Exhibit
10(m)(1)

 
ALLTEL CORPORATION

COMPREHENSIVE PLAN OF GROUP INSURANCE

Restated Effective January 1, 2006

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TABLE OF CONTENTS

 
 ARTICLE I.
 NAME, EFFECTIVE DATE AND
PURPOSE...............................................................................................................................................................................................
 1  
 1.01
 Purpose..........................................................................................................................................................................................................................................................
 1          
 ARTICLE II.
 DEFINITIONS...................................................................................................................................................................................................................................................
 1  
2.01 
 Benefits..........................................................................................................................................................................................................................................................
 1   
  2.02 
 Board..............................................................................................................................................................................................................................................................
 1  
 2.03 
 Company.......................................................................................................................................................................................................................................................
 1  
 2.04 
 Corporate Benefits
Department.................................................................................................................................................................................................................
 2   
 2.05 
 Dependent.....................................................................................................................................................................................................................................................
 2   
 2.06 
 Effective
Date...............................................................................................................................................................................................................................................
 2  
 2.07 
 Eligible
Employee.........................................................................................................................................................................................................................................
 2   
 2.08 
 Employee.......................................................................................................................................................................................................................................................
 2   
 2.09 
 Employer........................................................................................................................................................................................................................................................
 2   
 2.10 
 Leased
Employee.........................................................................................................................................................................................................................................
 2   
 2.11 
 Participant.....................................................................................................................................................................................................................................................
 2   
 2.12 
 Plan.................................................................................................................................................................................................................................................................
 2   
 2.13 
 Plan
Administrator.......................................................................................................................................................................................................................................
 2   
 2.14 
 Plan
Year........................................................................................................................................................................................................................................................
 3           
 ARTICLE III.
 ELIGIBILITY.....................................................................................................................................................................................................................................................
 3   
 3.01 
 Initial and Continuous
Eligibility...............................................................................................................................................................................................................
 3           
 ARTICLE IV.
 ENROLLMENT AND
PARTICIPATION.....................................................................................................................................................................................................
 3   
 4.01 
 Enrollment in the
Plan.................................................................................................................................................................................................................................
 3   
 4.02 
 Coverage Effective
Date.............................................................................................................................................................................................................................
 3   
 4.03 
 Termination of
Coverage............................................................................................................................................................................................................................
 3           
 ARTICLE V.
 BENEFITS.........................................................................................................................................................................................................................................................
 3   
 5.01 
 Benefits.........................................................................................................................................................................................................................................................
 3           
 ARTICLE VI.
 HIPAA PRIVACY AND
SECURITY.............................................................................................................................................................................................................
 3   
 6.01 
 Protected Health
Information.....................................................................................................................................................................................................................
 3   
 6.02 
 Provision of Protected Health Information to
Employer........................................................................................................................................................................
 4           
 ARTICLE VII.
 ADMINISTRATION OF THE
PLAN............................................................................................................................................................................................................
 7   
 7.01 
 Administration..............................................................................................................................................................................................................................................
 7   
 7.02 
 General
Rules................................................................................................................................................................................................................................................
 7   
 7.03 
 Powers of the Plan
Administrator..............................................................................................................................................................................................................
 7   
 7.04 
 Employer's Data
Requirement....................................................................................................................................................................................................................
 8   
 7.05 
 Indemnification............................................................................................................................................................................................................................................
 8   
 7.06 
 Examination of
Records..............................................................................................................................................................................................................................
 8           
 ARTICLE VIII.
 SUBROGATION AND RIGHT OF
REIMBURSEMENT............................................................................................................................................................................
 8   
 8.01 
 General
Rules................................................................................................................................................................................................................................................
 8   
 8.02 
 Other
Party....................................................................................................................................................................................................................................................
 9   
 8.03 
 Cooperation..................................................................................................................................................................................................................................................
 10   
 8.04 
 Notice.............................................................................................................................................................................................................................................................
 10   
 8.05 
 Constructive
Test........................................................................................................................................................................................................................................
 10   
 8.06 
 First Lien and Priority
Right.......................................................................................................................................................................................................................
 10   
 8.07 
 Personal
Liability.........................................................................................................................................................................................................................................
 10   
 8.08 
 Characterization
Irrelevant.........................................................................................................................................................................................................................
 11   
 8.09 
 Payment of Attorney
Fees.........................................................................................................................................................................................................................
 11           
 ARTICLE IX.
 AMENDMENTS AND ACTION BY THE
EMPLOYER.............................................................................................................................................................................
 11   
 9.01 
 Amendments.................................................................................................................................................................................................................................................
 11   
 9.02 
 Action by
Employer.....................................................................................................................................................................................................................................
 11           
 ARTICLE X.
 PLAN
TERMINATION...................................................................................................................................................................................................................................
 11   
 10.01 
 Right to
Terminate.......................................................................................................................................................................................................................................
 11   
10.01 
 Plan
Termination..........................................................................................................................................................................................................................................
 11           
 ARTICLE XI.
 ADOPTION OF THE PLAN BY AN EMPLOYER OTHER THAN THE
COMPANY............................................................................................................................
 11   
 11.01 
 Applicability of
Article...............................................................................................................................................................................................................................
 11   
 11.02 
 Adoption
Procedure...................................................................................................................................................................................................................................
 11   
 11.03 
 Transfer of
Employment.............................................................................................................................................................................................................................
 12   
 11.04 
 Term of
Service............................................................................................................................................................................................................................................
 12   
 11.05 
 Responsibility Reserved to the
Company...............................................................................................................................................................................................
 12           
 ARTICLE XII.
 MISCELLANEOUS..........................................................................................................................................................................................................................................
 12   
 12.01 
 Non-guarantee of
Employment..................................................................................................................................................................................................................
 12   
 12.02 
 Filing of
Information....................................................................................................................................................................................................................................
 12   
 12.03 
 Misstatements..............................................................................................................................................................................................................................................
 13   
 12.04 
 Notices...........................................................................................................................................................................................................................................................
 13   
 12.05 
 Waiver of
Estoppel......................................................................................................................................................................................................................................
 13   
 12.06 
 Worker's Compensation Not
Affected.....................................................................................................................................................................................................
 13   
 12.07 
 Agent for Service of Legal
Process...........................................................................................................................................................................................................
 13   
 12.08 
 Gender............................................................................................................................................................................................................................................................
 13   
 12.09 
 Governing
Law.............................................................................................................................................................................................................................................
 13   
 12.10 
 Reliance on Participant, Tables,
Etc..........................................................................................................................................................................................................
 13   
 12.11 
 Effect of
Mistake..........................................................................................................................................................................................................................................
 14   
 12.12 
 Headings.......................................................................................................................................................................................................................................................
 14   
 12.13 
 Severability...................................................................................................................................................................................................................................................
 14   

 
 

 

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ALLTEL CORPORATION
 
COMPREHENSIVE PLAN OF GROUP INSURANCE
 
 
ARTICLE I.   NAME, EFFECTIVE DATE AND PURPOSE
 
1.01  Purpose.  Alltel Corporation established the Alltel Corporation
Comprehensive Plan of Group Insurance (hereinafter called the "Plan"). This
document amends and restates the Plan effective January 1, 2006, except as
otherwise set forth herein. This Plan is applicable to the Eligible Employees
and their Dependents as applicable, as defined herein, of Alltel Corporation and
its affiliated companies who have adopted the Plan (hereinafter called the
"Employer"). This Plan serves as the "umbrella" plan for the following
constituent plans:
 

(a)  
Alltel Corporation Exclusive Provider Option Plan;

(b)  
Alltel Health Maintenance Organizations Plan;

(c)  
Alltel Corporation Preferred Provider Organization Plan;

(d)  
Alltel Corporation Prescription Drug Plan;

(e)  
Alltel Corporation Dental Care Plan;

(f)  
Alltel Corporation Supplemental Life Insurance Plan;

(g)  
Alltel Corporation Supplemental AD&D Plan;

(h)  
Alltel Corporation Basic Life and AD&D Insurance Plan;

(i)  
Alltel Corporation Income Advantage Benefit Plan;

(j)  
Alltel Corporation Dependent Care Plan;

(k)  
Alltel Corporation Medical Reimbursement Plan;

(l)  
Alltel Corporation Vision Care Plan;

(m)  
Alltel Corporation Group Accident Plan;

(n)  
Special Insurance Plan for Former Allied Telephone Profit Sharing Participants;

(o)  
Alltel Indemnity Plan;

(p)  
Alltel Prior Insurance Plan; and

(q)  
Any other plans included as a constituent plan to the Comprehensive Plan of
Group Insurance from time to time

 

 
ARTICLE II.   DEFINITIONS
 
In addition to definitions set forth throughout this Plan document and in the
constituent plans, the following words when appearing in this Plan have the
meaning set forth below, unless the context clearly denotes otherwise:
 
2.01      "Benefits" means those benefits provided pursuant to constituent
plans. All Benefits are provided pursuant to the terms and provisions of the
constituent plans.
 
2.02      "Board" means the Board of Directors of Alltel Corporation.
 
2.03      "Company" means Alltel Corporation.
 
2.04      "Corporate Benefits Department" means Alltel Corporation's Corporate
Benefits Department.
 
                2.05      "Dependent" has the meaning given to it in each
constituent Plan document.
 
        2.06      "Effective Date" of this amendment and restatement of the Plan
means January 1, 2006.
 
            2.07      "Eligible Employee" means any Employee who meets the
requirements of Section 3.01 of this Plan and is otherwise eligible for coverage
under this Plan.
 
2.08      "Employee" means any person employed by the Employer and to the extent
necessary, a retired or terminated Employee who is entitled to Benefits under
this Plan.
 
2.09      "Employer" means Alltel Corporation and any affiliated companies,
within the meaning of Code Section 414(b), (c), or (m) of the Code, which have
adopted this Plan pursuant to Article XIII.
 
2.10      "Leased Employee" means a person described in Section 414(n) of the
Code.
 
2.11      "Participant" means an Employee, a Retired Employee, a Dependent, or
domestic partner who meets the eligibility requirements pursuant to the
constituent plans and who is enrolled for coverage under the constituent plans.
Notwithstanding any provision to the contrary, while an individual is performing
services in one of the following categories, he or she shall not be a
Participant:
 

   (a)  
An individual who is classified by an Employer as an independent contractor, as
evidenced by the Employer's failure to withhold taxes from the individual's
compensation, even if the individual is in fact the Employer's common law
employee; or

 

(b)  
An individual who is working for a third party other than the Employer providing
goods or services (including temporary employee services) to the Employer whom
the Employer does not regard to be its common law employee, as evidenced by its
failure to withhold taxes from his compensation, even if the individual is in
fact the Employer's common law employee.

 
2.12      "Plan" means the Alltel Corporation Comprehensive Plan of Group
Insurance, as it may be amended from time to time, which shall serve as the
umbrella plan for all of the following constituent plans: (a) Alltel Corporation
Exclusive Provider Option Plan; (b) Alltel Health Maintenance Organizations
Plan; (c) Alltel Corporation Preferred Provider Organization Plan; (d) Alltel
Corporation Prescription Drug Plan; (e) Alltel Corporation Dental Care Plan;
(f) Alltel Corporation Supplemental Life Insurance Plan; (g) Alltel Corporation
Supplemental AD&D Plan; (h) Alltel Corporation Basic Life and AD&D Insurance
Plan; (i) Alltel Corporation Income Advantage Benefit Plan; (j) Alltel
Corporation Dependent Care Plan; (k) Alltel Corporation Medical Reimbursement
Plan; (l) Alltel Corporation Vision Care Plan; (m) Alltel Corporation Group
Accident Plan; (n) Special Insurance Plan for Former Allied Telephone Profit
Sharing Participants; (o) Alltel Indemnity Plan; (p) Alltel Prior Insurance
Plan; and (q) Any other plans included as a constituent plan to the
Comprehensive Plan of Group Insurance from time to time.
 
2.13      "Plan Administrator" means the Employer or such other persons or
committee designated by the Board to administer the Plan pursuant to
Article VII.
 
2.14      "Plan Year" means the twelve consecutive month period commencing
January 1 and ending on December 31.
 
 
ARTICLE III.   ELIGIBILITY
 
3.01  Initial and Continuous Eligibility.  All Employees and Dependents who are
Participants in a constituent plan of the Comprehensive Plan of Group Insurance
shall be eligible to participate in this Plan. Notwithstanding the foregoing, in
no event shall a Leased Employee be eligible to participate in the Plan.
 
 
ARTICLE IV.   ENROLLMENT AND PARTICIPATION
 
4.01  Enrollment in the Plan.  Enrollment in the Plan is automatic for all
Eligible Employees and Dependents who enroll and become Participants in any of
the constituent plans of the Comprehensive Group of Insurance Plan.
 
4.02  Coverage Effective Date.  The effective date of coverage under this Plan
will be the Participant's effective date of coverage under the constituent plans
of the Comprehensive Group of Insurance Plan.
 
4.03  Termination of Coverage.  Coverage under this Plan will terminate
automatically upon the Participant's termination of coverage under the
constituent plans of the Comprehensive Plan of Group of Insurance.
 
 
ARTICLE V.   BENEFITS
 
5.01  Benefits.  A Participant shall be entitled to the Benefits pursuant to any
of the constituent plans of the Comprehensive Group of Insurance in which he or
she is a Participant.
 
 
ARTICLE VI.   HIPAA PRIVACY AND SECURITY
 
6.01  Protected Health Information.  Members of the Employer's workforce have
access to the individually identifiable health information of the Plan
Participants for administrative functions of the Plan. When this health
information is provided from the Plan to the Employer, it is Protected Health
Information ("PHI").
 
The following HIPAA definition of PHI applies to this Plan document:
 
Protected Health Information.  Protected health information means information
that is created or received by the Plan and relates to the past, present, or
future physical or mental health or condition of a Participant; the provision of
health care to a Participant; or the past, present, or future payment for the
provision of health care to a Participant; and that identifies the Participant
or for which there is a reasonable basis to believe the information can be used
to identify the Participant. Protected health information includes information
of persons living or deceased.
 
When PHI is transmitted by or maintained in electronic media, it is Electronic
Protected Health Information ("ePHI").
 
6.02  Provision of Protected Health Information to Employer.  The Employer shall
have access to PHI from the Plan only as permitted under this Plan document or
as otherwise required or permitted by HIPAA, as follows:
 

(a)  
Permitted Disclosure of Enrollment/Disenrollment Information

 
The Plan (or Claims Administrator of the Plan) may disclose to the Employer
information on whether the individual is participating in the Plan.
 

(b)  
Permitted Uses and Disclosure of Summary Health Information

 
The Plan (or Claims Administrator of the Plan) may disclose Summary Health
Information to the Employer, provided the Employer requests the Summary Health
Information for the purpose of (i) obtaining premium bids for insurance coverage
under the Plan; or (ii) modifying amending, or terminating the Plan.
 
"Summary Health Information" means: information that (i) summarizes the claims
history, claims expenses or type of claims experienced by individuals for whom
an Employer had provided health benefits under a health plan; and (ii) from
which the information described at 45 CFR Section 164.514(b)(2)(i) has been
deleted, except that the geographic information described in 45 CFR
Section 164.514(b)(2)(i)(B) need only be aggregated to the level of a five digit
ZIP Code.
 

(c)  
Permitted and Required Uses and Disclosure of Protected Health Information for
Plan Administrative Purposes

 
Unless otherwise permitted by law, and subject to the conditions of disclosure
described in paragraph (d), the Plan (or Claims Administrator of the Plan) may
disclose PHI to the Employer, provided the Employer uses or discloses such PHI
only for Plan administration purposes. "Plan administration purposes" means
administration functions performed by the Employer on behalf of the Plan, such
as quality assurance, claims processing, auditing, and monitoring. Plan
administration functions do not include functions performed by the Employer in
connection with any other benefit or benefit plan of the Employer, and they do
not include any employment related functions.
 
Notwithstanding the provisions of this Plan to the contrary, in no event shall
the Employer be permitted to use or disclose PHI in a manner that is
inconsistent with 45 CFR Section 164.504(f).
 

(d)  
Conditions for Disclosure for Plan Administration Purposes

 
The Employer agrees that with respect to any PHI (other than
enrollment/disenrollment information and Summary Health Information, which are
not subject to these restrictions) disclosed to it by the Plan (or Claims
Administrator of the Plan) the Employer shall:
 

(1)  
Not use or further disclose the PHI other than as permitted or required by law.

 

(2)  
Ensure that any agent, including a subcontractor to whom it provides PHI
received from the Plan, agrees to the same restrictions and conditions that
apply to the Employer with respect to PHI.

 

(3)  
Not use or disclose the PHI for employment related actions and decisions or in
connection with any other benefit or employee benefit plan of the Employer.

 

(4)  
Report to the Plan any use or disclosure of the information that is inconsistent
with the uses or disclosures provided for or which it becomes aware.

 

(5)  
Make available PHI to comply with HIPAA's right to access in accordance with 45
CFR Section 164.524.

 

(6)  
Make available PHI for amendment and incorporate any amendments to PHI in
accordance with 45 CFR Section 164.526.

 

(7)  
Make available the information required to provide an accounting of disclosures
in accordance with 45 CFR Section 164.528.

 

(8)  
Make its internal practices, books, and records relating to the use and
disclosure of PHI received from the Plan available to the Secretary of Health
and Human Services for purposes of determining compliance by the Plan with
HIPAA's privacy requirements.

 

(9)  
If feasible, return or destroy all PHI received from the Plan that the Employer
still maintains in any form and retain no copies of such information when no
longer needed for the purpose for which disclosure was made, except that, if
such return or destruction is not feasible, limit further uses and disclosures
to those purposes that make the return or destruction of the information
infeasible.

 

(10)  
Ensure that the adequate separation between Plan and Employer
(i.e., the "firewall"), required in 45 CFR Section 164.504(f)(2)(iii), is
satisfied.

 
The Employer further agrees that if it creates, receives, maintains, or
transmits any ePHI (other than enrollment/disenrollment information and Summary
Health Information, which are not subject to these restrictions) on behalf of
the covered entity, it will implement administrative, physical, and technical
safeguards that reasonably and appropriately protect the confidentiality,
integrity, and availability of the electronic protected health information, and
it will ensure that any agents (including subcontractors) to whom it provides
such electronic PHI agrees to implement reasonable and appropriate security
measures to protect the information. The Employer will report to the Plan any
security incident of which it becomes aware.
 

(e)  
Adequate Separation Between Plan and Employer

 
The Employer shall allow the Employees of the Corporate Benefits Department and
certain Employees of the Human Resources and Payroll Departments access to PHI.
In addition, the Employer shall allow certain Employees of the IT and Central
Records Departments to have incidental access to PHI. No other persons shall
have access to PHI. These Employees shall only have access to and use PHI to the
extent necessary to perform the plan administration functions that the Employer
performs for the Plan. In the event that any of these specified Employees do not
comply with the provisions of this Section that Employee shall be subject to
disciplinary action by the Employer for non-compliance pursuant to the
Employer's Employee discipline and termination procedures.
 
The Employer will also ensure that the provisions of this Section are supported
by reasonable and appropriate security measures to the extent that the designees
have access to ePHI.
 

(f)  
Certification of Employer

 
The Plan (or Claims Administrator of the Plan) shall disclose PHI to the
Employer only upon the receipt of a certification by the Employer that the Plan
has been amended to incorporate the provisions of 45 CFR
Section 164.504(f)(2)(ii), and that the Employer agrees to the conditions of the
disclosure set forth in paragraph (d) of this Section.
 

(g)  
Hybrid Entity Designation

 
The Plan is a "hybrid entity," i.e., a single legal entity with both covered and
non-covered functions under HIPAA. Notwithstanding anything herein or in the
Constituent Plans to the contrary, the Plan hereby designates the following
Constituent Plans as the Plan's "health care components," which components must
comply with the requirements of HIPAA: Alltel Corporation Exclusive Provider
Option Plan; Alltel Health Maintenance Organizations Plan; Alltel Corporation
Preferred Provider Organization Plan; Alltel Corporation Prescription Drug Plan;
Alltel Corporation Dental Care Plan; Alltel Corporation Income Advantage Benefit
Plan (to the extent it provides a medical flexible spending account); Alltel
Corporation Medical Reimbursement Plan; and Alltel Corporation Vision Care Plan.
 
 
ARTICLE VII.   ADMINISTRATION OF THE PLAN
 
7.01  Administration.  The administration of this Plan, except with regards to
any Claims for Benefits, the exclusive power to interpret this Plan, and the
responsibility for carrying out this Plan's provisions shall be vested in the
Plan Administrator. The Plan Administrator shall have full and complete
discretion in the exercise of such administrative power and duties. The power to
administer the Plan with regards to Claims for Benefits will be vested in the
Claims Administrator only as designated in the constituent plans irrespective of
any Plan provisions to the contrary.
 
Any usual and reasonable expenses incurred by the Plan Administrator in the
performance of its duties may be paid by the Plan.
 
7.02  General Rules.  The Plan Administrator shall act solely in the interest of
Participants and their Dependents.
 
Whenever in this Plan discretionary powers are given to the Plan Administrator,
it shall be understood that the Plan Administrator shall have complete
discretion and its decisions shall be final and binding upon all parties. The
Plan Administrator shall exercise its discretion in a nondiscriminatory manner.
 
The Plan Administrator may delegate to any employee, officer or director
authority to sign documents on its behalf, or to perform any act involving the
exercise of discretion. The Plan Administrator may employ such legal, medical,
accounting, actuarial, clerical, and other assistance as it may reasonably
require in carrying out the provisions of this Plan, the charges therefore to be
paid by the Plan or by the Employer.
 
In the event that any dispute shall arise as to any act to be performed by the
Plan Administrator, the Plan Administrator may postpone the performing of such
act until actual adjudication of such dispute has been made in a court of
competent jurisdiction or until it has been indemnified against loss to its
satisfaction.
 
7.03  Powers of the Plan Administrator.  The Plan Administrator's power and
duties will include but not be limited to the following discretionary authority,
in addition to any described elsewhere in this Plan:
 

(a)  
To make and enforce such rules and regulations as he deems necessary or proper
for the efficient administration of the Plan, including the establishment of
claims procedures in accordance with the provisions of Section 503 of ERISA;

 

(b)  
To construe and interpret the terms of the Plan, and such interpretation thereof
shall be final, conclusive and binding on all persons claiming benefits under
the Plan;

 

(c)  
To determine the eligibility of any Employee to participate in the Plan, with
its interpretation thereof and such decision shall be final, conclusive and
binding;

 

(d)  
To file with the appropriate government any and all reports and notifications
required of the Plan;

 

(e)  
To provide all Participants with any and all reports and notifications to which
they are by law entitled;

 

(f)  
To maintain appropriate records for the Plan and keep in convenient form the
data necessary for preparing the reports for the Plan and to make those records
available for inspection by the Employer;

 

(g)  
To provide any Participant upon demand, a copy of the Plan Administrator's
records with respect to his Participation and only his Participation;

 

(h)  
To appoint such agents (including a Third Party Administrator), counsel,
accountants, consultants, and actuaries as may be required to assist in
administering the Plan;

 

(i)  
To allocate and delegate his fiduciary responsibility under the Plan and to
designate other persons to carry out any of his fiduciary responsibilities under
the Plan, any such allocation, delegation or designation to be by written
instrument and in accordance with Section 405 of ERISA.

 
7.04  Employer's Data Requirement.  The Employer shall furnish to the Plan
Administrator such information as is required or desirable for the purpose of
enabling it to carry out the provisions of this Plan. The Plan Administrator may
rely upon representations made by the Employer and, if it is desirable to have
any fact certified, it may rely upon a certification of such fact by any officer
of the Employer.
 
7.05  Indemnification.  The Employer shall indemnify any Employee of the
Employer involved in the administration of this Plan against all costs, expenses
and liabilities, including reasonable attorney's fees incurred in connection
with any action, suit or proceeding instituted against him while acting in good
faith in discharging his duties with respect to this Plan. This indemnification
is limited to the amount of such costs and expenses which are not otherwise
covered under insurance now or hereafter provided by the Employer.
 
7.06  Examination of Records.  The Plan Administrator will make available to
each Participant such of his records as pertain to him, for examination at
reasonable times during normal business hours.
 
 
ARTICLE VIII.   SUBROGATION AND RIGHT OF REIMBURSEMENT
 
8.01  General Rules.
 

(a)  
Right of Subrogation and Reimbursement.  When an Other Party is liable or
legally responsible to pay expenses, compensation and/or damages in relation to
an illness, a sickness, a bodily injury, a disability or death for which
Benefits are also payable under the Plan, the Plan may, at its option,
(i) subrogate or (ii) recover from the Participant or his legal representative
any benefits paid under the Plan from any payment the Participant receives or is
entitled to receive from the Other Party.

 

(b)  
Subrogation.  If the Plan chooses to enforce its right of subrogation, the
Participant or legal representative must transfer to the Plan any rights the
Participant or legal representative may have to take legal action arising from
the illness, sickness or bodily injury so that the Plan may recover any sums
paid under the Plan on behalf of the Participant.

 

(c)  
Extent of Right.  The Plan may assert actions to enforce its rights of
subrogation or reimbursement based in contract, tort, or any other cause of
action to the fullest extent permitted by law.

 

(d)  
Application of Right.  Notwithstanding any other Plan provision to the contrary,
the Plan's subrogation and reimbursement rights apply to any funds recovered
from the Other Party by or on behalf of a Participant, the estate of any
Participant or on behalf of any incapacitated person. If the Participant is a
minor, any amount recovered by the minor, the minor's trustee, guardian, parent,
or other representative, shall be subject to the provisions of this Article,
regardless of state law and whether the minor's representative has access or
control of any recovery funds.

 

(e)  
Recovery of Overpayments.  If, for any reason, an overpayment or an erroneous
payment occurs, the Plan retains all equitable and contractual rights to
recovery of the overpayment or erroneous payment. As a condition of payment, any
person or institution receiving a Benefit consents and agrees to the imposition
of an equitable lien and construct trust as to any overpayment or erroneous
payment. Recovery of an overpayment or erroneous payment may be effected by
deductions from future Benefits as they become payable.

 
8.02  "Other Party".  An "Other Party" is a person or entity that is liable or
legally responsible to pay expenses, compensation and/or damages in relation to
an illness, a sickness, a bodily injury, a disability or death incurred by a
Participant and may include, but is not limited to, any of the following:
 

(a)  
the party or parties who caused the illness, sickness or bodily injury;

 

(b)  
the insurer or other indemnifier of the party or parties who caused the illness,
sickness or bodily injury;

 

(c)  
a guarantor of the party or parties who caused the illness, sickness or bodily
injury;

 

(d)  
the Participant's own insurer (for example, in the case of uninsured or
underinsured coverage, no fault coverage or med pay);

 

(e)  
a worker's compensation insurer (including the Participant's employer, if
worker's compensation is self insured);

 

(f)  
any government or charitable entity, program or plan, including without
limitation the Social Security Administration and Social Security Disability
Insurance; and,

 

(g)  
any other person, entity, policy or plan that is liable or legally responsible
in relation to the illness, sickness or bodily injury.

 
This definition is applicable to this Article, and such meaning shall be
applicable through the Plans unless the context clearly requires otherwise.
 
8.03  Cooperation.  As a condition of participation in and receipt of a Benefit
from the Plan, each Participant consents and agrees, and agrees to cause his or
her legal representative to agree to, cooperate fully with the Plan in asserting
its subrogation and recovery rights. Each Participant, as well as all legal
representatives, must, upon request from the Plan, provide all information and
sign and return all documents necessary for the Plan to exercise its rights
under the Plan. Failure or refusal by a Participant to execute such agreements
or furnish information does not preclude the Plan from exercising its right to
subrogation or obtaining full reimbursement. Moreover, upon a Participant's
failure or refusal to cooperate with the Plan, the Plan may cease paying
benefits and reduce future benefits payable until full reimbursement is
received.
 
8.04  Notice.  As a condition of participation in the Plan, the Participant
agrees to provide notice to the Plan within a reasonable time after the
Participant is involved in an incident that gives rise to the rights of
subrogation or reimbursement, and prior to the date that the Participant expects
to receive a payment from an Other Party. The Plan may notify the Other Party of
the Plan's liens and rights to subrogation and reimbursement without notice to
or the consent of the Participant.
 
8.05  Constructive Trust.  As a condition of participation in and receipt of a
Benefit from the Plan, each Participant consents and agrees that any funds
received by the Participant (or legal representative) from any source for any
purpose up to the amount of Benefits paid under the Plan shall be held in trust
with either the person receiving benefits (or representative) as trustee and the
Plan as beneficiary, until such time as the obligation under this provision is
fully satisfied. Accordingly, such Participant or legal representative shall be
deemed a fiduciary of the Plan to the extent of the Plan assets so held in
trust.
 
8.06  First Lien and Priority Right.
 

(a)  
In General.  The Plan will have a first lien and priority right upon any
recovery, whether by settlement, judgment, mediation, arbitration or other
means, that the Participant or legal representative receives or is entitled to
receive from an Other Party. The Plan's lien and priority right will not exceed
the lesser of (i) the amount of benefits paid by the Plan for the illness,
sickness or bodily injury, plus the amount of all future benefits that may
become payable under the Plan that result from the illness, sickness or bodily
injury (The Plan will have the right to offset or recover such future benefits
from the amount received from the Other Party), or (ii) the amount recovered
from the Other Party.

 

(b)  
Reductions Not Permitted.  The Plan's first lien and priority rights will not be
reduced: due to the Participant's own negligence; due to the Participant not
being made whole; or, due to attorney's fees and costs incurred by the
Participant, i.e., all attorney's fees, litigation or other expenses, and court
costs, including the Plan's attorney fees and court costs, are the
responsibility of the Participant, not the Plan. Neither the "common fund" nor
"make whole" doctrines shall be applicable with regard to the Plan, and as a
condition of participating in and receipt of Benefits from the Plan, the
Participant agrees to assert neither of these doctrines.

 
8.07  Personal Liability.  If the Participant or legal representative makes any
recovery from an Other Party and fails to reimburse the Plan for any Benefits
that arise from the illness, sickness or bodily injury, then the Participant or
legal representative will be personally liable to the Plan for the amount of the
Benefits paid under the Plan, and the Plan may reduce future Benefits payable
for any illness, sickness or bodily injury by the payment that the Participant
or legal representative has received from the Other Party.
 
8.08  Characterization Irrelevant.  The Plan's rights of subrogation or
reimbursement shall apply regardless of whether any such funds or payments are
designated as payment for pain and suffering, medical benefits, or any other
specified damages.
 
8.09  Payment of Attorney Fees.  If it becomes necessary for the Plan to enforce
this provision by initiating any action against any person, including the
Participant's legal representative, and if the Plan successfully recovers, then
the Participant agrees, as a condition of participation in the Plan, to pay the
Plan's attorney's fees and costs associated with the action.
 
 
ARTICLE IX.   AMENDMENTS AND ACTION BY THE EMPLOYER
 
9.01  Amendments.  The Board reserves the right to amend this Plan in whole or
in part at any time and for any reason. The Board has granted amendment
authority to the Vice President of HR, Benefits and the Sr. Vice President of
Compensation and Benefits, either of whom may approve and adopt any amendment to
the Plan.
 
9.02  Action by Employer.  Any action by the Employer under this Plan may be by
action of the Board or by any person or persons duly authorized by action of the
Board to take such action.
 
 
ARTICLE X.   PLAN TERMINATION
 
10.01  Right to Terminate.  In accordance with the procedures set forth in this
Article, the Board may terminate this Plan at any time.
 
10.02  Plan Termination.  Upon the termination of this Plan, the rights of
Participants are limited to expenses incurred before termination.
 
 
ARTICLE XI.   ADOPTION OF THE PLAN BY AN EMPLOYER OTHER THAN THE COMPANY
 
11.01  Applicability of Article.  This Article X shall apply only where an
Employer, other than the Company, adopts this Plan; provided, however, and
notwithstanding the foregoing, only Employers affiliated with the Company for
purposes of Section 414(b), (c), or (m) of the Code may adopt this Plan.
 
11.02  Adoption Procedure.  An Employer shall automatically be deemed to have
adopted this Plan. The adoption shall be immediately effective upon an Employer
becoming affiliated with the Company for purposes of Section 414(b), (c), or (m)
of the Code. If the Employer does not desire to adopt this Plan, the Employer
must file with the Plan Administrator a formal notice by an officer of the
Employer declining the adoption of this Plan. Upon adoption of this Plan, an
adopting Employer shall have all the duties and responsibilities of the Company
under this Plan, except as the Company has otherwise designated pursuant to
written agreement for delegation of its duties and responsibilities.
 
11.03  Transfer of Employment.  A transfer of employment between the Company and
an adopting Employer shall not constitute a separation from service or cessation
of eligibility, provided there is no intervening employment elsewhere and
provided the Employee still meets the eligibility requirements of this Plan.
Transfer of employment shall not give rise to an election revocation or change
to an election made prior to the transfer.
 
11.04  Term of Service.  For purposes of determining eligibility under this
Plan, an Employee's employment with the Company or any adopting Employer shall
be taken into account.
 
11.05  Responsibility Reserved to the Company.  Although adopting Employers as
well as the Company are considered to act in the role of the Company in certain
respects with respect to this Plan, the following responsibilities are expressly
and exclusively reserved to the Company and not to any adopting Employer:
 

(a)  
to determine the design of this Plan, including eligibility provisions and the
right to amend or terminate this Plan;

 

(b)  
to establish and maintain the qualification of this Plan under applicable law;

 

(c)  
to appoint the Plan Administrator and the Claims Administrator;

 

(d)  
to remove or replace the Plan Administrator and the Claims Administrator;

 

(e)  
to exercise all authority exercisable by the Company hereunder and to make all
decisions reserved to the Company;

 

(f)  
to receive written acknowledgments of Plan amendments and delegation of duties;

 

(g)  
to exercise all administrative functions and powers hereunder; and

 

(h)  
to receive any statements, accounts and reports from the Plan Administrator.

 
 
ARTICLE XII.   MISCELLANEOUS
 
12.01  Non-guarantee of Employment.  This Plan shall not be deemed to constitute
a contract between the Employer and any Participant or to be a consideration or
an inducement for the employment of any Participant or Employee. Nothing
contained in this Plan shall be deemed to give any Participant or Employee the
right to be retained in the service of the Employer or to interfere with the
right of the Employer to discharge any Participant or Employee at any time
regardless of the effect which such discharge shall have upon him as a
Participant of this Plan.
 
12.02   Filing of Information.  Each Eligible Employee, covered Dependent or
other interested person shall file with the Employer such pertinent information
concerning participation in the Plan as the Employer or Plan Administrator may
specify, including proof or continued proof of dependency or eligibility, and in
such manner and form as the Employer may specify or provide; and such person
shall not have rights to be entitled to any Benefits or further Benefits
hereunder unless such information is filed by the Participant or on the
Participant's behalf.
 
12.03  Misstatements.  In the event of any misstatement of any fact(s) affecting
coverage under the Plan, the real facts shall be used to determine the proper
coverage. Coverage means eligibility as well as the amount of any Benefit
thereunder.
 
12.04  Notices.  Any notice, application, instruction, designation or other form
of communication required to be given or submitted by any Participant shall be
in such form as is prescribed from time to time by the Plan Administrator. Any
notice, statement, report or other communication from the Employer, Plan
Administrator to any Participant, other Employee or beneficiary required or
permitted by the Plan shall be deemed to have been duly delivered when given to
such person or mailed by first class mail to such person at the Participant's
address last appearing on the records of the Plan Administrator or the Employer.
Each person entitled to receive a payment under the Plan shall file in
accordance herewith the Participant's complete mailing address and each change
therein. If the Plan Administrator shall be in doubt as to whether payments are
being received by the person entitled thereto, the Plan Administrator may, by
registered mail addressed to such person's address last known to the Plan
Administrator, notify such person that all future payments will be withheld
until such person submits to the Plan Administrator the proper mailing address
and such other information as the Plan Administrator may reasonably request.
 
12.05  Waiver of Estoppel.  No term, condition or provision of the Plan shall be
deemed to have been waived, and there shall be no estoppel against the
enforcement of any provision of this Plan, except by written instrument of the
party charged with such waiver or estoppel. No such written waiver shall be
deemed a continuing waiver unless specifically stated therein, and each such
waiver shall operate only as to the specific term or condition waived and shall
not constitute a waiver of such term or condition for the future or as to any
act other than that specifically waived.
 
12.06  Worker's Compensation Not Affected.  This Plan is not instead of, and
does not affect, any requirement for coverage by workers' compensation
insurance.
 
12.07  Agent for Service of Legal Process.  The agent for the service of legal
process under the Plan is the Plan Administrator.
 
12.08  Gender.  Except where otherwise indicated by the context, any masculine
terminology used herein shall also include the feminine and vice versa, and the
definition of any term herein in the singular shall also include the plural, and
vice versa.
 
12.09  Governing Law.  This Plan shall be construed and enforced according to
the laws of the State of Arkansas, other than its laws respecting choice of law,
to the extent not preempted by any federal law.
 
12.10  Reliance on Participant, Tables, Etc.  The Plan Administrator may rely
upon the direction, information, or election of a Participant as being proper
under the Plan and shall not be responsible for any act or failure to act
because of a direction or lack of direction by a Participant. The Plan
Administrator will also be entitled, to the extent permitted by law, to rely
conclusively on all tables, valuations, certificates, opinions and reports that
are furnished by accountants, attorneys, or other experts employed or engaged by
the Plan Administrator.
 
12.11  Effect of Mistake.  In the event of a mistake as to the eligibility or
participation of an Employee, the Plan Administrator shall, to the extent it
deems administratively possible and otherwise permissible under the Code or the
regulations issued thereunder, make adjustments that will in its judgment
correct the mistake and accord to such Participant or other person what he or
she is properly entitled under the Plan.
 
12.12  Headings.  The headings of the various Articles and Sections are inserted
for convenience of reference and are not to be regarded as part of this Plan or
as indicating, or controlling the meaning or construction of any provision.
 
12.13  Severability.  Should any part of this Plan subsequently be invalidated
by a court of competent jurisdiction, the remainder of the Plan shall be given
effect to the maximum extent possible.
 
IN WITNESS WHEREOF, the Employer has caused this Plan to be entered into
effective as of January 1, 2006.
 

 
ALLTEL CORPORATION
 
 
By:  /s/ Scott T. Ford
                                                                       
 
Title:  President and Chief Executive Officer