Document:

Unassociated Document

     

    Exhibit
      10.1

    

     

    EXCHANGE
      AGREEMENT

     

    

    EXCHANGE
      AGREEMENT (the “Agreement”), dated as of July 8, 2006, among ALLTEL Corporation,
      a Delaware corporation (“ALLTEL”), J.P. Morgan Securities Inc. and Merrill
      Lynch, Pierce, Fenner & Smith Inc. (collectively, the “Investment Banks”),
      and, solely with respect to Sections 2, 5, 6, 7, 8, 9 and 10 hereof, Alltel
      Holding Corp., a Delaware corporation (“Spinco”).

     

    WHEREAS,
      pursuant to a Distribution Agreement dated as of December 8, 2005 between ALLTEL
      and Spinco (the “Distribution Agreement”), Spinco has agreed to issue to ALLTEL,
      in connection with ALLTEL’s contribution of assets and liabilities to Spinco,
      $1,746,000,000 aggregate principal amount of 85⁄8% senior notes due 2016 (“Spinco
      Securities”);

     

    WHEREAS,
      ALLTEL desires to exchange such Spinco Securities for all or a portion of the
      certain debt obligations of ALLTEL described on Schedule I ("ALLTEL Debt
      Obligations") held by the Investment Banks; and the Investment Banks desire
      to
      exchange ALLTEL Debt Obligations for such Spinco Securities; and

     

    WHEREAS,
      on June 28, 2006, the Investment Banks and Spinco entered into a Purchase
      Agreement (the “Purchase Agreement”) with J.P. Morgan Securities Inc.
      and
      Merrill
      Lynch, Pierce, Fenner & Smith Inc., as representatives of the initial
      purchasers named therein (the “Initial Purchasers”), in connection with the sale
      pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as
      amended, of the Spinco Securities and certain other debt securities of Spinco,
      and in connection therewith Spinco will enter into a Registration Rights
      Agreement with the Initial Purchasers relating to the grant by Spinco of
      registration rights with respect to the Spinco Securities.

     

    NOW
      THEREFORE, in consideration of the representations, warranties and agreements
      contained in this Agreement, the parties agree as follows:

     

    1.  The
      Exchange.
      (a)
      Subject to the terms and conditions and in reliance upon the representations
      and
      warranties in this Agreement, at the Closing (as defined below):

     

    (i)  ALLTEL
      will transfer and deliver to the Investment Banks, and the Investment Banks
      will
      accept, the Spinco Securities in equal amounts; and

     

    (ii)  the
      Investment Banks will transfer and deliver to ALLTEL, and ALLTEL will
      accept
      from the
      Investment Banks,
      ALLTEL
      Debt Obligations 

    with
      a
      fair market value as of the Closing, as mutually agreed to by ALLTEL and the
      Investment 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    Banks
      (taking into account the factors that would be relevant
      in determining fair market value, including but not limited to (A) interest
      rates; (B) the 

    credit
      risk of ALLTEL; and (C) the aggregate principal amount
      of
      each series of ALLTEL Debt Obligations being so exchanged relative to the total
      

    amount
      of
      each applicable series of such ALLTEL Debt Obligations
      outstanding, in each case as of Closing), equal to $1,673,365,133.15
      (the 

    “Exchange
      ALLTEL Debt Obligations”).

     

       
      (b)  The
      exchange of the Spinco Securities for the Exchange ALLTEL Debt Obligations
      (the
“Closing”) shall occur at the office of Davis Polk & 

    Wardwell,
      450 Lexington Avenue, New York, New York (or at such other location or locations
      as may be agreed upon by the Investment Banks and ALLTEL), at 

    the
      time
      and on the date of the closing of the transactions contemplated by the Agreement
      and Plan of Merger (the “Merger Agreement”) dated as of December 

    8,
      2005
      among Alltel, Spinco and Valor Communications Group, Inc. subject to
      satisfaction (or waiver) of the conditions set forth in Section 4
      of this
      Agreement;
      

    provided
      that the
      exchange shall not occur prior to July 17, 2006 (the “Closing Date”). At the
      Closing, the Investment Banks shall deliver to ALLTEL (or a 

    custodian
      on ALLTEL’s behalf, as directed) their respective holdings of the Exchange
      ALLTEL Debt Obligations, and ALLTEL shall deliver to the Investment

    Banks
      the
      Spinco Securities.

     

       
      (c)  As
      used
      in this Agreement, the term “Business Day” shall mean those days on which both
      the New York Stock Exchange and banking 

    institutions
      located in New York City are open for trading or banking, as the case may be,
      in
      the ordinary course of business.

     

    2.  Assignment
      of Rights by ALLTEL.
      Effective as of the Closing, ALLTEL hereby assigns to the Investment Banks
      all
      of its rights arising out of or in respect of the Spinco Securities, and Spinco
      hereby consents to such assignment.

     

    3.  Representations
      and Warranties.
      (a)
      ALLTEL
      hereby represents and warrants to the Investment Banks that:

     

         
       (i)  ALLTEL
      is
      a corporation duly organized, validly existing and in good standing under the
      laws of the State of Delaware. ALLTEL has all 

    requisite
      corporate power and authority to enter into this Agreement and to perform its
      obligations hereunder. This Agreement has been duly 

    executed
      and delivered by ALLTEL and constitutes a legal, valid and binding obligation
      of
      ALLTEL, enforceable against ALLTEL in accordance with 

    its
      terms,
      except as enforceability may be limited by applicable bankruptcy, insolvency
      or
      similar laws affecting the 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    enforcement
      of creditors’ rights generally
      or by equitable principles relating to enforceability.

     

          
      (ii)  No
      consent, approval, license, permit, order or authorization of, or registration,
      declaration or filing with, any Federal, state, local or foreign

        government
      or
      any court of competent jurisdiction, administrative agency or commission or
      other governmental authority or instrumentality, domestic

              
       or foreign (a “Governmental Entity”) or nongovernmental third party is
      required to be obtained or made by or with respect to ALLTEL or any of its
      

        subsidiaries,
      including Spinco, in connection with the execution, delivery and performance
      of
      this Agreement except as have been previously obtained 

    or
      made.

     

      
      (iii)  Neither
      the exchange of the Spinco Securities nor the consummation of any other of
      the
      transactions herein contemplated nor the fulfillment

      
       of the terms hereof will result in a breach of any of the terms and
      provisions of, or constitute a default under, any indenture, mortgage, deed
      of
      trust or 

    other
      agreement or instrument to which ALLTEL or any of its subsidiaries, including
      Spinco, is a party or by which it is bound, or ALLTEL’s 

    Amended
      and Restated Certificate of Incorporation or Bylaws, or any order, rule or
      regulation applicable to ALLTEL or any of its subsidiaries, 

    including
      Spinco, of any Governmental Entity having jurisdiction over ALLTEL or any of
      its
      subsidiaries, including Spinco, or their respective 

    properties.

     

       (iv)  Prior
      to
      the Closing, ALLTEL will have good and valid title to the Spinco Securities,
      free and clear of any liens, claims,
      encumbrances,

    security
      interests, options, charges or restrictions of any kind (collectively, “Liens”).
      Upon delivery of the Spinco Securities by ALLTEL to the 

    Investment
      Banks at the Closing in exchange for the Exchange ALLTEL Debt Obligations,
      the
      Investment Banks will acquire good and valid title to 

    such
      Spinco Securities, free and clear of any Liens.

     

      
      (v)  When
      the
      Spinco Securities are issued by Spinco to ALLTEL and when they are transferred
      to the Investment Banks at the Closing in 

    exchange
      for the Exchange ALLTEL Debt Obligations, the Spinco Securities will (A) have
      been duly and validly authorized and issued, (B) constitute 

    valid
      and
      legally binding obligations of Spinco enforceable against Spinco in accordance
      with their terms, except as enforceability may be limited by 

    applicable
      bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles relating to 

    enforceability,
      and (C) be entitled to the benefits of the indenture governing the Spinco
      Securities.

     

      
      (vi)  ALLTEL
      has made its own independent inquiry as to the legal, tax and accounting aspects
      of the transactions contemplated by this 

    Agreement
      and any related transactions, and ALLTEL has not relied on 

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    the
      Investment Banks, the Investment Banks’ legal counsel or other advisors for
      legal, tax or accounting advice in connection with the transactions

    contemplated
      by this Agreement or any related transactions.

     

    (b)  Each
      of
      the Investment Banks hereby severally as to itself and not jointly represents
      and warrants to ALLTEL that:

     

    (i)  Such
      Investment Bank is a corporation duly organized, validly existing and in good
      standing under the laws of the state of its incorporation.

     Such
      Investment Bank has all requisite corporate power and authority to enter into
      this Agreement and to perform its obligations hereunder. This 

    Agreement
      has been duly executed and delivered by such Investment Bank and constitutes
      its
      legal, valid and binding obligation, enforceable against 

    it
      in
      accordance with its terms,
      except as enforceability may be limited by applicable bankruptcy, insolvency
      or
      similar laws affecting the enforcement 

    of
      creditors’ rights generally or by equitable principles relating to
      enforceability.

     

     (ii)  No
      consent, approval, license, permit, order or authorization of, or registration,
      declaration or filing with, any Governmental Entity or 

    nongovernmental
      third party is required to be obtained or made by or with respect to such
      Investment Bank in connection with the execution, 

    delivery
      and performance of this Agreement except as have been previously obtained or
      made.

     

     
      (iii)  Neither
      the exchange of the Exchange ALLTEL Debt Obligations nor the consummation of
      any
      other of the transactions herein 

    contemplated
      nor the fulfillment of the terms hereof will result in a breach of any of the
      terms and provisions of, or constitute a default under, any 

    indenture,
      mortgage, deed of trust or other agreement or instrument to which such
      Investment Bank is a party or by which it is bound, or such 

    Investment
      Banks’ charter or other organizational documents, or any order, rule or
      regulation applicable to it of any Governmental Entity having 

    jurisdiction
      over it or its properties.

     

      
      (iv)  Such
      Investment Bank has good and valid title to the Exchange ALLTEL Debt Obligations
      to be exchanged by it pursuant to this 

    Agreement,
      free and clear of any Liens. Upon delivery of such Exchange ALLTEL Debt
      Obligations by such Investment Bank to ALLTEL at the 

    Closing
      in exchange for the Spinco Securities, ALLTEL will acquire good and valid title
      to such Exchange ALLTEL Debt Obligations, free and clear 

    of
      any
      Liens.

     

       
      (v)  Such
      Investment Bank has made its own independent inquiry as to the legal, tax and
      accounting aspects of the transactions contemplated 

    by
      this
      Agreement and any related transactions, and it has not relied on ALLTEL,
      ALLTEL’s legal counsel or ALLTEL’s other advisors for legal, 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    tax
      or
      accounting advice in connection with the transactions contemplated by this
      Agreement or any related transactions.

     

    4.  Conditions.

     

     (a)  The
      obligations of the Investment Banks to exchange the Exchange ALLTEL Debt
      Obligations for the Spinco Securities at the Closing

     shall
      be subject to the satisfaction (or waiver by the Investment Banks) of the
      following conditions:

     

    (i)  ALLTEL
      shall have furnished to the Investment Banks an opinion of Skadden, Arps, Slate,
      Meagher & Flom LLP dated the Closing 

     
      Date, to the effect as agreed upon between ALLTEL and the Investment
      Banks.

     

    (ii)  No
      statute, rule, regulation, executive order, decree, temporary restraining order,
      preliminary or permanent injunction or other order

     
      enacted, entered, promulgated, enforced or issued by any Governmental Entity
      or
      other legal restraint or prohibition shall be in effect preventing 

     
      the consummation of the transactions contemplated hereunder.

     

    (iii)  The
      representations and warranties of ALLTEL in this Agreement shall be true and
      correct in all material respects on and as of the

    Closing
      Date, with the same effect as if made on the Closing Date, and ALLTEL shall
      have
      complied with all the agreements
      to be
      performed or 

    satisfied
      at or prior to the Closing Date, and ALLTEL shall have furnished to the
      Investment Banks a certificate of ALLTEL, in form reasonably 

    satisfactory
      to the Investment Banks signed by a Vice President or Treasurer of ALLTEL,
      dated
      the Closing Date, to the foregoing effects.

     

    (iv)  The
      private letter ruling ALLTEL received from the Internal Revenue Service on
      April
      7, 2006 (as the same may be supplemented 

    from
      time
      to time prior to the Closing Date) shall continue to be valid as of the Closing
      Date.

     

    (v)  The
      Purchase Agreement shall remain in full force and effect, and all of the
      conditions to the obligations of the Initial Purchasers 

    to
      purchase and pay for the Spinco Securities as set forth in the Purchase
      Agreement shall have been satisfied.

     

    In
      case
      any of such conditions shall not have been fulfilled by July 31, 2006, or if
      the
      Merger Agreement, the Distribution Agreement or the Purchase Agreement shall
      

    have
      been
      terminated in accordance with their terms, this Agreement may be terminated
      by
      the Investment Banks by delivering written notice of termination to ALLTEL.
      Any

    such
      termination shall be without liability 

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

      of
        any
        party to any other party except to the extent provided in the Purchase
        Agreement.

    

     

    (b)  The
      obligations of ALLTEL to exchange the Spinco Securities for the Exchange ALLTEL
      Debt Obligations at the Closing shall be subject 

    to
      the
      satisfaction (or waiver by ALLTEL) of the following conditions:

     

    (i)  The
      Investment Banks shall have furnished to ALLTEL an opinion of Davis Polk &
Wardwell, counsel for the Investment Banks, 

    dated
      the
      Closing Date, to the effect as agreed upon between ALLTEL and the Investment
      Banks.

     

    (ii)  The
      representations and warranties of the Investment Banks in this Agreement shall
      be true and correct in all material respects on 

    and
      as of
      the Closing Date, with the same effect as if made on the Closing Date, and
      the
      Investment Banks shall have complied with all the 

    agreements
      to be
      performed or satisfied at or prior to the Closing Date, and the Investment
      Banks
      shall have furnished to ALLTEL a certificate of 

    each
      of
      the Investment Banks, in form reasonably satisfactory to ALLTEL signed by an
      officer of such Investment Bank, dated the Closing Date, 

    to
      the
      foregoing effects.

     

    In
      case
      any of such conditions shall not have been fulfilled by July 31, 2006, or if
      the
      Merger Agreement, the Distribution Agreement or the Purchase Agreement shall
      

    have
      been
      terminated in accordance with their terms, this Agreement may be terminated
      by
      ALLTEL by delivering written notice of termination to the Investment Banks. Any
      

    such
      termination shall be without liability of any party to any other party except
      to
      the extent provided in the Purchase Agreement.

     

    5.  Relationship
      of Parties.
      All
      acquisitions of the Exchange ALLTEL Debt Obligations by the Investment Banks,
      all exchanges of the Exchange ALLTEL Debt Obligations for the Spinco Securities
      by the Investment Banks pursuant to this Agreement, any resales by the
      Investment Banks of the Spinco Securities and all other acts or omissions of
      the
      Investment Banks in connection with this Agreement, are for the Investment
      Banks’ own account and not for the account of ALLTEL. No principal-agent
      relationship is, or is intended to be created between ALLTEL and the Investment
      Banks, by any of the provisions of this Agreement. Each of ALLTEL and Spinco
      acknowledges and agrees that the Investment Banks are acting solely in the
      capacity of an arm’s length contractual counterparty to ALLTEL and Spinco with
      respect to the transactions contemplated hereby (including in connection with
      determining the terms of the offering under the Purchase Agreement) and not
      as a
      financial advisor or a fiduciary to, or an agent of, ALLTEL, Spinco or any
      other
      person.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    6.  Survival
      of Provisions.
      The
      respective agreements, representations, warranties and other statements of
      ALLTEL and of the Investment Banks and agreements of Spinco set forth in or
      made
      pursuant to this Agreement will remain in full force and effect, regardless
      of
      any investigation made by or on behalf of the Investment Banks, ALLTEL, Spinco
      or any of their respective officers and will survive the exchange of the
      Exchange ALLTEL Debt Obligations for the Spinco Securities.

     

    7.  Notices.
      All
      notices or other communications under this Agreement shall be in writing and
      shall be deemed to be duly given as of the date delivered, mailed or
      transmitted, and shall be effective upon receipt, if delivered personally,
      mailed by registered or certified mail (postage prepaid, return receipt
      requested) or delivered by a nationally recognized courier service to the
      parties at the following address or sent by electronic transmission to the
      telecopier numbers specified below:

     

    If
      to the
      Investment Banks,
      to:                                         
Merrill
      Lynch & Co.

    4
      World
      Financial

    New
      York,
      NY 10080

    Attention:
      Liability Management

                Desk

    Fax:
      (212) 738-2227

     

         
and

     

                   
      J.P. Morgan Securities Inc.

    270
      Park
      Avenue

    New
      York,
      NY 10017-2070

    Attention:
      Liability Management

         
              Desk

    Fax:
      (212)
      834-6170

     

    If
      to
      ALLTEL,
      to:                                                                 
ALLTEL
      Corporation

                   
      One Allied Drive

                   
      Little Rock, Arkansas 72202

                   
      Attention: General Counsel

                   
      Fax: (501)
      905-0962

    

    
      	 	
              If
                to Spinco, to:

            	
                             
                Alltel Holding Corporation

            

    

    
      	 	 	
                             
                4001 Rodney Parham Road

            

    

                   
      Little Rock, AR  72212

                  
      Attention: General Counsel

                  
      Fax: (501) 748-7400

    

    
      
        
        

      

      
        
          7

        

        
          

        

      

      
        
        

      

    

     

     

     

    8.  Successors.
      This
      Agreement will inure to the benefit of and be binding upon the parties hereto
      and their respective successors and no other person will have any right or
      obligation hereunder.

     

    9.  Applicable
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York applicable to agreements made and to be performed
      entirely within such State, without regard to the conflicts of law principles
      of
      such State.

     

    10.  Counterparts.
      This
      Agreement may be signed in one or more counterparts, each of which shall
      constitute an original and all of which together shall constitute one and the
      same agreement.

     

     

    
      
        8

        
        

      

      
        
          

        

      

      
        
        

      

    

      IN
      WITNESS WHEREOF, the
      parties have caused this Agreement to be duly executed as of the date first
      written above.

     

    

     

    
      	
              ALLTEL
                CORPORATION

            
	
              By:

            	 /s/
              Scott T. Ford
	
                                           
                Name: Scott
                T. Ford

            
	
                                           
                Title: President and CEO

            

    

    

    

    
      	
              J.P.
                MORGAN SECURITIES INC.

            
	
              By:

            	 /s/
              Akis Psarris
	
                                            
                Name: Akis
                Psarris

            
	
                                             Title: Managing
                Director

            

    

    

    

    
      	
              MERRILL
                LYNCH, PIERCE, FENNER & SMITH, INC.

            
	
              By:

            	 /s/
              David B. Parsons
	
                                            
                Name: David
                B. Parsons

            
	
                                            
                Title: Managing
                Director

            

    

    

    

            As
      to Sections 2, 5,
      6, 7, 8, 9 and
      10
      only:

    

    
      	
              ALLTEL
                HOLDING CORP.

            
	
              By:

            	 /s/
              Jeffery R. Gardner
	
                                             
                Name: Jeffery
                R. Gardner

            
	
                                              Title: President
                and CEO

            

    

    

    
      
        9

        
        

      

      
        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      I

    
      ALLTEL
        Debt Obligations

    

    

    
      	
              Security

            	
              Principal
                Amount

            
	
              Commercial
                Paper

            	
              $1,000,000,000

            
	 	 
	
              4.656%
                Notes due 2007

            	
              $686,557,000

            

    

     

    

    

    

    
      
        
        

      

      
        10Unassociated Document

    Exhibit
      10.2

     

    
 

    AMENDMENT
      NO. 3 TO THE

    ALLTEL
      CORPORATION

    SUPPLEMENTAL
      EXECUTIVE RETIREMENT PLAN

     

    The
      Alltel Corporation Supplemental Executive Retirement Plan (First Restatement),
      as amended (the "Plan"), is hereby amended effective as of July 7, 2006.

     

    AMENDMENT

     

    1. Section
      3.01 of the Plan is hereby amended to add the following at the end
      thereof:

     

    "Notwithstanding
      anything contained in the Plan to the contrary, each of Francis X. Frantz and
      Jeffery R. Gardner shall only be entitled to the retirement benefit provided
      in
      the last sentence of Section 3.02. Neither Francis X. Frantz nor Jeffery R.
      Gardner (including, in each case, his Spouse or spouse, dependents, or other
      person claiming a benefit through him or his Spouse) shall be entitled to any
      other payment or benefit under this Plan, including, without limitation, any
      post-retirement benefit other than the benefit provided in the last sentence
      of
      Section 3.02, the pre-retirement death benefit as provided in Section 3.03
      or
      the health and dental benefits (and related Gross-Up Payments) as provided
      in
      Section 3.05." 

     

    2. Section
      3.02 of the Plan is hereby amended to add the following sentence at the end
      thereof: 

     

    "Notwithstanding
      anything contained in the Plan to the contrary, the retirement benefit payable
      to Francis X. Frantz (or in the event of his death post-Retirement and before
      payment, his surviving Spouse) under this Section 3.02 shall equal $7,615,028
      and the retirement benefit payable to Jeffery R. Gardner (or in the event of
      his
      death post-Retirement and before payment, his surviving Spouse) under this
      Section 3.02 shall equal $9,256,645." 

     

    3. The
      last
      sentence of Section 3.04 of the Plan is hereby superseded and replaced in its
      entirety as set forth below: 

     

    "Notwithstanding
      anything contained in this Plan to the contrary, the retirement benefit provided
      under Section 3.02 for each of Francis X. Frantz and Jeffery R. Gardner shall
      be
      paid to him within ten (10) days following his Retirement (or such later date
      as
      may be required under Section 409A of the Code) (and in the case of his death
      following his Retirement, but before payment as provided in this Section 3.04,
      such amount shall be paid to his Spouse). Such lump sum payment shall fully
      and
      completely discharge any obligations of the Company to each of Francis X. Frantz
      (and his Spouse or spouse, dependents, or other person claiming a benefit
      through Francis X. Frantz or his Spouse) and Jeffery R. Gardner (and his Spouse
      or spouse, dependents, or other person claiming a benefit through Jeffery R.
      Gardner or his Spouse) under the Plan. The Company shall be entitled to withhold
      or cause to be withheld from any amounts payable under the Plan all federal,
      state, local, foreign or other taxes that the Company determines, in its sole
      discretion, are legally required to be withheld."

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

     

    4. Except
      as
      explicitly set forth herein, the Plan will remain in full force and
      effect.

     

    IN
      WITNESS WHEREOF, this amendment has been executed as of this 7th day of
      July, 2006. 

    

    ALLTEL
      CORPORATION 

    

    

    By:
      /s/ Scott T. Ford                        

      Scott
      T.
      Ford

                          President
      and Chief Executive Officer

    

    

    

    
      
        
        

      

      
        2

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