Document:

Unassociated Document

    Exhibit
      10.2

     

    
 

    REVERSE
      TRANSITION SERVICES AGREEMENT

    

      This
        Reverse Transition Services
        Agreement (this “Agreement”), dated as of July 17, 2006 (the “Signing Date”), is
        entered between ALLTEL Corporation, a Delaware corporation, on behalf of
        itself
        and its affiliates (“AT Co.”), and Alltel Holding Corp., a Delaware corporation
        and wholly-owned subsidiary of AT Co., on behalf of itself and its affiliates
        (“Spinco”).

    

    R
      E C I T A L S

    

    WHEREAS,
      AT Co. and Spinco are parties to that certain Distribution Agreement dated
      December 8, 2005, as amended (the “Distribution Agreement”; capitalized terms
      used herein but not defined herein shall have the meanings set forth in the
      Distribution Agreement), pursuant to which, among other things, AT Co. will
      distribute to its stockholders all of the outstanding shares of common stock
      of
      Spinco (the “Distribution”); and 

    

    WHEREAS,
      in connection with the Distribution, the parties desire that Spinco and its
      Affiliates provide certain services to AT Co. and its Affiliates on the terms
      and conditions set forth herein.

    

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

    

    ARTICLE
      1

    TRANSITION
      SERVICES

    

    1.1 Transition
      Services.
      This
      Agreement sets forth the terms and conditions for the provision by Spinco to
      AT
      Co. of
      various transition services described herein and in the service attachment
      (the
“Service Attachment”) attached hereto as Exhibit
      A
      and any
      statement of work (an “SOW”) to be added hereto and numbered appropriately
      (collectively, the “Transition Services”), pursuant to the terms hereof.

     

    1.2 Provision
      of Transition Services.
      Commencing on the date hereof and continuing through the Term (as defined in
      Article 2 of this Agreement), Spinco
      will
      provide the Transition Services to AT
      Co.,
      unless
      (a) otherwise indicated on the Service Attachment, (b) automatically modified
      by
      termination of a Transition Service by AT
      Co.
      in
      accordance with the terms and conditions hereof, (c) otherwise mutually agreed
      to by the parties in writing, or (d) this Agreement is terminated in accordance
      with the terms and conditions hereof.

    

      1.3 Purchase
        of Additional or Modified Transition Services.From
        time to time, AT Co. may request that Spinco provide additional or modified
        services that relate to the transition of ownership and operation of the
        AT Co.
        Business but are not described in the Service Attachment. Spinco will use,
        and
        will cause each of its Affiliates to use, its reasonable best efforts to
        accommodate any reasonable requests by AT Co. to provide additional or modified
        services relating to the transition of ownership and operations of the AT
        Co.
        Business. In order to initiate a request for such additional or modified
        services, AT Co. shall submit a written request to Spinco specifying the
        nature
        of the requested additional or modified services and 

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      requesting
        an estimate of the Transition Services Costs (as defined in Section 3.1)
        applicable to such additional or modified services. Spinco shall respond
        to such
        request within 10 Business Days following Spinco’s receipt of such request;
        provided that, subject to the second sentence of Section 1.3, such 10 Business
        Day period shall be subject to a reasonable extension if, due to the volume,
        frequency or type of requests submitted by AT Co., Spinco’s preparation of
        responses to such requests is materially interfering with, or is likely to
        materially interfere with, Spinco’s normal business activities. If Spinco can,
        subject to the second sentence of this Section 1.3, accommodate AT Co.’s request
        to provide such additional or modified services, and if AT Co. accepts the
        terms
        and conditions set forth in Spinco’s response to such request, then such
        additional or modified services shall be provided hereunder subject to the
        terms
        and conditions of Spinco’s response and such other terms and conditions as may
        be agreed to by the parties in a written amendment to this Agreement. If
        Spinco
        agrees to any modification to the physical facilities that is requested by
        AT
        Co. in accordance with the terms and conditions of this Section, such
        modification shall be done solely at AT Co.’s cost and expense and shall be
        coordinated by the parties to minimize interference with Spinco’s normal
        business activities. No representative of AT Co. shall have authority to
        make
        decisions with respect to Spinco and its responsibilities under this Agreement;
        and no representative of Spinco shall have authority to make decisions with
        respect to AT Co. and its responsibilities under this
        Agreement.

    

    1.4 Appointment
      of Transition Teams.
      Each
      party shall designate one or more persons who have practical knowledge and
      experience in each area of Spinco’s
      operations that relate to the Transition Services and are authorized to make
      decisions with respect to the Transition Services (each a “Transition Team”).
      Without limiting the generality of the foregoing, and subject to the foregoing
      proviso each Transition Team will include persons from such party and its
      Affiliates whose experience includes the following areas: (a) information
      technology systems, (b) billing, (c) human resources, (d) customer service,
      (e)
      accounting and finance, (f) engineering and network, (g) sales and marketing,
      (h) operations, (i) real estate, (j) branding, and (k) capital asset management.
      Each party shall designate a member of its Transition Team as the leader of
      its
      Transition Team (each a “Team Leader”). Each Team Leader shall coordinate the
      assignment of persons to its Transition Team and shall assess and monitor the
      performance of the Transition Services. Prior to the initial joint meeting
      described in Section 1.5 of this Agreement, each party shall submit to the
      other
      party a written list identifying its initial Team Leader and the initial members
      of its Transition Team including each person’s title, areas of expertise and
      relevant telephone, fax and email information. If a Transition Team member
      or
      Team Leader shall be unavailable to work on the Transition Services for more
      than five (5) Business Days, then he or she shall appoint a temporary or
      permanent replacement.

    

    1.5 Transition
      Team Meetings.
      Within
      30 Business Days after the Signing Date, the appropriate representatives of
      the
      Transition Teams shall conduct an initial joint meeting for the purpose of
      defining roles, responsibilities, scope and timelines related to the Transition
      Services. Thereafter, the Transition Teams shall convene meetings on a mutually
      agreed upon periodic basis as required. It is the expectation of the parties
      that the Transition Team members shall communicate directly with one another
      and
      work directly with one another to ensure that all Transition Services are
      completed on a timely and complete basis; provided that, except for Spinco’s
      Team
      Leader, the members of Spinco’s
      Transition Team shall not have the legal authority to make or to modify any
      obligation or to waive any right on behalf of Spinco
      The

     

     

    
      
        
        

      

      
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    Team
      Leaders shall meet, at least weekly, or on such other mutually agreed upon
      periodic basis as required, to discuss the status of the Transition Services,
      as
      well as to answer questions, gather information and resolve disputes that may
      occur from time-to-time. All meetings pursuant to this Section 1.5 may be
      face-to-face, video or telephonic meetings as may be agreed upon by the parties.
      Each party shall bear its own costs of attending or participating in Transition
      Team meetings.

    

    1.6 Oversee
      Completion of Transition Services.
      The
      Transition Teams will be accountable for overseeing the completion of the
      Transition Services in accordance with the terms and conditions hereof. Unless
      otherwise provided in the Service Attachment, the parties will use their
      reasonable best efforts to respond to requests for information within 5 Business
      Days after receipt of each such request. 

    

      1.7 Availability
        of Subject Matter Experts. From time to time, AT Co. may request that
        Spinco make available to AT Co. a resource of Spinco that has expertise in
        the
        subject matter (which must be directly related to the systems and procedures
        utilized by Spinco and its Affiliates in connection with the AT Co. Business)
        specified by AT Co. in such request. Within 5 Business Days after receipt
        by
        Spinco of a reasonable request by AT Co. that a specified subject matter
        expert
        be made available, Spinco shall make, and shall cause its Affiliates to make,
        such subject matter experts (including, without limitation, technical and
        operational personnel) available to AT Co.’s Transition Team or other subject
        matter experts during Spinco’s normal business hours. For purposes of
        determining the reasonableness of any such request by AT Co., Spinco shall
        consider the specified subject matter expert’s other duties and then-current
        schedule as well as the availability of other individuals with the same skills
        as the specified subject matter expert.

     

    1.8 Equipment
      and Software.
      Spinco
      shall
      keep the equipment and software used to provide the Transition Services in
      working order with sufficient capacity to perform the Transition Services
      concurrent with the equipment’s and software’s other use for Spinco,
      if any;
      provided, however, if Spinco
      is
      required to increase the capacity of its equipment or software (for example,
      because previously shared hardware capacity must be duplicated) to perform
      the
      Transition Services, then Spinco
      shall
      obtain AT
      Co.’s
      prior
      written approval of any additional cost or expense that Spinco
      expects
      to incur in connection with such increase in capacity, and AT
      Co.
      shall
      pay any such additional cost or expense incurred by Spinco
      to
      provide such increased capacity to the extent so approved by AT
      Co.

    

    1.9 General
      Cooperation.
      Subject
      to the terms and conditions set forth in this Agreement, Spinco
      and
AT
      Co.
      shall
      each use reasonable best efforts to provide information and documentation
      sufficient for each party to perform the Transition Services as they were
      performed before the date of this Agreement, and make available, as reasonably
      requested by the other party, sufficient resources and timely decisions,
      approvals and acceptances in order that each party may accomplish its
      obligations under this Agreement in a timely and efficient manner.

    

    1.10 Modifications.
      Unless
      otherwise provided for in this Agreement, if AT Co. makes any change in the
      processes, procedures, practices, networks, equipment, configurations,

     

     

    
      
        
        

      

      
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    or
      systems pertaining to the AT Co. Business, and such change has an adverse impact
      on Spinco’s ability to provide any of the Transition Services, then Spinco shall
      be excused from performance of any such affected Transition Services until
      AT
      Co. mitigates the adverse impact of such change, and AT Co. shall be responsible
      for all direct expenses incurred by Spinco in connection with the cessation
      and,
      if applicable, the resumption of the affected Transition Services.

    

    ARTICLE
      2

    TERM 

    

    Unless
      terminated earlier in accordance with Article 8 of this Agreement, the term
      of
      this Agreement shall expire on the one-year anniversary of the Signing Date
      (the
“Term”), except AT
      Co.
      shall have the right to extend the Term for an additional 30 days by providing
      written notice to Spinco
      at least
      60 days prior to the expiration of the Term indicating AT
      Co.’s
      election to extend the Term. . The parties may agree in any SOW to a longer
      period of time for performance of Services, and in that event the Term shall
      be
      extended for such time but only with respect to such SOW. AT Co. may extend
      the
      period of time for which a particular Service will be required by an additional
      30 days if AT Co. delivers written notice of such election to Spinco no later
      than 30 days prior to the scheduled expiration date of such Service, provided
      that no such election shall extend the period of performance of such Service
      beyond the expiration of the Term and AT Co. may exercise this extension right
      only once as to any particular Service. 

    

    ARTICLE
      3

    COMPENSATION
      AND PAYMENT ARRANGEMENTS FOR TRANSITION SERVICES

    

    3.1 Compensation
      for Transition Services.
      Subject
      to the terms and conditions of this Agreement, the total compensation payable
      by
AT
      Co.
      to
Spinco
      for each
      and every Transition Service provided pursuant to the Service Attachment shall
      be set forth in the Services Attachment (the “Transition Services Costs”).

    

    3.2 Payment
      Terms.
      Within
      30 days after the end of each calendar month during the Term, or extension
      thereof, Spinco
      shall
      bill AT
      Co.
      in
      arrears for the Transition Services Costs that apply to the Transition Services
      performed by Spinco
      Each of
Spinco’s
      invoices shall describe in reasonable detail the Transition Services upon which
      the applicable Transition Services Costs are based. Within 30 days after
AT
      Co.’s
      receipt of each of Spinco’s
      invoices, AT
      Co.
      shall
      pay Spinco
      the
      amount of such invoice. If such payment is not received by Spinco
      within
      such 30-day period, AT
      Co.
      shall
      also pay Spinco
      interest
      from and after the last date of the calendar month in respect of such invoice,
      but excluding the date of payment by AT
      Co.,
      at a rate per annum equal to the Prime Rate on the last day of the calendar
      month in respect of such invoice. If AT
      Co.
      disputes
      in good faith any portion of the amount due on any invoice, AT
      Co.
      shall
      notify Spinco
      in
      writing of the nature and basis of the dispute within 10 Business Days after
      AT
      Co.’s
      receipt of such invoice. Otherwise the invoiced amount shall be deemed to be
      accurate and correct and shall not be subject to dispute or contest by
AT
      Co. or
      any Affiliate thereof. The parties shall use their reasonable best efforts
      to
      resolve the dispute prior to the payment due date. Spinco
      shall
      reimburse AT
      Co.
      within 30 days following, as applicable (a) agreement by the

     

     

    
      
        
        

      

      
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    parties
      of any excess payment made by AT
      Co. in
      respect of Transition Services, or (b) resolution of any disputed amounts paid
      in excess of the amount of Transition Services Costs, in either case, with
      interest from and after the date payment was made by AT
      Co.
      through,
      but excluding, the date of reimbursement by Spinco,
      at the
      rate per annum equal to the Prime Rate on the date payment was made by
AT
      Co.

    

    3.3 Taxes. All
      charges and fees to be paid by AT Co. under this Agreement are exclusive of
      any
      applicable withholding, sales, use, value added, excise, services or other
      United States or foreign tax which may be assessed on the provision of the
      Transition Services. In the event that a withholding, sales, use, value added,
      excise, value added services or other United States or foreign tax is assessed
      on the provision of any of the Transition Services provided to AT Co. under
      this
      Agreement, AT Co. will pay directly, reimburse or indemnify Spinco for such
      taxes, as well as any applicable interest and penalties. The parties will
      cooperate with each other in determining the extent to which any tax is due
      and
      owing under the circumstances, and shall provide and make available to each
      other any resale certificates, information regarding out-of-state or country
      use
      of materials, services or sale, and other exemption certificates or information
      reasonably requested by either party. This section shall have no application
      to
      any tax based upon the income of Spinco.

    

    

    ARTICLE
      4

    RELATIONSHIP
      TO OTHER DOCUMENTS

    

      4.1 Controlling
        Provisions. If
        there is any conflict or inconsistency between the terms and conditions set
        forth in the main body of this Agreement and any of the Exhibits to this
        Agreement, the provisions of the Exhibits shall control with respect to the
        rights and obligations of the parties regarding the Transition Services.
        If
        there is any conflict or inconsistency between the terms and conditions of
        this
        Agreement and the Distribution Agreement, the provisions of this Agreement
        shall
        control solely with respect to the rights and obligations of the parties
        regarding the Transition Services.

       

    ARTICLE
      5

    DISPUTE
      RESOLUTION

    

    5.1 Dispute
      Resolution Procedures.
      If a
      dispute arises between the parties with respect to the terms and conditions
      of
      this Agreement, or any subject matter governed by this Agreement (excluding
      disputes regarding a party’s compliance with the applicable confidentiality
      provisions or in the case of suit to compel compliance with this dispute
      resolution process or with the provisions of this Article) (a “Dispute”) the
      parties agree to use and follow this dispute resolution procedure before
      initiating any judicial action. At such time as the Dispute is resolved under
      this Article, interest (at the Prime Rate) shall be paid to the party receiving
      any disputed monies to compensate for the lapsed time between the date such
      disputed amount originally was paid or should have been paid through the date
      monies are paid in settlement of the Dispute.

     

     

    
      
        
        

      

      
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    5.2 Claims
      Procedures.
      The
      Transition Teams shall escalate any Dispute to the Team Leaders for resolution.
      Upon receipt of any such escalated matter, the Team Leaders shall discuss and
      attempt to resolve the matter within 15 Business Days immediately following
      the
      escalation. If by the end of the fifteenth Business Day, the matter has not
      been
      resolved to the satisfaction of both Team Leaders, then the party that initiated
      the claim shall provide written notification to the other party in accordance
      with Section 10.3 of this Agreement, in the form of a claim identifying the
      issue or amount disputed and including a detailed reason for the claim. The
      party against whom the claim is made shall respond in writing to the claim
      within 15 Business Days from the date of receipt of the claim document. The
      party filing the claim shall have an additional 15 Business Days after the
      receipt of the response to either accept any resolution offered by the other
      party or request implementation of the procedures set forth in Section 5.3
      (the
“Escalation Procedures”). Failure to meet the time limitations set forth in this
      Section may result in the implementation of the Escalation
      Procedures.

    

    5.3 Escalation
      Procedure.
      Upon
      receipt of the written notice of a party involved in the Dispute and in
      compliance with Section 5.2, each party shall appoint a knowledgeable,
      responsible representative to negotiate in good faith to resolve any unresolved
      disputes or claims arising under this Agreement. The parties intend that these
      negotiations be conducted by experienced business representatives empowered
      to
      decide the issues. The business representatives shall meet and attempt to
      resolve the Dispute within 15 Business Days of receiving the written request.
      If
      they can resolve the Dispute within that time period, it will be memorialized
      in
      a written settlement and release agreement, executed within five Business Days
      thereafter. If they can not resolve the Dispute within that time period, then
      the parties may resort to judicial action or other remedies. The parties may
      vary the duration and form of these Escalation Procedures by mutual written
      agreement.

    

    ARTICLE
      6

    INDEMNIFICATION

    

    6.1 Indemnification
      by Spinco

    

    (a) Spinco
      shall
      indemnify, defend and hold harmless each AT Co. Indemnitee (as defined in the
      Distribution Agreement), against and in respect of any and all Indemnifiable
      Losses incurred or suffered by any AT Co. Indemnitee that result from, relate
      to
      or arise out of any default by Spinco
      in the
      performance of its obligations under this Agreement or any third party claim
      against any AT Co. Indemnitee based upon the negligence, gross negligence or
      willful misconduct of any of the Spinco Indemnitees that arise out of or result
      from any default by Spinco
      in the
      performance of its obligations under this Agreement, except to the extent that
      any such Indemnifiable Losses arise out of or result from the negligence, gross
      negligence or willful misconduct of any AT Co. Indemnitee.

    

    (b) In
      the
      case of Indemnifiable Losses incurred by AT Co. Indemnitees that arise out
      of or
      result from any default by Spinco
      in the
      performance of its obligations under this Agreement based upon the negligence
      of
      any of the Spinco Indemnitees, indemnification shall be limited to actual
      damages which in no event shall exceed the total amount of compensation payable
      to Spinco
      hereunder. For the avoidance of doubt, in the case of Indemnifiable Losses
      

     

     

    
      
        
        

      

      
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    incurred
      by the AT Co. Indemnitees that arise out of or result from any default by
Spinco
      in the
      performance of its obligations under this Agreement based upon the gross
      negligence or willful misconduct of any of the Spinco Indemnitees,
      indemnification shall be limited to actual damages without regard to the total
      amount of compensation payable to Spinco
      hereunder.

    

    6.2 Indemnification
      by AT
      Co.

    

    (a) AT
      Co.
      shall
      indemnify, defend and hold harmless each Spinco Indemnitee (as defined in the
      Distribution Agreement), against and in respect of any and all Indemnifiable
      Losses incurred or suffered by any Spinco Indemnitee that result from, relate
      to
      or arise out of any default by AT
      Co.
      in the
      performance of its obligations under this Agreement or any third party claim
      against any Spinco Indemnitee based upon the negligence, gross negligence or
      willful misconduct of any of the AT Co. Indemnitees that arise out of or result
      from any default by AT
      Co.
      in the
      performance of its obligations under this Agreement, except to the extent that
      any such Indemnifiable Losses arise out of or result from the negligence, gross
      negligence or willful misconduct of any Spinco Indemnitee.

    

    (b) In
      the
      case of Indemnifiable Losses incurred by Spinco Indemnitees that arise out
      of or
      result from any default by AT
      Co.
      in the
      performance of its obligations under this Agreement based upon the negligence
      of
      any of the AT Co. Indemnitees, indemnification shall be limited to actual
      damages which in no event shall exceed the total amount of compensation payable
      to Spinco
      hereunder. For the avoidance of doubt, in the case of Indemnifiable Losses
      incurred by the Spinco Indemnitees that arise out of or result from any default
      by AT
      Co.
      in the
      performance of its obligations under this Agreement based upon the gross
      negligence or willful misconduct of any of the AT Co. Indemnitees,
      indemnification shall be limited to actual damages without regard to the total
      amount of compensation payable to Spinco
      hereunder.

    

    6.3 Limitations.

    

    (a) In
      no
      event shall either party hereto be liable for indirect, special, consequential
      or punitive damages arising out of this Agreement, regardless of the form of
      action, whether in contract, warranty, strict liability or tort, including
      negligence of any kind, whether active or passive, and regardless of whether
      the
      other party knew of or was advised at the time of breach of the possibility
      of
      such damages.

    

    (b) Except
      as
      otherwise provided in this Article 6, Spinco’s
      sole
      responsibility to AT
      Co.
      for
      errors or omissions in providing the Transition Services shall be to re-perform
      such Transition Services properly in a diligent manner, at no additional cost
      or
      expense; provided, however, that each party shall use reasonable best efforts
      to
      detect any such errors or omissions and promptly advise the other party or
      parties of any such error or omission of which it becomes aware.

    

    6.4   A
      party
      that is seeking indemnification pursuant to Section 6.1 or 6.2 shall notify
      the
      other party thereof and shall specify in reasonable detail the event(s) giving
      rise to such claim for indemnification within 15 Business Days after the
      indemnified party has actual knowledge of such event(s), except that any failure
      to give such notice will not waive any rights of the 

     

     

    
      
        
        

      

      
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    indemnified
      party unless the rights of the indemnifying party are actually and materially
      prejudiced thereby. The indemnifying party shall have the right to undertake
      the
      defense of any claim upon delivery of notice to the indemnified party with
      respect to such claim. Such defense shall be made with counsel reasonably
      acceptable to the indemnified party. If the indemnifying party fails to
      undertake the defense of the indemnified party within such time period, the
      indemnified party may retain its own counsel for such defense (which shall
      be
      reasonably acceptable to the indemnifying party), and the indemnified party’s
      reasonable attorney’s fees and expenses related to such claim shall be paid by
      the indemnifying party. Neither party shall, without the consent of the other
      party, agree to any non-monetary settlement of the indemnified
      claim.

    

    (a) Upon
      a
      determination of liability by final and non-appealable court judgment or order
      in respect of Section 6.1 or 6.2, the appropriate party shall pay the other
      party the amount so determined (subject to the limitations of Section 6.3)
      within 15 Business Days after the date of determination of liability by Final
      Judgment (such fifteenth Business Day, the “Due Date”). If there should be a
      dispute as to the amount or manner of determination of any indemnity obligation
      owed under Section 6.1 or 6.2, the indemnifying party shall nevertheless pay
      when due such portion, if any, of the obligation as shall not be subject to
      dispute. The difference, if any, between the amount of the obligation ultimately
      determined as properly payable under this Agreement and the portion, if any,
      theretofore paid shall bear interest as provided below in Section 6.4(b). Upon
      the payment in full of any claim, the indemnifying party or other Person making
      payment shall be subrogated to the rights of the indemnified party against
      any
      Person with respect to the subject matter of such claim. For purposes of this
      Section 6.4, “Final Judgment” means a judicial or other determination as to
      which no appeal or other review is pending or in effect and any deadline for
      filing any such appeal or review that may be designated by statute, rule,
      stipulation or other agreement has passed.

    

    (b) If
      all or
      part of any indemnification obligation under Section 6.1 or 6.2 of this
      Agreement is not paid on the Due Date, then the indemnifying party shall pay
      the
      indemnified party interest on the unpaid amount of the obligation for each
      calendar day from the Due Date until payment in full, payable on demand, at
      a
      rate per annum equal to the Prime Rate on the Due Date.

    

    ARTICLE
      7

    FORCE
      MAJEURE

    Except
      for payment of amounts due, neither party shall be held liable for any delay
      or
      failure in performance of any part of this Agreement, including the Service
      Attachment, from any cause beyond its reasonable control and not primarily
      attributable to its fault or negligence, including, but not limited to, acts
      of
      God, acts of civil or military authority, embargoes, epidemics, war, terrorist
      acts, riots, insurrections, fires, explosions, earthquakes, nuclear accidents,
      floods, strikes, or disruptions in Internet and other telecommunication networks
      and backbones, power and other utilities. Upon the occurrence of a condition
      described in this Article, the party whose performance is prevented shall
      provide written notice to the other party, and the parties shall promptly
      confer, in good faith, on what action may be taken to minimize the impact,
      on
      both parties, of such condition.

     

     

    
      
        
        

      

      
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    ARTICLE
      8

    TERMINATION

    

    8.1 Termination
      of Transition Services and Agreement for Convenience.
      Subject
      to the limitations set forth in the Services Attachment, AT
      Co.
      shall have the right to terminate any Transition Service, in whole or in part,
      upon 30 days prior written notice to Spinco
      If all
      Transition Services shall have been migrated or terminated under this provision
      prior to the expiration of this Agreement, then AT
      Co.
      shall
      have the right to terminate this Agreement upon written notice to Spinco

    

    8.2 Termination
      for Default.
      In the
      event: (i) AT Co. shall fail to pay for Transition Services in accordance with
      the terms of this Agreement (and such payment is not disputed by AT Co. in
      good
      faith in accordance with Section 3.2); (ii) either party shall default, in
      any
      material respect, in the due performance or observance by it of any of the
      other
      terms, covenants or agreements contained in this Agreement; or (iii) either
      party shall become or be adjudicated insolvent and/or bankrupt, or a receiver
      or
      trustee shall be appointed for either party or its property or a petition for
      reorganization or arrangement under any bankruptcy or insolvency law shall
      be
      approved, or either party shall file a voluntary petition in bankruptcy or
      shall
      consent to the appointment of a receiver or trustee, any non-defaulting party
      shall have the right, at its sole discretion, (A) in the case of a default
      under
      clause (iii), to immediately terminate its participation with the defaulting
      party under this Agreement, and (B) in the case of a default under clause (i)
      or
      (ii), to terminate its participation with the defaulting party under this
      Agreement if the defaulting Party has failed to (x) cure the default within
      30
      days of written notice of default or if the default (except for defaults as
      a
      result of failure to make payment) is such that it will take more than 30 days
      to cure, within an extended time period which shall be not longer than what
      is
      reasonably necessary to effect performance or compliance or (y) diligently
      pursue the curing of the default. 

    

      8.2 Termination
        of Distribution
        Agreement.This
        Agreement shall automatically terminate upon termination of the Distribution
        Agreement. 

    

    8.3 Transitional
      Cooperation.
      Each of
Spinco
      and
AT
      Co.
      will,
      and will cause their respective Affiliates to cooperate with the other party
      and
      its Affiliates to assure an orderly transition from the systems and procedures
      utilized by Spinco
      and its
      Affiliates in connection with the AT Co. Business to those systems and
      procedures to be utilized by AT
      Co.
      and its
      Affiliates in connection with the AT Co. Business after Closing.

    

    8.4 Return
      of Material.
      As a
      Transition Service is migrated or terminated, whichever is earlier, each of
      Spinco
      and
AT
      Co.
      will,
      and will cause their respective Affiliates to, return all material and property
      owned by the other party and its Affiliates, including, without limitation,
      any
      and all material and property of a proprietary nature involving the other party
      and its Affiliates relevant to the provision of that Transition Service and
      no
      longer needed regarding the performance of other Transition Services under
      this
      Agreement within 30 days after the applicable migration or termination. Upon
      termination of this Agreement, each of Spinco
      and
AT
      Co.
      will,
      and will cause their respective Affiliates to, return any and all material
      and
      property of a proprietary nature involving the other party and its Affiliates,
      in its possession or control 

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    within
      30
      days after the termination of this Agreement. Notwithstanding anything to the
      contrary contained in this Agreement, upon the termination or expiration of
      this
      Agreement, AT
      Co.
      shall
      cease all access to Spinco’s
      information, data, systems and other assets that are not AT Co. Assets.

    

    8.5 Effect
      of Termination.
      The
      provisions of Articles 3, 4, 5, 6, 7, 8 and 10 shall survive the termination
      or
      expiration of this Agreement.

    

    ARTICLE
      9

    OTHER
      REPRESENTATIONS, WARRANTIES AND COVENANTS

    

    9.1 Compliance
      with Laws.
      Each
      party shall comply, at its own expense, with the provisions of all Laws
      applicable to the performance of its obligations under this Agreement.
      Notwithstanding the description of the Transition Services in this Agreement,
      neither Spinco
      nor any
      of its Affiliates shall provide any services that would involve the rendering
      of
      legal, regulatory or tax advice or counsel.

    

      9.2  Performance.
        Spinco represents and warrants that Spinco and its Affiliates, as the case may
        be, will provide the Transition Services in a timely and professional manner
        generally consistent with the past practices of Spinco and its Affiliates
        in
        providing the same or similar services to the AT Co. Business prior to the
        execution of the Distribution Agreement.

    

    9.3 Books
      and Records.
      Spinco
      or its
      Affiliates will maintain complete and accurate books and records pertaining
      to
      its provision of the Transition Services. Spinco
      or its
      Affiliates will provide AT
      Co.,
      upon
      reasonable notice and during normal business hours, with access to such books
      and records. All such information shall be subject to the terms of the
      confidentiality provisions set forth in Section 10.16 hereof.

    

    9.4 No
      Other Representations or Warranties.
      EXCEPT
      FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY SET FORTH IN THIS AGREEMENT,
      NEITHER PARTY NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED
      REPRESENTATION OR WARRANTY ON BEHALF OF EITHER PARTY WITH RESPECT TO THE
      TRANSITION SERVICES, AT LAW OR IN EQUITY, INCLUDING, WITHOUT LIMITATION, WITH
      RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND ANY SUCH
      OTHER REPRESENTATIONS OR WARRANTIES ARE HEREBY EXPRESSLY
      DISCLAIMED.

    

    ARTICLE
      10

    MISCELLANEOUS

    

    10.1 Relationship
      of the Parties.
      The
      parties declare and agree that each party is engaged in a business that is
      independent from that of the other party and each party shall perform its
      obligations as an independent contractor. It is expressly understood and agreed
      that AT
      Co.
      and
Spinco
      are not
      partners or joint ventures, and nothing contained herein is intended to create
      an agency relationship or a partnership or joint venture. Neither Spinco
      nor any
      of its Affiliates is an agent of AT
      Co.
      or any
      of its Affiliates and has no authority to represent AT
      Co.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    or
      any of
      its Affiliates as to any matters, except as authorized in this Agreement or
      in
      writing by AT
      Co.
      from
      time to time. Neither AT
      Co.
      nor any
      of its Affiliates is an agent of Spinco
      or any
      of its Affiliates and has no authority to represent Spinco
      or any
      of its Affiliates as to any matters, except as authorized in this Agreement
      or
      in writing by Spinco
      from
      time to time.

    

    10.2 Employees
      of the Parties.
      Spinco
      shall be
      solely responsible for payment of compensation to its employees and for any
      injury to them in the course of their employment. Spinco
      shall
      assume full responsibility for payment of all federal, state and local taxes
      or
      contributions imposed or required under unemployment insurance, social security
      and income tax laws with respect to such persons. AT
      Co.
      shall be
      solely responsible for payment of compensation to its employees and for any
      injury to them in the course of their employment. AT
      Co.
      shall
      assume full responsibility for payment of all federal, state and local taxes
      or
      contributions imposed or required under unemployment insurance, social security
      and income tax laws with respect to such persons.

    

    10.3 Notices.
      All
      notices and other communications required or permitted hereunder may be
      telephonic, by electronic mail or in writing and will be deemed to have been
      given when provided to the appropriate party in accordance with the contact
      information specified below:

     

    If
      to
      Spinco, to:

    

    Prior
      to
      Merger: 

    

          Alltel
      Holding Corp. 

    4001
      Rodney Parham Road

    Little
      Rock, AR 72212

    Attention:
      General Counsel

    

    Following
      Merger: 

    

    Windstream
      Corporation 

    4001
      Rodney Parham Road

    Little
      Rock, AR 72212

    Attention:
      General Counsel

    

    If
      to
AT
      Co.,
      to:

     

    ALLTEL
      Corporation

    One
      Allied Drive

    Little
      Rock, AR 72202

    Attention:
      Chief Legal Officer

    

    or
      to
      such other Person or contact information as either party may from time to time
      designate for itself by like notice.

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    10.4 Governing
      Law.
      

     

    (a) This
      Agreement shall be construed in accordance with, and governed by, the internal
      Laws of the State of Delaware without giving effect to principles of conflicts
      of law. 

     

    (b) The
      parties hereby irrevocably waive any and all right to trial by jury in any
      legal
      proceeding arising out of or related to this Agreement.

     

    10.5 Assignment.

     

    (a) Neither
      this Agreement nor any of the rights, benefits or obligations hereunder may
      be
      assigned or delegated by AT Co. or Spinco (whether by operation of law or
      otherwise) without the prior written consent of the other party, which consent
      shall not be unreasonably withheld; provided, however (i) this Agreement shall
      be binding upon and inure to the benefit of Windstream Corporation, as the
      successor corporation in the merger of Spinco with and into the Company as
      part
      of the Merger without the consent or other action by any party hereto and (ii)
      in all other cases no such consent shall be required for an assignment or
      delegation by any party hereto to a successor to all or a substantial portion
      of
      the assets or the business of such party so long as such assignee or delegee
      executes a written assumption of such party’s obligations hereunder with respect
      to the rights or obligations assigned or delegated, and delivers such written
      assumption to the other party within a reasonable period of time after the
      effective date of such assignment or delegation. Subject to the preceding
      sentences, this Agreement will be binding upon, inure to the benefit of and
      be
      enforceable by AT Co. and Spinco and their respective successors and permitted
      assigns

     

    10.6 Entire
      Agreement.
      This
      Agreement (including the Schedules and Exhibits attached hereto) constitutes
      the
      entire agreement between the parties pertaining to the subject matter hereof
      and
      supersedes all prior and contemporaneous agreements, arrangements and
      understandings of the parties with respect to such subject matter.

     

    10.7 Amendments
      and Waivers.
      Any
      provision of this Agreement may be amended if, and only if, such amendment
      is in
      writing and signed by both parties. Any provision of this Agreement may be
      waived to the extent permitted by applicable Law if, and only if, such waiver
      is
      in writing and signed by the party granting the waiver. No failure or delay
      by
      any party in exercising any right, remedy, power or privilege hereunder shall
      operate as a waiver thereof nor shall any single or partial exercise thereof
      preclude any other or further exercise thereof or the exercise of any other
      right, remedy, power or privilege.

     

    10.8 Headings.
      The
      headings of the Articles and Sections of this Agreement are inserted for
      convenience only and shall not be deemed to constitute part of this Agreement
      or
      to affect the construction hereof.

     

    10.9 Severability.
      Each
      term or provision of this Agreement shall be interpreted in such manner as
      to be
      effective and valid under applicable Law, but in case any one or more of the
      provisions contained herein shall, for any reason, be held to be invalid,
      illegal or unenforceable in any respect, such provision shall be ineffective
      to
      the extent but only to the extent of such invalidity, illegality or
      unenforceability, without rendering invalid or unenforceable the remainder
      of
      such provision or provisions of this Agreement; provided, 

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    however,
      that if the removal of such offending provision materially alters the burdens
      or
      benefits of either of the parties under this Agreement, the parties agree to
      negotiate in good faith such modifications to this Agreement, if any, as are
      appropriate to ensure that the burdens and benefits of each party under such
      modified Agreement are reasonably comparable to the burdens and benefits
      originally contemplated herein.

     

    10.10 No
      Third-Party Beneficiaries.
      With
      the exception of the parties to this Agreement and their respective successors
      and permitted assigns, and there shall exist no right of any person to claim
      a
      beneficial interest in this Agreement or any rights arising out of this
      Agreement; provided, however, that with respect to Section 1.4 and Section
      5.2
      only, the Company is and shall be a stated and intended third party
      beneficiary.

     

    10.11 Remedies
      Cumulative.
      Except
      as otherwise provided herein, all rights, powers and remedies provided under
      this Agreement or otherwise available in respect hereof at law or in equity
      shall be cumulative and not alternative, and the exercise or beginning of the
      exercise of any right, power or remedy by a party shall not preclude the
      simultaneous or later exercise of any other such right, power or remedy by
      such
      party.

     

    10.12 Expenses.
      Except
      as otherwise provided in this Agreement, the parties shall bear their own
      expenses (including all time and expenses of counsel, financial advisors,
      consultants, actuaries and independent accountants) incurred in connection
      with
      this Agreement.

     

    10.13 Counterparts.
      This
      Agreement may be executed in one or more counterparts, which may be delivered
      by
      facsimile, each of which shall be deemed an original, but all of which together
      shall constitute one and the same instrument.

     

    10.14 Specific
      Performance.
      The
      parties hereto agree that irreparable damage would occur in the event that
      any
      of the provisions of this Agreement were not performed in accordance with their
      specific terms or any covenant set forth in this Agreement is otherwise
      breached. It is accordingly agreed that the parties shall be entitled to an
      injunction or injunctions to enforce specifically the performance of this
      Agreement in accordance with its terms and provisions and to prevent breaches
      of
      covenants set forth in this Agreement. The foregoing right is in addition to,
      and not in lieu of, any other rights a party hereto may have in respect of
      a
      breach of this Agreement, whether at law or in equity.

     

    10.15 No
      Set-Off.
      The
      obligations under this Agreement shall not be subject to set-off for
      non-performance or any monetary or non-monetary claim by any party or any of
      their respective Affiliates under any other agreement between the parties or
      any
      of their respective Affiliates. 

     

    10.16 Confidentiality.

     

    (a) Spinco
      and its
      Affiliates and their respective officers, directors, partners, managers,
      shareholders, employees, agents and representatives will not disclose any
      confidential information about AT
      Co.
      or any
      of its Affiliates obtained as a result of the exercise of its rights or
      performance of its obligations under this Agreement unless disclosure is
      compelled by judicial or administrative process or, based on advice of such
      Person’s counsel, by other requirements of 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    law.
      The
      obligations of Spinco
      under
      this Section 10.16(a) will survive the termination or expiration of this
      Agreement.

     

    (b) AT
      Co.
      and its
      Affiliates and their respective officers, directors, partners, managers,
      shareholders, employees, agents and representatives will not disclose any
      confidential information about Spinco
      or any
      of its Affiliates obtained as a result of the exercise of its rights or
      performance of its obligations under this Agreement unless disclosure is
      compelled by judicial or administrative process or, based on advice of such
      Person’s counsel, by other requirements of law. The obligations of AT
      Co.
      under
      this Section 10.16(b) will survive the termination or expiration of this
      Agreement. 

     

    10.17 Facilities
      and Systems Security.
      If
      either party or its personnel will be given access to the other party’s
      facilities, premises, equipment or systems, such party will comply with all
      such
      other party’s written security policies, procedures and requirements made
      available by each party to the other, and will not tamper with, compromise,
      or
      circumvent any security or audit measures employed by such other party. Each
      party shall use its reasonable best efforts to ensure that only those of its
      personnel who are specifically authorized to have access to the facilities,
      premises, equipment or systems of the other party gain such access, and to
      prevent unauthorized access, use, destruction, alteration or loss in connection
      with such access.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

     

    
      
        
          14

        

        
        

      

       

    

    IN
      WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement
      as of the date first above written.

    
      	 	
              ALLTEL
                CORPORATION

            
	 	 
	 	 
	 	
              By:
                /s/ Richard N. Massey                            

            
	 	
              Name:
                Richard N. Massey

            
	 	
              Title:
                Executive Vice President - General Counsel and
                Secretary

            
	 	 
	 	 
	 	
              ALLTEL
                HOLDING CORP.

            
	 	 
	 	 
	 	
              By: 
                /s/ John P. Fletcher                                

            
	 	
              Name: 
                John P. Fletcher

            
	 	
              Title:
                Executive Vice President and General
                Counsel

            

    

    

    

    

    
      
        
        

      

      
        15Unassociated Document

    Exhibit
      10.3

     

    
 

    TAX
      SHARING AGREEMENT

    

    This
      Tax
      Sharing Agreement (this "Agreement") is entered into as of July 17, 2006, by
      and
      among ALLTEL Corporation, a Delaware corporation ("AT Co."), ALLTEL Holding
      Corp., a newly formed Delaware corporation and a wholly owned subsidiary of
      AT
      Co. ("Spinco"), and Valor Communications Group, Inc., a Delaware corporation
      ("Valor"). Capitalized terms used in this Agreement and not otherwise defined
      herein shall have the meanings ascribed to such terms in the Distribution
      Agreement, dated as of December 8, 2005, by and between AT Co. and Spinco,
      as
      amended on June 29, 2006 (the "Distribution Agreement").

    

    RECITALS

    

    Whereas,
      AT Co. is the common parent corporation of an affiliated group of corporations
      within the meaning of Section 1504(a) of the Internal Revenue Code of 1986,
      as
      amended (the "Code"), that has filed consolidated federal income tax returns.
      

    

    Whereas
      Spinco is a newly-formed, wholly owned subsidiary of AT Co.

    

    Whereas,
      pursuant to the Distribution Agreement, among other things, AT Co. will transfer
      or cause to be transferred to Spinco or one or more subsidiaries of Spinco
      (pursuant to certain preliminary restructuring transactions) all of the Spinco
      Assets, Spinco will assume or cause to be assumed all of the Spinco Liabilities,
      and Spinco will issue to AT Co. Spinco Common Stock and Spinco Exchange Notes
      and will pay the Special Dividend
      (the
      "Contribution"). 

    

    Whereas,
      on the Distribution Date, AT Co. will distribute all of the issued and
      outstanding shares of Spinco Common Stock on a pro rata basis to holders of
      the
      AT Co. Common Stock (the "Distribution").

    

    Whereas,
      pursuant to the Merger Agreement, dated as of December 8, 2005, by and among
      AT
      Co., Spinco and Valor (the " Merger Agreement"), following the Distribution,
      Spinco will merge with and into Valor pursuant to the Merger.

     

           
      Whereas, the parties to this Agreement intend that the Contribution, together
      with the Debt Exchange, qualify as a tax-free reorganization under Section
      368
      of the Internal Revenue Code of 1986, as amended (the "Code"), that the
      Distribution qualify as a distribution of Spinco stock to AT Co. stockholders
      pursuant to Section 355 of the Code, that the Merger qualify as a tax-free
      reorganization pursuant to Section 368 of the Code, and that no gain or loss
      be
      recognized as a result of such transactions for federal income tax purposes
      by
      any of AT Co., Spinco, and their respective stockholders (except to the extent
      of cash received in lieu of fractional shares).

     

    Whereas,
      AT Co., Spinco and Valor desire to set forth their rights and obligations with
      respect to Taxes (as defined herein) due for periods before and after the
      Distribution Date.

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto agree as follows:

    

    ARTICLE
      I.

    

    DEFINITIONS

    

    "Advisory
      Fees" shall have the meaning set forth in Section 3.06(b).

    

    "Affiliate"
      shall mean any Person that directly or indirectly through one or more
      intermediaries Controls, is Controlled by, or is under common Control with
      a
      specified Person.

    

    "Agreement"
      shall have the meaning set forth in the recitals.

    

    "Applicable
      Federal Rate" shall have the meaning set forth in Section 1274(d) of the Code,
      compounded quarterly.

    

    "AT
      Co."
      shall have the meaning set forth in the preamble to this Agreement.

    

    "AT
      Co.
      Group" shall mean AT Co. and all Subsidiaries of AT Co. at any time preceding,
      at or following the Contribution, but shall not include any member of the Spinco
      Group. 

    

    "AT
      Consolidated Group" shall mean any consolidated, combined or unitary group
      (i)
      of which AT Co. is the common parent corporation at any time or (ii) that
      otherwise included Spinco or any Spinco Subsidiary for any Pre-Distribution
      Period.

    

    “AT
      Excess Expenses” shall have the meaning set forth in Section
      3.06(a).

    

    “AT
      Tax
      Expenses” shall have the meaning set forth in Section 3.06(b).

    

    "Code"
      shall have the meaning set forth in the recitals. 

    

    "Combined
      Return" shall have the meaning set forth in Section 2.01.

    

    "Contribution"
      shall have the meaning set forth in the Recitals. 

    

    "Control"
      or "Controlled" shall mean, with respect to any Person, the presence of one
      of
      the following: (i) the legal, beneficial or equitable ownership, directly or
      indirectly, of more than 50% (by vote or value) of the capital or voting stock
      (or other ownership or voting interest, if not a corporation) of such Person
      or
      (ii) the ability, directly or indirectly, to direct the voting of a majority
      of
      the directors of such Person's board of directors or, if the Person does not
      have a board of directors, a majority of the positions on any similar body,
      whether through appointment, voting agreement or otherwise.

    

    "Controlling
      Party" shall have the meaning set forth in Section 5.01. 

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    "Disqualifying
      Action" shall have the meaning set forth in Section 10.2 of the Merger
      Agreement.

    

    "Distribution"
      shall have the meaning set forth in the Recitals. 

    

    "Distribution
      Agreement" shall have the meaning set forth in the preamble to this
      Agreement.

    

    "Distribution
      Date" shall have the meaning set forth in the Distribution
      Agreement.

    

    “Exchange
      Note Expenses” shall have the meaning set forth in Section 3.06(b).

    

    “Exchange
      Notes” shall have the meaning set forth in Section 3.06(b).

    

    "Final
      Determination" shall have the meaning set forth in the Merger
      Agreement.

    

    "Income
      Taxes" shall mean any and all Taxes based upon or measured by net or gross
      income (including alternative minimum tax under Section 55 of the Code and
      including any liability described in clauses (ii) or (iii) of the definition
      of
      "Taxes" that relates to any Income Tax).

    

    “Investment
      Banking Letter Agreements” shall have the meaning set forth in Section
      3.06(b).

    

    “Merger
      Advisory Fees” shall have the meaning set forth in Section 3.06(b).

    

    "Other
      Taxes" shall mean any and all Taxes other than Income Taxes, including any
      liability described in clauses (ii) or (iii) of the definition of "Taxes" that
      relates to any Other Tax.

    

    "Person"
      shall mean any individual, partnership, joint venture, corporation, limited
      liability company, trust, unincorporated organization, government or department
      or agency of a government.

    

    "Post-Distribution
      Period" shall mean any taxable year or other taxable period beginning after
      the
      Distribution Date and, in the case of any taxable year or other taxable period
      that begins before and ends after the Distribution Date, that part of the
      taxable year or other taxable period that begins at the beginning of the day
      after the Distribution Date.

    

    "Pre-Distribution
      Period" shall mean any taxable year or other taxable period that ends on or
      before the Distribution Date and, in the case of any taxable year or other
      taxable period that begins before and ends after the Distribution Date, that
      part of the taxable year or other taxable period through the close of the
      Distribution Date.

    

    "Reimbursing
      Party" shall have the meaning set forth in Section 3.05(d).

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    "Reimbursed
      Party" shall have the meaning set forth in Section 3.05(d).

    

    "Separate
      Return" shall have the meaning set forth in Section 2.01(b).

    

    "Short
      Period Return" shall have the meaning set forth in Section 2.01(b).

    

    "Spinco"
      shall have the meaning set forth in the Recitals.

    

    “Spinco
      Credit/Note Expenses” shall have the meaning set forth in Section
      3.06(b).

    

    "Spinco
      Group" shall mean Spinco and all entities that are Subsidiaries of Spinco
      immediately following the Contribution. 

    

    “Spinco
      Tax Expenses” shall have the meaning set forth in Section 3.06(b).

    

    "
      Spinco
      Transaction Expenses" shall have the meaning set forth in Section
      3.06(a).

    

    "Straddle
      Return" shall have the meaning set forth in Section 2.01.

    

    "Straddle
      Period" shall mean any taxable period that includes but does not end on the
      Distribution Date.

    

    "Subsidiary"
      shall mean a corporation, limited liability company, partnership, joint venture
      or other business entity if 50% or more of the outstanding equity or voting
      power of such entity is owned directly or indirectly by the corporation with
      respect to which such term is used. 

    

    "Tax"
      or
      "Taxes" shall have the meaning set forth in the Merger Agreement. 

    

    "Tax
      Attribute" shall mean any net operating loss carryover, net capital loss
      carryover, investment tax credit carryover, foreign tax credit carryover,
      charitable deduction carryover or other similar item that could reduce Income
      Tax for a past or future taxable period.

    

    "Tax
      Benefit" shall means, in the case of separate state, local or other Income
      Tax
      Return, the sum of the amount by which the Tax liability (after giving effect
      to
      any alternative minimum or similar Tax) of a corporation to the appropriate
      Taxing Authority is reduced (including by deduction, entitlement to refund,
      credit or otherwise, whether available in the current taxable year, as an
      adjustment to taxable income in any other taxable year or as a carryforward
      or
      carryback, as applicable) plus any interest from such government or jurisdiction
      relating to such Tax liability, and in the case of a consolidated federal Income
      Tax Return or combined, unitary or other similar state, local or other Income
      Tax Return, the sum of the amount by which the Tax liability of the affiliated
      group (within the meaning of Section 1504(a) of the Code) or other relevant
      group of corporations to the appropriate government or jurisdiction is reduced
      (including by deduction, entitlement to 

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    refund,
      credit or otherwise, whether available in the current taxable year, as an
      adjustment to taxable income in any other taxable year or as a carryforward
      or
      carryback, as applicable) plus any interest from such government or jurisdiction
      relating to such Tax liability. 

    

    "Tax
      Contest" shall have the meaning set forth in Section 5.01.

    

    "Tax
      Return" shall have the meaning set forth in the Merger Agreement.

    

    "Taxing
      Authority" shall have the meaning set forth in the Merger
      Agreement.

    

    “Transaction
      Expenses” shall have the meaning set forth in Section 3.06(a).

    

    "USF
      Payments" shall have the meaning set forth in Section 2.04(a).

    

    "USF
      Tax
      Amount" shall have the meaning set forth in Section 2.04(a).

    

    "Valor"
      shall have the meaning set forth in the recitals

    

    "Valor
      Group" shall mean Valor and all entities that are Subsidiaries of Valor
      immediately following the Merger.

    

    "Windstream
      Corporation" shall mean the corporation surviving the Merger.

    

    ARTICLE
      II.

    

    TAX
      RETURNS AND TAX PAYMENTS

    

    2.01
      OBLIGATIONS TO FILE TAX RETURNS. 

    

    (a)
      AT
      Co. shall file or cause to be filed any Income Tax Return that is required
      to be
      filed after the Distribution Date by or with respect to any member of the Spinco
      Group that (i) is filed on a consolidated, combined or unitary basis, (ii)
      includes both one or more members of the AT Co. Group and one or more members
      of
      the Spinco Group, and (iii) is for a taxable period that includes a
      Pre-Distribution Period (a "Combined Return"). Each member of the Spinco Group
      hereby irrevocably authorizes and designates AT Co. as its agent, coordinator
      and administrator for the purpose of taking any and all actions necessary or
      incidental to the filing of any such Combined Tax Return and, except as
      otherwise provided herein, for the purpose of making payments to, or collecting
      refunds from, any Taxing Authority in respect of a Combined Return. Except
      as
      otherwise provided herein, AT Co. shall have the exclusive right to file,
      prosecute, compromise or settle any claim for refund for Income Taxes in respect
      of a Combined Return for which AT Co. bears responsibility hereunder and to
      determine whether any refunds of such Income Taxes to which the AT Consolidated
      Group may be entitled shall be received by way of refund or credit against
      the
      Tax liability of the AT Consolidated Group.

     

     

    
      
        
        

      

      
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    (b)
      Valor
      shall file or cause to be filed any other Income Tax Return required to be
      filed
      after the Distribution Date by or with respect to one or more members of the
      Spinco Group, including any such Tax Return (i) with respect to any taxable
      period that includes but does not end on the Distribution Date (a "Straddle
      Return"), (ii) with respect to a taxable period ending on the Distribution
      Date
      (a "Short Period Return"), and (iii) with respect to a taxable period beginning
      after the Distribution Date (a "Separate Return"). AT Co. shall remit to Valor
      in immediately available funds the amount of any Income Taxes (including
      estimated Income Taxes) related to a Straddle Return or Short Period Return
      for
      which AT Co. is responsible hereunder, at least two Business Days before payment
      of the relevant amount is due to a Taxing Authority. Valor shall file or cause
      to be filed any Other Tax Return required to be filed after the Distribution
      Date by one or more members of the Spinco Group.

    

    2.02
      APPROVAL OF STRADDLE RETURNS AND SHORT PERIOD RETURNS. No later than thirty
      (30)
      days prior to the date on which any Straddle Return or Short Period Return
      is
      required to be filed (taking
      into account any valid extensions)
      (the
      "Due Date"), Valor shall submit or cause to be submitted to AT Co. the Straddle
      Return or Short Period Return and
      shall
      make or cause to be made any and all changes to such return reasonably requested
      by AT Co., to the extent that such changes relate to items for which AT Co.
      has
      responsibility hereunder (and for which at least substantial authority exists
      within the meaning of Section 6662 of the Code and the Treasury Regulations
      thereunder). Valor shall not file or allow to be filed any such Straddle Return
      or Short Period Return prior to receiving written approval of the return from
      AT
      Co., which approval shall not be unreasonably withheld, delayed or
      conditioned. 

    

    2.03
      OBLIGATION TO REMIT TAXES. Subject to Section 2.01 and subject always to the
      ultimate division of responsibility for Taxes set out in Section 2.04, AT Co.
      and Valor shall each remit or cause to be remitted to the applicable Taxing
      Authority any Taxes due in respect of any Tax Return that such party is required
      to file (or, in the case of a Tax for which no Tax Return is required to be
      filed, which is otherwise payable by such party or a member of such party's
      group (the AT Co. Group or the Spinco Group) to any Taxing Authority) and shall
      be entitled to reimbursement for such payments to the extent provided herein
      or
      in the Merger Agreement. 

    

    2.04
      TAX
      SHARING OBLIGATIONS AND PRIOR AGREEMENTS.

    

    (a)
      From
      and after the Merger, Valor shall be liable for and shall indemnify and hold
      the
      AT Co. Group harmless against (i) any net liability for Income Taxes of a member
      of the Spinco Group (and Valor and the Spinco Group shall be entitled to receive
      and retain any net refund of Income Taxes or other net Tax Benefit) attributable
      to the treatment of payments received from a federal or state universal services
      fund ("USF Payments") in respect of the Spinco Business for the period from
      January 1, 1997, to the Distribution Date, taking into account (x) any refund
      of
      Income Taxes with respect to USF Payments previously not treated as
      contributions to capital within the meaning of Section 118(a) of the Code,
      (y)
      cost recovery deductions arising from property acquired with USF Payments and
      (z) Income Taxes payable as a result of a failure of a USF Payment to be treated
      as a 

     

     

    
      
        
        

      

      
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    contribution
      to capital within the meaning of Section 118(a) of the Code, in each case with
      respect to such period (a "USF Tax Amount"), (ii) any Other Taxes arising in
      the
      Pre-Distribution Period and attributable to a member of the Spinco Group or
      to
      the employees, assets or transactions of the Spinco Business, except for Other
      Taxes arising in respect of the Contribution (including the Preliminary
      Restructuring) or the Distribution and (iii) any liability for Taxes arising
      in
      the Post-Distribution Period and attributable to a member of the Spinco Group
      or
      to the assets, employees, or transactions of the Spinco Business. Except with
      respect to indemnification pursuant to clause (i), all indemnification pursuant
      to this Section 2.04(a) shall be on a net after-Tax basis.

    

    (b)
      Except for Taxes specifically allocated to Valor under this Agreement or for
      which Valor has indemnified AT Co. pursuant to the Merger Agreement, AT Co.
      shall be liable for and shall indemnify and hold Valor and its Subsidiaries
      and
      the Spinco Group harmless against, on a net after-Tax basis, any Tax liability
      (i) of the AT Co. Group or any AT Consolidated Group or any member thereof
      or
      attributable to the employees, assets or transactions of the AT Co. Business
      or
      (ii) of the Spinco Group or any member thereof, including Taxes arising from
      any
      Distribution Disqualification other than Taxes for which Valor is responsible
      pursuant to Article X of the Merger Agreement.

    

    (c)
      Except as set forth in this Agreement and in consideration of the mutual
      indemnities and other obligations of this Agreement, any and all prior Tax
      sharing or allocation agreements or practices between any member of the AT
      Co.
      Group and any member of the Spinco Group (including the ALLTEL Corporation
      and
      Subsidiaries Tax Sharing Policy in effect for taxable years ending on or after
      December 31, 1991) shall be terminated with respect to the Spinco Group as
      of
      the Distribution Date, and no member of the Spinco Group shall have any
      continuing rights or obligations thereunder.

    

    (d)
      Valor
      shall be entitled to any refund of or credit for Taxes for which Valor is
      responsible under this Agreement, and AT Co. shall be entitled to any refund
      of
      or credit for Taxes for which AT Co. is responsible under this Agreement.
      Refunds for any Straddle Period shall be equitably apportioned between the
      AT
      Co. Group and the Spinco Group in accordance with the provisions of this
      Agreement governing such periods. A party receiving a refund to which another
      party is entitled pursuant to this Agreement shall pay the amount to which
      such
      other party is entitled within five days after the receipt of the
      refund.

    

    2.06
      PERIOD THAT INCLUDES THE DISTRIBUTION DATE.

    

    (a)
      To
      the extent permitted by law or administrative practice, the taxable year of
      each
      member of the Spinco Group with respect to any Tax shall be treated as closing
      at the close of the Distribution Date.

    

    (b)
      If it
      is necessary for purposes of this Agreement to determine the Tax liability
      of
      any member of the Spinco Group for a taxable year or period that begins on
      or
      before and ends after the Distribution Date and that is not treated under
      Section 2.05(a) as closing at the close of the Distribution Date, the
      determination shall be made, in the case of Taxes 

     

     

    
      
        
        

      

      
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    that
      are
      based upon income or receipts, by assuming that the relevant taxable period
      ended at the close of the Distribution Date, except that any exemptions,
      allowances or deductions that are calculated on an annual basis shall be
      apportioned on a time basis. In the case of Taxes that are imposed on a periodic
      basis, are payable for a taxable period that includes (but does not end on)
      the
      Distribution Date, and are not based upon or related to income or receipts,
      the
      portion of such Tax that relates to the Pre-Distribution Period shall be deemed
      to be the amount of such Tax for the entire taxable period multiplied by a
      fraction the numerator of which is the number of days in the taxable period
      ending on the Distribution Date and the denominator of which is the number
      of
      days in the entire taxable period. 

    

    (c)
      For
      the avoidance of doubt, Taxes allocated to the Pre-Distribution Period shall
      include (i) any Tax resulting from the departure of any corporation from any
      AT
      Consolidated Group (resulting from the triggering into income of deferred
      intercompany transactions under Section 1.1502-13 of the Treasury Regulations
      or
      excess loss accounts under Section 1.1502-19 of the Treasury Regulations or
      otherwise) other than any such Tax that would not have arisen in the absence
      of
      a Disqualifying Action, and (ii) any Tax related to items of income or gain
      arising with respect to any interest in an entity treated as a partnership
      for
      United States federal income tax purposes, held by a member of the Spinco Group
      in the Pre-Distribution Period, in accordance with the principles of Section
      1.1502-76(b)(2)(vi) of the Treasury Regulations.

    

    ARTICLE
      III.

    

    CARRYBACKS;
      AMENDED RETURNS; TIMING ADJUSTMENTS; COMPENSATION DEDUCTIONS

    

    3.01
      CARRYBACKS. Without the consent of AT Co., no member of the Spinco Group shall
      carry back any Tax Attribute (unless required to carry back such Tax Attribute
      by law) from a Post-Distribution Period to a Pre-Distribution Period. Provided
      that AT Co. consents to the carryback or if the carryback is required by law,
      AT
      Co. (or any other member of the AT Co. Group receiving such refund) shall
      promptly remit to Valor any Tax Benefit it realizes with respect to any such
      carryback. 

    

    3.02
      AMENDED RETURNS. Valor shall not, and shall not permit any member of the Spinco
      Group to, file any amended Income Tax Return of a member of the Spinco Group
      or
      a Tax Return with respect to Other Taxes of a member of the Spinco Group that
      is
      filed on a combined basis with a member of the AT Co. Group, in each case with
      respect to a Pre-Distribution Period, without first obtaining the consent of
      AT
      Co., which shall not be unreasonably withheld, delayed or
      conditioned.

    

    3.03
      TIMING
      ADJUSTMENTS. 

    

    (a)
      If an
      audit or other examination by any Taxing Authority with respect to any Income
      Tax Return shall result (by settlement or otherwise) in any adjustment that
      (A)
      decreases deductions, losses or Tax credits or increases income, gains or
      recapture of Tax credits of a member of the AT Consolidated Group for a
      Pre-Distribution Period in respect 

     

     

    
      
        
        

      

      
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    of
      an
      item for which AT Co. is responsible hereunder and (B) will permit the Spinco
      Group to increase deductions, losses or tax credits or decrease income, gains
      or
      recapture of tax credits that would otherwise (but for such adjustment) have
      been taken or reported with respect to the Spinco Group for one or more
      Post-Distribution Periods, Valor shall, and shall cause the Spinco Group to,
      pay
      to AT Co. the amounts of any Tax Benefits that result therefrom within ten
      (10)
      days of the date on which such Tax Benefits are realized, provided, however,
      that this Section 3.02(a) shall not apply to any such adjustment relating to
      the
      subject matter of 2.04(a)(i) and the last sentence of Section 4.01.

    

    (b)
      If an
      audit or other examination by any Taxing Authority with respect to any Income
      Tax Return shall result (by settlement or otherwise) in any adjustment that
      (A)
      decreases deductions, losses or Tax credits or increases income, gains or
      recapture of Tax credits of a member of the Valor Group for a Post-Distribution
      Period and (B) will permit any member of the AT Co. Group or any AT Consolidated
      Group to increase deductions, losses or tax credits or decrease income, gains
      or
      recapture of tax credits in respect of an item for which AT Co. would be
      responsible hereunder, AT Co. shall, and shall cause the AT Co. Group to, pay
      to
      Valor the amounts of any Tax Benefits that result therefrom within ten (10)
      days
      of the date on which such Tax Benefits are realized.

    

    (c)
      The
      party in control of the audit or other examination to which any such adjustment
      described in 3.02(a) or (b) above relates shall notify the other party and
      provide it with adequate information so that it may reflect such adjustment
      on
      its applicable Tax Returns.

    

    3.04.
      TAX
      BENEFIT REALIZED. For purposes of this Agreement, a Tax Benefit shall be deemed
      to have been realized at the time any refund of Taxes is received or applied
      against other Taxes due, or at the time of filing of a Tax Return (including
      any
      relating to estimated Taxes) on which a loss, deduction or credit is applied
      in
      reduction of Taxes which would otherwise be payable; provided,
      however,
      that,
      where a party has other losses, deductions, credits or similar items available
      to it, deductions, credits or items for which the other party would be entitled
      to a payment under this Agreement shall be treated as the last items utilized
      to
      produce a Tax Benefit.

    

    3.05
      DEDUCTIONS WITH RESPECT TO RESTRICTED STOCK ISSUED PRIOR TO THE DISTRIBUTION
      DATE.

    

    (a)
      All
      deductions for United States federal, state and local income Tax purposes
      resulting from the vesting of shares of restricted stock of AT Co. issued prior
      to the Distribution Date and the related shares of Windstream Corporation
      received with respect to such AT Co. shares shall be taken by AT Co. or a member
      of the AT Co. Group, and no party to this Agreement shall take any position
      on
      any Tax Return which is inconsistent with such treatment, unless required to
      do
      so pursuant to a Final Determination to such effect.

    

    (b)
      If,
      by reason of a subsequent Final Determination as to the treatment of any tax
      deductions related to the AT Co. restricted stock or Windstream Corporation
      restricted

     

     

    
      
        
        

      

      
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    stock
      referred to in Section 3.05(a) above, the taxing authorities determine that
      Valor is entitled to such deduction, then Valor shall, and shall cause the
      Spinco Group to, pay to AT Co. the amount of any Tax Benefits that result
      therefrom within ten (10) days of the date on which such Tax Benefits are
      realized. 

    

    3.06
      DEDUCTIONS WITH RESPECT TO TRANSACTION EXPENSES

    

    (a)
      Pursuant to Section 12.2 of the Distribution Agreement, the costs and expenses
      incurred by AT Co. or Spinco or their respective Subsidiaries and described
      in
      that Section (“Transaction Expenses”) are to be paid (borne economically) by (i)
      Spinco, in an amount up to $45.948 million (“Spinco Transaction Expenses”), and
      (ii) thereafter, by AT Co. (“AT Excess Expenses”).

    

    (b)
      As
      soon as is reasonably practicable after the Closing Date, AT Co. and Valor
      shall
      determine (i) those Transaction Expenses that are to be reported as items of
      the
      AT Co. Group for Tax purposes (“AT Tax Expenses”) and (ii) those Transaction
      Expenses that are to be reported as items of the Spinco Group for Tax purposes
      (“Spinco Tax Expenses”). In making that determination, the following principles
      shall apply - (i) the costs and expenses incurred in connection with (A) the
      Spinco Credit Agreement and (B) the $800 million in principal amount of Senior
      Notes due 2013 issued by Windstream Corporation (collectively, “Spinco
      Credit/Note Expenses”), including the aggregate fees, expenses and underwriting
      discount related thereto, shall be treated as Spinco Tax Expenses; (ii) the
      portion of the advisory fees (“Advisory Fees”) payable pursuant to those certain
      Letter Agreements, dated December 7 and 8, 2005, among Stephens, Inc., JP Morgan
      Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Alltel
      Corporation and ALLTEL Holding Corp. (“Investment Banking Letter Agreements”)
      that relates to the Merger (“Merger Advisory Fees”), which portion the parties
      agree is $9.375 million, shall be treated as Spinco Tax Expenses; (iii) the
      remaining portion of the Advisory Fees, which relate to the Contribution and
      the
      Distribution and which portion the parties agree is $28.125 million
      (“Contribution/Distribution Advisory Fees”), shall be treated as AT Tax
      Expenses; (iv) the costs and expenses (“Exchange Note Expenses”) incurred in
      connection with the $1.746 billion in principal amount of Notes due 2016 issued
      by Spinco (“Exchange Notes”), other than the implicit underwriting commission
      arising on the transfer by AT Co. of the Exchange Notes in exchange for certain
      outstanding indebtedness of AT Co. (which shall be treated as an AT Tax
      Expense), shall be treated as Spinco Tax Expenses; (v) other fees and expenses
      related to the Merger shall be treated as Spinco Tax Expenses; (vi) other fees
      and expenses related to the Contribution and the Distribution shall be treated
      as AT Tax Expenses; and (vii) costs and expenses not provided for in clauses
      (i)
      through (vi) shall be allocated between AT Co. and Spinco for Tax purposes
      in
      such reasonable manner as the parties may agree. No party shall take a position
      on any Tax Return that is inconsistent with the allocations provided for in
      this
      paragraph (b), unless required to do so by a Final Determination to such
      effect.

    

    (c)
      If,
      as an original matter or by reason of a subsequent Final Determination as to
      the
      treatment of a Transaction Expense as an AT Tax Expense or a Spinco Tax Expense,
      a Spinco Tax Expense is borne economically by AT Co. (that is, if a Spinco
      Tax
      Expense is 

     

     

    
      
        
        

      

      
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    treated
      as an AT Excess Expense), then, in accordance with Section 3.04 of this
      Agreement and without duplication of the other adjustments required under this
      Agreement, Valor shall, and shall cause the Spinco Group to, pay to AT Co.
      the
      amount of any Tax Benefits that result therefrom within ten (10) days of the
      date on which such Tax Benefits are realized. For this purpose, the following
      ordering conventions shall apply - (i) Spinco Transaction Expenses shall be
      deemed to consist (A) first, of Spinco Credit/Note Expenses, to the full extent
      thereof, (B) second, of Exchange Note Expenses, to the full extent thereof,
      (C)
      third, of Merger Advisory Fees, to the full extent thereof, (D) fourth, of
      other
      fees and expenses related to the Merger described in paragraph (b)(v) and (E)
      fifth, of other Spinco Tax Expenses described in paragraph (b)(vii).

    

    (d)
      The
      principles of paragraph (c) shall apply, mutatis
      mutandis, if
      an AT
      Tax Expense is borne economically by Spinco (that is, if an AT Tax Expense
      is
      treated as a Spinco Transaction Expense).

    

    ARTICLE
      IV.

    

    PAYMENTS

    

    4.01
      PAYMENTS. Except as provided in Section 2.01 and Section 3.03, payments due
      under this Agreement shall be made no later than thirty (30) days after the
      receipt or crediting of a refund, the realization of a Tax Benefit for which
      the
      other party is entitled to reimbursement, the delivery of notice of payment
      of a
      Tax for which the other party is responsible under this Agreement, or the
      delivery of notice of a Final Determination which results in such other party
      becoming obligated to make a payment hereunder to the other party hereto.
      Payments due hereunder, but not made within such 30-day period, shall be
      accompanied with interest at a rate equal to the Applicable Federal Rate from
      the due date of such payment. Notwithstanding the foregoing, in the case of
      any
      payment required to be made to AT Co. by Valor as the result of a Final
      Determination with respect to a USF Amount, such USF Amount may be paid in
      ten
      (10) equal, annual installments, commencing on a date which is not less than
      thirty (30) days after the date of such Final Determination, and on each of
      the
      nine succeeding anniversaries of such date.

    

    4.02
      NOTICE. AT Co. and Valor shall give each other prompt written notice of any
      payment that may be due to the provider of such notice under this Agreement.
      

    

    ARTICLE
      V.

    

    TAX
      CONTESTS

    

    5.01
      NOTICE. Valor shall promptly notify AT Co. in writing upon receipt by Valor
      or
      any member of the Valor Group of a written communication from any Taxing
      Authority with respect to any pending or threatened audit, dispute, suit,
      action, proposed assessment or other proceeding (a "Tax Contest") concerning
      any
      Combined Return, Straddle Return or Short Period Return or otherwise concerning
      Taxes for which AT Co. may be liable under this Agreement. AT Co. shall promptly
      notify Valor in writing upon 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    receipt
      by AT Co. or any member of the AT Co. Group of a written communication from
      any
      Taxing Authority with respect to any Tax Contest concerning any Separate Return
      or otherwise concerning Taxes for which Valor may be liable under this
      Agreement. 

    

    5.02
      CONTROL OF CONTESTS BY AT. CO. Except as provided in Section 5.03, AT Co. shall
      have sole control of any Tax Contest of a member of the Spinco Group related
      to
      any Combined Return, Straddle Return or Short Period Return, including the
      exclusive right to communicate with agents of the Taxing Authority and to
      control, resolve, settle or agree to any deficiency, claim or adjustment
      proposed, asserted or assessed in connection with or as a result of any such
      Tax
      Contest, provided, however, that (i) AT Co. shall provide Valor an opportunity
      to review and comment upon AT Co.'s communications with such Taxing Authorities
      to the extent such communications relate to Spinco or any member of the Spinco
      Group, (ii) AT Co. shall act in good faith in connection with its control of
      such Tax Contest and (iii) in the case of any such Tax Contest that relates
      to
      Income Taxes for which Valor has responsibility hereunder, Valor may participate
      in the Tax Contest at its own expense, and AT Co. shall not settle or concede
      any such Tax Contest without the prior written consent of Valor, which consent
      shall not be unreasonably withheld, delayed or conditioned.

    

    5.03
      CONTROL OF CONTESTS BY VALOR. Valor shall have sole control of any Tax Contest
      related to any Separate Return and any Tax Contest relating to Other Taxes
      for
      which Valor is responsible hereunder, including the exclusive right to control,
      resolve, settle or agree to any deficiency, claim or adjustment proposed,
      asserted or assessed in connection with or as a result of any such Tax
      Contest.

    

    ARTICLE
      VI.

    

    COOPERATION

    

    6.01
      GENERAL. AT Co. and Valor shall cooperate with each other in the filing of
      any
      Tax Returns and the conduct of any audit or other proceeding and each shall
      execute and deliver such powers of attorney and make available such other
      documents as are reasonably necessary to carry out the intent of this Agreement.
      Each party agrees to notify the other party in writing of any audit adjustments
      which do not result in Tax liability but can be reasonably expected to affect
      Tax Returns of the other party, or any of its Subsidiaries, for a
      Post-Distribution Period. 

    

    6.02
      CONSISTENT TREATMENT. 

    

    (a)
      Unless and until there has been a Final Determination to the contrary, each
      party agrees to treat the Contribution, together with the Debt Exchange, as
      a
      reorganization qualifying under Section 368(a)(1)(D) of the Code, the
      Distribution as a transaction qualifying under Sections 355 and 361 of the
      Code
      and the Merger as a reorganization qualifying under Section 368(a) of the Code,
      pursuant to which no gain or loss is recognized by any of AT Co., Spinco, Valor
      and their respective shareholders (except to the extent of cash received in
      lieu
      of fractional shares).

     

     

    
      
        
        

      

      
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    (b)
      Unless and until there has been a Final Determination to the contrary or unless
      there is not at
      least
      substantial authority for a particular position within the meaning of Section
      6662 of the Code and the Treasury Regulations thereunder,
      Valor
      shall file or cause to be filed all Tax Returns of a member of the Spinco Group
      or relating to the Spinco Business and shall conduct any Tax Contests in respect
      of a member of the Spinco Group or the Spinco Business in a manner consistent
      with AT Co.'s determination of the adjusted Tax basis of any asset and the
      amount of any Tax Attribute or any similar item held by the Spinco Group at
      the
      time of the Distribution, and, without the consent of AT Co., in the case of
      a
      past practice of the AT Co. Consolidated Group that is subject to a Tax Contest
      at the time of the Distribution, Valor shall not permit any of the Spinco
      Subsidiaries to take any position on any Tax Return, in any Tax Contest or
      otherwise that is inconsistent with such past practice. For the avoidance of
      doubt, this Section shall not apply to reporting under GAAP.

    

    ARTICLE
      VII.

    

    RETENTION
      OF RECORDS; ACCESS

    

    The
      AT
      Co. Group and the Valor Group shall (a) in accordance with their then current
      record retention policy, retain records, documents, accounting data and other
      information (including computer data) necessary for the preparation and filing
      of all Tax Returns in respect of Taxes of any member of either the AT Co. Group
      or the Spinco Group for any Pre-Distribution Period or any Post-Distribution
      Period or for the audit of such Tax Returns; and (b) give to the other
      reasonable access to such records, documents, accounting data and other
      information (including computer data) and to its personnel (insuring their
      cooperation) and premises, for the purpose of the review or audit of such Tax
      Returns to the extent relevant to an obligation or liability of a party under
      this Agreement or for purposes of the preparation or filing of any such Tax
      Return, the conduct of any Tax Contest or any other matter reasonably and in
      good faith related to the Tax affairs of the requesting party. At any time
      after
      the Distribution Date that the Valor Group proposes to destroy such material
      or
      information, it shall first notify the AT Co. Group in writing and the AT Co.
      Group shall be entitled to receive such materials or information proposed to
      be
      destroyed. At any time after the Distribution Date that the AT Co. Group
      proposes to destroy such material or information, it shall first notify the
      Valor Group in writing and the Valor Group shall be entitled to receive such
      materials or information proposed to be destroyed.

    

    ARTICLE
      VIII.

    

    TERMINATION
      OF LIABILITIES

    

    Notwithstanding
      any other provision in this Agreement, any liabilities determined under this
      Agreement shall not terminate any earlier than the expiration of the applicable
      statute of limitation for such liability. All other covenants under this
      Agreement shall survive indefinitely.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      IX.

    

    DISPUTE
      RESOLUTION

    

    AT
      Co.
      and Valor shall attempt in good faith to resolve any disagreement arising with
      respect to this Agreement, including, but not limited to, any dispute in
      connection with a claim by a third party (a "Dispute"). Either party may give
      the other party written notice of any Dispute not resolved in the normal course
      of business. If the parties cannot agree by the tenth Business Day following
      the
      date on which one party gives such notice (the "Dispute Date"), then the Dispute
      shall be determined as follows: Within 20 days of the Dispute Date, AT Co.
      and
      Valor shall each appoint one arbitrator. The two arbitrators so appointed shall
      appoint a third arbitrator within 30 days of the Dispute Date. If either party
      shall fail to appoint an arbitrator within such 20-day period, the arbitration
      shall be conducted by the sole arbitrator appointed by the other party. Whether
      selected by AT Co., Valor or otherwise, each arbitrator selected to resolve
      such
      dispute shall be a tax lawyer who is generally recognized in the tax community
      as a qualified and competent tax practitioner with experience in the tax area
      involved. Such arbitrators shall be empowered to resolve the Dispute, including
      by engaging nationally recognized accounting and other experts. Each of AT
      Co.
      and Valor shall bear 50% of the aggregate expenses of the arbitrators (or the
      sole arbitrator). The decision of the arbitrators shall be rendered no later
      than 90 days from the Dispute Date and shall be final.

    

    ARTICLE
      X.

    

    MERGER
      AGREEMENT CONTROLS

    

    None
      of
      the provisions of this Agreement are intended to supersede any provision in
      Article X of the Merger Agreement. In the event of any conflict between this
      Agreement and Article X of the Merger Agreement, Article X of the Merger
      Agreement shall control.

    

    ARTICLE
      XI.

    

    MISCELLANEOUS
      PROVISIONS

    

    To
      the
      extent not inconsistent with any specific term of this Agreement, the following
      sections of the Distribution Agreement shall apply in relevant part to this
      Agreement: 12.3 (Governing Law), 12.4 (Notice), 12.5 (Amendment and
      Modification), 12.6 (Successors and Assigns; No Third-Party Beneficiaries),
      12.7
      (Counterparts), 12.8 (Interpretation), 12.9 (Severability), 12.10 (References;
      Construction), and 12.11 (Terminability).

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    
      
         

        
        

      

       

       

    

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
      the
      day and year first above written.

    

    ALLTEL
      CORPORATION

    

    By:
      /s/ Sharilyn S. Gasaway                

     

    Name:
      Sharilyn S. Gasaway

    Title:  
      Executive Vice President

    

    

    

    ALLTEL
      HOLDING CORP.

    

    By:
      /s/ John P. Fletcher                    

     

    Name:
      John P. Fletcher

    Title:  
      Executive Vice President and General Counsel

    

    

    

    VALOR
      COMMUNICATIONS GROUP, INC.

    

    By:
      /s/ William M. Ojile, Jr.,                

     

    Name:
      William M. Ojile, Jr., 

    Title:   
      Senior Vice President, Chief Legal Officer 

                        and
      Secretary

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