Document:

Exhibit 10.1

 

Richard N. Baer

Executive Vice President,
General Counsel

And Chief Administrative
Officer

1801 California Street,
52nd Floor

Denver, CO  80202

 

rich.baer@qwest.com

(303) 992-2811

(303) 303-383-8444 (fax)

 

September 12,
2008

 

Joseph J. Euteneuer

 

Dear Joe:

 

We
are pleased to extend an offer of employment to you on behalf of Qwest.  At Qwest our foundation is the Spirit of
Service and our priority is to serve our customers every day.  We offer exciting opportunities to work in a
fast-paced, technology driven environment. For this you would be well rewarded
through highly competitive compensation and benefits programs. You would be an
asset to our enthusiastic, energetic and dedicated team and we encourage you to
seriously consider the attractive offer outlined below.

 

This letter, in
conjunction with the annexed form of Severance Agreement, sets forth the terms
and conditions of an employment offer for you to work for Qwest Corporation (collectively,
the “offer”).  This offer has been approved
by the Compensation Committee of the Qwest Board of Directors.

 

1.               Position,
Duties and Location:   You will be
appointed to the position of Executive Vice President, Chief Financial Officer
of Qwest Communications International Inc., reporting directly to Ed Mueller,
Chairman and Chief Executive Officer. 
You shall have all responsibilities, powers and authorities normally and
customarily attendant such offices.  Your
principal place of employment shall be at the executive offices of Qwest
Communications International Inc. in Denver, Colorado.

 

2.               Base
Salary:  $660,000 per annum.

 

3.               Annual
Bonus Plan:  You will receive a
guaranteed minimum bonus for 2008 equal to 150% of your annual base pay and
prorated to reflect the your date of hire (to be paid in March 2009 if you
are employed by the Company on the payment date).  For 2009, you will be eligible to participate
in the annual bonus plan.  Your target
bonus will be 150% of your annual base pay.

 

4.               Equity Incentive Plan: You are entitled to participate in Qwest’s
Equity Incentive Plan.  You will receive
an equity award with an approximate value of $2,640,000.  The grant date of the equity award will be the
date of your hire.  Fifty percent of the
equity value

 

 

will be awarded in stock options, twenty five percent in restricted
stock and twenty five percent in performance shares.  The actual number of stock options will be
determined using a Black Scholes value of $1.25.  The actual number of restricted and
performance shares will be determined by the market close price of Qwest stock
on the grant date.  All will be rounded
to the nearest 1000.

 

In addition, you
will receive a restricted stock grant with a value of $1,175,000. 
The grant date of the restricted
stock will be determined by the date of your hire.  The actual number of restricted shares will be
determined by the market close price of Qwest stock on the grant date.  All will be rounded to the nearest 1000.

 

The grant agreements for these initial grants will have terms that are
not less favorable than the terms of the form grant agreements provided to your
counsel on August 7, 2008.

 

5.               Executive
Perquisite: You will receive an executive perquisite benefit of $50,000 (grossed
up for income tax). Your perquisite check will be payable to you one week after
your first paycheck.

 

6.               Benefits:
As an Executive Vice President, you will be eligible for the following:

 

a)              Standard
Healthcare benefits (medical, dental, vision).

 

b)             Ability
to purchase Healthcare benefits upon leaving the company  as long as you have five years of service and
your age and service equal 60.

 

c)              Qwest
401(k) Savings Plan – 100% match on the first 3% of contributions (up to
IRS limit).

 

d)             Qwest
Pension Plan – after one year of employment, you will receive benefit of 3% of
eligible earnings, up to the IRS limit.

 

e)              Supplemental
Executive Retirement Plan – This plan makes up the difference between what
would be paid under the Qwest Pension Plan, without IRS limits on compensation,
and what is actually paid under that plan.

 

f)                Supplemental
Executive Disability Coverage – You are eligible to receive up to 52 weeks of
short term disability benefits. This benefit pays 70% of your base pay plus
target bonus. In addition, if your employment ends as a result of a disability,
you are eligible to receive a long-term disability benefit of 60% of base pay
plus target bonus.

 

g)             35
days of time off with pay per year.

 

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h)             Payment
or reimbursement of your reasonable attorneys fees and expenses in connection
with the drafting and negotiation of your employment arrangements with the
Company.

 

Relocation:  The Company will relocate you and your family
under the Tier I relocation policy for executives except (i) that no Home
Buyout Offer  (as that term is defined in
the Employee Relocation Policy) until you make a written request to the company,
such written request to be received by us no later than 12 months from the date
of your hire and (ii) during the period of time through the date that such
written request is made, you will be responsible for marketing your home.  We will authorize Ms. Connie Moodie, in
our relocation department, to contact you to initiate this process upon your
acceptance of this offer.  The 60 day
time limit in the relocation policy for use of relocation benefits shall
instead be 12 months and your temporary living expenses shall be reimbursed for
12 months from the date of your commencement of employment.

 

Please pay special
attention to the following items, as this offer of employment is conditional
upon the completion of each:

 

7.               Severance
Agreement:  You will be required to
sign and return one of the attached Severance Agreements.  This letter modifies your Severance Agreement
insofar that in the event of your death during your applicable severance
period, any remaining severance amounts otherwise payable to you shall be
immediately paid to your estate in a lump sum.

 

8.               Drug
Test:  You must successfully complete
a drug test within two business days of your receipt of this offer. Please
contact 1-800-899-2272 (toll free number) or go to www.sterlingtesting.com  to locate the Patient Service Center closest
to you.  It is recommended that you
contact the Patient Service Center directly to confirm if an appointment is
necessary, operating hours and time of last collection. You will not be
contacted as to the results of your test unless there is an issue.

 

We anticipate your start
date to be September 12, 2008.

 

If you have questions
about this information, please feel free to call me at 303-992-2811.

 

If the above terms and
conditions are acceptable to you, please sign below, complete the attached “Personal
Information Request” form and return a copy along with one copy of the signed
Severance Agreement to Jana Venus in the enclosed envelope.

 

Sincerely,

 

 

Richard N. Baer

 

3

 

I accept the above offer:

 

 

	
   

  	
   

  
	
  Joseph J. Euteneuer

  	
   

  

 

 

Distribution to be made
upon acceptance of job offer:

cc:       C.
Moodie/ Relocation

 

4Exhibit 10.2

 

SEVERANCE
AGREEMENT

 

This Severance Agreement (“Agreement”), which is
effective as of September 12, 2008 (the “Effective
Date”), is by and between Joseph J. Euteneuer (“Executive”),
who is Executive Vice President and Chief Financial Officer of Qwest
Communications International Inc., a Delaware corporation having its principal
executive offices in Denver, Colorado 
(together with Qwest Corporation, (the “Company”)):

 

WHEREAS, the Company wishes to encourage Executive’s
continued service and dedication in the performance of Executive’s duties; and

 

WHEREAS, in order to induce Executive to remain in
the employ of the Company, and in consideration for Executive’s continued
service to the Company, the Company agrees that Executive shall receive the
benefits set forth in this Agreement in the event that Executive’s employment
with the Company is terminated in the circumstances described herein.

 

Therefore, in consideration of the mutual promises
set forth below, Company and Executive hereby agree as follows:

 

1.             TERM OF EMPLOYMENT; AT-WILL
EMPLOYMENT.  This Agreement does not contain any promise
or representation concerning the duration of Executive’s employment.  Executive’s employment is at-will, and may be
altered or terminated by either Executive or the Company at any time, with or
without cause, and with or without notice. 
This at-will employment relationship may not be modified unless in a
written agreement signed by Executive and either the Chief Executive Officer or
the Chief Administrative Officer.

 

2.             CHANGE IN CONTROL

 

a.             CHANGE IN CONTROL DEFINED:  For purposes of this Agreement,
“Change in Control” shall have the definition currently in the Qwest Equity
Incentive Plan (“Stock Plan”).

 

3.             TERMINATION.

 

a.             Termination for Cause.  The Company may, in its sole discretion,
immediately terminate this Agreement and Executive’s employment for Cause by
giving notice to Executive.  If Executive’s
employment is terminated for Cause pursuant to this paragraph 3.a., Executive
shall not be entitled to any severance payment or any other post-employment
obligation provided under this Agreement. 
Any one or more of the following events shall, for purposes of this
Agreement, constitute Cause:

 

(1)           Commission
of an act deemed by the Company in its sole discretion to be an act of
dishonesty, fraud, misrepresentation or other act of moral turpitude that would
reflect negatively upon Qwest or compromise the effective performance of
Executive’s duties;

 

 

(2)           Unlawful
conduct that would reflect negatively upon Qwest or compromise the effective
performance of Executive’s duties, as determined by the Company in its sole
discretion;

 

(3)           Conviction
of (or pleading nolo contendere to) any felony or a misdemeanor involving moral
turpitude;

 

(4)           Continued
failure to substantially perform Executive’s duties to the satisfaction of the
Chief Executive Officer (other than such failure resulting from Executive’s
incapacity due to physical or mental illness) after the Chief Executive Officer
delivers written notice to Executive specifically identifying the manner in
which Executive has failed to substantially perform his or her duties and
Executive has been afforded a reasonable opportunity of at least thirty days to
substantially perform his or her duties; or

 

(5)           A
willful violation of the Qwest Code of Conduct or other Qwest policies that
would reflect negatively upon Qwest or compromise the effective performance of
Executive’s duties as determined by the Company in its sole discretion.

 

For two years following a
Change in Control, a termination for Cause shall require the approval of the
Company’s Board of Directors.

 

b.             Severance Payments When
Termination Not By Executive or By Executive With Good Reason.  The parties agree that the Company may terminate Executive’s employment
without Cause or that Executive may terminate his employment for Good Reason
(as defined below).  Except under
circumstances described in subparagraph 3.c below, if Company terminates
Executive’s employment without Cause or if Executive terminates his employment
for Good Reason, and Executive signs a complete waiver and release of claims
against Qwest in the form attached hereto as Attachment A (“Waiver”), then
Company shall pay Executive the “Standard Severance Amount” defined below.  The Waiver includes, among other terms, a
provision requiring Executive to pay back to Qwest any severance received by
Executive if after the payments are made it is determined that, while employed
by Qwest or any Qwest entity, Executive engaged in conduct constituting Cause.  The Waiver does not include a release of
Qwest’s obligations, if any, to indemnify Executive under Qwest bylaws or
applicable state law.  The Standard
Severance Amount will equal one and one-half times Executive’s highest annual
base salary in effect during the 12 months preceding the termination of
Executive’s employment.  The Standard
Severance Amount will be paid over an 18 month period through the Company’s
regular management payroll processes, commencing on the Severance Payment Date,
as defined in Section 22.d.  If, at
the end of the 18 month period, Executive 

 

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has
not breached or threatened to breach any part of this Agreement, Executive will
also receive a lump-sum payment equal to one and one-half times Executive’s
highest target annual bonus in effect during the 12 months preceding the
termination of Executive’s employment, minus any applicable or legally-required
withholdings.

 

(1)           Termination for Good Reason. 
Executive may terminate his or her employment for Good Reason after
giving written notice to the Company within 60 days after an event constituting
Good Reason; provided, however, that the Company shall have 30 days after such
notice is given to cure.

 

Good Reason shall mean:

 

(A)                          a reduction of either Executive’s base salary
or Executive’s target annual bonus, where the salary or annual target bonus are
measured immediately prior to such reduction, as opposed to at the time of
Executive’s execution of this Agreement;

 

(B)                           a reduction in Executive’s title from
Executive Vice President and Chief Financial Officer of the Company, or a
requirement that Executive report to any person other than the Chief Executive
Officer of the Company or the Company’s Board of Directors;

 

(C)                           a material reduction of Executive’s
responsibilities, where such responsibilities are measured immediately prior to
such reduction, as opposed to at the time of Executive’s execution of this
Agreement;

 

(D)                          Company’s material breach of this Agreement;

 

(E)                           Company’s failure to obtain the agreement of
any successor to honor the terms of this Agreement; or

 

(E)                           A requirement that Executive’s primary work
location be moved to a location that is greater than thirty-five straight line
miles from Executive’s primary work location immediately prior to the
imposition of such requirement.

 

“Good
Reason” shall not include any other circumstances, including but not limited
to, Executive’s discharge for Cause, Executive’s resignation or retirement
(other than in the circumstances set forth in (A) – (E) above), or
any leave of absence.

 

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c.             Change in Control Termination.  If
Company (with the required approval of the Company’s Board of Directors)
terminates Executive’s employment without Cause or Executive terminates his
employment for Good Reason within two years following a Change in Control,
then, provided Executive signs a Waiver, as described in subparagraph 3.b
above, Company shall pay Executive the Change in Control Severance Amount
defined in the following sentence:  The
Change in Control Severance Amount payable to Executive will equal (a) (i) 2.99
times Executive’s annual base salary in effect at the time of the termination
of Executive’s employment, or, if greater, Executive’s annual base salary in
effect at the time of the Change in Control, plus (ii) 2.99 times
Executive’s target annual bonus in effect at the time of the termination of
Executive’s employment, or, if greater, Executive’s target annual bonus in
effect at the time of the Change in Control. 
The Change in Control Severance amount will be paid in a lump sum on the
Severance Payment Date, as defined in Section 22.d.

 

d.             COBRA Coverage.  If
Executive’s employment is terminated pursuant to subparagraph 3.b above, Executive
may be eligible for Qwest-subsidized COBRA for a period of 18 months (unless
Executive becomes ineligible for or forfeits severance benefits pursuant to the
terms of this Agreement) following the Executive’s election of COBRA health
care continuation coverage (generally beginning as of the first day of the
first month following the month in which Executive is designated as terminated
on the Qwest payroll system) on the same basis as for active employees under
the group medical plan.  This provision shall
not extend the period for which any Executive is eligible for COBRA
continuation coverage.

 

4.             OFFSET.  To
the extent permitted by law, any severance benefits received under this
Agreement may be reduced by the amount(s) of any outstanding monetary debts
Executive owes to Qwest.  Such debts will
be treated as satisfied to the extent of the withheld payments.

 

It is the express intent of
Qwest that the monies received under this Agreement be a set-off against
amounts to which you are entitled under any applicable state unemployment
statute.

 

5.             NONDISCLOSURE. 
Executive will not disclose outside of Qwest or to any person within
Qwest who does not have a legitimate business need to know, any Confidential
Information (as defined below) during Executive’s employment with the Company
or any other Qwest entity.  Executive
will not disclose to anyone or make any use of any Confidential Information of
Qwest after Executive’s employment with Qwest ends for any reason, except as
required by law after timely notice is given by Executive to Qwest.  This agreement not to disclose or use
Confidential Information means, among other things, that Executive, for a
period of 18 months beginning on the effective date of the termination of
Executive’s employment with the Company or any other Qwest entity for any
reason, may not take or perform a job whose responsibilities would likely lead
Executive to disclose or use Confidential Information.  Executive 

 

4

 

acknowledges and agrees that the assumption and
performance of such responsibilities, in that situation, would likely result in
the disclosure or use of Confidential Information and would likely result in
irreparable injury to Qwest.  Moreover,
during Executive’s employment with Qwest, Executive shall not disclose or use
for the benefit of Qwest, Executive or any other person or entity any
confidential or trade secret information belonging to any former employer or
other person or entity to which Executive owes a duty of confidence or
nondisclosure of such information.  If a
court determines that this provision is too broad, Executive and Company agree
that the court shall modify the provision to the extent (but not more than is)
necessary to make the provision enforceable. “Confidential Information” is any
oral or written information not generally known outside of Qwest, including
without limitation, trade secrets, intellectual property, software and
documentation, customer information (including, without limitation, customer lists),
company policies, practices and codes of conduct, internal analyses, analyses
of competitive products, strategies, merger and acquisition plans, marketing
plans, corporate financial information, information related to negotiations
with third parties, information protected by Qwest’s privileges (such as the
attorney-client privilege), internal audit reports, contracts and sales
proposals, training materials, employment and personnel records, performance
evaluations, and other sensitive information. 
This agreement does not relieve Executive of any obligations Executive
has to Qwest under law. Nothing in this agreement shall limit, restrict,
preclude or influence Executive’s testimony in any way or cause Executive not
to provide truthful testimony or information in any manner or in response to
any inquiry by a governmental official.

 

6.             NONCOMPETE.  In
light of Executive’s senior level position with Qwest, an international
corporation engaged in a highly competitive business environment, for a period
of 18 months beginning on the effective date of the termination of Executive’s
employment with the Company or any other Qwest entity, regardless of the reason
for the termination and regardless of the party bringing about the termination,
Executive agrees not to, directly or indirectly, engage in any business or
activity which is in direct competition with the Company or of any of its
subsidiaries or affiliates in the telecommunications business.  The foregoing shall not limit Executive’s
right to accept employment with an investment bank or public accounting firm,
provided Executive does not work or advise on any matters regarding or
involving Company without Company’s written permission, and shall not apply to
passive investments by Executive of up to 2% of the voting stock of any
publicly traded company or 5% of the voting stock or other securities of any
privately held company, or to service by Executive on boards of directors of
companies as permitted under this Agreement, regardless of whether such company
competes with the Company. If a court or arbitrator determines that this
provision is too broad, Executive and Company agree that the court or
arbitrator should modify the provision to the extent (but not more than is)
necessary to make the provision enforceable.

 

7.             NONSOLICITATION/NO-HIRE.  For
a period of one year beginning on the effective date of the termination of
Executive’s employment with the Company or 

 

5

 

any other Qwest entity, regardless of the reason for
the termination and regardless of the party bringing about the termination,
Executive agrees not to induce any employee of Qwest to leave Qwest’s
employment.  This agreement means, among
other things, that Executive may not have any part in hiring anyone who is a
Qwest employee, even if Executive is contacted by the Qwest employee
first.  For these purposes, employees of
Qwest shall include all persons who are employed by the Company or any other
Qwest entity at the time Executive violates this paragraph 7 or were employed
by the Company or any other Qwest entity at any time during the six months
preceding such violation.  If a court
determines that this provision is too broad, Executive and Company agree that
the court should modify the provision to the extent (but not more than is)
necessary to make the provision enforceable.

 

8.             REMEDIES
FOR VIOLATION OF PARAGRAPHS  5, 6, OR 7.   The
Executive agrees that it would be difficult to measure any damages caused to
Qwest which might result from any breach by the Executive of the promises set
forth in paragraphs 5, 6, and 7, and that in any event money damages would be
an inadequate remedy for any such breach. 
Accordingly, subject to paragraph 9, the Executive agrees that if the
Executive breaches, or proposes to breach, any portion of this Agreement, Qwest
or the Company shall be entitled, in addition to all other remedies that it may
have, to an injunction or other appropriate equitable relief to restrain any
such breach without showing or proving any actual damage to Qwest.  The Company acknowledges that Executive has
disclosed the name of his spouse’s current employer to the Company and agrees
that the fact of such employment shall not, in and of itself, be treated as a
basis for finding that Executive has breached this Agreement.

 

9.             DISPUTE RESOLUTION; ARBITRATION.  Executive and the Company agree
that in the event a dispute arises concerning or relating to Executive’s
employment with the Company, or any termination therefrom, the parties first
shall attempt in good faith to resolve such dispute through mediation.  If a resolution through mediation is not
reached, then such dispute shall be submitted to binding arbitration in
accordance with the employment arbitration rules of Judicial Arbitration
and Mediation Services (“JAMS”) by a single impartial arbitrator
experienced in employment law selected as follows:  Company and Executive will attempt in good
faith to agree upon impartial arbitrator within thirty days of a request for
arbitration.  If the parties cannot
agree, they shall request a panel of ten arbitrators from JAMS and select an
arbitrator pursuant to the JAMS rules.   
The arbitration shall take place in Denver, Colorado, and both Executive
and the Company agree to submit to the jurisdiction of the arbitrator selected
in accordance with JAMS’ rules and procedures.  The Federal Arbitration Act, as amended, 9
U.S.C. § 1 et seq., (“FAA”) and not state
law, shall govern the arbitrability of all claims, provided they are
enforceable under the FAA.  Other than as
set forth herein, the arbitrator shall have no authority to add to, detract
from, change, amend, or modify existing law. 
The arbitrator shall have the authority to order such discovery as is
necessary for a fair resolution of the dispute. 
The arbitrator shall also have the authority to award any and all relief
or remedies provided under the statute or other law pursuant to which an
asserted prevailing claim or defense is raised, as if the matter were being
decided in court. The arbitrator may award punitive damages, if and 

 

6

 

only
to the extent allowed by Title VII of the Civil Rights Act of 1964, as amended;
the Civil Rights Act of 1991, as amended; the Age Discrimination in Employment
Act of 1967, as amended; and the Americans with Disabilities Act of 1990, as
amended; and the arbitrator shall be bound by any limitations on the amount of
punitive or other damages imposed by said statutes. The arbitrator has no other
authority to award punitive damages.  The
arbitrator will apply applicable statutes of limitation, including contractual
statutes of limitations, will honor claims of privilege recognized by law, and
will take reasonable steps to protect confidential or proprietary information,
including the use of protective orders. The prevailing party in any arbitration
shall be entitled to receive reasonable attorneys’ fees, only to the extent
such fees are provided by the statute or other law pursuant to which an
asserted claim or defense is raised, as if the matter were being decided in
court. The arbitrator’s decision and award shall be final and binding, as to
all Claims that were or could have been raised in the arbitration, and judgment
upon the award rendered by the arbitrator may be entered by any court having
jurisdiction thereof.  Executive will pay
the arbitrator’s fees and expenses up to $150 and Qwest will pay any arbitrator
fees and expenses in excess of such amount. Qwest will pay all of the
arbitrator’s fees and expenses if it commences the arbitration. The existence
and subject matter of all arbitration proceedings, including without
limitation, any settlements or awards there under, shall remain confidential
and be subject to the Confidentiality provision of this Agreement. Executive
and Qwest agree that if any term or portion of this Arbitration provision is,
for any reason, held to be invalid or unenforceable or to be contrary to public
policy or any law, then the invalid or unenforceable term or portion shall be
severed in its entirety from this Agreement and the remainder of this
Arbitration provision shall not be affected by any such invalidity or
unenforceability but shall remain in full force and effect, as if the invalid
or unenforceable term or portion thereof had not existed within the Arbitration
provision.  Executive understands that
Qwest would suffer irreparable harm in the event of breached confidentiality,
and such harm would not be fully compensable in monetary damages. If any party
hereto files a judicial action asserting Claims subject to this Arbitration
provision, and another party successfully stays such action and/or compels
arbitration of such Claims, the party filing the initial judicial action shall
pay the other party’s costs and expenses incurred in seeking such stay and/or
compelling arbitration, including reasonable attorneys’ fees.  THE COMPANY AND EMPLOYEE FURTHER AGREE THAT
THE DISPUTE RESOLUTION PROCEDURE AS PROVIDED IN THIS PARAGRAPH 9  SHALL BE THE EXCLUSIVE AND BINDING METHOD FOR
RESOLVING ANY SUCH DISPUTE AND WILL BE USED INSTEAD OF ANY COURT ACTION, WHICH
IS HEREBY EXPRESSLY WAIVED, EXCEPT FOR ANY REQUEST BY EITHER PARTY HERETO FOR
TEMPORARY OR PRELIMINARY INJUNCTIVE RELIEF, OR A CHARGE OF DISCRIMINATION FILED
WITH AN ADMINISTRATIVE AGENCY.

 

10.          COOPERATION AND REIMBURSEMENT.  Executive agrees, both during
Executive’s employment and following the termination of Executive’s employment,
to cooperate reasonably with the Company or any other Qwest entity in
connection with any dispute, lawsuit, arbitration, or any internal or external
investigation 

 

7

 

involving Qwest or any of their predecessors (a “Proceeding”)
with respect to which Qwest believes in good faith that Executive may possess
relevant information.  In that event,
upon reasonable notice and at reasonable times, and for reasonable periods,
Executive agrees to make himself or herself available for interviews, witness
preparation sessions, and appearances in connection with any Proceeding (including,
but not limited to, appearances at depositions, hearings and trials).
Recognizing that upon Executive’s separation from Company, participating in
interviews or witness preparation sessions may be a burden, Company agrees to
reimburse Executive for the time Executive spends involved in interviews and
witness preparation sessions requested by Qwest at a rate equal to Executive’s
final base salary, computed on an hourly basis (assuming a 40 hour work week),
for such time actually spent in such interviews or witness preparation
sessions.  In addition, Company will
reimburse Executive for reasonable expenses Executive incurs in connection with
such interviews and witness preparation sessions.  Company will not be obligated to reimburse
Executive for lost wages, lost opportunities, or other financial consequences
of such cooperation, or to make any other payment to Executive other than the
payments by Company referred to in the two previous sentences of this paragraph
of this Agreement; provided, however, nothing in this paragraph 10 shall impair
or limit any rights or entitlement Executive may have to indemnification,
advancement and director’s and officer’s liability insurance coverage.  The parties further agree that Company will
not, and will not be obligated to, reimburse Executive for any time spent
testifying in any Proceeding (including, but not limited to, appearances at
depositions, hearings and trials), although Company will reimburse reasonable
expenses for such appearances, as provided above.  Nothing in this Agreement shall limit,
restrict, preclude, require or influence Executive’s testimony in any
Proceeding or cause Executive not to provide truthful testimony or information
in any matter or in response to any inquiry by a government official or
representative.  Company’s obligation to
reimburse Executive as described above is conditional upon Executive providing,
at all times, information that he objectively, reasonably and in good faith
believes to be truthful in connection with any Proceeding.  The Company shall also pay the reasonable
expenses of an attorney Executive engages to advise him in connection with the
foregoing, but only if there is a conflict of interest that would prevent the
Company’ own outside or inside legal counsel from adequately representing
Executive’s interest as well as the Company’s interests and with the Company’s
prior approval.

 

11.          INDEMNIFICATION.  Both during Executive’s employment and after
the termination of Executive’s employment for any reason, Company, or any
subsidiary or successor of Company of which Executive is an officer or member
of the board of directors, shall indemnify Executive and the Company shall
advance Executive’s related expenses when and as incurred, including but not
limited to attorney fees to the fullest extent required or permitted by the
current Bylaws and applicable law. 
During his employment by the Company and thereafter so long as the
Executive may have liability arising out of his obligations as an officer of
the Company, the Company agrees to continue and maintain a director’s and
officer’ liability insurance policy 

 

8

 

covering the Executive with coverage no less than
that available to active officers of the Company.

 

12.          SUCCESSORS AND ASSIGNS.  This Agreement is intended to bind and inure
to the benefit of and be enforceable by Executive, Executive’s assigns, the
Company, any other Qwest entity, and their successors and assigns.

 

13.          CHOICE OF LAW.  All questions concerning the construction,
validity and interpretation of this Agreement shall be governed by the internal
law, and not the law of conflicts, of the State of Colorado.

 

14.          SEVERABILITY.  If one or more terms, provisions or parts of
this Agreement are found by a court or arbitrator to be invalid, illegal, or
incapable of being enforced by any rule of law or public policy, the
terms, provisions or parts shall be modified to the extent (but not more than
is) necessary to make the provision enforceable.  Additionally, all other terms, provisions and
parts of this Agreement shall nevertheless remain in full force and effect.

 

15.          COMPLETE AGREEMENT.  This Agreement and the Offer Letter
(Attachment B)  in conjunction with which
this Agreement is being entered into (collectively, for purposes of this
Paragraph 15, the “Agreement”) contains the entire understanding of the parties
with respect to the matters addressed in this Agreement, and supersedes all
prior representations, understandings and agreements of the parties with
respect to the matters addressed in this Agreement, including, but not limited
to, any and all prior agreements for the payment of severance benefits.  The parties acknowledge that no promises or
representations have been made to induce Company or Executive to sign this
Agreement other than as expressly set forth in this Agreement, and that each
party has signed this Agreement as a free and voluntary act.  No term or provision of this Agreement may be
modified or extinguished, in whole or in part, except by a writing which is
dated and signed by both Executive and the Chief Executive Officer or Chief
Administrative Officer of Company and approved by the Company’s Board of
Directors.

 

16.          CONSTRUCTION; REPRESENTATION.  In any interpretation of this
Agreement, any ambiguities shall not be construed against any party on the
basis that the party was the drafter. 
Executive represents that Executive is knowledgeable and sophisticated
as to business matters, including the subject matter of this Agreement, that he
has read this Agreement and that he understands its terms.  Executive acknowledges that, prior to
assenting to the terms of this Agreement, Executive has been encouraged to, and
has been given a reasonable amount of time to review it, to consult with
counsel of Executive’s choice, and to negotiate at arm’s-length with the
Company as to its contents.  Executive
and Company agree that the language used in this Agreement is the language
chosen by the parties to express their mutual intent, and that they have
entered into this Agreement freely and voluntarily and without pressure or
coercion from anyone.

 

9

 

17.          CONDITIONAL REPAYMENT OF PAYMENTS
AND BENEFITS.  If Executive receives benefits
under Paragraph 3.b above, and, within two years following Executive’s
termination of employment, Company determines that during Executive’s
employment with Qwest, Executive engaged in conduct that would have constituted
“Cause” for termination (as defined in 3.a above), regardless of (i) when
during Executive’s employment with Qwest such conduct occurred, (ii) when
Qwest knew or learns of such conduct or should have known of such conduct, or (iii) what
Qwest now knows or should have known about Executive’s conduct, then Company shall provide to Executive (or, if
applicable, Executive’s estate or beneficiary) written notification of such
determination, which written notification shall expressly set forth the basis
for Company’s determination in reasonable detail.  After Company provides this written
notification to Executive, it may stop or withhold any payments which have not
been made under this Agreement.  If
Executive disputes that such Cause exists or existed, Executive and his or her
counsel shall make a presentation to the Company to request that Company
withdraw such determination.  If the
matter is not settled or resolved after Executive’s presentation to the
Company, either party may commence an arbitration pursuant to the procedure set
forth in Paragraph 9.   In addition, if
Executive breaches Executive’s obligations under the Nondisclosure or
Noncompete provisions of this Agreement, Company may stop or withhold any
payments which have not been made under this Agreement.

 

If a court finds that Cause exists or existed or that
Executive has breached Executive’s obligations under the Nondisclosure
(Paragraph 5) or Noncompete (Paragraph 6) provisions of this Agreement, or if
Executive does not timely commence an arbitration  disputing Company’s Cause determination,
Executive shall make prompt repayment to Company of the cash payments provided
in Paragraph 3.b of this Agreement and other benefits received by Executive
pursuant to this Agreement (including, but not limited to, the value of any
discounted COBRA coverage).
 Consistent with applicable law, any repayments
shall include an interest factor equal to the applicable federal short term
interest rate pursuant to Internal Revenue Code section 1274.  Interest shall begin to accrue on the 31st
day after Executive (or, if applicable, Executive’s estate or beneficiary)
received Company’s written notification of its determination that such Cause
exists or existed, and shall continue to accrue until complete repayment is
made to Company.  If Company
notifies Executive (or, if applicable, Executive’s estate or beneficiary) in writing of the
determination that Cause for termination exists prior to having made the
payment required pursuant to Paragraph 3.b of this Agreement, such payment
shall not be made unless the Company withdraws its determination, if the
arbitrator determines that Cause did not exist, or if the parties agree
otherwise.

 

18.          RE-EMPLOYMENT.  Executive agrees that if at any time during
Executive’s severance period Executive accepts employment with Qwest
Communications International Inc., Qwest Corporation, any of their wholly-owned
subsidiaries or any successor(s) thereto, all severance benefits to which
he or she is 

 

10

 

entitled for the remainder of the severance period
shall cease effective the date Executive accepts the position.

 

19.          WAIVER OF BREACH.  The waiver by either Company or Executive of
a breach of any provision of this Agreement shall not operate or be construed
as a waiver of any prior or subsequent breach by either party.

 

20.          HEADINGS.  The headings contained in this Agreement are
for convenience only, do not constitute part of the Agreement and shall not
limit, be used to interpret or otherwise affect in any way the provisions of
the Agreement.

 

21.          NOTICES.  Any notices provided hereunder must be in
writing and shall be deemed effective on the earlier of personal delivery
(including personal delivery by telecopy or private overnight carrier) or the
third day after mailing by first class mail to the recipient at the address
indicated below:

 

	
  To the Company:

  	
   

  	
  Executive Vice President,
  General Counsel and

  
	
   

  	
   

  	
  Chief Administrative
  Officer

  Qwest Communications International Inc.

  1801 California Street

  Denver, CO 80202

  
	
   

  	
   

  	
   

  
	
  To Executive:

  	
   

  	
  Joseph J. Euteneuer

  
	
   

  	
   

  	
  At
  the address on file with the Company

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Stephen T. Lindo

  
	
   

  	
   

  	
  Willkie Farr &
  Gallagher LLP

  
	
   

  	
   

  	
  787 Seventh Avenue

  
	
   

  	
   

  	
  New York, NY 10019

  

 

 

or to such other address or
to the attention of such other person as the recipient party shall have
specified by prior written notice to the sending party.

 

22.          COMPLIANCE
WITH SECTION 409A OF THE INTERNAL REVENUE CODE.  Notwithstanding
any other provision of this Agreement, in the event that any payment or the
provision of any benefit provided under this Agreement is treated as “deferred
compensation” within the meaning of Section 409A of the Code and any
related guidance or regulations (“Section 409A”), after application of all available exceptions
and exclusions from such treatment, (collectively “Section 409A Deferred Compensation”), the following
provisions shall apply:

 

a.             Separation
from Service.  In any case where
Executive’s employment with the Company has terminated but Executive continues
to provide services of any nature following such termination, whether as an
employee or independent contractor to the Company, or to any of the Company’s
subsidiaries or affiliates, the payment (or commencement of a series of 

 

11

 

payments) under the Agreement of any Section 409A Deferred
Compensation otherwise required to be paid upon a termination of employment
shall instead be delayed until such time as the circumstances of such
termination are also treated as a “separation from service” under Section 409A
(“Separation from Service”).  All such
deferred compensation shall instead be paid (or commence to be paid) to
Executive on the schedule set forth in Agreement, as if Executive had undergone
such termination of employment on the date of his ultimate Separation from Service.

 

b.             Six
Month Delay.  If Executive is a
“specified employee” within the meaning of Section 409A, then the payment or
provision of Section 409A Deferred Compensation shall be made as set forth
below; provided, however, no such payment or provision shall be made before the
date that is six months after Executive’s Separation from Service (or, if
earlier, the date of Executive’s death) (the “6-Month Delay”).  The determination of whether Executive is a
“specified employee” shall be made by the Company in accordance with Section
409A.

 

(1)           Payment
of Cash Benefits.  Any cash payment
hereunder to Executive, including, but not limited to the Standard Severance
Amount, shall be paid according to the following provisions:

 

(A)          the
Standard Severance Amount shall be paid out as follows:

 

(i)            a
lump sum payment equal to one-third of the Standard Severance Amount will be paid within
15 business days following the 6-Month
Delay;

 

(ii)           the
remainder of the Standard Severance Amount will be paid, in equal installments in accordance
with the Company’s regular management
payroll processes for 12 months beginning as soon as administratively feasible
after the payment under paragraph 22(b)(1)(A)(i) is made; and

 

(iii)          if,
at the end of the 18-month period following Separation
from Service, Executive has not breached or
threatened to breach any part of this Agreement, Executive also will receive a
lump-sum payment equal to one and one half times Executive’s highest annual
target bonus in effect during the 12 months preceding the termination of
Executive’s employment, minus any applicable or legally-required withholdings, and such payment
will be paid within 15 business days following the end of the 18-month period
following Executive’s Separation from Service.

 

(B)           Any other provision
of cash benefits that are subject to and
not covered by applicable exceptions to Section 409A and
that are payable before the 6-Month Delay shall be paid as follows:

 

(i)            a
lump sum payment equal to one-third of the total cash benefit will be within 15
business days following the 6-Month Delay; and

 

12

 

(ii)           the
remainder of the total cash benefit will be paid, in equal installments in
accordance with the Company’s regular management payroll processes for 12
months beginning as soon as administratively feasible after the payment under
paragraph 22(b)(1)(B)(i) is made.

 

(2)           Payment of Noncash Benefits.  The payment for any noncash benefits that
constitute Section 409A Deferred Compensation, including, but not limited to,
any applicable premium payments related to such noncash benefits, shall be made
by Executive during the 6-Month Delay, and Executive shall be reimbursed by the
Company for such payments as soon as administratively practicable following the
expiration of the 6-Month Delay.   The
Company shall provide timely notice to Executive of all required payments and
rights of election, in accordance with applicable law and the terms of
applicable plan documents, but the Executive shall be solely liable for all
timely payments and elections as may be necessary to retain such noncash
benefits, and the Company shall not be liable to Executive, any dependent
and/or qualified beneficiary for any loss of any kind, including the loss of
noncash benefits relating to Executive’s failure to timely make any payments or
elections as required under the applicable benefit plan or this paragraph
22.  By signing this Agreement, Executive
acknowledges this provision and the ramifications, including the potential loss
of benefits, of the failure to comply with this provision.

 

c.             Modification.  The payment or provision of benefits under
any other arrangement under this Agreement that is subject to Section 409A may
be modified or amended in order to comply with Section 409A.

 

d.             Waiver.  To the extent any payments due under the
Agreement as a result of Executive’s Separation from Service are subject to
Executive’s execution and delivery of a Waiver, in the absence of a bona
fide dispute regarding the amounts owed, (1) the payments shall commence
on the Severance Payment Date, (2) if Executive fails to execute
such Waiver on or prior to the Severance Payment Date or timely
revokes such Waiver thereafter, Executive shall not be entitled to
any payments or benefits otherwise subject to the Waiver, and (3) in
any case where the Separation from Service date and the Severance
Payment Date fall in two separate taxable years, any payments required to be
made to Executive that are subject to the Waiver and are treated as
nonqualified deferred compensation for purposes of Section 409A shall be
made in the later taxable year.  The
term “Severance Payment Date” shall mean the date that is 45 days after
the Executive’s Separation from Service.

 

e.             Section 409A Compliance.  All provisions of this Agreement are meant to
be exempt from compliance with Section 409A, to the maximum extent permitted,
and otherwise to comply with Section 409A. 
Accordingly, all provisions of this Agreement shall be construed in a
manner consistent with avoiding taxes or penalties under Section 409A.  Notwithstanding the foregoing, 

 

13

 

the Company does not guarantee any particular tax treatment and the
Company shall have no liability with regard to any failure to comply with Section 409A.

 

23.  NO MITIGATION OF DAMAGES. Executive shall not be required to mitigate
damages or the amount of any payment provided for under this Agreement by
seeking other employment or otherwise, nor shall the amount of any payment
provided for under this Agreement be reduced by any compensation earned by
Executive as a result of employment by another employer or by retirement
benefits after the Date of Termination.   
The provisions of this Agreement, and any payment provided for
hereunder, shall not reduce any amounts otherwise payable, or in any way
diminish Executive’s then existing rights, or rights which would accrue solely
as a result of the passage of time, under any Company benefit plan or other
contract, plan or arrangement.

 

IN WITNESS WHEREOF, the parties now execute this
Agreement, to be effective as of the Effective Date.

 

	
   

  	
  QWEST COMMUNICATIONS

  INTERNATIONAL INC.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Richard N. Baer

  
	
   

  	
   

  	
  Executive Vice President, General 

  Counsel and

  
	
   

  	
   

  	
  Chief Administrative Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Joseph J. Euteneuer

  

 

14

 

ATTACHMENT A

 

WAIVER AND RELEASE AGREEMENT

 

1.                                       Release and Waiver of Claims and
Covenant Not to Sue.

 

As
a free and voluntary act, you hereby release and discharge and covenant not to
sue, Qwest Communications International Inc., any present or former subsidiary
or affiliated Company, any predecessor (including U S WEST and all its
affiliates) or successor, and the directors, officers, employees, shareholders
and agents of any or all of them, (hereinafter “Qwest”), from any and all
debts, obligations, claims, liability, damages, punitive damages, demands,
judgments and/or causes of action of any kind whatsoever, including
specifically but not exclusively:

 

·              all
claims relating to or arising out of your employment with Qwest and/or U S
WEST;

 

·              all claims arising out of your
Severance Agreement (except for claims arising under this Agreement);

 

·              all claims relating to or arising
from any claimed breach of an alleged oral or written employment contract,
quasi-contracts, implied contracts, payment for services, wages or salary
and/or promissory estoppel;

 

·              any alleged tort claims;

 

·              any claims for libel and/or
slander;

 

·              all claims relating to purported
employment discrimination or civil rights violations or arising under any
federal or state employment statutes including, without limitation, claims
under Title VII of the Civil Rights Act of 1964, as amended; claims under the
Civil Rights Act of 1991; claims under the Age Discrimination in Employment Act
of 1967, as amended; claims under 42 U.S.C. § 1981, § 1981a, § 1983, § 1985, or
§ 1988; claims under the Family and Medical Leave Act of 1993; claims under the
Americans with Disabilities Act of 1990, as amended; claims under the
Rehabilitation Act of 1973; claims under the Fair Labor Standards Act of 1938,
as amended; claims under the Worker Adjustment and Retraining Notification Act;
claims under the Colorado Anti-Discrimination Act; and claims under the Employee
Retirement Income Security Act of 1974, as amended; or any other applicable
federal, state or local statute or ordinance, including claims for attorneys’
fees;

 

15

 

·              any claim for any disability
payments under the Qwest Disability Plan or Qwest Pension Plan after your
termination date.  The reference to the
Qwest Disability Plan and Qwest Pension Plan includes any successor or predecessor
of such plans such as the former Sickness and Accident Disability Plan or Long
Term Disability Plan of any Qwest or U S WEST entity and all benefits
thereunder;

 

·              any and all claims which you might
have or assert against Qwest (1) by reason of your employment with and/or
termination of employment from Qwest and all circumstances related thereto; or (2) by
reason of any other matter, cause, or dispute 
whatsoever between you and Qwest which arose prior to the effective date
of this Agreement.  This Agreement
excludes any claims you may make under (1) the applicable state
unemployment compensation laws, (2) applicable workers’ compensation
statutes, (3) for indemnification or advancement to the extent permitted
or required by the bylaws of a Qwest company, your Severance Agreement or applicable
state law; (4) claims as a shareholder of Qwest; (5) the right to
enforce the severance and benefit continuation provisions of your Severance
Agreement and any other provision of your Severance Agreement that by its terms
extends beyond your termination of employment; (6) claims for vested
employee benefits; and (7) claims which arise after the execution of this
Waiver and Release Agreement;

 

·              your right to seek individual
relief on your own behalf for any charges of discrimination filed with any
federal, state or local agency, pending or otherwise, arising from or related
to your employment or termination of employment with Qwest.

 

2.                                       Dispute Resolution; Arbitration.

 

By
signing this Waiver and Release Agreement, you voluntarily, knowingly and
intelligently reaffirm your agreement to paragraph 9 (Dispute Resolution;
Arbitration of your Severance Agreement.

 

3.                                       You agree that
the monies and benefits described above are considerations to which you would
not otherwise be entitled unless you sign this Agreement, and that these
considerations constitute payment in exchange for signing this Agreement.

 

4.                                       If one or more
terms, provisions or parts of this Agreement are found by a court or arbitrator
to be invalid, illegal, or incapable of being enforced by any rule of law
or public policy, the terms, provisions or parts shall be modified to the
extent (but not more than is) necessary to make the provision enforceable.  You agree that if any portion of this
Agreement is found to be unenforceable or prohibited, the remainder of this
Agreement shall remain in full force and effect, unless the 

 

16

 

material
terms and intent of this Agreement are materially changed by the fact that a
portion of this Agreement is unenforceable or prohibited.  .

 

5.                                       You agree that this Agreement shall not be
admissible in any proceeding as evidence of any improper conduct by Qwest
against you and Qwest denies that it has taken any improper action against you
in violation of any federal, state, or local law or common law principle.

 

6.                                       You acknowledge that no promises or
representations have been made to induce you to sign this Agreement other than
as expressly set forth herein and that you have signed this Agreement as a free
and voluntary act.

 

7.                                       You acknowledge that this release means, in
part, that you give up all your rights to damages and/or money based upon any
claims against Qwest of age discrimination. 
You do not waive your rights to make claims for damages and/or money
which arise after the date this Agreement is signed.  Under the Age Discrimination in Employment
Act, you have the right within seven days of the date you sign this Agreement
to revoke your waiver of rights to claim damages and/or money.  In the event you revoke your agreement to be
obligated to the terms of this Agreement, the benefits offered herein shall be
null and void, meaning you will receive no involuntary termination benefits
under your Severance Agreement.  To be
effective, your revocation must be in writing and delivered to Executive Vice
President, General Counsel and Chief Administrative Officer, Qwest Communications
International, Inc. 1801 California Street, Denver, Colorado 80202, within
the seven-day period.  If by mail, the
revocation must be (1) postmarked within the seven-day period, (2) properly
addressed, and (3) sent by certified mail, return receipt requested.

 

8.                                       You acknowledge that you (a) have had
sufficient opportunity (not less than 45 days) to review this Waiver and
Release Agreement, (b) have been encouraged to consult with and have had
sufficient opportunity to consult with your attorney and financial advisor
before signing this Waiver and Release Agreement, and (c) that you
understand and agree to all of the terms of this Waiver and Release Agreement.

 

17

 

AGREEMENT

 

I have read and I understand
the terms of the foregoing Waiver and Release, and I hereby agree to all of the
terms of the foregoing Agreement.

 

	
   

  	
   

  	
   

  	
   

  
	
  Executive’s
  Signature

  	
   

  	
  (Date)

  

 

Please
return all pages of this signed agreement to:

 

Executive
Compensation

1801
California Street

45th
Floor

Denver,
Colorado  80202

 

18

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