Document:

Exhibit 10.2

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS

 

Effective as of July 1,
2000

Amended and Restated Effective as of January 1, 2005

 

 

Preamble

 

1.1.                              Amendment and Restatement.  Qwest Communications International Inc., a
Delaware corporation (hereinafter the “Company”), heretofore established the “Qwest
Communications International Inc. Deferred Compensation Plan for Nonemployee
Directors” (the “Plan”) effective as of July 1, 2000 to permit certain nonemployee
members of its Board of Directors to defer receipt of all or a portion of their
anticipated Director’s Fees (as defined below). 
The Company reserved to itself the right to amend that Plan from time to
time.  By adoption of this amended and
restated document entitled “Qwest Communications International Inc. Deferred
Compensation Plan for Nonemployee Directors,” the Company hereby amends and
restates the Plan in its entirety as applied to all persons who are
Participants (as defined below) as of January 1, 2005 and all persons who
become Participants after that date, to comply with the changes required
by  Section 409A of the Internal
Revenue Code and to make certain other changes.

 

1.2.                              Unfunded Obligation.  The obligation of the Company to make payments
under this Plan constitutes only the unsecured (but legally enforceable)
promise of the Company to make such payments. 
The Participant shall have no lien, prior claim or other security
interest in any property of the Company. 
If a fund is established by the Company in connection with this Plan,
the property therein shall remain the sole and exclusive property of the
Company.  The Company will pay the cost
of this Plan out of its general assets.

 

1.3.                              Scope. 
This Plan document consists of this Preamble and two distinct and
mutually exclusive Parts applicable to different benefits depending on when the
benefit was earned under this Plan. 
These benefits are as follows.

 

1.3.1.                                                Part A.  Part A of the Plan contains all the
provisions and rules applicable to all benefits attributable to Director’s
Fees for services as a Director (as defined below) that were earned or vested
after December 31, 2004. No portion of Part A of the Plan is
applicable to any benefit or portion thereof to which Part B is applicable.

 

1.3.1.                                                Part B.  Part B of the Plan contains all the
provisions and rules applicable to all benefits attributable to Director’s
Fees for services as a Director that were earned and vested prior to January 1,
2005. No portion of Part B of the Plan is applicable to any benefit or
portion thereof to which Part A is applicable.

 

Preamble to Plan

 

 

IN
WITNESS WHEREOF, Qwest Communications International Inc. has
caused this amended and restated document to be adopted effective as of January 1,
2005.

 

 

	
   

  	
  , 2005

  	
   

  	
  QWEST COMMUNICATIONS

  INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  

 

2

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS

 

PART A

 

Plan Part A

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  PARTICIPANT DEFERRALS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Deferral Elections

  	
   

  	
   

  
	
  2.2

  	
  Changes in Deferral Elections

  	
   

  	
   

  
	
  2.3

  	
  Accounting

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  COMPANY MATCHING DEFERRALS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  ACCOUNTS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Establishment and Nature of Participant Accounts

  	
   

  	
   

  
	
  4.2

  	
  Account Earnings

  	
   

  	
   

  
	
  4.3

  	
  Change in Outstanding Shares

  	
   

  	
   

  
	
  4.4

  	
  Account Statements

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  VESTING

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  DISTRIBUTIONS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Timing and Form of Distribution

  	
   

  	
   

  
	
  6.2

  	
  Unforeseeable Emergency

  	
   

  	
   

  
	
  6.3

  	
  Payment of Benefits Following Death

  	
   

  	
   

  
	
  6.4

  	
  Distribution in Event of Taxation

  	
   

  	
   

  

 

i

 

	
  ARTICLE VII

  	
   

  	
  ADMINISTRATION

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Plan
  Administration

  	
   

  	
   

  
	
  7.2

  	
  Claims Procedure

  	
   

  	
   

  
	
  7.3

  	
  Expenses

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  AMENDMENT,
  MODIFICATION AND TERMINATION

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
  Unfunded Plan

  	
   

  	
   

  
	
  9.2

  	
  Withholding for
  Taxes and Other Deductions

  	
   

  	
   

  
	
  9.3

  	
  No Right to
  Directorship

  	
   

  	
   

  
	
  9.4

  	
  Alienation Prohibited

  	
   

  	
   

  
	
  9.5

  	
  General
  Limitation of Liability

  	
   

  	
   

  
	
  9.6

  	
  Applicable Law

  	
   

  	
   

  
	
  9.7

  	
  Successors and
  Assigns

  	
   

  	
   

  

 

ii

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS

 

PREAMBLE

 

This Part A of the Plan contains all the provisions and rules applicable
to all benefits attributable to Director’s Fees for services as a Director that
were earned or vested after December 31, 2004. No portion of Part A
of the Plan is applicable to any benefit or portion thereof to which Part B
is applicable.

 

ARTICLE I

 

DEFINITIONS

 

Whenever used
herein, the following terms shall have the respective meanings set forth below,
unless the context clearly indicates otherwise. 
In addition, unless some other meaning or intent is apparent from the
context, the plural shall include the singular and vice versa; and masculine,
feminine and neuter words shall be used interchangeably.

 

1.1                                 “Account” means, with respect to each Participant, the
Phantom Unit Account established pursuant to Article IV below.

 

1.2                                 “Administrator” means the
Executive Vice President - Human Resources or his or her successor or designee.

 

1.3                                 “Beneficiary” means the person, trust or other entity
designated by the Participant in accordance with Section 6.2 below to
receive payment under the Plan in the event of the Participant’s death.  If the Participant fails to designate a
Beneficiary, or if all of the Participant’s designated Beneficiaries predecease
the Participant, then the Participant’s Beneficiary shall be his or her estate.

 

1.4                                 “Board” means the Board of Directors of the Company.

 

1.5                                 “Code” means the Internal Revenue Code of 1986, as now or
hereafter amended and in effect.

 

1.6                                 “Common Stock” means the Company’s $.01 par value common stock.

 

1.7                                 “Company” means Qwest Communications International Inc., a
Delaware corporation.

 

 

1.8                                 “Company Matching Deferrals” means the amounts allocated to a
Participant’s Account as a matching deferral in accordance with the provisions
of Article III.

 

1.9                                 “Committee” means the Compensation and Human Resources
Committee of the Board or such other committee, officer or person as the Board
may designate from time to time.

 

1.10                           “Director” means a member of the Board.

 

1.11                           “Director’s Fees” means any retainer, attendance fees,
committee membership fees, or other compensation, paid in cash or stock by the
Company to a Director for services as a Director.

 

1.12                           “Eligible Director” means a Director who (a) is not an
employee of the Company or any subsidiary of the Company and (b) does not
own, directly or indirectly, 5% or more of the outstanding shares of the
Company’s Common Stock.

 

1.13                           “Participant” means an
Eligible Director who has elected to defer payment of Director’s Fees under the
Plan.  A person remains a Participant so
long as he or she has an Account balance under the Plan, whether or not such
person remains an Eligible Director.

 

1.14                           “Phantom Units” shall mean units held in a notational account
in which each unit represents a value equivalent to one share of Common Stock
of the Company.

 

1.15                           “Plan” means the Qwest Communications International Inc.
Deferred Compensation Plan for Nonemployee Directors, as set forth herein,
together with all amendments hereto.

 

1.16                           “Unforeseeable Emergency” means a severe financial hardship
to the Participant resulting from a sudden and unexpected illness or accident
of the Participant, of the Participant’s spouse or of a dependent (as defined
in Code Section 152(a)) of the Participant, loss of the Participant’s property
due to casualty, or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant.  The need to pay college tuition and the
desire to purchase a home will not be considered to constitute Unforeseeable
Emergencies.

 

ARTICLE II

 

PARTICIPANT DEFERRALS

 

2.1                                 Deferral Elections.  An Eligible Director may elect to
irrevocably defer all or any portion of the Director’s Fees that he or she
anticipates earning.  Such election shall
be made and filed with the Company no later than the last day of the calendar
year prior to the calendar year in which such Director’s Fees would otherwise
be payable.  Such elections shall be made
by 

 

2

 

filing a written
notice with the Company in such form, in such manner and by such time as the
Administrator shall specify. 
Notwithstanding the foregoing, a Director who first becomes an Eligible
Director during a calendar year may, within thirty days following the date on
which he or she becomes an Eligible Director, elect to defer Director’s Fees
that he or she has not yet earned (as of the date such Director files a
deferral election with the Company) but that are payable in such calendar year.

 

2.2                                 Changes in Deferral Elections.  A Participant’s deferral election shall
remain in effect until terminated or modified by the Participant pursuant to
this Section 2.2.  A Participant may
terminate or modify his or her deferral election by filing a new deferral
election with the Company in accordance with the provisions of Section 2.1
above.  New deferral elections shall
become effective on the later of (i) the date specified in the election,
or (ii) the first day of the next calendar year.

 

2.3                                 Accounting.  The Company shall credit a
Participant’s deferrals during a calendar year to the Account established for
such Participant for such year, pursuant to Article IV below, as of the
date on which the amount deferred would otherwise have been paid or made
available to the Participant.

 

ARTICLE III

 

COMPANY MATCHING DEFERRALS

 

At the time that
Participant deferrals are credited to a Participant’s Account under the Plan,
the Company shall also credit an amount equal to 50% of the Participant
deferrals to the Account as a Company Matching Deferral.  The Company Matching Deferral shall be fully
vested and shall be accounted for in the same manner as all other amounts
allocated to a Participant’s Account. 
Notwithstanding the foregoing, no matching contributions shall be made
under this Plan for deferrals after October 1, 2005.

 

ARTICLE IV

 

ACCOUNTS

 

4.1                                 Establishment and Nature of Participant Accounts.  The Company shall
establish and maintain, in the name of each Participant, Accounts to reflect
the Participant’s interest under the Plan. 
A separate Account shall be established and maintained for each
Participant for each year in which such Participant makes deferrals under the
Plan.  The maintenance of such Accounts
is for recordkeeping purposes only.  No
funds or other assets of the Company shall be segregated or attributable to the
amounts that may be credited to a Participant’s Accounts from 

 

3

 

time to time, but
rather benefit payments under the Plan shall be made solely from the general
assets of the Company at the time any such payments become due and payable.

 

4.2                                 Account Earnings.  Deferrals credited to a
Participant’s Account will be credited in Phantom Units in accordance with
standard recordkeeping procedures. 
Additional Phantom Units shall be credited each quarter to the
Participant’s Accounts to reflect dividends paid on Company Common Stock.  The number of additional Phantom Units
credited shall be calculated by multiplying the number of Phantom Units held in
the Participant’s Accounts as of the record date by the dividend payable per
share and then dividing the result by the fair market value of Company Common
Stock.  The fair market value is
determined by averaging the closing price of Company Common Stock over the
three trading days ending on the payment date of the applicable dividend.

 

4.3                                 Change in Outstanding Shares.  In the event of any change in outstanding
Company shares by reason of any stock dividend or split, recapitalization,
merger, consolidation or exchange of shares or other similar corporate change,
the number of Phantom Units then credited to the Participant’s Accounts shall
be increased, decreased or changed in like manner as if such Phantom Units were
actual shares of Company Common Stock and had been issued and outstanding,
fully paid and nonassessable at the time of such occurrence.  In addition, in the event of any such
corporate changes, the Board shall make such other adjustments, if any, that it
deems appropriate in the number or other features of Phantom Units then
credited to the Participants’ Accounts. 
Any and all such adjustments shall be conclusive and binding upon all
parties concerned.

 

4.4                                 Account Statements. 
After the close of each calendar year, or more frequently as the
Administrator, in its sole discretion, determines, the Company shall furnish
each Participant with a statement of the value of his or her Accounts.

 

ARTICLE V

 

VESTING

 

A Participant
shall be fully vested in his or her Accounts at all times, subject only to his
or her status as a general unsecured creditor of the Company in the event of
the Company’s insolvency or bankruptcy.

 

4

 

ARTICLE VI

 

DISTRIBUTIONS

 

6.1                                 Timing and Form of Distribution.  Except as provided otherwise in this Article VI,
each of the Participant’s Accounts shall be distributed to the Participant on,
or as soon as administratively practicable after, the Participant ceases to be
a Director. Each of the Participant’s Accounts shall be distributed to the
Participant in the form of a cash lump sum.

 

6.2                                 Unforeseeable Emergency. 
Any Participant, who the Committee determines has experienced (or would
experience, if a withdrawal were not permitted) an Unforeseeable Emergency,
shall be entitled to withdraw such amount from his or her Accounts as
reasonably is needed to satisfy the emergency need.  A Participant shall be required to submit a
written request for such a withdrawal, together with such supporting
documentation as the Committee may require, to the Committee for review and
approval.  Such request may specify the
Account(s) from which the Participant wishes to make the withdrawal.  If the request fails to do so, or if the
balances in the specified Account(s) are insufficient to cover such withdrawal,
then any amounts for which no designation has been made (or which are in excess
of the designated balances) shall be withdrawn from the Participant’s Accounts,
from oldest to newest, until the withdrawal amount is satisfied.  Upon the approval of a Participant’s request
for such a withdrawal, the Participant’s deferrals under the Plan shall be
suspended and the Participant shall be precluded from making further deferrals
under the Plan until the first day of the following calendar year.  A distribution under this Section 6.2
shall occur as soon as administratively practicable after the Committee
approves the Participant’s request. 
Notwithstanding the foregoing, distribution under this Section 6.2
may not be made to the extent that the hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, by liquidation of the
Participant’s assets (to the extent the liquidation would not itself cause
severe financial hardship) or by cessation of deferrals under the Plan.

 

6.3                                 Payment of Benefits Following Death. Upon the death of a
Participant, any undistributed balances in the Participant’s Accounts shall be
distributed to the Participant’s Beneficiary(ies) as soon as administratively
practicable. The form of distribution that will be paid to a Beneficiary shall
be a single lump sum. A Participant shall designate a Beneficiary(ies) in which
his or her undistributed Account balances shall be distributed to such
Beneficiary(ies) on such form (filed with the Company) as the Administrator
shall prescribe.  The Participant may
change a Beneficiary designation at any time by filing a new Beneficiary
designation with the Company.  Any such
change shall be effective only if the Participant is alive at the time the
Company receives such change.  The most recent
Beneficiary designation on file with the Company shall be controlling.

 

6.4                                 Distribution in Event of Taxation.  Notwithstanding any provision in
the Plan to the contrary, if the Internal Revenue Service or a court determines
that any amounts credited to a 

 

5

 

Participant’s
Accounts under the Plan are currently taxable under the Code, the Committee
may, in its discretion, cause such taxable amounts to be distributed to the
Participant during the year in which such amounts are taxable or during any
subsequent year.

 

ARTICLE VII

 

ADMINISTRATION

 

7.1                                 Plan Administration.

 

(a)                                                          The
Administrator shall have and exercise all discretionary and other authority to
control and manage the operation and administration of the Plan, except such
authority as is specifically allocated otherwise by or under the terms hereof,
and shall have the power to take any action necessary or appropriate to carry
out such responsibilities.  Without
limiting the foregoing, and in addition to the authority and duties specified
elsewhere herein, the Administrator shall have the discretionary authority to
construe, interpret and apply the terms and provisions of the Plan; to
prescribe such rules and regulations, and issue such directives, as it
deems necessary or appropriate for the administration of the Plan; and to make
all other determinations and decisions as it deems necessary or appropriate for
the administration of the Plan.  The
Administrator may correct any defect or supply any omission or reconcile any
inconsistency in the Plan in the manner and to the extent it deems
expedient.  Decisions of the
Administrator shall be final and binding upon the Participants, and their legal
representatives and beneficiaries.

 

(b)                                                         No
Director may decide, determine or act on any matter that affects the
distribution, nature or method of settlement of solely his or her Accounts
under the Plan, except in exercising an election available to that Director in
his or her capacity as a Participant.

 

7.2                                 Claims Procedure.  A
Participant or Beneficiary, as applicable, shall file any claim for payments
under the Plan with the Administrator, which shall consider such claim and
notify the claimant of its decision with respect thereto within ninety (90)
days (or within such longer period, not to exceed one hundred eighty (180)
days, as the Administrator determines is necessary to review the claim;
provided that the Administrator notifies the claimant of the extension within
the original ninety (90) day period).  If
the claim is denied, in whole or in part, the claimant may appeal such denial
to the Committee, provided he or she does so within sixty (60) days of
receiving the Administrator’s determination. 
The Committee shall consider the appeal and notify the claimant of its
decision with respect thereto within sixty (60) days (or within such longer
period, not to exceed one hundred twenty (120) days, as the Committee 

 

6

 

determines is
necessary to review the appeal; provided that the Committee notifies the
claimant of the extension within the original sixty (60) day period).  The Committee’s decision upon any appeal
shall be final and binding on all parties.

 

7.3                                 Expenses.  All expenses and costs incurred in
connection with the administration and operation of the Plan shall be borne by
the Company.

 

ARTICLE VIII

 

AMENDMENT, MODIFICATION AND TERMINATION

 

This Plan may be
amended, modified or terminated at any time by the Committee; provided,
however, that no such amendment or modification may adversely affect the rights
of any Participant, without his or her consent, to any benefit under the Plan
to which he or she was entitled prior to the effective date (or, if later, the
adoption date) of such amendment or modification. In the event of the
termination of this Plan, a Participant’s Accounts shall be distributed to the
Participant pursuant to Article VI above.

 

ARTICLE IX

 

MISCELLANEOUS

 

9.1                                 Unfunded Plan.  The
Plan shall be unfunded and all benefits under the Plan shall be paid solely
from the Company’s general assets.  The
Plan constitutes a mere promise by the Company to make benefit payments in the
future.  No Participant or Beneficiary
shall have any preferred claim to the amounts credited to a Participant’s
Accounts or to any assets of the Company on account of a Participant’s
participation in the Plan prior to the time such amounts are actually paid to
the Participant or Beneficiary, and then only to the extent of any such
payment.  Participants and Beneficiaries
shall have the status of general unsecured creditors of the Company.

 

9.2                                 Withholding for Taxes and Other Deductions.  The Company shall have the right to deduct
from any deferral to be made or any distribution or withdrawal to be paid under
the Plan any applicable taxes that it is required by law to withhold and any
amounts owed by the Participant to the Company.

 

9.3                                 No Right to Directorship. 
Nothing contained in the Plan or in any Deferral Agreement executed by a
Participant in connection herewith shall be construed to (a) confer upon
any Director any right to continue as a Director, (b) restrict in any way
any right the Company may have to terminate or change the terms or conditions
of any Director’s directorship 

 

7

 

at any time, or (c) confer
upon any Director or any other person any claim or right to any distribution
under the Plan except in accordance with its terms.

 

9.4                                 Alienation Prohibited. 
Neither the Participant nor any Beneficiary shall have any right or
ability to alienate, sell, transfer, assign, pledge or encumber, either
voluntarily or involuntarily, any amount due or expected to become due under
the Plan.  Nor shall any such amounts be
subject to garnishment, execution, levy or other seizure by any creditor of a
Participant or Beneficiary.

 

9.5                                 General Limitation of Liability.  Subject to applicable law and the Certificate
of Incorporation and Bylaws of the Company, as in effect from time to time,
neither the Company, the Board, the Committee, the Administrator nor any other
person shall be liable, either jointly or severally, for any act or failure to
act or for anything whatsoever in connection with the Plan, or the
administration thereof, except, and only to the extent of, liability imposed because
of willful misconduct, gross negligence or bad faith.  All benefit payments shall be made solely
from the Company’s general assets.

 

9.6                                 Applicable Law.  The
Plan shall be construed and its validity determined in accordance with the laws
of the State of Colorado to the extent such laws are not preempted by federal
law.

 

9.7                                 Successors and Assigns. 
The terms and conditions of the Plan, as amended and in effect from time
to time, shall be binding upon the Company’s successors and assigns, including
without limitation any entity into which the Company may be merged or with
which the Company may be consolidated.

 

8

 

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS

 

PART B

 

Plan Part B

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  PARTICIPANT DEFERRALS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Deferral Elections

  	
   

  	
   

  
	
  2.2

  	
  Changes in Deferral Elections

  	
   

  	
   

  
	
  2.3

  	
  Suspension of Deferrals

  	
   

  	
   

  
	
  2.4

  	
  Accounting

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  COMPANY MATCHING DEFERRALS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  ACCOUNTS

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Establishment and Nature of Participant Accounts

  	
   

  	
   

  
	
  4.2

  	
  Account Earnings

  	
   

  	
   

  
	
  4.3

  	
  Change in Outstanding Shares

  	
   

  	
   

  
	
  4.4

  	
  Account Statements

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  VESTING

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  DISTRIBUTIONS

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Timing and Form of Distribution

  	
   

  	
   

  
	
  6.2

  	
  Disability

  	
   

  	
   

  
	
  6.3

  	
  Competition

  	
   

  	
   

  
	
  6.4

  	
  Change of Control

  	
   

  	
   

  
	
  6.5

  	
  Unforeseeable Emergency

  	
   

  	
   

  
	
  6.6

  	
  Other In-Service Distributions

  	
   

  	
   

  

 

i

 

	
  6.7

  	
  Payment of Benefits Following Death

  	
   

  	
   

  
	
  6.8

  	
  Distribution in Event of Taxation

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  ADMINISTRATION

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Plan Administration

  	
   

  	
   

  
	
  7.2

  	
  Claims Procedure

  	
   

  	
   

  
	
  7.3

  	
  Expenses

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  AMENDMENT, MODIFICATION AND TERMINATION

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
  Unfunded Plan

  	
   

  	
   

  
	
  9.2

  	
  Withholding for Taxes and Other Deductions

  	
   

  	
   

  
	
  9.3

  	
  No Right to Directorship

  	
   

  	
   

  
	
  9.4

  	
  Alienation Prohibited

  	
   

  	
   

  
	
  9.5

  	
  General Limitation of Liability

  	
   

  	
   

  
	
  9.6

  	
  Applicable Law

  	
   

  	
   

  
	
  9.7

  	
  Successors and Assigns

  	
   

  	
   

  

 

ii

 

QWEST
COMMUNICATIONS INTERNATIONAL INC.

DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS

 

PREAMBLE

 

This Part B of the Plan contains all the provisions and rules applicable
to all benefits attributable to Director’s Fees for services as a Director that
were earned and vested prior to January 1, 2005. No portion of Part B
of the Plan is applicable to any benefit or portion thereof to which Part A
is applicable.

 

ARTICLE I

 

DEFINITIONS

 

Whenever used
herein, the following terms shall have the respective meanings set forth below,
unless the context clearly indicates otherwise. 
In addition, unless some other meaning or intent is apparent from the
context, the plural shall include the singular and vice versa; and masculine,
feminine and neuter words shall be used interchangeably.

 

1.1                                 “Account” means, with respect to each Participant, the
Phantom Unit Account established pursuant to Article IV below.

 

1.2                                 “Administrator” means the
Executive Vice President - Human Resources or his successor or designee.

 

1.3                                 “Beneficiary” means the person, trust or other entity
designated by the Participant in accordance with Section 6.7 below to
receive payment under the Plan in the event of the Participant’s death.  If the Participant fails to designate a
Beneficiary, or if all of the Participant’s designated Beneficiaries predecease
the Participant, then the Participant’s Beneficiary shall be his or her estate.

 

1.4                                 “Board” means the Board of Directors of the Company.

 

1.5                                 “Code” means the Internal Revenue Code of 1986, as now or
hereafter amended and in effect.

 

1.6                                 “Common Stock” means the Company’s $.01 par value common
stock.

 

1.7                                 “Company” means Qwest Communications International Inc., a
Delaware corporation.

 

 

1.8                                 “Company Matching Deferrals” means the amounts allocated to a
Participant’s Account as a matching deferral in accordance with the provisions
of Article III.

 

1.9                                 “Committee” means the Compensation Committee of the Board or
such other committee, officer or person as the Board may designate from time to
time.

 

1.10                           “Director” means a member of the Board of the Company.

 

1.11                           “Director’s Fees” means any retainer, attendance fees,
committee membership fees, or other compensation, paid in cash or stock by the
Company to a Director for services as a Director.

 

1.12                           “Eligible Director” means a Director who (a) is not an
employee of the Company or any subsidiary of the Company and (b) does not
own, directly or indirectly, 5% or more of the outstanding shares of the
Company’s Common Stock.

 

1.13                           “Participant” means an
Eligible Director who has elected to defer payment of Director’s Fees under the
Plan.  A person remains a Participant so
long as he or she has an Account balance under the Plan, whether or not such
person remains an Eligible Director.

 

1.14                           “Phantom Units” shall mean units held in a notational account
in which each unit represents a value equivalent to one share of Common Stock
of the Company.

 

1.15                           “Plan” means the Qwest Communications International Inc.
Deferred Compensation Plan for Nonemployee Directors, as set forth herein,
together with all amendments hereto.

 

1.16                           “Unforeseeable Emergency” means a severe financial hardship
to the Participant resulting from a sudden and unexpected illness or accident
of the Participant, of the Participant’s spouse or of a dependent (as defined
in Code section 152(a)) of the Participant, loss of the Participant’s
property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant.  The need to pay college
tuition and the desire to purchase a home will not be considered to constitute
Unforeseeable Emergencies.

 

ARTICLE II

 

PARTICIPANT DEFERRALS

 

2.1                                 Deferral Elections.  An Eligible Director may elect to
irrevocably defer all or any portion of the Director’s Fees that he or she
anticipates earning.  Such election shall
be made and filed with the Company no later than (i) the last day of the
calendar year prior to the calendar year in which such Director’s Fees would
otherwise be payable, if the Director initiates the 

 

2

 

election, or (ii) three
months prior to the date the Director’s Fees would otherwise be payable if a deferral
election is solicited from all Directors by the Company.  Such elections shall be made by filing a
written notice with the Company in such form, in such manner and by such time
as the Administrator shall specify. 
Notwithstanding the foregoing, a Director who first becomes an Eligible
Director during a calendar year may, within thirty days following the date on
which he or she becomes an Eligible Director, elect to defer Director’s Fees
that he or she has not yet earned (as of the date such Director files a
deferral election with the Company) but that are payable in such calendar year.

 

2.2                                 Changes in Deferral Elections.  A Participant’s deferral election shall
remain in effect until terminated or modified by the Participant pursuant to
this Section 2.3.  A Participant may
terminate or modify his or her deferral election by filing a new deferral
election with the Company in accordance with the provisions of Section 2.1
above.  New deferral elections shall
become effective on the later of (i) the date specified in the election,
or (ii) three months after the election if the change is solicited by the
Company.

 

2.3                                 Suspension of Deferrals. 
A Participant may suspend his or her deferrals under the Plan during a
calendar year if the Committee determines that the Participant has experienced
(or would experience, if suspension were not permitted) an Unforeseeable
Emergency that cannot be relieved through reimbursement or compensation by
insurance or otherwise or by liquidation of the Participant’s assets (to the
extent the liquidation would not itself cause severe financial hardship).  Any Participant who wishes to suspend his or
her deferrals during a calendar year pursuant to this Section must file a
written request for such suspension, together with such supporting
documentation as the Committee may require, with the Committee for review and
approval.  Such suspension shall become
effective as soon as administratively practicable after it is approved by the
Committee.  A Participant who has
suspended his or her deferrals under this Section may not recommence those
deferrals until the first day of the following calendar year.

 

2.4                                 Accounting.  The Company shall credit a
Participant’s deferrals during a calendar year to the Account established for
such Participant for such year, pursuant to Article IV below, as of the
date on which the amount deferred would otherwise have been paid or made
available to the Participant.

 

ARTICLE III

 

COMPANY MATCHING DEFERRALS

 

At the time that
Participant deferrals are credited to a Participant’s Account under the Plan,
the Company shall also credit an amount equal to 50% of the Participant
deferrals to the Account as a Company Matching Deferral.  The Company Matching Deferral shall be fully
vested and shall be accounted for in the same manner as all other amounts
allocated to a Participant’s Account.

 

3

 

ARTICLE IV

 

ACCOUNTS

 

4.1                                 Establishment and Nature of Participant Accounts.  The Company shall
establish and maintain, in the name of each Participant, Accounts to reflect
the Participant’s interest under the Plan. 
A separate Account shall be established and maintained for each
Participant for each year in which such Participant makes deferrals under the
Plan.  The maintenance of such Accounts
is for recordkeeping purposes only.  No
funds or other assets of the Company shall be segregated or attributable to the
amounts that may be credited to a Participant’s Accounts from time to time, but
rather benefit payments under the Plan shall be made solely from the general
assets of the Company at the time any such payments become due and payable.

 

4.2                                 Account Earnings.  Deferrals credited to a
Participant’s Account will be credited in Phantom Units in accordance with
standard recordkeeping procedures. 
Additional Phantom Units shall be credited each quarter to the
Participant’s Accounts to reflect dividends paid on Company Common Stock.  The number of additional Phantom Units
credited shall be calculated by multiplying the number of Phantom Units held in
the Participant’s Accounts as of the record date by the dividend payable per
share and then dividing the result by the fair market value of Company Common
Stock.  The fair market value is
determined by averaging the closing price of Company Common Stock over the
three trading days ending on the payment date of the applicable dividend.

 

4.3                                 Change in Outstanding Shares.  In the event of any change in outstanding
Company shares by reason of any stock dividend or split, recapitalization,
merger, consolidation or exchange of shares or other similar corporate change,
the number of Phantom Units then credited to the Participant’s Accounts shall
be increased, decreased or changed in like manner as if such Phantom Units were
actual shares of Company Common Stock and had been issued and outstanding,
fully paid and nonassessable at the time of such occurrence.  In addition, in the event of any such
corporate changes, the Board shall make such other adjustments, if any, that it
deems appropriate in the number or other features of Phantom Units then
credited to the Participants’ Accounts. 
Any and all such adjustments shall be conclusive and binding upon all
parties concerned.

 

4.4                                 Account Statements. 
After the close of each calendar year, or more frequently as the
Administrator, in its sole discretion, determines, the Company shall furnish
each Participant with a statement of the value of his or her Accounts.

 

4

 

ARTICLE V

 

VESTING

 

A Participant
shall be fully vested in his or her Accounts at all times, subject only to his
or her status as a general unsecured creditor of the Company in the event of
the Company’s insolvency or bankruptcy.

 

ARTICLE VI

 

DISTRIBUTIONS

 

6.1                                 Timing and Form of Distribution.

 

(a)                                                          Except
as provided otherwise in this Article VI, each of the Participant’s
Accounts shall be distributed or commence to be distributed to the Participant
on, or as soon as administratively practicable after, the earlier of the
distribution date specified for such Account by the Participant or the
termination of the Plan.  Subject to subsection 6.1(c) below,
the Participant shall specify the date on which each of his or her Accounts
shall be distributed or shall commence to be distributed at the time he or she makes,
and as a part of, an election to defer the Director’s Fees credited to that
Account.  The Participant may make a
separate election with respect to each of his or her Accounts.

 

(b)                                                         Except
as provided otherwise in this Article VI, each of the Participant’s
Accounts shall be distributed to the Participant in the form elected for such
Account by the Participant.  The
Participant may elect to have an Account distributed in either a cash lump sum,
annual cash installments over a period not to exceed ten (10) years or
such other form as the Administrator may approve.  Subject to subsection 6.1(c) below,
the Participant shall specify the form in which each of his or her Accounts is
to be distributed at the time such Participant makes, and as a part of, an election
to defer the Director’s Fees credited to that Account.  The Participant may make a separate election
with respect to each of his or her Accounts.

 

(c)                                                          A
Participant may change the timing and/or form of distribution for one or more
of his or her Accounts at any time, so long as such change is requested in
writing (and such request is filed with the Company) at least six months prior
to the date on which any of the Accounts to which it relates is scheduled to be
distributed or to commence to be distributed; 

 

5

 

provided, however,
that the Participant may not make more than one such change with respect to his
or her Accounts in any sixty consecutive month period.  Any change that is requested by a Participant
within six months of the date on which any of the Accounts to which it relates
is scheduled to be distributed or to commence to be distributed, or within
sixty months of a previous change to the timing and/or form of distribution for
any of the Participant’s Accounts, shall be null and void.

 

6.2                                 Disability. 
Notwithstanding Section 6.1 above, if a Participant becomes
disabled and ceases to be a Director as a result, or if the Participant becomes
disabled after he or she ceases to be a Director, then the Committee may, in
its sole discretion, direct that his or her undistributed Account balances be
distributed to such Participant in a lump sum on, or at any time after, the
later of the date on which he or she ceases to be a Director and the date on
which a determination of disability is made by the Committee.  For purposes of the Plan, a Director shall be
considered to be disabled if, as a result of an illness, injury or similar
incapacity, such Director is unable to perform those daily activities that he
or she was performing immediately prior to the illness, injury or other
incapacity, and such condition is expected to last for a period of at least six
(6) months.  The existence of a
disability shall be determined by the Committee, and shall be based upon such
medical and other evidence as the Committee deems appropriate; provided,
however, that a Participant shall be considered to be disabled if he or she is
totally and permanently disabled within the meaning of Code section 22(e)(3).

 

6.3                                 Competition.  Notwithstanding
Section 6.1 above, if a Participant ceases to be a Director and becomes a
proprietor, officer, partner or employee of, or otherwise becomes affiliated
with, any business that is in competition with the Company or any of its
subsidiaries, or becomes employed by a governmental agency having jurisdiction
over the activities of the Company or any of its subsidiaries, as determined by
the Committee in its sole discretion, then such Participant’s undistributed
Account balances shall be distributed to him or her in a cash lump sum on, or
as soon as administratively practicable after, the date on which he or she
ceases to be a Director.

 

6.4                                 Change of Control.

 

(a)                                                          Notwithstanding
Section 6.1 above, upon a “Change of Control,” as defined in subsection 6.4(b) below,
the Participant’s undistributed Account balances shall be funded into a trust
or distributed to the Participant in a lump sum within thirty days after such
Change of Control.

 

(b)                                                         For
purposes of this Section 6.4, a “Change of Control” shall be deemed to
have occurred if either (i) any individual, entity, or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the 1934 Act), other
than Anschutz Company, The Anschutz Corporation, any entity or organization
controlled by Philip F. Anschutz (collectively, the “Anschutz Entities”)
or 

 

6

 

a trustee or other
fiduciary holding securities under an employee benefit plan of the Company,
acquires beneficial ownership (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of fifty percent (50%) or more of either (A) the
then-outstanding shares of Stock (“Outstanding Shares”) or (B) the
combined voting power of the then-outstanding voting securities of the Company
entitled to vote generally in the election of directors (“Voting Power”) or (ii) at
any time during any period of three consecutive years (not including any period
prior to the Effective Date), individuals who at the beginning of such period
constitute the Board (and any new director whose election by the Board or whose
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who either were
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority thereof.

 

6.5                                 Unforeseeable Emergency. 
Any Participant, who the Committee determines has experienced (or would
experience, if a withdrawal were not permitted) an Unforeseeable Emergency,
shall be entitled to withdraw such amount from his or her Accounts as
reasonably is needed to satisfy the emergency need.  A Participant shall be required to submit a
written request for such a withdrawal, together with such supporting
documentation as the Committee may require, to the Committee for review and
approval.  Such request may specify the
Account(s) from which the Participant wishes to make the withdrawal.  If the request fails to do so, or if the
balances in the specified Account(s) are insufficient to cover such withdrawal,
then any amounts for which no designation has been made (or which are in excess
of the designated balances) shall be withdrawn from the Participant’s Accounts,
from oldest to newest, until the withdrawal amount is satisfied.  Upon the approval of a Participant’s request
for such a withdrawal, the Participant’s deferrals under the Plan shall be
suspended and the Participant shall be precluded from making further deferrals
under the Plan until the first day of the following calendar year.  A distribution under this Section  6.5
shall occur as soon as administratively practicable after the Committee
approves the Participant’s request. 
Notwithstanding the foregoing, distribution under this Section 6.5
may not be made to the extent that the hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, by liquidation of the
Participant’s assets (to the extent the liquidation would not itself cause
severe financial hardship) or by cessation of deferrals under the Plan.

 

6.6                                 Other In-Service Distributions.  A Participant shall be entitled to withdraw
all or any portion of his or her undistributed Account balances under the Plan
at any time; provided, however, that there shall be deducted from any such
withdrawal and forfeited to the Company an amount equal to ten percent of the
amount withdrawn.  A Participant shall be
required to submit a written request for any such in-service withdrawal to the
Administrator for review and approval. 
Such request may specify the Account(s) from which the Participant
wishes to make the withdrawal.  If the
request fails to do so, or if the balances in the specified Account(s) are 

 

7

 

insufficient to
cover such withdrawal, then any amounts for which no designation has been made
(or which are in excess of the designated balances) shall be withdrawn from the
Participant’s Accounts, from oldest to newest, until the withdrawal amount is
satisfied.  Upon the approval of the
Participant’s request for such a withdrawal, the Participant’s deferrals under
the Plan shall be suspended and the Participant shall be precluded from making
further deferrals under the Plan until the first day of the second calendar
year beginning after the calendar year in which the withdrawal occurs.  A distribution under this Section 6.6
shall occur as soon as administratively practicable after the Administrator
approves the Participant’s request.

 

6.7                                 Payment of Benefits Following Death.

 

(a)                                                          Upon
the death of a Participant, any undistributed balances in the Participant’s
Accounts shall be distributed or commence to be distributed to the Participant’s
Beneficiary(ies) as soon as administratively practicable in the form specified
by the Participant.  A Participant shall
designate a Beneficiary(ies) and the form(s) in which his or her undistributed
Account balances shall be distributed to such Beneficiary(ies) on such form
(filed with the Company) as the Administrator shall prescribe.  The Participant may change a Beneficiary
designation at any time by filing a new Beneficiary designation with the
Company.  Any such change shall be
effective only if the Participant is alive at the time the Company receives
such change.  The most recent Beneficiary
designation on file with the Company shall be controlling.

 

(b)                                                         The
forms of distribution that may be designated by a Participant pursuant to this Section 6.7
are as follows:

 

(i)                                     For
any Accounts with respect to which distributions have commenced prior to the
Participant’s death, the Participant may specify either that the form(s) in
which such Accounts are being distributed to him or her at the time of death
shall continue with respect to his or her Beneficiary(ies) or that any
undistributed Account balances shall be accelerated and distributed to such
Beneficiary(ies) in a cash lump sum.

 

(ii)                                  For
any Accounts with respect to which distributions have not commenced prior to
the Participant’s death, the Participant may specify that the balances in such
Accounts shall be distributed either in a cash lump sum or in such other form
of distribution as the Administrator may approve.

 

8

 

If a Participant
fails to specify in his or her Beneficiary designation the form(s) in which his
or her undistributed Account balances are to be distributed upon his or her
death, then such Account balances shall be distributed to the Participant’s
Beneficiary(ies) in a cash lump sum.

 

6.8                                 Distribution in Event of Taxation.  Notwithstanding any provision in
the Plan to the contrary, if the Internal Revenue Service or a court determines
that any amounts credited to a Participant’s Accounts under the Plan are
currently taxable under the Code, the Committee may, in its discretion, cause
such taxable amounts to be distributed to the Participant during the year in
which such amounts are taxable or during any subsequent year.

 

ARTICLE VII

 

ADMINISTRATION

 

7.1                                 Plan Administration.

 

(a)                                                                      The
Administrator shall have and exercise all discretionary and other authority to
control and manage the operation and administration of the Plan, except such
authority as is specifically allocated otherwise by or under the terms hereof,
and shall have the power to take any action necessary or appropriate to carry
out such responsibilities.  Without
limiting the foregoing, and in addition to the authority and duties specified
elsewhere herein, the Administrator shall have the discretionary authority to
construe, interpret and apply the terms and provisions of the Plan; to
prescribe such rules and regulations, and issue such directives, as it
deems necessary or appropriate for the administration of the Plan; and to make
all other determinations and decisions as it deems necessary or appropriate for
the administration of the Plan.  The
Administrator may correct any defect or supply any omission or reconcile any
inconsistency in the Plan in the manner and to the extent it deems expedient.  Decisions of the Administrator shall be final
and binding upon the Participants, and their legal representatives and
beneficiaries.

 

(b)                                                                     No
Director may decide, determine or act on any matter that affects the
distribution, nature or method of settlement of solely his or her Accounts
under the Plan, except in exercising an election available to that Director in
his or her capacity as a Participant.

 

7.2                                 Claims Procedure.  A
Participant or Beneficiary, as applicable, shall file any claim for payments
under the Plan with the Administrator, which shall consider such claim and
notify the claimant of its decision with respect thereto within ninety (90)
days (or within such longer period, not to exceed one hundred eighty (180)
days, as the Administrator determines is 

 

9

 

necessary to
review the claim; provided that the Administrator notifies the claimant of the
extension within the original ninety (90) day period).  If the claim is denied, in whole or in part,
the claimant may appeal such denial to the Committee, provided he or she does
so within sixty (60) days of receiving the Administrator’s determination.  The Committee shall consider the appeal and
notify the claimant of its decision with respect thereto within sixty (60) days
(or within such longer period, not to exceed one hundred twenty (120) days, as
the Committee determines is necessary to review the appeal; provided that the
Committee notifies the claimant of the extension within the original sixty (60)
day period).  The Committee’s decision
upon any appeal shall be final and binding on all parties.

 

7.3                                 Expenses.  All expenses and costs incurred in
connection with the administration and operation of the Plan shall be borne by
the Company.

 

ARTICLE VIII

 

AMENDMENT, MODIFICATION AND TERMINATION

 

This Plan may be
amended, modified or terminated at any time by the Committee; provided,
however, that no such amendment, modification or termination may adversely
affect the rights of any Participant, without his or her consent, to any
benefit under the Plan to which he or she was entitled prior to the effective
date (or, if later, the adoption date) of such amendment, modification or
termination.  In the event of the
termination of this Plan pursuant to this Article VIII, a Participant’s
Accounts shall be distributed to the Participant pursuant to Article VI
above.

 

ARTICLE IX

 

MISCELLANEOUS

 

9.1                                 Unfunded Plan.  The
Plan shall be unfunded and all benefits under the Plan shall be paid solely
from the Company’s general assets.  The
Plan constitutes a mere promise by the Company to make benefit payments in the
future.  No Participant or Beneficiary
shall have any preferred claim to the amounts credited to a Participant’s
Accounts or to any assets of the Company on account of a Participant’s
participation in the Plan prior to the time such amounts are actually paid to
the Participant or Beneficiary, and then only to the extent of any such
payment.  Participants and Beneficiaries
shall have the status of general unsecured creditors of the Company.

 

9.2                                 Withholding for Taxes and Other Deductions.  The Company shall have the right to deduct
from any deferral to be made or any distribution or withdrawal to be paid under
the Plan 

 

10

 

any applicable
taxes that it is required by law to withhold and any amounts owed by the
Participant to the Company.

 

9.3                                 No Right to Directorship. 
Nothing contained in the Plan or in any Deferral Agreement executed by a
Participant in connection herewith shall be construed to (a) confer upon
any Director any right to continue as a Director, (b) restrict in any way
any right the Company may have to terminate or change the terms or conditions
of any Director’s directorship at any time, or (c) confer upon any
Director or any other person any claim or right to any distribution under the
Plan except in accordance with its terms.

 

9.4                                 Alienation Prohibited. 
Neither the Participant nor any Beneficiary shall have any right or
ability to alienate, sell, transfer, assign, pledge or encumber, either
voluntarily or involuntarily, any amount due or expected to become due under
the Plan.  Nor shall any such amounts be
subject to garnishment, execution, levy or other seizure by any creditor of a
Participant or Beneficiary.

 

9.5                                 General Limitation of Liability.  Subject to applicable law and the Certificate
of Incorporation and Bylaws of the Company, as in effect from time to time,
neither the Company, the Board, the Committee, the Administrator nor any other
person shall be liable, either jointly or severally, for any act or failure to
act or for anything whatsoever in connection with the Plan, or the
administration thereof, except, and only to the extent of, liability imposed
because of willful misconduct, gross negligence or bad faith.  All benefit payments shall be made solely from
the Company’s general assets.

 

9.6                                 Applicable Law.  The
Plan shall be construed and its validity determined in accordance with the laws
of the State of Colorado to the extent such laws are not preempted by federal
law.

 

9.7                                 Successors and Assigns. 
The terms and conditions of the Plan, as amended and in effect from time
to time, shall be binding upon the Company’s successors and assigns, including
without limitation any entity into which the Company may be merged or with
which the Company may be consolidated.

 

11Exhibit 10.3

 

AMENDMENT TO SEVERANCE AGREEMENT

 

This Amendment to Severance Agreement (“Agreement”), which is effective
as of the date executed by both parties (the “Effective Date”), is by and
between [Name]  (“Executive”), and [his/her]
employer, Qwest Services Corporation, its parent, subsidiaries, successors or
affiliates (“Company”):

 

WHEREAS, Executive may be considered to be a “specified employee” under
Section 409A of the Internal Revenue Code (“Section 409A”) and
Company and Executive wish to amend the Severance Agreement entered into
between Executive and Company on [date] (“Severance
Agreement”), as set forth below in order to comply with Section 409A. Company
and Executive also agree to amend certain other provisions as set forth herein.

 

Therefore, the Severance Agreement is amended as set forth herein.   All other terms and conditions of the
Severance Agreement are unchanged by this Amendment and remain in full force
and effect, including but not limited to the requirement that Executive execute
the Waiver and Release Agreement (attached to his or her Severance Agreement as
Attachment A) as a condition of receiving severance benefits.  Executive and Company agree that sufficient
consideration has been provided to support this Amendment.

 

The Severance Agreement is amended as follows:

 

1.               Paragraph 3(a), entitled “Termination for
Cause” is amended in its entirety and shall be replaced with:

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

2.                                       A
new paragraph 23 is added as follows:

 

23.                               COMPLIANCE WITH SECTION 409A OF THE CODE.  Notwithstanding any other provision of this
Agreement, in the event that any payment or the provision of any benefit
provided under this Agreement constitutes a “deferred compensation plan” within
the meaning of Section 409A of the Code and any related guidance or
regulations (including proposed regulations) (collectively
“Section 409A”), the following provisions shall apply: 

 

a.                                       Separation
from Service.  No payment or provision of
benefits shall be made upon a “termination of employment” unless such
termination of employment also constitutes a “separation from service” under
Section 409A (“Separation from Service”).

 

b.                                       6-Month
Delay.  If Executive is a “specified employee”
within the meaning of Section 409A, then the payment or provision of
benefits shall be made as set forth below; provided, however, no such payment
or provision shall be made before the date that is six months after Executive’s
Separation from Service (or, if earlier, the date of Executive’s death) (the
“6-Month Delay”).  The determination of
whether Executive is a “specified employee” shall be made in accordance with
Section 409A using an identification date of December 31.  

 

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

 

 

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

 

(i)                              a
lump sum payment equal to one-third of the Standard Severance Amount will be
paid as soon as administratively practicable following the 6-Month Delay;

 

(ii)                          the
remainder of the Standard Severance Amount will be paid, in substantially equal
installments, through the Company’s regular management payroll processes for 12
months beginning on the first regular payroll period following the payroll
period in which the payment under paragraph 23(b)(1)(A)(i) is made; and

 

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

 

(B)                               Any
other 409A arrangement which provide cash benefits that are payable before the
6-Month Delay shall be paid as follows:

 

(i)                              a
lump sum payment equal to one-third of the total cash benefit will be paid as
soon as administratively feasible following the Six-Month Delay; and

 

(ii)                          the
remainder of the total cash benefit will be paid, in equal installments,
through the Company’s regular management payroll processes for 12 months
beginning on the first regular payroll period the payroll period in which the
payment under paragraph 23(b)(1)(B)(i) is made.

 

(2)                                 Payment
of Noncash Benefits.  The payment for any
noncash benefits, including, but not limited to, any applicable premium
payments related to such noncash 

 

2

 

benefits, shall be made by Executive during the 6-Month Delay, and
Executive shall be reimbursed by the Company for such payments as soon as
administratively practicable following the expiration of the Six Month
Delay.  Executive shall be solely liable
for all timely payments and elections as may be necessary to retain such
noncash benefits, and the Company shall not be liable to Executive, any
dependent and/or qualified beneficiary for any loss of any kind, including the
loss of noncash benefits relating to Executive’s failure to timely make any
payments or elections as required under the applicable benefit plan or this
paragraph 23.  By signing this Agreement,
Executive acknowledges this provision and the ramifications, including the
potential loss of benefits, of the failure to comply with this provision.

 

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

 

 

	
   

  	
  QWEST
  SERVICES CORP.:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Richard C.
  Notebaert

  	
  Date

  	
   

  
	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
  Executive:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Date

  
				

 

2

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