Document:

EX-10.8

 

Exhibit 10.8

Consulting Agreement

     This Consulting Agreement (this “Agreement”) is entered into between ALLTEL Holding Corp.
(“Newco”) and John J. Mueller (“Mueller”), who will serve under this Agreement as an independent
contractor following completion of the pending merger of Newco and Valor Communications Group, Inc.
(“Valor”) pursuant to the terms of the Agreement and Plan of Merger, dated as of December 8, 2005
(the “Merger Agreement”), among ALLTEL Corporation, Newco and Valor (the “Merger”). Following the
Merger, Newco wishes to encourage Mueller’s future efforts on behalf of the combined organization
resulting from the Merger (“Windstream”), contingent upon the consummation of the Merger and
subject to the terms and conditions of this Agreement. This Agreement shall be binding on the
successors of ALLTEL Holding Corp. and Valor (which successor resulting from the Merger is referred
to herein as Windstream).

     The parties agree that Mueller will act as an advisor to the Chairman and to the CEO of
Windstream commencing on the effective date of this Agreement, which will be the Effective Time, as
defined in the Merger Agreement and which is likely to occur in mid-2006. This Agreement shall have
a term of one year commencing on the effective date of this Agreement. This Agreement shall
automatically terminate, without further action by the parties and shall be of no further force or
effect, upon a termination of the Merger Agreement.

     The parties agree that solely for purposes of Section 7.2 and 9.1 of Mueller’s Employment
Agreement with Valor dated as of February 14, 2005, as amended as of February 9, 2006 (the
“Employment Agreement”), and not for purposes of any other plan or arrangement of Valor, Mueller’s
employment shall be deemed to have terminated as of the effective time of this Agreement under the
circumstances described in Section 7.1(d) of the Employment Agreement. Therefore, the provisions
of Sections 9.1 and 9.5 of the Employment Agreement shall be superseded and replaced in their
entirety by the provisions set forth in Exhibit B of the Employment Agreement. For purposes of
interpreting the provisions of Sections 9.1 and 9.5 of Exhibit B to the Employment Agreement, the
terms “Company” and “Companies” shall refer to Valor and its subsidiaries and affiliates
immediately prior to the effective date of this Agreement. Nothing in this Agreement shall preclude
or limit the ability of Mueller during the term of this Agreement to interview for or accept a
position that will commence either during the term of this Agreement or following the expiration of
this Agreement. If Mueller commences employment or other consulting, contracting or advisory
services during the term of this Agreement, Mueller shall provide written notice to Windstream
prior to the start date of commencement of such employment or activity.

     Newco and Windstream understand that such termination of Mueller’s employment and change of
control will trigger the payment of severance benefits under the terms of the Employment Agreement
and accelerate vesting of Mueller’s existing unvested equity awards under Mueller’s Restricted
Stock Grant Agreement dated as of February 14, 2005. Those payments will be in addition to
payments made by Windstream for the future consulting services Mueller will provide under this
Agreement. Except as provided above with respect to Sections 9.1 and 9.5, this Agreement will not
alter any continuing obligations of either party or the Company under the terms of the Employment
Agreement.

     The scope of work will be as follows. From time to time during the term, Windstream may
request that Mueller provide advice and counsel regarding business issues/business plans or
strategy of Windstream in connection with Windstream’s operations. Mueller will work from his home
in Dallas, Texas. If Mueller is required or requested to travel and/or incur any unusual or
unanticipated expenses, Windstream agrees to pay all such reasonable expenses that Mueller incurs
to meet Windstream’s needs including such items as travel, lodging, meals, entertainment,
transportation or similar business expenses. Mueller will submit all such expenses to Windstream
for approval. Windstream also agrees to pay Mueller an amount of $1,500 per month for the purpose
of covering ongoing expenses that are expected to be

 

 

incurred by Mueller in the performance of his
services under this Agreement. Windstream will remit the
foregoing monthly amount to Mueller no less frequently than monthly in accordance with payment
procedures to be agreed upon by Mueller and Windstream.

     In consideration for Mueller’s work, in addition to the expense reimbursement and monthly
payment described above, Windstream agrees to pay to Mueller an annual consulting fee of $500,000
payable as follows: $250,000 payable within 15 days of the effective date of this Agreement, and
$250,000 payable on the sixth month anniversary of the effective date of this Agreement but in any
event no later than March 15, 2007. Notwithstanding anything contained herein to the contrary,
Windstream shall not be obligated to make any payment or provide any benefit under this Agreement
(i) unless Mueller first executes a release in substantially the form attached as Exhibit A to his
Employment Agreement, and (ii) to the extent such payment or benefit is subject to the seven-day
revocation period prescribed by the Age Discrimination in Employment Act of 1967, as amended, or to
any similar revocation period in effect on the date of his termination of employment, such
revocation period has expired.

     The parties acknowledge and agree that the payments to Mueller under this Agreement are made
exclusively in exchange for the future covenants of, and services to be rendered by, Mueller after
the Effective Time.

     Mueller acknowledges that the execution of this Agreement does not impact or change in any way
Mueller’s continuing contractual, legal or fiduciary obligations owed to Valor prior to the
effective date of this Agreement.

     To the extent applicable, the parties intend that this Agreement comply with the provisions of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). This Agreement shall
be construed, administered, and governed in a manner consistent with this intent. Any provision
that would cause any amount payable or benefit provided under this Agreement to be includable in
the gross income of Mueller under Section 409A(a)(1) of the Code shall have no force and effect
unless and until amended to cause such amount or benefit to not be so includable (which amendment
shall be negotiated in good faith by the parties and shall maintain, to the maximum extent
practicable, the original intent of the applicable provision without violating the requirements of
Section 409A of the Code).

     Except for the automatic termination provided for above, it may not be modified or terminated
except in writing signed by the parties. This Agreement may be executed in counterparts. This
Agreement contains the entire agreement and understanding of the parties with respect to the
subject matter contained herein and supersedes all prior communications, representations and
negotiations in respect thereto. Newco shall have the right to deduct from all payments made under
this Agreement any federal, state, local, foreign or other taxes which are required to be withheld
with respect to such payments. This Agreement shall be interpreted and enforced in accordance with
the laws of the State of Delaware, without regard to conflicts of law principles.

     This Agreement is executed as of the 1st day of May, 2006.

	 	 	 	 	 
	ALLTEL HOLDING CORP.	 	JOHN J. MUELLER
	 
	 	 	 	 
	By:

	 	/s/ Jeffery R. Gardner
	 	/s/ John J. Mueller
	 

	 	 
	 	 
	Name: Jeffery R. Gardner	 	Name: John J. Mueller
	Title: Chief Executive OfficerEX-10.9

 

EXHIBIT 10.9

February 15, 2006

Grant Raney

Valor Communications Group, Inc.

201 E. John Carpenter Freeway, Suite 200

Irving, TX 75062

Dear Grant:

As you know, ALLTEL Holding Corp. and Valor Communications Group, Inc. have agreed to merge their
businesses pursuant to the terms of the Agreement and Plan of Merger, dated as of December 8, 2005
(the “Merger Agreement”), among ALLTEL Corporation, ALLTEL Holding Corp., and Valor
Communications Group, Inc. (the “Merger”). In connection with the Merger, we wish to
encourage your continued service with the combined organization (the “Company”), contingent
upon the consummation of the Merger and subject to the terms and conditions of this letter
agreement (this “Letter Agreement”).

	1.	 	Position and Duties. You shall serve as Area President – Wireline Services of the Company
commencing on the Effective Time as defined in the Merger Agreement (the “Effective
Time”) and shall have the normal duties, responsibilities and authority of an executive
serving in such position, subject to the right of the Company to expand or limit such duties,
responsibilities and authority, either generally or in specific instances. You shall report
to the Chief Operating Officer of the Company.

	2.	 	Location. You shall perform your duties and responsibilities hereunder principally in the
greater Little Rock metropolitan area.

	3.	 	Compensation and Benefits. Commencing on the Effective Time, and during your employment with
the Company, you shall be entitled to the following compensation and benefits for as long as
you shall hold your position with the Company as described above:

	 	a.	 	Base Salary. You will be paid a salary at a rate of $9,884.62 per pay
period, payable in installments pursuant to the Company’s regular bi-weekly payroll
cycle.
	 
	 	b.	 	Annual Bonus. You will be eligible to receive an annual bonus, based
on the achievement of specified goals established by the Company, subject to and
payable in accordance with the terms and conditions of the applicable bonus plan. Your
target annual bonus will be 50% of your base salary.
	 
	 	c.	 	Retention Bonus. Provided that you are employed by the Company as of
the Effective Time, you will be entitled to receive a retention bonus equal to
$250,000, payable within 30 days after the Effective Time. If you remain continuously
employed by the Company and its affiliates during the period beginning on the Effective
Time and ending on the six-month anniversary of the

 

 

	 	 	 	Effective Time, you will be entitled to an additional retention bonus equal to
$250,000, payable within 30 days after such anniversary date.
	 
	 	d.	 	Relocation. The Company will reimburse you for the reasonable and
documented expenses incurred by you in connection with your relocation to the Little
Rock metropolitan area in accordance with the terms and conditions of the ALLTEL
Holding Corp. relocation program (or its successor). In consideration of this
assistance, you agree to sign the Relocation Expenses Agreement, attached hereto as
Exhibit A, which requires you to repay all or a portion of the relocation
assistance if you voluntarily terminate employment with the Company within the time
period described therein.
	 
	 	e.	 	Equity Awards. If the Company’s Board of Directors (or appropriate
committee thereof) authorizes awards under the Company’s equity incentive plans in
effect from time to time, you will be eligible to participate in any such awards on the
same basis as other similarly situated employees of the Company (based on your position
and level of responsibility with the Company). Notwithstanding the foregoing, you shall
not be entitled to participate in the one-time grant of equity awards by the Company to
employees of Alltel Holding Corp., which is anticipated to occur as soon as practicable
following the Merger.
	 
	 	f.	 	Perquisites. For as long as you maintain your position with the
Company as described above, the Company will (i) furnish you an automobile appropriate
for your level of position and pay all of the related expenses for gasoline, insurance,
maintenance, and repairs, and (ii) pay the initiation fee and the annual dues,
assessments, and other membership charges for membership in a country club selected by
you.
	 
	 	g.	 	Other Benefits. In addition to the compensation described above, you
will be eligible to participate in all employee benefits plans and programs of the
Company (including welfare benefits, vacation and other benefits) generally applicable
to similarly situated employees of the Company (based on your position and level of
responsibility with the Company), as determined from time to time by the Company.

	4.	 	Nature of Employment; Severance Benefits. Your employment with the Company as described
herein shall be on an “at will” basis, meaning that either you or the Company may terminate
your employment at any time for any reason or no reason, without further obligation or duty.
Upon your termination of employment with the Company following the Effective Time, you will be
eligible to receive severance benefits under the ALLTEL Holding Corp. Severance Pay Plan (or
its successor), subject to the terms and conditions of such plan.

	5.	 	Affect on Other Arrangements.

	 	a.	 	Employment, Retention and Severance Arrangements. By signing this
Letter Agreement, and in consideration of the compensation and benefits described in
Sections 3 and 4 hereof, you agree that effective as of the Effective Time: (i) the

2

 

	 	 	 	Employment Agreement between you and Valor Communications Group, Inc. and Valor
Telecommunications, LLC dated as of February 14, 2005, as amended from time to time,
shall automatically terminate without further action by the parties hereto, and
shall be of no further force or effect, and (ii) this Letter Agreement shall
supersede and preempt any prior understandings, agreements or representations by or
between you and either ALLTEL Corporation, ALLTEL Holding Corp. or Valor
Communications Group, Inc. regarding any cash-based severance, termination,
transition or retention plan, agreement, policy or program, whether written or oral,
including without limitation subsection (h) of Section 8.1 of the Company Disclosure
Letter attached to the Merger Agreement and the Employee Retention and Transition
Benefits Information Packages prepared by Valor Communications Group, Inc.
	 
	 	b.	 	Non-duplication of Benefits. The compensation and benefits described
herein, including without limitation in Sections 3 and 4 hereof, are not intended to be
duplicative of any similar benefits to which you may otherwise be entitled from the
Company or its affiliates under any other plan, agreement, policy or program, and this
Letter Agreement shall be interpreted and construed in a manner consistent with such
intent. Accordingly, the benefits to which you are entitled to receive under this
Letter Agreement shall be reduced to take into account any other similar benefits to
which you may otherwise be entitled to receive from the Company or its affiliates.
	 
	 	c.	 	Restricted Stock Awards. Except as otherwise provided in this Section
5(c), nothing contained herein is intended to modify the terms of any restricted stock
awards granted to you prior to the Merger under the Valor Communications Group, Inc.
2005 Long-Term Equity Incentive Plan. Therefore, for purposes of clarity, the vesting
of that portion of your restricted stock awards that is otherwise scheduled to vest on
January 1, 2008 will accelerate if your employment with the Company is terminated
without “cause” or you resign from the Company for “good reason” on or after the
Effective Time but before the second anniversary of the Effective Time. For purposes of
the preceding sentence, you agree that, effective as of the Effective Time, (i) the
definition of “cause” and “good reason” shall be defined in Sections 3(e) and (f) of
the applicable restricted stock grant agreement, except that all references to the term
“Employment Agreement” therein shall instead refer to this Letter Agreement, and (ii)
you irrevocably waive the right to claim “good reason” in respect of any diminution of
your scope of responsibilities or title, any reduction in your compensation or any
required relocation of your principal office location that may occur upon the Effective
Time as a result of this Letter Agreement.

	6.	 	Confidentiality. You agree not to disclose, either directly or indirectly, the terms of this
Letter Agreement to any person, including other employees of the Company; provided,
however, that you may discuss such terms with your attorney, financial advisor and
immediate family members on a confidential basis.

	7.	 	Termination of Letter Agreement. This Letter Agreement shall automatically terminate, without
further action by the parties hereto, and shall be of no further force or

3

 

	 	 	effect, upon the earlier of (i) the termination of the Merger Agreement or (ii) the
termination of your employment with the Company.

	8.	 	Miscellaneous. This Letter Agreement shall be binding on the successors of ALLTEL Holding
Corp., and, subject to Section 7 above, it may not be modified or terminated except in writing
signed by the parties. This Letter Agreement contains the entire agreement and understanding
of the parties with respect to the subject matter contained herein and supersedes all prior
communications, representations and negotiations in respect thereto. The Company shall have
the right to deduct from all payments made under this Letter Agreement any federal, state,
local, foreign or other taxes which are required to be withheld with respect to such payments.
This Letter Agreement shall be interpreted and enforced in accordance with the laws of the
State of Delaware, without regard to conflicts of law principles.

I am delighted to be able to extend this offer to you on behalf of the Company, and we look forward
to working with you. To indicate your acceptance, please sign and date one copy of this letter and
return it to me at 501-905-8707 not later than February 20, 2006. Please note that your acceptance
of this offer does not impact or change in any way your continuing contractual, legal or fiduciary
obligations owed to Valor Communications Group, Inc. prior to the Effective Time.

	 	 	 	 	 	 	 
	ALLTEL HOLDING CORP.	 	 	 	Agreed to and accepted:
	 
	 	 	 	 	 	 
	                                                       	 	 	 	 	                                                       
	By:

	 	  /s/ Jeffery R. Gardner	 	 
	 	  /s/ Grant Raney
	 

	 	 
	 	 	 	 
	                                                        	 	 	 	 	                                                        
	 

	 	 	 	 	 	Name: Grant Raney
	 
	 	 	 	 	 	 
	                                                       	 	 	 	 	                                                       
	Its:
	 	  President and Chief
Executive Officer	 	 	 	  February 20, 2006 
	 

	 	 
	 	 	 	 
	                                                        	 	 	 	 	                                                        
	 

	 	 	 	 	 	Date

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EXHIBIT A

RELOCATION EXPENSES AGREEMENT

I, Grant Raney, accepted a job or internal transfer with Newco Inc. (hereafter called the
Company) at Little Rock, AR, effective upon successful completion of merger with Valor
Communications Group, Inc. As part of my transfer or my offer of employment with the Company, the
Company agrees to pay for certain relocation expenses, which are addressed below. I acknowledge and
agree that the payments made by the Company hereunder represent substantial value over and above
that to which I would otherwise be entitled.

In consideration of the payment of relocation expenses by the Company to me or on my behalf, I
understand and agree that if I voluntarily leave the employ of the Company within twelve months
from the effective date above, I will voluntarily repay the Company all amounts paid to me or paid
by the Company on my behalf in connection with relocation from my previous place of residence to
the location of my new employment with the Company pursuant to the terms set forth in the Repayment
Schedule below. I understand that the expenses to be repaid include all relocation expenses paid
for by the Company to me or on my behalf, including but not limited to: recruiting fee, house
hunting trip, moving household goods, mileage allowance for moving vehicles, meals and lodging en
route from the old to the new location, temporary living expenses for the family while waiting for
the household goods, lump sum moving expenses, tax assistance, relocation allowance, third-party
relocation company fees, and the cost of selling my home.

REPAYMENT SCHEDULE

	 	 	 	 	 
	Termination with Service Forward from	 	Percentage of Totals to be
	Date of Employment at New Location	 	Repaid the Company
	1. Less than 6 months
	 	 	100	%
	2. At least 6 but less than 9 months
	 	 	75	%
	3. At least 9 but less than 12 months
	 	 	50	%
	4. At least 12 months
	 	 	0	%

In consideration of the payment of relocation expenses by the Company to me or on my behalf and as
a material inducement to Newco to enter into this agreement, I further agree that if I voluntarily
leave employment with the Company, I will pay the Company the total amount I owe, based upon the
above Repayment Schedule, by cash payment on the date of my termination. The Company may at its
sole discretion accept a personal note from me not to exceed ninety (90) days in duration for all
or any part of the amount I owe under the Repayment Schedule in lieu of the cash payment. I
further authorize the Company to withhold my wages until any amount owed under the Repayment
Schedule has been repaid.

As further consideration and material inducement for the Company to enter into this agreement, I
further agree to indemnify and hold harmless the Company, its affiliates, agents, employees,
officers, and directors from any and all claims and liabilities (including punitive damages and
attorney’s fees) arising from my failure to disclose any material adverse condition or
misrepresentation related to the sale of my home through the Company’s relocation program or as a
result of my breach or failure to perform under the contract of sale for that home or any related
promissory note or mortgage, and I further authorize the Company to set off any amounts that I owe
the Company as a result of this indemnification commitment against any amounts that the Company
owes me.

I have read all the above provisions and agree to them in consideration of the payment of expenses
by the Company to me or on my behalf for the purpose of relocation from the place of my previous
residence to the place of my new employment with the Company. I understand and agree that this
Relocation Expenses Agreement does not constitute a contract of employment, either express or
implied, and either the Company or I can terminate the employment relationship at any time with or
without cause.

	 	 	 	 	 
	 	 	 
	 

	 	SIGNATURE
	 	DATE

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