Control and during the term of this Agreement,
except that, for purposes of implementing the foregoing, the date on which any
succession becomes effective shall be deemed the Payment Trigger occasioned by
the foregoing deemed termination of employment for Good Reason immediately
following a Change in Control.  The
provisions of this Section 10 shall continue to apply to each subsequent
employer of the Executive bound by this Agreement in the event of any merger,
consolidation, or transfer of all or substantially all of the business or
assets of that subsequent employer.

 

(B)                                This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees, and legatees. 
If the Executive shall die while any amount would be payable to the
Executive hereunder if the Executive had continued to live, the amount, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives, or administrators of the
Executive’s estate.

 

 

11.  Notices.  For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below, or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that
notice of change of address shall be effective only upon actual receipt:

 

To the Corporation:

 

ALLTEL Corporation

One Allied Drive

Little Rock,
Arkansas  72202

Attention:  Chairman of the Board

 

To the Executive:

 

Scott H. Settelmyer

5 Bonaparte Circle

Little Rock, AR 72211

 

12.  Miscellaneous.  No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in writing and signed by the Executive and an officer of the
Corporation specifically designated by the Board.  No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  The
validity, interpretation, construction, and performance of this Agreement shall
be governed by the laws of the State of Delaware.  All references to sections of the Exchange Act or the Code shall
be deemed also to refer to any successor provisions to such sections.  Any payments provided for hereunder shall be
paid net of any applicable withholding required under federal, state, or local
law and any additional withholding to which the Executive has agreed.

 

13.  Validity.  The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, which shall remain in full force and effect.

 

 

14.  Counterparts.  This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

 

15.  Prior Agreement.  This Agreement supercedes the Agreement,
dated March 8, 2002, between the Corporation and the Executive, which is
void and of no further force or effect.

 

IN WITNESS WHEREOF,
the parties have signed this Agreement as of the date set forth above.

 

 

	
   

  	
  ALLTEL CORPORATION

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
  /s/ C.J. Duvall, Jr.

  	
   

  	
  By:

  	
  /s/ Scott T. Ford

  	
   

  
	
  Name:

  	
  C.J. Duvall, Jr.

  	
   

  	
  Name:

  	
  Scott T. Ford

  
	
  Title:

  	
  SVP-Human Resources

  	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  
	
  Witness:

  	
   

  
	
   

  	
   

  
	
  /s/ Lisa Bates

  	
   

  	
  /s/ Scott Settelmyer

  	
   

  
	
   

  	
   

  	
  Scott H. SettelmyerExhibit
(10)(k)(9)

 

AMENDMENT NO. 4

TO

ALLTEL CORPORATION
PENSION PLAN

(January 1,
2001 Restatement)

 

WHEREAS, ALLTEL
Corporation (the “Company”) maintains the ALLTEL Corporation Pension Plan, as
amended and restated effective as of January 1, 2001, and as subsequently
amended, (the “Plan”); and

 

WHEREAS, the Company
desires further to amend the Plan;

 

NOW
THEREFORE, BE IT RESOLVED, that the Company hereby amends the Plan, effective
as set forth herein, in the respects hereinafter set forth:

 

1. Effective as of January 1, 1989,
Section 1.37(c) of the Plan is amended to provide as follows:

 

(c)   Break in Service

 

A Plan Year or
Eligibility Computation Period during which an Employee fails to complete more
than 500 Hours of Service.

 

2. Effective for limitation
years beginning on and after January 1, 2001, a new Section 7.03 is
added to the Plan to provide as follows:

 

7.03 CRA Model
Amendment

 

For limitation years
beginning on and after January 1, 2001, for purpose of applying the
limitations in Sections 7.01 and 7.02, compensation paid or made available
during such limitation years shall include elective amounts that are not
includible in the gross income of the employee by reason of
Section 132(f)(4) of the Code.

 

IN WITNESS WHEREOF, the
Company, by its duly authorized officer, has caused this Amendment No. 4 to
ALLTEL Corporation Pension Plan (January 1, 2001 Restatement) to be
executed on this 27th day of May, 2004

 

	
   

  	
  ALLTEL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott T. Ford

  	
   

  
	
   

  	
   

  	
  Title:

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