Document:

Exhibit 10.l

ALLTEL CORPORATION
  

  PROFIT-SHARING PLAN

  (January 1, 2002 Restatement) 

TABLE OF CONTENTS
  

	 	
      Page

    
	ARTICLE I DEFINITIONS	
      2

    

	 	1.01 Authorized Leave of Absence	
      2

    
	 	1.02 Beneficiary	
      2

    
	 	1.03 Board of Directors	
      2

    
	 	1.04 Break in Service	
      2

    
	 	1.05 Code	
      2

    
	 	1.06 Company	
      2

    
	 	1.07 Compensation	
      3

    
	 	1.08 Computation Period	
      3

    
	 	1.09 Controlled Group	
      4

    
	 	1.10 Early Retirement	
      4

    
	 	1.11 Effective Date	
      4

    
	 	1.12 Eligible Employee	
      4

    
	 	1.13 Employee	
      5

    
	 	1.14 Employer	
      5

    
	 	1.15 Employer Contribution	
      5

    
	 	1.16 Employment Commencement
      Date	
      5

    
	 	1.17 ERISA	
      6

    
	 	1.18 Forfeiture	
      6

    
	 	1.19 Guaranteed Principal Investment
      Fund	
      6

    
	 	1.20 Reserved	
      6

    
	 	1.21 Hour of Service	
      6

    
	 	1.22 Investment Fund A	
      6

    
	 	1.23 Reserved	
      6

    
	 	1.24 Reserved	
      6

    
	 	1.25 Normal Retirement Age	
      6

    
	 	1.26 Normal Retirement	
      6

    
	 	1.27 Participant	
      6

    
	 	1.28 Plan	
      7

    
	 	1.29 Plan Administrator	
      7

    
	 	1.30 Plan Year	
      7

    
	 	1.31 Prior Plan	
      7

    
	 	1.32 Reemployment Commencement
      Date	
      7

    
	 	1.33 Region	
      7

    
	 	1.34 Separate Account	
      7

    
	 	1.35 Spouse	
      7

    
	 	1.36 Sub-Account	
      7

    
	 	1.37 Termination of Employment	
      8

    
	 	1.38 Total and Permanent Disability	
      8

    
	 	1.39 Trust	
      8

    
	 	1.40 Trust Agreement	
      8

    
	 	1.41 Trustee	
      8

    
	 	1.42 Trust Fund	
      8

    
	 	1.43 Valuation Date	
      9

    
	 	1.44 Year of Eligibility Service	
      9

    
	 	1.45 Year of Participation	
      9

    
	 	1.46 Year of Service	
      9

    
	 	1.47 Year of Vesting Service	
      9

    

	ARTICLE II ADMINISTRATION	
      10

    

	 	2.01 Plan Administrator	
      10

    
	 	2.02 Allocation of Authority
      and Responsibility Among Named Fiduciaries	
      10

    
	 	2.03 Rights, Powers and Duties
      of the Plan Administrator	
      10

    
	 	2.04 Discharge of Duties	
      11

    
	 	2.05 Indemnification	
      12

    
	 	2.06 Compensation and Expenses	
      12

    
	 	2.07 Committee	
      12

    
	 	2.08 Administrative Expenses	
      13

    

	ARTICLE III GENERAL PROVISIONS	
      14

    

	 	3.01 Adoption of the Plan by
      Other Employers	
      14

    
	 	3.02 No Contract of Employment	
      14

    
	 	3.03 Restrictions Upon Assignments
      and Creditor's Claims	
      14

    
	 	3.04 Facility of Payment	
      15

    
	 	3.05 Restriction of Claims Against
      Trust	
      15

    
	 	3.06 Benefits Payable from Trust	
      15

    
	 	3.07 Merger and Transfer of
      Assets or Liabilities 	
      15

    
	 	3.08 Applicable Law	
      16

    
	 	3.09 Reversion of Employer Contributions	
      16

    
	 	3.10 Qualified Military Service
      Rights	
      16

    

	ARTICLE IV CLAIMS PROCEDURES	
      17

    

	 	4.01 Claim for Benefits	
      17

    
	 	4.02 Review	
      17

    

	ARTICLE V AMENDMENT AND TERMINATION	
      19

    

	 	5.01 Amendment and Termination
      of the Plan	
      19

    
	 	5.02 Procedure Upon Termination	
      19

    
	 	5.03 Non-Forfeitability Upon
      Termination of Plan	
      20

    
	 	5.04 Reorganization	
      20

    
	 	5.05 Withdrawal of an Employer	
      20

    

	ARTICLE VI TRUST AGREEMENT AND
      TRUST FUND	
      21

    

	 	6.01 Trust Agreement and Trust
      Fund	
      21

    

 
(ii)

 

	 	6.02 Irrevocability	
      21

    
	 	6.03 Benefits Payable Only from
      Trust Fund	
      21

    
	 	6.04 Optional Provision for
      Benefits	
      21

    
	 	6.05 Commingling Authorized	
      21

    

	ARTICLE VII LIMITATION ON CONTRIBUTIONS	
      21

    

	 	7.01 Definitions	
      23

    
	 	7.02 Limitations on Crediting
      of Contributions and Forfeitures	
      24

    
	 	7.03 Coverage Under Other Qualified
      Defined Contribution Plan	
      25

    
	 	7.04 Coverage Under Qualified
      Defined Benefit Plan	
      25

    
	 	7.05 Scope of Limitations	
      26

    

	ARTICLE VIII TOP-HEAVY PROVISIONS	
      27

    

	 	8.01 Definitions	
      27

    
	 	8.02 Applicability	
      29

    
	 	8.03 Minimum Employer Contribution	
      29

    
	 	8.04 Coordination with Other
      Plans	
      30

    
	 	8.05 Adjustments to Section
      415 Limitations	
      30

    
	 	8.06 Accelerated Vesting	
      30

    
	 	8.07 EGTRAA Provision	
      30

    

	ARTICLE IX SERVICE	
      33

    

	 	9.01 Crediting of Hours of Service	
      33

    
	 	9.02 Limitations on Crediting
      of Hours of Service	
      34

    
	 	9.03 Department of Labor Rules	
      35

    
	 	9.04 Years of Eligibility Service	
      35

    
	 	9.05 Years of Vesting Service	
      36

    
	 	9.06 Vesting Following Break
      in Service	
      39

    

	ARTICLE X ELIGIBILITY AND PARTICIPATION	
      40

    

	 	10.01 Eligibility	
      40

    
	 	10.02 Termination and Rehiring	
      40

    
	 	10.03 Duration of Participation	
      41

    

	ARTICLE XI INVESTMENT FUNDS,
      ACCOUNTING, AND SEPARATE ACCOUNTS	
      42

    

	 	11.01 Composition of Trust Fund
      	
      42

    
	 	11.02 Election to Transfer to
      Guaranteed Principal Investment Fund	
      43

    
	 	11.03 Allocation of Earnings
      or Losses to Separate Accounts	
      43

    
	 	11.04 Separate Accounts	
      44

    
	 	11.05 Sub-Accounts	
      44

    

 
(iii)

	ARTICLE XII VOLUNTARY CONTRIBUTIONS
      AND ROLLOVER CONTRIBUTIONS	
      45

    

	 	12.01 No Voluntary Contributions	
      45

    
	 	12.02 No Rollover Contributions
      	
      45

    

	ARTICLE XIII EMPLOYER CONTRIBUTIONS
      AND ALLOCATIONS	
      46

    

	 	13.01 Employer Contributions	
      46

    
	 	13.02 Timing of Employer Contributions	
      46

    
	 	13.03 Allocation of Forfeitures	
      46

    
	 	13.04 Eligibility For and Allocation
      of Employer Contributions	
      47

    
	 	13.05 Employer Contributions
      for Certain Employees	
      47

    

	ARTICLE XIV BENEFITS AND DISTRIBUTIONS	
      48

    

	 	14.01 Vested Termination of
      Employment	
      48

    
	 	14.02 Death	
      48

    
	 	14.03 Administrative Powers
      Relating to Payments	
      48

    
	 	14.04 Reemployment	
      48

    

	ARTICLE XV FORMS OF PAYMENT	
      50

    

	 	15.01 Method of Distribution
      to Participants	
      50

    
	 	15.02 Method of Distribution
      to Beneficiaries	
      51

    
	 	15.03 Provisions Pursuant to
      Sections 401(a)(9), 401(a)(14), and 411(a)(11) of the Code 52 15.04 Small
      Benefit Cash-Out	
      52

    
	 	15.04 Small Benefit Cash-Out	
      54

    
	 	15.05 Notice Regarding Distributions	
      55

    
	 	15.06 Direct Rollover Requirements	
      55

    
	 	15.07 Valuation and Timing of
      Distribution	
      57

    
	 	15.08 Form of Election	
      57

    
	 	15.09 Prior Plans	
      57

    

	ARTICLE XVI VESTING AND FORFEITURES	
      58

    

	 	16.01 Full Vesting	
      58

    
	 	16.02 Vesting Schedule	
      58

    
	 	16.03 Forfeitures	
      59

    
	 	16.04 Restoration of Certain
      Forfeitures on Reemployment	
      60

    
	 	16.05 Vesting Following Certain
      Distributions	
      60

    
	 	16.06 Election of Former Vesting
      Schedule	
      61

    

	ARTICLE XVII BENEFICIARIES	
      62

    

	 	17.01 Designation of Beneficiary	
      62

    
	 	17.02 Spousal Consent Requirements	
      62

    
	 	17.03 No Beneficiary	
      62

    
	 	17.04 Reliance	
      63

    

(iv)

 

	ARTICLE XVIII LOANS	
      64

    

	 	18.01 No Loans	
      64

    

	ARTICLE XIX IN-SERVICE WITHDRAWALS	
      65

    

	 	19.01 No In-Service Withdrawals	
      65

    

	ARTICLE XX MERGER OF CERTAIN
      PLANS INTO THE PLAN	
      66

    

	 	20.01 In General	
      66

    
	 	20.02 Merger of Allied Telephone
      Company Profit Sharing Plan	
      66

    
	 	20.03 Merger of Profit Sharing
      Plan for Employees of Systematics Information Services, Inc. and Participating
      Affiliates	
      67

    

	ARTICLE XXI TRANSFER OF BENEFITS
      WITH RESPECT TO CERTAIN EMPLOYEES WHOSE EMPLOYMENT TRANSFERS TO CITIZENS
      UTILITIES COMPANY OR ONE OF ITS AFFILIATES	
      69

    

	 	21.01 Definitions	
      69

    
	 	21.02 Transfer of Assets	
      70

    
	 	21.03 Benefit Payments After
      an Effective Date but Prior to the Transfer of Assets	
      70

    
	 	21.04 Cessation of Participation	
      70

    
	 	21.05 Vested Interest of Transfer
      Employees	
      70

    
	 	21.06 Plan Continuing	
      70

    
	 	21.07 Overriding Provisions	
      71

    

	ARTICLE XXII EXTENSION OF COVERAGE
      TO CERTAIN EMPLOYEES	
      72

    

	 	22.01 Extension of Coverage
      to Certain Georgia Exchange Employees	
      72

    
	 	22.02 Extension of Coverage
      to Certain Ohio Employees	
      72

    
	 	22.03 Extension of Coverage
      to Certain Georgia Exchange Employees	
      72

    
	 	22.04 Extension of Coverage
      to Certain Kentucky Employees	
      73

    
	 	22.05 Extension of Coverage
      to Certain Alabama Employees	
      73

    

	ARTICLE XXIII SPECIAL PROVISIONS
      AND EFFECTIVE DATES	
      74

    

	 	23.01 General	
      74

    
	 	23.02 Specific Effective Date
      Provisions	
      74

    
	 	23.03 Law Change Effective Dates	
      75

    
	 	23.04 GUST Effective Dates	
      75

    
	 	23.05 EGTRAA Effective Dates	
      75

    

(v)

 ALLTEL CORPORATION

  PROFIT-SHARING PLAN 

  (January 1, 2002 Restatement)

  

  PREAMBLE 

The ALLTEL Corporation Profit-Sharing
  Plan, originally effective as of January 1, 1988, was amended and restated effective
  as of January 1, 1994, and was thereafter amended on several occasions. The
  Plan is hereby amended and restated in its entirety, effective as herein set
  forth. The Plan is intended to qualify as a profit-sharing plan for all purposes
  of the Code, ERISA, and any other relevant purpose, notwithstanding that contributions
  may or may not be made without regard to current or accumulated profits of the
  employer and without regard to whether contributions may or may not be discretionary.
  The Plan is maintained for the exclusive benefit of eligible employees and their
  beneficiaries. 

ARTICLE I

  DEFINITIONS 

Whenever used herein with the initial
  letter capitalized, the following words and phrases shall have the following
  meanings unless a different meaning is plainly required by the context. For
  purposes of construction of the Plan, the masculine term shall include the feminine
  and the singular shall include the plural in all cases in which they could thus
  be applied. 

1.01 Authorized Leave of Absence
  

Any absence from regular employment
  authorized or excused by the Employer under its standard personnel practices,
  provided that all persons under similar circumstances shall be treated alike
  in the granting of such Authorized Leaves of Absence. 

1.02 Beneficiary 

The person or persons entitled under
  the provisions of the Plan to receive distribution hereunder in the event the
  Participant dies before receiving distribution of his entire vested interest
  under the Plan. 

1.03 Board of Directors 

The Board of Directors of the Company.
  

1.04 Break in Service 

A Computation Period during which
  an Employee does not complete more than 500 Hours of Service. 

1.05 Code 

The Internal Revenue Code of 1986,
  as amended from time to time. Reference to a section of the Code includes such
  section and any comparable section or sections of any future legislation that
  amends, supplements, or supersedes such section. 

1.06 Company 

ALLTEL Corporation, a Delaware Corporation,
  its corporate successors, and the surviving corporation resulting from any merger
  of ALLTEL Corporation with any other corporation or corporations. 

 

2

1.07 Compensation 

The amount paid by the Employer during
  the Plan Year directly to the Employee, including basic wages, cash bonuses,
  overtime compensation, commissions, shift differentials, in-charge premiums,
  any amount the payment of which is deferred under the ALLTEL Corporation Executive
  Deferred Compensation Plan, the ALLTEL Corporation Performance Incentive Compensation
  Plan, the ALLTEL Corporation Long-Term Performance Incentive Plan, or the ALLTEL
  Corporation 1998 Management Deferred Compensation Plan, but excluding any other
  forms of additional compensation and further excluding non-wage taxable fringe
  benefits. Compensation which a Participant elects to defer under the above-specified
  plans shall, for purposes of the Plan, be credited to the Participant as compensation
  during the period when such deferred amounts would have been paid (in the absence
  of the deferral election) rather than during the period when such deferred amounts
  are earned or actually paid. Compensation shall be determined without regard
  to any compensation reduction pursuant to an arrangement under a "cafeteria
  plan" as defined in Section 125 of the Code or pursuant to a "qualified cash
  or deferred arrangement" as defined in Section 401(k) of the Code. 

In no event, however, shall the Compensation
  of a Participant taken into account under the Plan for a Plan Year exceed the
  dollar limitation under Section 401(a)(17)(A) of the Code, subject to adjustment
  annually as provided in Section 401(a)(17)(B) and Section 415(d) of the Code.
  If the compensation of a Participant is determined over a period of time that
  contains fewer than 12 calendar months, then the annual compensation limitation
  described above shall be adjusted with respect to that Participant by multiplying
  the annual compensation limitation in effect for the Plan Year by a fraction
  the numerator of which is the number of full months in the period and the denominator
  of which is 12. 

1.08 Computation Period 

For purposes of determining an Employee's
  Years of Eligibility Service, a Computation Period means (i) the 12-consecutive-month
  period beginning on his Employment Commencement Date, and (ii) each Plan Year
  beginning after his Employment Commencement Date.  

 For purposes of determining
  an Employee's Years of Vesting Service, a Computation Period means each Plan
  Year, commencing with the Plan Year in which occurs his Employment Commencement
  Date.  

 For purposes of determining a Participant's Years of Participation, a
  Computation Period means each Plan Year. 

 

3

 

1.09 Controlled Group 

An Employer and any and all other
  corporations, trades, businesses, or organizations, the employees of which together
  with the employees of the Employer are required, pursuant to the applicable
  provisions of Section 414(b), (c), or (m) of the Code, to be treated as if they
  were employed by a single employer. 

1.10 Early Retirement 

A Participant's Termination of Employment,
  other than by reason of death or Total and Permanent Disability, before his
  Normal Retirement Age but following his attainment of age 55 and completion
  of 20 Years of Vesting Service or his attainment of age 60 and completion of
  15 Years of Vesting Service. 

1.11 Effective Date 

The Plan was originally effective
  as of January 1, 1988. 

1.12 Eligible Employee 

(a) Each Employee of the Employer,
  except 

(1) an Employee covered by a collective
    bargaining agreement between an Employer and a representative of such Employee
    that does not specifically provide for coverage under the Plan; provided,
    however, that if an Employee ceases to be covered by a collective bargaining
    agreement (other than by a transfer of employment), such an Employee shall
    not become an Eligible Employee unless coverage under the Plan is specifically
    extended to such an Employee by an amendment to the Plan, 

  (2) any person who is a nonresident
    alien and who receives no earned income (within the meaning of Section 911(b)
    of the Code) from the Employer that constitutes income from sources within
    the United States (within the meaning of Section 861(a)(3) of the Code), 

  (3) a leased employee (as hereinafter
    defined), 

  (4) any person whose compensation
    from the Employer is not regularly stated compensation on a salaried or hourly
    wage basis, or 

  (5) any person who is not treated
    by the Employer as an employee for purposes of Section 3401 of the Code (without
    regard to any determination other than by the Employer that such person is
    or 

  4

   

  is not an employee for purposes of Section 3401 of the Code), without regard
    to any retroactive treatment by the Employer of such person as an employee
    for purposes of Section 3401 of the Code. 

   

(b) In determining eligibility of
  an Employee described on Appendix A, the terms of Appendix A shall apply. 

1.13 Employee 

A person employed (as a common law
  employee) by the Controlled Group. "Employee" shall include any "leased employee"
  (as hereinafter defined); provided, however, contributions or benefits provided
  by the leasing organization which are attributable to services performed for
  the Employer shall be treated as provided by the Employer. The term "leased
  employee" means any person who, pursuant to an agreement between the Employer
  and any other person ("leasing organization"), has performed services for the
  Employer (or for the Employer and related persons determined in accordance with
  Section 414(n)(6) of the Internal Revenue Code) on a substantially full-time
  basis for a period of at least one year, if such services are performed under
  the primary direction and control of the recipient. Notwithstanding the foregoing,
  a leased employee shall not be considered an Employee for any Plan Year if such
  leased employees constitute less than 20% of the number of the Employer's Nonhighly
  Compensated Employees within the meaning of Section 414(n)(5)(C)(ii) of the
  Code and if during such Plan Year the leased employee is covered by a plan described
  in Section 414(n)(5)(B) of the Code. A leased employee is not eligible to participate
  in the Plan unless he actually becomes an Employee (and an Eligible Employee)
  without regard to this paragraph. 

1.14 Employer 

The Company and any other member
  of the Controlled Group adopting the Plan pursuant to Section 3.01 or any corresponding
  predecessor provision of the Plan. 

1.15 Employer Contribution
  

An Employer profit-sharing contribution
  made pursuant to Section 13.01. 

1.16 Employment Commencement Date
  

The date on which an Employee first
  performs an Hour of Service for the Employer or any other member of the Controlled
  Group. 

 

5

1.17 ERISA 

The Employee Retirement Income Security
  Act of 1974, as the same has been and may be amended from time to time. Reference
  to a section of ERISA includes such section and any comparable section or sections
  of any future legislation that amends, supplements, or supersedes such section.
  

1.18 Forfeiture 

The non-vested portion of a Participant's
  Separate Account that is forfeited pursuant to Section 16.03. 

1.19 Guaranteed Principal Investment
  Fund 

An investment fund described in Section
  11.01. 

1.20 Reserved 

1.21 Hour of Service 

Each hour, if any, that may be credited
  to a person in accordance with the provisions of Article IX. 

1.22 Investment Fund A 

An investment fund described in Section
  11.01. 

1.23 Reserved 

1.24 Reserved 

1.25 Normal Retirement Age
  

The date an Employee attains age
  65. 

1.26 Normal Retirement 

A Participant's Termination of Employment,
  other than by reason of death or Total and Permanent Disability, on or after
  he attains his Normal Retirement Age. 

1.27 Participant 

A person who fulfills the eligibility
  requirements as provided in the Plan to become a Participant and who continues
  to qualify as a Participant in accordance with the Plan's provisions. 

6

 

1.28 Plan 

The ALLTEL Corporation Profit-Sharing
  Plan, as set forth herein and as may be amended from time to time. 

1.29 Plan Administrator 

The Company, which shall serve pursuant
  to the terms of Article II. The Company may allocate or delegate any or all
  of its authority under the Plan to a Committee of no less than three persons.
  

1.30 Plan Year 

The twelve-month period which begins
  on the first day of January and which ends on the last day of December. 

1.31 Prior Plan 

Any other qualified plan that is
  merged into the Plan under Article XX. 

1.32 Reemployment Commencement
  Date 

The date on which an Employee first
  performs an Hour of Service following a termination of employment with the Controlled
  Group. 

1.33 Region 

An operating region, corporate division,
  or other grouping of Employees of the Employer for a particular Plan Year, designated
  by the Board of Directors in the resolution with respect to that Plan Year as
  provided in Section 13.01. 

1.34 Separate Account 

The separate account maintained by
  the Trustee in the name of a Participant that reflects his interest in the Trust
  Fund and any Sub-Accounts established thereunder, as provided in Article XI.
  

1.35 Spouse 

The person to whom a Participant
  is legally married at the time in question. 

1.36 Sub-Account 

Any of the individual sub-accounts
  of a Participant's Separate Account that is maintained as provided in Article
  XI. 

7

 

1.37 Termination of Employment
  

A termination of employment with
  the Employer or other member of the Controlled Group following which the person
  is no longer employed by any member of the Controlled Group. 

1.38 Total and Permanent Disability
  

Permanent incapacity resulting in
  the Participant's being unable to engage in gainful employment at his usual
  occupation, or any other occupation for which he is reasonably suited by education,
  training and experience, by reason of any medically demonstrable physical or
  mental condition, excluding, however, (i) incapacity contracted, suffered or
  incurred while the Participant was engaged in, or which resulted from having
  engaged in, a felonious enterprise; (ii) incapacity resulting from or consisting
  of chronic alcoholism or addiction to drugs of abuse; (iii) incapacity resulting
  from an intentionally self-inflicted injury or illness; (iv) incapacity contracted,
  suffered or incurred in the employment of other than the Employer, including
  self-employment; (v) incapacity resulting from injury or disease incurred while
  serving in the armed forces of any country and for which a government disability
  benefit is payable. Notwithstanding the foregoing, for purposes of Section 14.02
  only (and not for purposes of Sections 13.03 and 13.04), the incapacity of a
  Participant who became an Employee prior to January 1, 1995, shall be determined
  in accordance with the definition of Total and Permanent Disability in effect
  under the Plan prior to January 1, 1995 to the extent that the prior definition
  is more favorable to the Participant. 

1.39 Trust 

The trust maintained by the Trustee
  under the Trust Agreement. 

1.40 Trust Agreement 

The Agreement between the Company
  and the Trustee establishing or maintaining the ALLTEL Corporation Profit-Sharing
  Trust, as amended from time to time. 

1.41 Trustee 

The entity or individual or individuals
  designated under the Trust Agreement and includes and denotes any successor
  or successor in trust under the Trust Agreement, unless the context clearly
  indicates a contrary intention. 

1.42 Trust Fund 

All cash, securities, real estate,
  or any other property held by the Trustee pursuant to the terms of the Trust
  Agreement, together with the income therefrom. 

8

 

1.43 Valuation Date 

The last day of each calendar month
  and each other date (or dates) as may be established from time to time by the
  Plan Administrator. 

1.44 Year of Eligibility Service
  

A Computation Period commencing before,
  on, or after the Effective Date during which an Employee is credited with a
  Year of Service for purposes of determining his eligibility to participate in
  the Plan. The determination of Years of Eligibility Service for certain Employees
  may be modified by Section 9.04. 

1.45 Year of Participation 

A Computation Period commencing on
  or after the Effective Date during which an Employee is credited with a Year
  of Service for purposes of determining his eligibility to receive an allocation
  under Sections 13.03 and 13.04 for a Plan Year. 

1.46 Year of Service 

A Computation Period during which
  an Employee completes at least 1,000 Hours of Service. 

1.47 Year of Vesting Service
  

A Computation Period commencing before,
  on, or after the Effective Date during which an Employee is credited with a
  Year of Service for purposes of determining his vested interest in his Separate
  Account. The determination of Years of Vesting Service for certain Employees
  may be modified by Section 9.05. 

9

 

ARTICLE II 

  ADMINISTRATION 

2.01 Plan Administrator 

The Company shall be the Plan Administrator
  and shall be the administrator for purposes of ERISA and the plan administrator
  for purposes of the Code. 

2.02 Allocation of Authority and
  Responsibility Among Named Fiduciaries 

The Company, the Plan Administrator,
  and the Trustee shall be "named fiduciaries" as defined in Section 402(a)(2)
  of ERISA. The Employers shall have the sole responsibility for making contributions
  under the Plan, as determined by the Company. The Company shall have the sole
  responsibility for appointing one or more trustees as the Trustee. The Plan
  Administrator shall have the sole responsibility for the administration of the
  Plan as provided herein. Except to the extent that an investment manager (as
  defined in Section 3(38) of ERISA) has been appointed, the Trustee shall have
  the responsibility for the administration and management of the Trust Fund,
  in accordance with the provisions of the Trust Agreement. Each named fiduciary
  warrants that any directions given, information furnished, or action taken by
  it shall be in accordance with the provisions of the Plan, unless inconsistent
  with applicable law. Each named fiduciary may rely on any direction, information
  or action of another named fiduciary. It is intended under the Plan that each
  named fiduciary shall be responsible for the proper exercise of its own powers,
  duties, responsibilities and obligations under the Plan and shall not be responsible
  for any act or failure to act of another fiduciary (including named fiduciaries)
  if the responsibility or authority of the act or failure to act was not within
  the scope of the named fiduciary's authority or delegated responsibility. No
  fiduciary guarantees the Trust Fund in any manner against investment loss or
  depreciation in asset values. 

2.03 Rights, Powers and Duties
  of the Plan Administrator 

The Plan Administrator shall have
  all such powers and authority as may be necessary to discharge its responsibilities
  under the Plan, including the following rights, powers, and responsibilities:
  

(a) The Plan Administrator shall
  administer the Plan uniformly and consistently with respect to persons who are
  similarly situated. 

(b) The Plan Administrator shall
  direct the Trustee in writing to make payments from the Trust Fund to persons
  who qualify for such payments hereunder. Such written order to the Trustee shall
  specify the name of the person, his address, and the amount and frequency of
  such payments. Benefits under the Plan shall be paid only if the Plan

10

 

 Administrator
  decides in its discretion that the applicant is entitled to the benefits under
  the provisions of the Plan. The Plan Administrator shall have the discretionary
  power and authority to interpret and construe the provisions of the Plan and
  to make factual determinations in deciding whether an applicant is entitled
  to benefits under the Plan.

 (c) The Plan Administrator shall
  have the sole responsibility for the administration of the Plan; and, except
  as herein expressly provided, the Plan Administrator shall have the exclusive
  discretionary power and authority to interpret and construe the provisions of
  the Plan and to determine any question arising hereunder or in connection with
  the administration of the Plan, including the remedying of any omission, inconsistency
  or ambiguity, and its decision or action in respect thereof shall be conclusive
  and binding upon any and all Participants, Beneficiaries, and their heirs, distributees,
  executors, administrators and assigns. In exercising such powers and authorities,
  the Plan Administrator shall at all times exercise good faith, apply standards
  of uniform application and refrain from any arbitrary action. 

(d) The Plan Administrator shall
  resolve all questions relating to participation in the Plan and determine the
  amount, manner, and timing of the payment of benefits under the Plan. 

(e) The Plan Administrator shall
  maintain such records as it determines are necessary, appropriate, or convenient
  to properly administer the Plan. 

(f) The Plan Administrator may adopt
  rules and procedures for the administration of the Plan that are consistent
  with the terms of the Plan. 

(g) The Plan Administrator may employ
  such counsel and agents for administrative, clerical, legal, medical, accounting,
  or other services as it may require in carrying out the provisions of the Plan.
  

(h) The Plan Administrator shall
  prepare and distribute to Participants or their Beneficiaries all information
  required under federal law or by the other provisions of the Plan. 

(i) The Plan Administrator shall
  prepare and file all reports or other information required by applicable law.
  

2.04 Discharge of Duties 

Each fiduciary under the Plan shall
  discharge its duties solely in the interest of Participants and their Beneficiaries
  in accordance with the applicable provisions of Section 404 of ERISA. 

 

11

 

2.05 Indemnification 

The Company shall indemnify any officer,
  director, or employee of a member of the Controlled Group to whom any power,
  authority, or responsibility is allocated or delegated for any liability actually
  and reasonably incurred with respect to the exercise or failure to exercise
  such power, authority, or responsibility, unless such liability results from
  such person's own gross negligence or willful misconduct. 

2.06 Compensation and Expenses
  

No person who already receives full-time
  pay from a member of the Controlled Group shall receive compensation from the
  Plan, except for reimbursement of expenses properly and actually incurred. 

2.07 Committee

 (a) The Company, pursuant to authority
  of its Board of Directors, may allocate or delegate any or all of its powers,
  authority, or responsibilities as Plan Administrator to a Committee of no less
  than three persons. Nothing contained herein shall be construed to prevent any
  Participant or any director, officer, or employee of a member of the Controlled
  Group from serving as a member of the Committee. 

(b) Any action authorized, permitted,
  or required to be taken by the Committee may be taken by a majority of its members
  at the time acting hereunder, except that no member of the Committee who is
  a Participant shall take any part in any action relating solely to his participation.
  The decision of the majority may be expressed by a vote at a meeting of the
  Committee, or in writing without a meeting. Any direction or certification required
  or authorized to be given by the Committee shall be in writing and signed by
  a majority of the members of the Committee, or by such member as may be designated
  by an instrument in writing signed by all of the members thereof. The Committee
  shall keep a permanent record of its meetings and actions. 

(c) The Committee may from time to
  time allocate to one or more of its members and may delegate to any other persons
  or organizations any of its rights, powers, duties and responsibilities with
  respect to the operation and administration of the Plan that are permitted to
  be delegated under ERISA unless delegation is expressly prohibited by the terms
  of the Plan or the Trust Agreement. Any such allocation or delegation will be
  made in writing, will be reviewed periodically by the Committee, and will be
  terminable upon such notice as the Committee in its discretion deems reasonable
  and proper under the circumstances. Whenever a person or organization has the
  power and authority under the Plan to delegate discretionary authority respecting
  the administration 

 

12

 

of the Plan to another person or organization, the delegating
  party's responsibility with respect to such delegation is limited to the selection
  of the person to whom authority is delegated and the periodic review of such
  person's performance and compliance with applicable law and regulations. Any
  breach of fiduciary responsibility by the person to whom authority has been
  delegated which is not proximately caused by the delegating party's failure
  to properly select or supervise, and in which breach the delegating party does
  not otherwise participate, will not be considered a breach by the delegating
  party, to the extent permitted by law. 

(d) The Company, pursuant to authority
  of its Board of Directors, may from time to time remove members of the Committee
  and add members thereto. A member of the Committee may, at any time, notify
  the Company in writing of his intent to resign from the Committee, and such
  resignation shall be effective as of the date such written notification is received
  by the Company, unless a later date is specified therein. Vacancies occurring
  in the Committee whether by reason of resignation, removal, death or otherwise,
  shall be filled pursuant to authority of the Board of Directors. 

(e) The Committee may from time to
  time formulate such rules and regulations for its organization and the transaction
  of its business as it deems suitable and as are consistent with the provisions
  of the Plan and the Trust Agreement. 

2.08 Administrative Expenses 

All reasonable expenses of administering
  the Plan and Trust, including the compensation of all persons employed by the
  Plan Administrator shall be paid out of the Trust Fund; provided, however that
  the Company and/or the other Employers may elect to make payment of the expenses
  directly from its and/or their general assets. Any expenses to be paid by the
  Trustee out of the Trust Fund shall be approved by the Plan Administrator before
  payment by the Trustee. 

13

 

 

ARTICLE III 

  GENERAL PROVISIONS 

3.01 Adoption of the Plan by Other
  Employers 

Any member of the Controlled Group
  may, with the consent of the Company, adopt the Plan and thereby become an Employer
  hereunder by executing an instrument evidencing such adoption on the order of
  its board of directors or other organizational authority. 

3.02 No Contract of Employment
  

Nothing herein contained shall be
  construed to constitute a contract of employment between the Employer and any
  Employee nor shall the maintenance of the Plan affect the Employer's right to
  discharge or otherwise discipline Employees. The employment records of the Employer
  and the Trustee's records shall be final and binding upon all Employees as to
  eligibility and participation. 

3.03 Restrictions Upon Assignments
  and Creditor's Claims 

(a) Except as may be otherwise provided
  in the Plan, Section 401(a)(13)(B) of the Code (relating to qualified domestic
  relations orders), Sections 401(a)(13)(C) and (D) of the Code (relating to offsets
  ordered or required under a criminal conviction involving the Plan, a civil
  judgment in connection with a violation or alleged violation of fiduciary responsibilities
  under ERISA, or a settlement agreement between the Participant and the Department
  of Labor in connection with a violation or alleged violation of fiduciary responsibilities
  under ERISA), Section 1.401(a)-13(b)(2) of the Treasury Regulations (relating
  to Federal tax levies), or as otherwise required by law, no benefit under the
  Plan at any time shall be subject in any manner to anticipation, alienation,
  assignment (either at law or in equity), encumbrance, garnishment, levy, execution,
  or other legal or equitable process; and no person shall have the power in any
  manner to anticipate, transfer, assign (either at law or in equity), alienate
  or subject to attachment, garnishment, execution, levy or any other legal or
  equitable proceeding or process or in any way encumber his benefits under the
  Plan, or any part thereof, and any attempt to do so shall be void. 

(b) Notwithstanding the foregoing,
  this Section 3.03 shall not apply to a qualified domestic relations order, as
  defined in Section 414(p) of the Code. The Plan Administrator shall establish
  a procedure to determine the qualified status of domestic relations orders and
  to administer distributions under such qualified orders. The Plan Administrator
  shall promptly notify the Participant and each alternate payee of the receipt
  of 

14

 any State domestic relations order and the procedure which the Plan Administrator
  will follow in determining whether the order constitutes a qualified domestic
  relations order, as defined in Section 414(p) of the Code. 

(c) Notwithstanding any other provision
  of the Plan to the contrary, and effective for domestic relations orders received
  by the Plan Administrator on or after January 1, 2002, a distribution to an
  alternate payee under a qualified domestic relations order may be made as soon
  as practicable after the issuance of the qualified domestic relations order
  and receipt and approval of the order as qualified by the Plan Administrator,
  provided the terms of the qualified domestic relations order permit payment
  of the distribution. 

3.04 Facility of Payment 

If any person to whom a benefit under
  the Plan is payable is unable to care for his affairs because of illness or
  accident, any payment due may be paid, in the discretion of the Plan Administrator,
  to the Spouse, child, brother or sister of such person, or to any other persons
  deemed by the Plan Administrator to be maintaining or responsible for the maintenance
  of such person (unless prior claim therefor shall have been made by a duly qualified
  guardian or other legal representative). Any payment made in accordance with
  the provisions of this Section 3.04 shall be a complete discharge of any liabilities
  of the Plan with respect to the benefit so paid. 

3.05 Restriction of Claims Against
  Trust 

The Trust and the corpus and income
  thereof shall not be subject to the rights or claims of any creditor of the
  Employer or Controlled Group. Neither the establishment of the Trust, the modification
  of the Trust Agreement, the creation of any fund or account, nor the payment
  of any benefits shall be construed as giving any Participant or any other person
  any legal or equitable rights against the Controlled Group or any of its officers,
  employees, directors, or shareholders, or the Trustee unless the same shall
  be specifically provided for in the Plan. 

3.06 Benefits Payable from Trust
  

All benefits payable under the Plan
  shall be paid or provided for solely from the Trust. 

3.07 Merger and Transfer of Assets
  or Liabilities 

The Plan shall not be merged or consolidated
  with any other plan, nor shall any assets or liabilities of the Plan be transferred
  to another plan, unless, immediately after such merger, consolidation, or transfer
  of assets, each  

15

 

 Participant would receive a benefit having a value equal to
  or greater than the benefit he would have received if the Plan had terminated
  immediately prior to the merger, consolidation or transfer. 

3.08 Applicable Law 

To the extent not preempted by federal
  law, the provisions of the Plan shall be construed, regulated, and administered
  in accordance with the laws of the State of Delaware. The invalidity or illegality
  of any provision of the Plan shall not affect the legality or validity of any
  other part thereof. 

3.09 Reversion of Employer Contributions
  

At no time shall any part of the
  corpus or income of the Trust Fund be used for or diverted to purposes other
  than for the exclusive benefit of Participants and their Beneficiaries. Notwithstanding
  the foregoing, if a contribution to the Trust is made by the Employer by a mistake
  in fact, such contribution shall be returned to the Employer within one year
  after the payment of the contribution to the Trust if the Employer so directs.
  If a contribution by the Employer is conditioned on initial qualification of
  the Plan under Section 401 of the Code, and if the Plan does not qualify, then
  such contribution shall be returned to the Employer within one year after the
  date of denial of qualification of the Plan. If a contribution to the Trust
  is not fully deductible by the Employer under Section 404 of the Code, then,
  to the extent the deduction is disallowed, such a contribution may be returned
  to the Employer if the Employer so directs within one year after the disallowance
  of the deduction. Unless otherwise specified in writing, contributions made
  by the Employer to the Trust shall be deemed to be conditioned upon the initial
  and continued qualification of the Plan under Section 401(a) of the Code, the
  exempt status of the Trust under Section 501(a) of the Code, and the deductibility
  of the contribution under Section 404 of the Code. 

3.10 Qualified Military Service
  Rights 

Notwithstanding any other provision
  of the Plan to the contrary, contributions, benefits, and service with respect
  to qualified military service shall be provided in accordance with Section 414(u)
  of the Code. The Plan Administrator shall notify the Trustee of any Participant
  with respect to whom additional contributions are made because of qualified
  military service. 

 

16

ARTICLE IV 

  CLAIMS PROCEDURES 

4.01 Claim for Benefits 

If any claim for benefits filed by
  any person under the Plan (the "claimant") is denied in whole or in part, the
  Plan Administrator shall issue a written notice of such decision to the claimant.
  The notice shall be issued to the claimant as soon as possible but in no event
  later than 90 days from the date the claim for benefits was filed. The notice
  issued by the Plan Administrator shall be written in a manner calculated to
  be understood by the claimant, and shall include the following: 

(a) the specific reason or reasons
  for any denial of benefits; 

(b) the specific Plan provisions
  on which any denial is based; 

(c) a description of any further
  material or information which is necessary for the claimant to perfect his claim
  and an explanation of why the material or information is needed; and 

(d) an explanation of the Plan's
  claim review procedures.

 If the Plan Administrator fails
  to respond to a claim for benefits, such claim shall be deemed to have been
  denied. For claims filed on or after January 1, 2002, such written notice to
  the claimant shall be furnished within a reasonable period of time but not later
  than 90 days after such claim was filed (plus an additional 90 days if required
  for processing, provided that notice of the extension of time is given to the
  claimant within the first 90 day period), and shall also include an explanation
  of the time limits applicable to the Plan's claim review procedures and a statement
  of the claimant's right to bring a civil action under Section 502(a) of ERISA
  following an adverse benefit determination on review. 

4.02 Review 

If the Plan Administrator denies
  a claim for benefits in whole or in part, or the claim is otherwise deemed to
  have been denied, the claimant or his duly authorized representative may submit
  to the Plan Administrator a written request for review of the claim denial within
  60 days of the receipt of the notice or deemed denial of his claim, which request
  shall contain the following information: 

(a) the date on which the claimant's
  request was filed with the Plan Administrator; provided, however, that the date
  on which the claimant's request for review was in fact filed with the Plan Administrator
  shall 

17

 

 control in the event that the date of the actual filing is later than
  the date stated by the claimant pursuant to this paragraph (a); 

(b) the specific portions of the
  denial of his claim which the claimant requests the Plan Administrator to review;
  

(c) a statement by the claimant setting
  forth the basis upon which he believes the Plan Administrator should reverse
  the previous denial of his claim for benefits and accept his claim as made;
  and 

(d) any written material (offered
  as exhibits) which the Claimant desires the Plan Administrator to examine in
  its consideration of his position as stated pursuant to paragraph (c). 

The claimant or his duly authorized
  representative may: 

(a) review pertinent documents; and
  

(b) submit issues and comments in
  writing to which the Plan Administrator shall respond. 

The Plan Administrator shall furnish
  a written decision on review not later than 60 days after receipt of the written
  request for review of the claim denial, unless special circumstances require
  an extension of the time for processing the appeal. If an extension of time
  for review is required because of special circumstances, written notice of the
  extension shall be furnished to the claimant prior to the commencement of the
  extension, and the Plan Administrator shall furnish a written decision on review
  not later than 120 days after receipt of the written request for review of the
  claim denial. If a written decision on review is not furnished within 60 days
  (or 120 days, if applicable) after receipt of the written request for review
  of the claim denial, the claim shall be deemed denied on review. The decision
  on review shall be in writing and shall include specific reasons for the decision,
  shall be written in a manner calculated to be understood by the claimant, and
  shall contain specific references to the pertinent Plan provisions on which
  the decision is based. 

 

18

 

ARTICLE V

  AMENDMENT AND TERMINATION 

5.01 Amendment and Termination
  of the Plan 

The Company expressly reserves the
  right, at any time and from time to time, by action of or pursuant to authority
  of its Board of Directors: 

(a) to terminate the Plan in whole
  or in part; and/or 

(b) to amend the Plan in any respect.
  

A Participant's accrued benefit shall
  not be decreased by an amendment to the Plan, except as may be permitted under
  Section 411(d)(6) of the Code. 

Any termination or amendment shall
  be evidenced by an instrument executed on behalf of the Company by an authorized
  officer. No termination or amendment shall increase the duties or responsibilities
  of a Trustee without its consent thereto in writing. 

Promptly after any amendment of the
  Plan has become effective, the Company shall cause a copy of such amendment
  to be filed with the Plan Administrator (if other than the Company) and the
  Trustee. 

5.02 Procedure Upon Termination
  

Upon termination of the Plan, the
  following actions shall be taken for the benefit of Participants and Beneficiaries:
  

(a) As of the termination date, the
  Trust Fund shall be valued and all Separate Accounts and Sub-Accounts shall
  be adjusted in the manner provided in Article XI, with any unallocated Employer
  Contributions or Forfeitures being allocated as of the termination date in the
  manner otherwise provided in the Plan. The termination date shall become a Valuation
  Date for purposes of Article XI. In determining the net worth of the Trust Fund,
  there shall be included as a liability such amounts as shall be necessary to
  pay all expenses in connection with the termination of the Trust and the liquidation
  and distribution of the property of the Trust, as well as other expenses, whether
  or not accrued, and shall include as an asset all accrued income. 

(b) All Separate Accounts shall then
  be distributed to or for the benefit of each Participant or Beneficiary in accordance
  with the provisions of Article XIV as if the termination date were a termination
  of his employment with all members of the Controlled Group. 

19

 

5.03 Non-Forfeitability Upon Termination
  of Plan 

Upon termination or partial termination
  of the Plan or the complete discontinuance of contributions to the Plan, the
  rights of all affected Participants to the amounts credited to the Participants'
  Separate Accounts shall be nonforfeitable. 

5.04 Reorganization 

The merger, consolidation, or liquidation
  of a member of the Controlled Group that has adopted the Plan with or into any
  other member of the Controlled Group shall not constitute a termination of the
  Plan as to such adopting member of the Controlled Group. 

5.05 Withdrawal of an Employer
  

A member of the Controlled Group
  that has adopted the Plan, other than the Company, may withdraw from the Plan
  (a "withdrawing employer") at any time upon notice in writing to the Plan Administrator
  and shall thereupon cease to be an adopting employer for all purposes of the
  Plan. A member of the Controlled Group that has adopted the Plan shall be deemed
  automatically to withdraw from the Plan in the event it ceases to be a member
  of the Controlled Group unless the Company otherwise directs. The withdrawal
  of a member of the Controlled Group shall be treated as a termination of the
  Plan with respect to Participants who at the time are employed by such withdrawing
  employer. In the event of any such withdrawal of an adopting employer, the action
  specified in Section 5.02 shall be taken as of the withdrawal date, as on a
  termination of the Plan, but with respect only to Participants who are employed
  solely by the withdrawing employer, and who, upon such withdrawal, are neither
  transferred to nor continued in employment with any other member of the Controlled
  Group. The interest of any Participant employed by the withdrawing employer
  who is transferred to or continues in employment with any other member of the
  Controlled Group, and the interest of any Participant employed solely by a member
  of the Controlled Group other than the withdrawing employer, shall remain unaffected
  by such withdrawal; no adjustment to his Separate Account shall be made by reason
  of the withdrawal; and he shall continue as a Participant hereunder subject
  to the remaining provisions of the Plan. 

 

20

 

ARTICLE VI 

  TRUST AGREEMENT AND TRUST FUND 

6.01 Trust Agreement and Trust
  Fund 

There shall be one or more Trust
  Agreements (collectively referred to as the "Trust Agreement") between the Company
  and a trustee or trustees selected by the Company under the terms of which a
  Trust Fund will be established for the purpose of receiving or holding contributions
  made to the Plan, as well as interest and other income on investments of such
  funds, and for the purpose of paying benefits provided by the Plan. The Company
  may amend the Trust Agreement from time to time to accomplish the purposes of
  the Plan, may remove any Trustee, and may select any successor trustee. The
  Trust Agreement and the Trust maintained thereunder shall be deemed to be a
  part of the Plan as if fully set forth herein and the provisions of the Trust
  Agreement are hereby incorporated by reference into the Plan. 

6.02 Irrevocability 

The Trust Fund shall be used to pay
  benefits as provided in the Plan. No part of the principal or income of the
  Trust Fund shall be used for, or diverted to, purposes other than those provided
  in the Plan, and no part of the Trust Fund shall revert to the Company or any
  member of the Controlled Group except as may be otherwise specifically provided
  under the Plan, the Trust Agreement, or both. 

6.03 Benefits Payable Only from
  Trust Fund 

All benefits paid under the Plan
  shall be paid from the Trust Fund or from any insurance contract established
  under Section 6.04, and the Employer shall not be otherwise liable for benefits
  payable under the Plan. 

6.04 Optional Provision for Benefits
  

The Company reserves the right to
  change at any time the means through which the benefits under the Plan shall
  be provided, including the substitution of a contract or contracts with an insurance
  company or companies, and may thereupon make suitable provision for the use
  of assets of the Trust Fund to provide for the payment of benefits under such
  insurance contract or contracts. No such change shall constitute a termination
  of the Plan or result in the diversion to the Employer of any funds previously
  contributed hereunder. 

6.05 Commingling Authorized
  

As permitted in the Trust Agreement,
  the Trust Fund held under the Plan may be commingled with any trust funds held
  under other employee benefit plans 

21

 

 of the Controlled Group, provided such other
  funds qualify as tax exempt under the applicable provisions of the Code. 

22

 

ARTICLE VII 

  LIMITATION ON CONTRIBUTIONS 

7.01 Definitions 

For purposes of this Article VII,
  the following terms have the following meanings: 

(a) The "annual addition" with respect
  to a Participant for a limitation year means the sum of the Employer Contributions
  and Forfeitures allocated to his Separate Account for the limitation year (including
  any amounts that are distributed pursuant to this Article but are nonetheless
  required to be considered annual additions), the employer contributions, employee
  contributions, and forfeitures allocated to his accounts for the limitation
  year under any other qualified defined contribution plan (whether or not terminated)
  maintained by the Employer or any other member of the Controlled Group, and
  amounts described in Sections 415(l)(2) and 419A(d)(2) of the Code allocated
  to his account for the limitation year. 

(b) The "employer" shall mean each
  employer that adopts the Plan, and all members of a controlled group of corporations
  (as defined in Section 414(b) of the Code, as modified by Section 415(h) of
  the Code), commonly controlled trades or businesses (as defined in Section 414(c)
  of the Code, as modified by Section 415(h) of the Code), or affiliated service
  groups (as defined in Section 414(m) of the Code) of which the adopting employer
  is a part. 

(c) The "compensation" of a Participant
  for a limitation year shall mean compensation as defined in Section 415(c)(3)
  of the Code. 

(d) An "elective contribution" means
  any employer contribution made to a plan maintained by a member of the Controlled
  Group on behalf of a Participant in lieu of cash compensation pursuant to his
  written election to defer under any qualified cash or deferred arrangement as
  defined in Section 401(k) of the Code, any simplified employee pension cash
  or deferred arrangement as described in Section 402(h)(1)(B) of the Code, any
  eligible deferred compensation plan under Section 457 of the Code, or any plan
  as described in Section 501(c)(18) of the Code, and any contribution made on
  behalf of the Participant by a member of the Controlled Group for the purchase
  of an annuity contract under Section 403(b) of the Code pursuant to a salary
  reduction agreement. 

(e) An "excess amount" shall mean
  the excess of a Participant's annual addition for the limitation year over the
  maximum permissible amount. 

23

 

(f) A "limitation year" means the
  Plan Year or such other 12-month period designated as such by the Company. 

(g) The "maximum permissible amount"
  shall be the lesser of: (1) $40,000, as adjusted for increases in the cost-of-living
  under Section 415(d) and regulations issued thereunder of the Code or (2) 100%
  of the Participant's compensation for the limitation year; provided, however,
  that the limit in clause (1) shall be prorated for any short limitation year.
  

7.02 Limitations on Crediting
  of Contributions and Forfeitures 

Notwithstanding any other provision
  of the Plan to the contrary, the annual addition with respect to a Participant
  for a limitation year shall in no event exceed the maximum permissible amount.
  If the annual addition to the Separate Account of a Participant in any limitation
  year would exceed the maximum permissible amount because of the allocation of
  Forfeitures, a reasonable error in estimating a Participant's annual compensation,
  a reasonable error in determining the amount of elective deferrals that may
  be made with respect to any Participant under the limits of Section 415 of the
  Code, or other limited facts and circumstances that justify the availability
  of the provisions set forth below, the excess amount shall be forfeited by the
  Participant and disposed of as follows: 

(a) The excess amount shall be reallocated
  among the remaining Participants' Separate Accounts in the same way Forfeitures
  are allocated as specified in Section 16.03; provided, however, that such reallocation
  shall not cause the annual additions to any other Participant's Separate Account
  to exceed the maximum permissible amount. 

(b) To the extent subsection (a)
  is not applicable, and if the Participant is covered by the Plan at the end
  of the limitation year, the excess amount in the Participant's Separate Account
  shall be used to reduce Employer Contributions for such Participant in the next
  limitation year, and each succeeding limitation year, if necessary. 

(c) To the extent subsection (a)
  is not applicable, and if the Participant is not covered by the Plan at the
  end of the limitation year, the excess amount shall be held unallocated in a
  suspense account. The suspense account shall be applied to reduce future Employer
  Contributions for all remaining Participants in the next limitation year, and
  each succeeding limitation year if necessary. 

If a suspense account is in existence
  at any time during a limitation year, all amounts in the suspense account must
  be allocated to Participants' Separate Accounts (subject to the limitations
  contained herein) before any further Employer Contributions may be made to the
  Plan on behalf of Participants. If 

24

 a suspense account is in existence at any
  time during a limitation year, it shall not share in any increase or decrease
  in the net worth of the Trust Fund. 

7.03 Coverage Under Other Qualified
  Defined Contribution Plan 

If a Participant is covered by any
  other qualified defined contribution plan (whether or not terminated) maintained
  by the Employer or a member of the Controlled Group, and if the annual addition
  for the limitation year would otherwise exceed the maximum permissible amount,
  the excess amount shall be eliminated by reducing contributions under such other
  plan to the extent necessary. If the annual addition for the limitation year
  would still exceed the maximum permissible amount after returning contributions
  under such other plan, the excess amount shall be eliminated by returning Employer
  Contributions under the Plan to the extent necessary. In the event that a Participant
  is covered by a qualified defined benefit plan, the procedure specified in Section
  7.04 shall be implemented prior to effecting any reduction in the benefit of
  the Participant under the defined contribution plans. 

7.04 Coverage Under Qualified
  Defined Benefit Plan 

If a Participant in the Plan was
  also covered by a qualified defined benefit plan (whether or not terminated)
  maintained by the Employer or a member of the Controlled Group, in no event
  shall the sum of the defined benefit plan fraction (as defined in Section 415(e)(2)
  of the Code) and the defined contribution plan fraction (as defined in Section
  415(e)(3) of the Code) exceed 1.0 in any limitation year. In the event the such
  limitation would otherwise have been exceeded, (i) for Plan Years beginning
  before January 1, 1995, the employer contributions and forfeitures that would
  otherwise have been allocated to the Participant were reduced to the extent
  necessary to meet such limitation, and (ii) for Plan Years beginning after December
  31, 1994, the benefits otherwise payable to the Participant under the qualified
  defined benefit plan were reduced to the extent necessary to meet such limitation.
  

If a Participant was a participant
  in one or more defined contribution plans maintained by the employer which were
  in existence on July 1, 1982, the numerator of the defined contribution plan
  fraction (as defined in Section 415(e)(3) of the Code) was adjusted if the sum
  of this fraction and the defined benefit plan fraction (as defined in Section
  415(e)(2) of the Code) would otherwise exceed 1.0 under the terms of the Plan.
  Under this adjustment, an amount equal to the product of (i) the excess of the
  sum of the fractions over 1.0 times (ii) the denominator of this fraction, was
  permanently subtracted from the numerator of the defined contribution plan fraction
  (as defined in Section 415(e)(3) of the Code). The adjustment was calculated
  using the fractions as they would be computed as of the later of the end of
  the last limitation year beginning before January 1, 1983, or September 30,
  1983. This adjustment also was made if at the end of the last 

25

 limitation year
  beginning before January 1, 1984, the sum of the fractions exceeds 1.0 because
  of accruals or additions that were made before the limitations of Section 415(e)
  of the Code became effective as to any plans of the employer in existence on
  July 1, 1982. 

The limitation described in this
  Section 7.04 shall not apply to a Participant who is an active employee after
  December 31, 1999 for Limitation Years beginning after December 31, 1999. 

7.05 Scope of Limitations
  

The limitations contained in this
  Article VII shall be applicable only with respect to benefits provided pursuant
  to defined contribution plans and defined benefit plans described in Section
  415(k) of the Code. 

 

26

ARTICLE VIII 

  TOP-HEAVY PROVISIONS 

8.01 Definitions 

For purposes of this Article VIII,
  the following terms have the following meanings: 

(a) The "compensation" of a Participant
  means compensation as defined in Section 415 of the Code and regulations issued
  thereunder. In no event, however, shall the compensation of a Participant taken
  into account under the Plan for any Plan Year exceed the dollar limitation under
  Section 401(a)(17)(A) of the Code, subject to adjustment annually as provided
  in Section 401(a)(17)(B) and Section 415(d) of the Code. If the compensation
  of a Participant is determined over a period of time that contains fewer than
  12 calendar months, then the annual compensation limitation described above
  shall be adjusted with respect to that Participant by multiplying the annual
  compensation limitation in effect for the Plan Year by a fraction the numerator
  of which is the number of full months in the period and the denominator of which
  is 12. 

(b) The "determination date" with
  respect to any Plan Year means the last day of the preceding Plan Year, except
  that the determination date with respect to the first Plan Year of the Plan,
  shall mean the last day of such Plan Year. 

(c) A "key employee" means any Employee
  or former Employee who is a key employee pursuant to the provisions of Section
  416(i)(1) of the Code and the applicable regulations and any other guidance
  of general applicability issued thereunder, and any Beneficiary of such Employee
  or former Employee.

 (d) A "non-key employee" means any
  Employee or former Employee who is not a key employee and any Beneficiary of
  such Employee or former Employee. 

(e) A "permissive aggregation group"
  means those plans included in the Employer's required aggregation group together
  with any other plan or plans of the Employer, so long as the entire group of
  plans would continue to meet the requirements of Sections 401(a)(4) and 410
  of the Code. 

(f) A "required aggregation group"
  means the group of tax-qualified plans maintained by a member of the Controlled
  Group consisting of each plan in which a key employee participates and each
  other plan that enables a plan in which a key employee participates to meet
  the 

27

 requirements of Section 401(a)(4) or Section 410 of the Code, including
  any plan that terminated within the five-year period ending on the relevant
  determination date. 

(g) A "super top-heavy group" with
  respect to a particular Plan Year means a required or permissive aggregation
  group that, as of the determination date, would qualify as a top-heavy group
  under the definition in subsection (i) of this Section 8.01 with "90 percent"
  substituted for "60 percent" each place where "60 percent" appears in the definition.
  

(h) A "super top-heavy plan" with
  respect to a particular Plan Year means a plan that, as of the determination
  date, would qualify as a top-heavy plan under the definition in subsection (j)
  of this Section 8.01 with "90 percent" substituted for "60 percent" each place
  where "60 percent" appears in the definition. A plan is also a "super top-heavy
  plan" if it is part of a super top-heavy group. 

(i) A "top-heavy group" with respect
  to a particular Plan Year means a required or permissive aggregation group if
  the sum, as of the determination date, of the present value of the cumulative
  accrued benefits for key employees under all defined benefit plans included
  in such group and the aggregate of the account balances of key employees under
  all defined contribution plans included in such group exceeds 60 percent of
  a similar sum determined for all employees covered by the plans included in
  such group.

 (j) A "top-heavy plan" with respect
  to a particular Plan Year means (i), in the case of a defined contribution plan
  (including any simplified employee pension plan), a plan for which, as of the
  determination date, the aggregate of the accounts (within the meaning of Section
  416(g) of the Code and the regulations and rulings thereunder) of key employees
  exceeds 60 percent of the aggregate of the accounts of all participants under
  the plan, with the accounts valued as of the relevant valuation date and increased
  for any distribution of an account balance made in the five-year period ending
  on the determination date, (ii), in the case of a defined benefit plan, a plan
  for which, as of the determination date, the present value of the cumulative
  accrued benefits payable under the plan (within the meaning of Section 416(g)
  of the Code and the regulations and rulings thereunder) to key employees exceeds
  60 percent of the present value of the cumulative accrued benefits under the
  plan for all employees, with the present value of accrued benefits to be determined
  under the accrual method uniformly used under all plans maintained by the Employer
  or, if no such method exists, under the slowest accrual method permitted under
  the fractional accrual rate of Section 411(b)(1)(C) of the Code and including
  the present value of any part of any accrued benefits distributed in the five-year
  period ending on the determination date, and (iii) any plan included in a required 

28

 

  aggregation group that is a top-heavy group. For purposes of this subsection,
  the accounts and accrued benefits of any Employee who has not performed services
  for a member of the Controlled Group during the applicable period shall be disregarded.
  Notwithstanding the foregoing, if a plan is included in a required or permissive
  aggregation group that is not a top-heavy group, such plan shall not be a top-heavy
  plan. 

(k) The "valuation date" with respect
  to any determination date means the most recent Valuation Date occurring within
  the 12-month period ending on the determination date. 

8.02 Applicability 

Notwithstanding any other provision
  of the Plan to the contrary, the provisions of this Article VIII shall be applicable
  during any Plan Year in which the Plan is determined to be a top-heavy plan.
  If the Plan is determined to be a top-heavy plan and upon a subsequent determination
  date is determined no longer to be a top-heavy plan, the vesting provisions
  of Article XVI shall again become applicable as of such subsequent determination
  date; provided, however, that if the prior vesting provisions do again become
  applicable, any Employee with three or more Years of Vesting Service may elect
  in accordance with the provisions of Article XVI, to continue to have his vested
  interest in his Separate Account determined in accordance with the vesting schedule
  specified in Section 8.06. 

8.03 Minimum Employer Contribution
  

If the Plan is determined to be a
  top-heavy plan, the Employer Contributions and Forfeitures allocated to the
  Separate Account of each non-key employee who is a Participant and who is employed
  by a member of the Controlled Group on the last day of such top-heavy Plan Year
  shall be no less than the lesser of (i) three percent of his compensation or
  (ii) the largest percentage of compensation that is allocated as an Employer
  Contribution or Forfeiture for such Plan Year to the Separate Account of any
  key employee; except that, in the event the Plan is part of a required aggregation
  group, and the Plan enables a defined benefit plan included in such group to
  meet the requirements of Section 401(a)(4) or 410 of the Code, the minimum allocation
  of Employer Contributions and Forfeitures to each such non-key employee shall
  be three percent of the compensation of such non-key employee. Any minimum allocation
  to a non-key employee required by this Section 8.03 shall be made without regard
  to any social security contribution made on behalf of the non-key employee,
  his number of Hours of Service, his level of compensation, or whether he declined
  to make elective or mandatory contributions. 

29

 

8.04 Coordination with Other Plans
  

If the Plan is a top-heavy plan,
  each non-key employee who is a Participant and who is employed by a member of
  the Controlled Group on the last day of a top-heavy Plan Year and who is also
  covered under any other top-heavy plan or plans maintained by the Employer will
  receive a top-heavy benefit under the Plan of no less than five percent of his
  compensation in lieu of the minimum allocation provided in Section 8.03 or under
  the other top-heavy plan or plans. 

8.05 Adjustments to Section 415
  Limitations 

For Plan Years beginning prior to
  January 1, 2000 (and not for Plan Years beginning on or after January 1, 2000),
  if the Plan is determined to be a top-heavy plan and the Employer maintains
  a defined benefit plan covering some or all of the Participants that are covered
  by the Plan, the defined benefit plan fraction and the defined contribution
  plan fraction, described in Article VII, shall be determined as provided in
  Section 415 of the Code by substituting "1.0" for "1.25" each place where "1.25"
  appears and by substituting "41,500" for "51,875" each place where "51,875"
  appears, except that such substitutions shall not be applied to the Plan if
  (i) the Plan is not a super top-heavy plan and (ii) the Employer Contribution
  for such top-heavy Plan Year for each non-key employee who is to receive a minimum
  top-heavy benefit hereunder is not less than four percent of such non-key employee's
  compensation. 

8.06 Accelerated Vesting 

If the Plan is determined to be a
  top-heavy plan, a Participant's vested interest in his Separate Account shall
  be determined no less rapidly than in accordance with the following vesting
  schedule: 

	 	Years of Vesting Service	Vested Interest
	 	less than 3	0%
	 	3 or more	100%

8.07 EGTRAA Provision 

Notwithstanding anything in this
  Article VIII to the contrary, this Section 8.07 shall apply for purposes of
  determining whether the Plan is a top-heavy plan under Section 416(g) of the
  Code for Plan Years beginning after December 31, 2001, and whether the Plan
  satisfied the minimum benefits requirements of Section 416(c) of the Code for
  such years. 

(a) Determination of top-heavy status.
  

30

 

(1) Key employee. Key employee
    means any employee or former employee (including any deceased employee) who
    at any time during the Plan Year that includes the determination date was
    an officer of the employer having annual compensation greater than $130,000
    (as adjusted under section 416(i)(1) of the code for Plan Years beginning
    after December 31, 2002), a 5-percent owner of the employer, or a 1-percent
    owner of the employer having annual compensation of more than $150,000. For
    this purpose, annual compensation means compensation within the meaning of
    Section 415(c)(3) of the Code. The determination of who is a key employee
    will be made in accordance with Section 416(i)(1) of the Code and the applicable
    regulations and other guidance of general applicability issued thereunder.
    

  (2) Determination of present values
    and amounts. This Section 8.07(a)(2) shall apply for purposes of determining
    the present values of accrued benefits and the amounts of account balances
    of employees as of the determination date. 

  (i) Distributions during year
      ending on the determination date. The present values of accrued benefits
      and the amounts of account balances of an employee as of the determination
      date shall be increased by the distributions made with respect to the employee
      under the Plan and any plan aggregated with the plan under Section 416(g)(2)
      of the Code during the 1-year period ending on the determination date. The
      preceding sentence shall also apply to distributions under a terminated
      plan which, had it not been terminated, would have been aggregated with
      the plan under Section 416(g)(2)(A)(i) of the Code. In the case of a distribution
      made for a reason other than separation from service, death, or disability,
      this provision shall be applied by substituting "5-year period" for "1-year
      period." 

    (ii) Employees not performing
      services during year ending on the determination date. The accrued benefits
      and accounts of any individual who has not performed services for the employer
      during the 1-year period ending on the determination date shall not be taken
      into account. 

  

(b) Minimum Benefits. 

(1) If the Plan is a top-heavy
    plan, each non-key employee who is also covered under a top-heavy defined
    benefit plan maintained  

   

31

 

   

   by an Employer will receive the top-heavy benefits
    provided for under such defined benefit plan in lieu of the top-heavy allocation
    under the Plan. 

32

ARTICLE IX 

  SERVICE 

9.01 Crediting of Hours of Service
  

(a) An Employee shall be credited
  with an Hour of Service for: 

(1) Each hour for which the Employee
    is directly or indirectly compensated or entitled to compensation by the Employer
    or any other member of the Controlled Group for the performance of duties
    during the applicable Computation Period; 

  (2) Subject to the provisions of
    Section 9.02, each hour for which the Employee is directly or indirectly compensated
    or entitled to compensation by the Employer or any other member of the Controlled
    Group (irrespective of whether the employment relationship has terminated)
    for reasons other than the performance of duties (such as vacation, holidays,
    sickness, jury duty, disability, lay-off, military duty or leave of absence)
    during the applicable Computation Period; and 

  (3) Each hour for which back pay
    is awarded or agreed to by the Employer or any other member of the Controlled
    Group without regard to mitigation of damages (provided that the same Hours
    of Service shall not be credited under both this paragraph (3) and paragraph
    (1) or (2) above). 

(b) Solely for the purpose of determining
  whether a Participant has incurred a Break in Service, Hours of Service shall
  be recognized for a "maternity or paternity leave of absence" as specified herein.
  A "maternity or paternity leave of absence" means an absence from work for any
  period by reason of the Participant's pregnancy, birth of the Participant's
  child, placement of a child with the Participant in connection with the adoption
  of such child, or any absence for the purpose of caring for such child for a
  period immediately following such birth or placement. For this purpose, Hours
  of Service shall be credited for the Computation Period in which the absence
  from work begins, if the Employee would otherwise incur a Break in Service in
  such Computation Period, or, in any other case, in the immediately following
  Computation Period. The Hours of Service credited for a maternity or paternity
  leave of absence shall be those which would normally have been credited but
  for such absence, or, in any case in which the Plan Administrator is unable
  to determine such hours normally credited, 8 Hours of Service per day. The total
  Hours of Service required to be credited for a maternity or paternity leave
  of absence shall not exceed 501. An absence from work will be treated as a maternity
  and paternity leave of absence only if and  

33

 

 to the extent that the Employee timely
  furnishes to the Plan Administrator such information as it may reasonably require
  to establish that the absence is a maternity and paternity leave of absence
  as defined herein and to establish the number of days of absence attributable
  to maternity and paternity leave. 

(c) If an Employee has been granted
  an Authorized Leave of Absence, he shall be credited with Hours of Service as
  if he had been compensated by the Employer for what would have been his regularly
  scheduled hours of work during the period of such Authorized Leave of Absence.
  An Employee for whom records of his actual numbers of Hours of Service are not
  normally maintained shall be credited with 10 Hours of Service for each day
  of his Authorized Leave of Absence. 

(d) Notwithstanding the provisions
  of subsection (a) above, an Employee for whom records of his actual number of
  Hours of Service are not normally maintained shall be credited with 10 Hours
  of Service for each day he would be required to be credited with at least one
  Hour of Service. 

9.02 Limitations on Crediting
  of Hours of Service 

In the application of the provisions
  of paragraph (2) of subsection (a) of Section 9.01, the following shall apply:
  

(a) No more than 501 Hours of Service
  are required to be credited to an Employee on account of any single continuous
  period during which the Employee performs no duties (whether or not such period
  occurs in a single Computation Period); 

(b) An hour for which an Employee
  is directly or indirectly paid, or entitled to payment, on account of a period
  during which no duties are performed, is not required to be credited to the
  Employee if such payment is made or due under a plan maintained solely for the
  purpose of complying with applicable worker's compensation, unemployment compensation
  or disability insurance laws; and 

(c) Hours of Service are not required
  to be credited for a payment which solely reimburses an Employee for medical
  or medically related expenses incurred by the Employee. 

(d) A payment shall be deemed to
  be made by or due from the Employer or any other member of the Controlled Group
  regardless of whether such payment is made by or due from the Employer or any
  other member of the Controlled Group directly or indirectly through, among others,
  a trust fund, or insurer, to which the Employer or other member of the Controlled
  Group contributes or pays premiums and regardless of whether contributions made
  or due to the trust fund, insurer, or other 

 

34

 

 entity are for the benefit of particular
  Employees or are on behalf of a group of Employees in the aggregate. 

9.03 Department of Labor Rules
  

The provisions of Department of Labor
  Regulations Sections 2530.200b-2(b) and (c) are incorporated herein by reference.
  

9.04 Years of Eligibility Service
  

The following provisions shall apply
  in determining the Years of Eligibility Service for the Employees specified
  in such provisions: 

(a) In determining Years of Eligibility
  Service, an Employee, other than an Employee described in the succeeding subsections
  of this Section 9.04 or in Appendix B, shall receive credit for "Eligibility
  Years of Service" credited to the Employee pursuant to the terms of the ALLTEL
  Corporation Pension Plan (if any) in respect of any period not otherwise taken
  into account under the Plan for purposes of determining Years of Eligibility
  Service; provided, however, that there shall be no duplication of Years of Eligibility
  Service under the Plan by reason of any restoration of, crediting of, or granting
  of service in respect of any single period or otherwise. 

(b) An employee of CP National Corporation
  or its subsidiaries prior to January 1, 1990, for a Computation Period that
  includes January 1, 1990, shall receive credit, for a number of Hours of Service
  with respect to any fractional part of a year of service credited to the Employee
  as of the close of business on December 31, 1989 under the provisions of the
  Retirement Plan for Employees of CP National Corporation (the "CPN Plan"), determined
  by crediting the Employee with 190 Hours of Service for each 1/12th of a fractional
  year of service. Notwithstanding any other provision of this Section 9.04, an
  Employee described in the preceding sentence shall not be credited with less
  Years of Eligibility Service for service in the Employee's initial Computation
  Period than under the method for determining eligibility service under the CPN
  Plan. 

(c) For an Employee who was an employee
  of HWC Distribution Corp. or one of its subsidiaries ("HWC") immediately prior
  to the date as of which HWC became a member of the Controlled Group, the Employee's
  period or periods of employment with HWC prior to the date as of which HWC became
  a member of the Controlled Group that would have been taken into account under
  the Plan if such period or periods of employment were service with a member
  of the Controlled Group, shall be counted as Years of Eligibility Service. Notwithstanding
  any other provision of the Plan, there shall be no duplication of Years of Eligibility  

35

 

  Service under the Plan by reason of service (or hours of service) in respect
  of any single period or otherwise. 

(d) In determining Years of Eligibility
  Service for an Employee who was an "Employee," as defined in the Profit Sharing
  Plan for Employees of Systematics Information Services, Inc. and Participating
  Affiliates (the "Systematics Plan") prior to its merger into the Plan, of Systematics
  Information Services, Inc. or its subsidiaries, prior to January 1, 1995, for
  a Computation Period that includes January 1, 1995, the Employee shall receive
  credit, for a number of Hours of Service with respect to any fractional part
  of a year of service credited to the Employee as of the close of business on
  December 31, 1994 under the provisions of the Systematics Plan determined by
  crediting the Employee with 190 Hours of Service for each 1/12 of a fractional
  year of service. Notwithstanding any other provision of this Section 9.04, an
  Employee described in the preceding sentence shall not be credited with less
  Years of Eligibility Service for service in the Employee's initial Computation
  Period than under the method for determining eligibility service under the Systematics
  Plan. 

Furthermore, each person who became
  an "Employee" (as defined in the Systematics Plan prior to its merger into the
  Plan) of Systematics Information Services, Inc. or its subsidiaries (or Systematics,
  Inc. or its subsidiaries) pursuant to a Facilities Management Agreement prior
  to January 1, 1995, became an Employee of Systematics Information Services,
  Inc. or its subsidiaries pursuant to a Facilities Management Agreement on or
  after January 1, 1995, but prior to February 15, 1995, or becomes an Employee
  of ALLTEL Information Services, Inc. or its subsidiaries pursuant to a Facilities
  Management Agreement on or after February 15, 1995, shall be credited with Years
  of Eligibility Service for service with a prior employer to the extent, if any,
  provided in the Facilities Management Agreement. 

(e) In determining Years of Eligibility
  Service for an Employee described in Appendix B, the terms of Appendix B shall
  apply. 

9.05 Years of Vesting Service
  

The following provisions shall apply
  in determining the Years of Vesting Service for the Employees specified in such
  provisions: 

(a) In determining Years of Vesting
  Service, an Employee, other than an Employee described in the succeeding subsections
  of this Section 9.05 or in Appendix C, shall receive credit for "Vesting Years
  of Service" credited to the Employee pursuant to the terms of the ALLTEL Corporation
  Pension Plan (if any) in respect of any period not otherwise taken into account
  under the Plan for purposes of determining Years of 

36

 

 Vesting Service; provided,
  however, that there shall be no duplication of Years of Vesting Service under
  the Plan by reason of any restoration of, crediting of, or granting of service
  in respect of any single period or otherwise. 

(b) The Years of Vesting Service
  of an Employee who was an employee of CP National Corporation or its subsidiaries
  ("CPN") prior to January 1, 1990 shall be determined in accordance with the
  following: 

(1) Service Prior to January 1,
    1990: The Employee's period or periods of employment with CPN prior to January
    1, 1990, shall be counted as Years of Vesting Service to the extent of the
    number of whole one-year periods of service that were similarly credited under
    the provisions of the Retirement Plan for Employees of CP National Corporation
    (the "CPN Plan"). 

  (2) Service From and After January
    1, 1990: The Employee shall accrue one Year of Vesting Service for each calendar
    year in which he has 1,000 or more Hours of Service. For all purposes except
    for determining eligibility for Early Retirement under Section 14.03, in determining
    such Years of Vesting Service for the Computation Period which includes January
    1, 1990, the Employee shall receive credit for a number of Hours of Service
    with respect to any fractional part of a year of service credited to the Employee
    as of December 31, 1989 under the provisions of the CPN Plan, determined by
    crediting the Employee with 190 Hours of Service for each 1/12th of a fractional
    year of service. Only for purposes of determining eligibility for Early Retirement
    under Section 14.03, in determining such Years of Vesting Service for the
    Computation Period in which the Employee has a Termination of Employment,
    the Employee shall receive credit for a number of Hours of Service with respect
    to any fractional part of a year of service credited to the Employee as of
    December 31, 1989 under the provisions of the CPN Plan, determined by crediting
    the employee with 190 Hours of Service for each 1/12 of a fractional year
    of service. 

  (3) Notwithstanding the provisions
    of paragraph (2) of this subsection (b), the Employee shall not be credited
    with less Years of Vesting Service for service from and after January 1, 1990
    than under the method for determining vesting service under the CPN Plan.
    

  (4) There shall be no duplication
    of Years of Vesting Service under the Plan by reason of any restoration of,
    crediting of, or granting of service in respect of any single period or otherwise.
    

 

37

 

 

(c) In determining Years of Vesting
  Service for an Employee who was an employee of HWC Distribution Corp. or one
  of its subsidiaries ("HWC") immediately prior to the date as of which HWC became
  a member of the Controlled Group, the Employee's period or periods of employment
  with HWC prior to the date as of which HWC became a member of the Controlled
  Group that would have been taken into account under the Plan if such period
  or periods of employment were service with a member of the Controlled Group,
  shall be counted as Years of Vesting Service. Notwithstanding any other provision
  of the Plan, there shall be no duplication of Years of Vesting Service under
  the Plan by reason of any restoration of, crediting of, or granting of service
  (or hours of service) in respect of any single period or otherwise. 

(d) The Years of Vesting Service
  of an Employee who was an "Employee," as defined in the Profit Sharing Plan
  for Employees of Systematics Information Services, Inc. and Participating Affiliates
  (the "Systematics Plan") prior to its merger into the Plan, of Systematics Information
  Services, Inc. or its subsidiaries ("Systematics"), prior to January 1, 1995,
  shall be determined in accordance with the following: 

(1) Service Prior to January 1,
    1995: The Employee's period or periods of employment with Systematics prior
    to January 1, 1995, shall be counted as Years of Vesting Service to the extent
    of the number of whole one-year periods of service that were similarly credited
    under the provisions of the Systematics Plan. 

  (2) Service From and After January
    1, 1995: The Employee shall accrue one Year of Vesting Service for each calendar
    year in which he has 1,000 or more Hours of Service. For all purposes except
    for determining eligibility for Early Retirement under Section 14.03, in determining
    such Years of Vesting Service for the Computation Period which includes January
    1, 1990, the Employee shall receive credit for a number of Hours of Service
    with respect to any fractional part of a year of service credited to the Employee
    as of December 31, 1994 under the provisions of the Systematics Plan, determined
    by crediting the Employee with 190 Hours of Service for each 1/12 of a fractional
    year of service. Only for purposes of determining eligibility for Early Retirement
    under Section 14.03, in determining such Years of Vesting Service for the
    Computation Period in which the Employee has a Termination of Employment,
    the Employee shall receive credit for a number of Hours of Service with respect
    to any fractional part of a year of service credited to the Employee as of
    December 31, 1994 under the provisions of the Systematics Plan, determined
    by crediting the employee with 

  38

   

  190 Hours of Service for each 1/12 of a fractional
    year of service.

  (3) Notwithstanding the provisions
    of paragraph (2) of this subsection (f), the Employee shall not be credited
    with less Years of Vesting Service for service from and after January 1, 1995
    than under the method for determining vesting service under the Systematics
    Plan. 

  (4) There shall be no duplication
    of Years of Vesting Service under the Plan by reason of any restoration of,
    crediting of, or granting of service in respect of any single period or otherwise.
    

Furthermore, each person who became
  an "Employee" (as defined in the Systematics Plan prior to its merger into the
  Plan) of Systematics Information Services, Inc. or its subsidiaries (or Systematics,
  Inc. or its subsidiaries) pursuant to a Facilities Management Agreement prior
  to January 1, 1995, became an Employee of Systematics Information Services,
  Inc. or its subsidiaries pursuant to a Facilities Management Agreement on or
  after January 1, 1995, but prior to February 15, 1995, or becomes an Employee
  of ALLTEL Information Services, Inc. or its subsidiaries pursuant to a Facilities
  Management Agreement on or after February 15, 1995, shall be credited with Years
  of Vesting Service for service with a prior employer to the extent, if any,
  provided in the Facilities Management Agreement. 

(e) In determining Years of Vesting
  Service for an Employee described in Appendix C, the terms of Appendix C shall
  apply. 

9.06 Vesting Following Break in
  Service 

If a former Employee is reemployed
  after a Break in Service and is subsequently credited with a Year of Vesting
  Service, such Employee shall be credited, for purposes of vesting, with both
  his pre-Break in Service Years of Vesting Service and his post-Break in Service
  Years of Vesting Service. 

 

39

ARTICLE X 

  ELIGIBILITY AND PARTICIPATION 

10.01 Eligibility 

(a) Each Eligible Employee shall
  become a Participant on the day following his completion of one Year of Eligibility
  Service, provided that he has not had a Termination of Employment and he remains
  an Eligible Employee on such date. 

(b) Any ineligible Employee who becomes
  an Eligible Employee shall become a Participant as follows: (i) if the Employee
  has completed one Year of Eligibility Service, then he shall become a Participant
  on the day he becomes an Eligible Employee; and (ii) if the Employee has not
  completed one Year of Eligibility Service, then he shall become a Participant
  on the day following his completion of one Year of Eligibility Service, provided
  that he has not had a Termination of Employment. 

(c) An Eligible Employee who becomes
  an ineligible Employee by means of a transfer of employment to a member of the
  Controlled Group that is not an Employer and who would be an Eligible Employee
  after such transfer of employment but for the fact that his employer is not
  an Employer or an Employee who would have become an Eligible Employee during
  a Plan Year but for such a transfer of employment shall, for the Plan Year in
  which such transfer of employment occurs, be treated as an Eligible Employee
  (provided he remains an Employee who would be an Eligible Employee but for the
  fact that his employer is not an Employer or would otherwise be eligible for
  an allocation of Employer Contributions and Forfeitures as a former Eligible
  Employee by reason of his Normal Retirement, Early Retirement, or Termination
  of Employment by reason of death or Total and Permanent Disability) for purposes
  of sharing in Employer Contributions and Forfeitures (but based only on his
  Compensation paid by an Employer or Employers for such Plan Year) and after
  the Plan Year in which such transfer of employment occurs shall be ineligible
  to share in further Employer Contributions and Forfeitures unless he again becomes
  an Eligible Employee. 

10.02 Termination and Rehiring
  

A Participant who has a Termination
  of Employment and who is subsequently rehired by the Employer or an Eligible
  Employee who has a Termination of Employment after he has met the eligibility
  requirements of Section 10.01 but before he has become a Participant and who
  is subsequently rehired by the Employer shall be eligible to participate in
  the Plan on his Reemployment Commencement Date. 

 

 

40

 

An Eligible Employee who has a Termination
  of Employment before he has met the eligibility requirements of Section 10.01
  and who is subsequently rehired as an Eligible Employee shall be eligible to
  participate in the Plan on the day following his completion of one Year of Eligibility
  Service. 

10.03 Duration of Participation
  

Once an Eligible Employee becomes
  a Participant, he shall remain a Participant for so long as a portion of the
  Trust is credited to his Separate Account whether or not he continues to be
  an Eligible Employee; provided, however, that, notwithstanding any other provision
  of the Plan, if a Participant ceases to be an Eligible Employee other than by
  Normal Retirement, Early Retirement, Termination of Employment by reason of
  death or Total and Permanent Disability, or a transfer of employment as provided
  in subsection (c) of Section 10.01, no further Employer Contributions or Forfeitures
  shall be allocated to his Separate Account. A Participant who is on an Authorized
  Leave of Absence shall continue as a Participant but no Employer Contributions
  or Forfeitures shall be made to his Separate Account for any Plan Year during
  which he does not receive Compensation from an Employer. 

 

41

 

ARTICLE XI 

  INVESTMENT FUNDS, ACCOUNTING, AND SEPARATE ACCOUNTS 

11.01 Composition of Trust Fund
  

All amounts contributed to the Plan,
  as increased or decreased by income, expenditure, appreciation and depreciation,
  shall constitute a single fund known as the Trust Fund. The Trust Fund shall
  be invested in an Investment Fund A and a Guaranteed Principal Investment Fund
  in accordance with the following: 

(a) The assets of Investment Fund
  A shall be invested in accordance with the provisions of the Trust Agreement,
  except that notwithstanding the provisions of the Trust Agreement: 

(1) 20% of the annual Employer
    Contribution to the Plan allocable to Investment Fund A shall be invested
    in the ALLTEL Corporation Common Stock Fund (as described in the Trust Agreement
    and the Trust Agreement for ALLTEL Corporation Master Trust) (the "ALLTEL
    Stock Fund") if as of the end of the Plan Year immediately preceding the date
    on which such Employer Contribution is made the value of the assets of Investment
    Fund A invested in the ALLTEL Stock Fund did not exceed 35% of the total value
    of the assets of Investment Fund A. 

  (2) The investment of assets of
    Investment Fund A in the ALLTEL Stock Fund existing as of April 22, 1999 shall
    not be reduced by investment allocation(s) of assets of Investment Fund A
    from the ALLTEL Stock Fund to any other investment fund(s) (and all dividends,
    distributions, and proceeds with respect to assets invested in the ALLTEL
    Stock Fund shall be allocated to the ALLTEL Stock Fund) or by the charging
    of payments and disbursements from the Trust to the ALLTEL Stock Fund, except:
    (A) to the extent that allocation of the investment of assets of Investment
    Fund A from the ALLTEL Stock Fund to any other investment fund(s) or charging
    of payments and disbursements from the Trust to the ALLTEL Stock Fund does
    not reduce the amount of the assets of Investment Fund A invested in the ALLTEL
    Stock Fund to less than approximately 35% of the total value of the assets
    of Investment Fund A; (B) payment of the cost of acquisition, sale or exchange
    (including brokerage costs) of any security or other property held in the
    ALLTEL Stock Fund shall be charged to the ALLTEL Stock Fund; (C) administrative
    expenses of the Plan and Trust shall be charged against the ALLTEL Stock Fund
    to the extent 

  42

   

  directed by the Pension Investment Committee; and (D) to the
    extent that the Pension Investment Committee determines that current payments
    and disbursements from the Trust allocable to Investment Fund A will exceed
    the amount of assets of Investment Fund A that are not invested in the ALLTEL
    Stock Fund.

  Notwithstanding the foregoing,
    the investment of assets in Investment Fund A shall be subject to limitations
    under ERISA and Section 401(a) of the Code and regulations issued thereunder.
    

(b) The assets of the Guaranteed
  Principal Investment Fund shall be invested in accordance with the Trust Agreement,
  except that notwithstanding the provisions of the Trust Agreement the assets
  of the Guaranteed Principal Fund shall be invested (directly or indirectly)
  in certificates of deposits, time deposit accounts, money market funds, guaranteed
  investment contracts or similar investments designed to protect the principal
  invested therein. 

The interest of each Participant
  or Beneficiary under the Plan in Investment Fund A or in the Guaranteed Principal
  Investment Fund, as applicable, shall be an undivided interest. 

11.02 Election to Transfer to
  Guaranteed Principal Investment Fund 

Each retiring Participant, who has
  attained age 55 may, as of the date of his retirement, make an irrevocable one-time
  election to direct the Plan Administrator to transfer 100% of his Separate Account
  balance to the Guaranteed Principal Investment Fund. Furthermore, each Participant
  who has attained age 55 may make an irrevocable one-time election to direct
  the Plan Administrator to transfer 100% of his then current Separate Account
  balance to the Guaranteed Principal Investment Fund. Such election shall also
  apply to all future Employer Contributions and Forfeitures allocated to a Participant's
  Separate Account, if any. This right shall be exercised only as provided in
  the Plan on a form provided by the Plan Administrator. The Plan Administrator
  may establish such rules and procedures regarding the exercise of this investment
  power as it deems appropriate. 

11.03 Allocation of Earnings or
  Losses to Separate Accounts 

As of each current Valuation Date
  and prior to the allocation of Employer Contributions attributable to the period
  beginning with the day following the preceding Valuation Date and ending with
  such current Valuation Date, there shall be allocated to each Participant's
  Separate Account, by credit to or deduction therefrom, as the case may be, a
  portion of the increase or decrease in the value of the fund or funds within
  the Trust Fund in which the  

43

 

 Participant's Separate Account is invested since
  the preceding Valuation Date attributable to interest, dividends, changes in
  market value, expenses, and gains and losses realized from the sale of assets.
  In determining the value of the fund or funds within the Trust Fund, the Trustee
  shall value the assets at their fair market value as of the Valuation Date.
  Allocations with respect to each fund within the Trust Fund shall be made in
  the proportion that each such Participant's Separate Account or percentage thereof
  as of the preceding Valuation Date, reduced by any distributions from a Participant's
  Separate Account attributable to such fund since such date, bears to the total
  of all such Separate Accounts or percentages thereof which are invested in the
  particular fund as of the preceding Valuation Date, reduced by any distributions
  from all Participants' Separate Accounts attributable to such fund since such
  date. For purposes of this Section 11.03, all assets of the Trust Fund, other
  than those assets held within the Guaranteed Principal Investment Fund, shall
  constitute a single investment fund. 

11.04 Separate Accounts 

A Separate Account shall be established
  in the name of each Participant reflecting his interest in the Trust Fund. Each
  Separate Account shall be maintained and administered for each Participant and
  Beneficiary in accordance with the provisions of the Plan. The balance of each
  Separate Account shall be the balance of the account after all credits and charges
  thereto, for and as of such date, have been made as provided herein. 

11.05 Sub-Accounts 

A Participant's Separate Account
  shall be divided into such Sub-Accounts as are necessary or appropriate to reflect
  a Participant's interest in the Trust Fund. 

44

 

ARTICLE XII 

  VOLUNTARY CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS 

12.01 No Voluntary Contributions
  

Participants shall not be permitted
  to make any voluntary contributions to the Plan. 

12.02 No Rollover Contributions
  

Participants shall not be permitted
  to make any rollover contributions to the Plan. 

 

45

ARTICLE XIII 

  EMPLOYER CONTRIBUTIONS AND ALLOCATIONS 

13.01 Employer Contributions
  

For each Plan Year, the Company shall
  make an annual Employer Contribution under the Plan in an amount that the Board
  of Directors shall determine by resolution, which resolution shall be adopted
  by the Board of Directors for that Plan Year not later than the time prescribed
  by law for filing the Employer's Federal income tax return for its applicable
  taxable year, including extensions thereof. Such resolution shall designate
  the Regions for that Plan Year and shall specify the amount of the Employer
  Contribution separately for each Region for that Plan Year as a percentage of
  the Compensation for that Plan Year of each Participant in that Region who is
  entitled to receive an allocation of the Employer Contribution for that Plan
  Year as determined under Section 13.04. In any event, the annual Employer Contribution
  so determined shall be an amount not less than 1% of the Compensation for the
  Plan Year of each Participant who is entitled to receive an allocation of the
  Employer Contribution for that Plan Year as determined under Section 13.04.
  

13.02 Timing of Employer Contributions
  

The Employer Contribution to be made
  for a Plan Year shall be paid to the Trust from time to time as deemed advisable
  by the Employer but in no event later than the time prescribed by law for filing
  the Employer's Federal income tax return for its applicable taxable year, including
  extensions thereof. In no event shall the total amount of Employer Contribution
  exceed the maximum amount deductible under the provisions of the Code and applicable
  Treasury Regulations thereunder. 

13.03 Allocation of Forfeitures
  

As of the end of each Plan Year,
  after the allocation of earnings or losses pursuant to Section 11.03, the Forfeitures
  (as determined pursuant to Section 16.03 and to the extent not required for
  restoration purposes under Section 16.04 or to provide allocations for Eligible
  Employees for whom an allocation was erroneously omitted) for that Plan Year
  shall be allocated to the Separate Accounts of all Participants (i) who are
  actively employed by an Employer on the last day of that Plan Year and who had
  a Year of Participation during that Plan Year, or (ii) whose Normal Retirement
  or Early Retirement occurred during that Plan Year or who had a Termination
  of Employment during that Plan Year by reason of death or Total and Permanent
  Disability (regardless of the number of Hours of Service such Participant worked
  during the Plan Year). A Participant who is on an Authorized Leave of Absence,
  or a transferred Employee who pursuant to  

46

 

 subsection (c) of Section 10.01 is
  treated as an Eligible Employee, shall be deemed to be actively employed by
  an Employer on the last day of that Plan Year for purposes of this Section 13.03.
  Such allocation to a Participant's Separate Account shall be based on the ratio
  that each such Participant's Compensation for that Plan Year bears to the total
  Compensation for that Plan Year of all such Participants. 

13.04 Eligibility For and Allocation
  of Employer Contributions 

As of the end of each Plan Year,
  after the allocation of earnings or losses pursuant to Section 11.03, and after
  the allocation of Forfeitures pursuant to Section 13.03, the Employer Contribution
  allocable to each eligible Participant shall be allocated to the Separate Account
  of such Participant. A Participant shall receive an allocation of Employer Contribution
  for that Plan Year if (i) the Participant was actively employed by an Employer
  on the last day of that Plan Year and had a Year of Participation during that
  Plan Year, or (ii) if the Participant's Normal Retirement or Early Retirement
  occurred during that Plan Year or if the Participant's Termination of Employment
  occurred during the Plan Year by reason of his death or Total and Permanent
  Disability (regardless of the number of Hours of Service such Participant worked
  during the Plan Year). A Participant who is on an Authorized Leave of Absence,
  or a transferred Employee who, pursuant to subsection (c) of Section 10.01 is
  treated as an Eligible Employee, shall be deemed to be actively employed by
  an Employer on the last day of the Plan Year for purposes of this Section 13.04.
  The allocation of such Employer Contribution to a Participant's Separate Account
  shall be an amount equal to such Participant's Compensation for that Plan Year
  multiplied by the percentage specified in the Board of Directors resolution
  for that Plan Year (as provided in Section 13.01) for the Region in which such
  Participant is employed for that Plan Year. For purposes of the immediately
  preceding sentence, a Participant shall be considered to be in the Region from
  which he received his last payment of Compensation during the Plan Year. 

13.05 Employer Contributions for
  Certain Employees 

In determining Employer Contributions
  for an Employee described in Appendix D, the terms of Appendix D shall apply.
  

 

47

 

ARTICLE XIV 

  BENEFITS AND DISTRIBUTIONS 

14.01 Vested Termination of Employment
  

A Participant who has a vested interest
  in his Separate Account determined pursuant to Section 16.02 and who has a Termination
  of Employment shall be entitled to receive distribution of his Separate Account
  or of the vested portion thereof only if applicable as soon as reasonably practicable
  following his Termination of Employment or the date his application for distribution
  is filed with the Plan Administrator, if later, in accordance with the provisions
  of Article XV. 

14.02 Death 

In the event of the death of a Participant
  who has a vested interest in his Separate Account determined pursuant to Section
  16.02 prior to distribution of his entire vested interest under the Plan, the
  Participant's Beneficiary shall be entitled to receive a distribution of Participant's
  Separate Account or of the vested portion thereof only if applicable (or of
  the remainder if distribution to the Participant has commenced in a periodic
  payment form) as soon as reasonably practicable following the Participant's
  death or the date his Beneficiary's application for distribution is filed with
  the Plan Administrator, if later, in accordance with the provisions of Article
  XV. 

14.03 Administrative Powers Relating
  to Payments 

If a Participant or Beneficiary is
  under a legal disability or, by reason of illness or mental or physical disability,
  is in the opinion of the Plan Administrator unable properly to attend to his
  personal financial matters, the Trustee may make such payments in such of the
  following ways as the Plan Administrator shall direct: 

(a) directly to such Participant
  or Beneficiary; 

(b) to the legal representative of
  such Participant or Beneficiary; or 

(c) to some relative by blood or
  marriage, or friend, for the benefit of such Participant or Beneficiary. 

Any payment made pursuant to this
  Section14.03 shall be in complete discharge of the obligation under the Plan.
  

14.04 Reemployment 

If a vested Participant is reemployed
  by an Employer or a member of the Controlled Group: The portion of his Separate
  Account that is attributable to 

48

 

 contributions made with respect to his period
  of reemployment, including any earnings thereon, shall not be distributable
  in accordance with the terms of the Plan until his subsequent Termination of
  Employment, and the portion of his Separate Account that is attributable to
  contributions made with respect to his prior employment, including any earnings
  thereon, shall remain distributable pursuant to the terms of the Plan because
  of his prior Termination of Employment. Notwithstanding the foregoing, a Participant
  shall have no right to continue distribution or to receive distribution upon
  reemployment of any amounts attributable to a Prior Plan, unless expressly provided
  for under such Prior Plan. 

49

 

ARTICLE XV 

  FORMS OF PAYMENT 

15.01 Method of Distribution to Participants
  

(a) After the date a Participant's
  application for distribution is filed with the Plan Administrator, and after
  all adjustments to his Separate Account required as of the distribution date
  shall have been made, distribution of the Participant's Separate Account shall
  be made or commence as soon after such date as is administratively practicable,
  to the Participant. 

(b) A Participant whose Normal Retirement
  or Early Retirement occurred or a Participant whose Termination of Employment
  occurred by reason of Total and Permanent Disability may elect one of the following
  methods of distribution: (1) a single sum payment of the entire balance of his
  Separate Account; or (2) monthly installments over a period of five, ten, or
  fifteen years, as elected by the Participant, but not exceeding the life expectancy
  of the Participant determined at the time installment payments commence, with
  the amount of any such installment payment redetermined annually by multiplying
  the value of the amount of the Separate Account to be distributed by a fraction,
  the numerator of which is one and the denominator of which is the total number
  of installments remaining to be paid. If such Participant does not make a timely
  election to receive distribution under the immediately preceding sentence, the
  Participant shall receive distribution of his Separate Account in the form of
  minimum required distributions (and commencing at the time) as provided in Section
  15.03 ("Minimum Required Distributions"). A Participant who is receiving installment
  payments or Minimum Required Distributions may elect a single sum payment of
  the entire remaining balance of his Separate Account (in lieu of any further
  payments).

 (c) A Participant who is not eligible
  to elect a method of distribution under paragraph (b) of this Section 15.01
  may elect a single sum payment of the entire balance of his Separate Account.
  If such Participant does not make a timely election to receive distribution
  under the immediately preceding sentence, the Participant shall receive distribution
  of his Separate Account in the form of minimum required distributions (and commencing
  at the time) as provided in Section 15.03 ("Minimum Required Distributions").
  A Participant who is receiving Minimum Required Distributions may elect a single
  sum payment of the entire remaining balance of his Separate Account (in lieu
  of any further payments). 

(d) Notwithstanding the paragraphs
  (b) and (c) of this Section 15.01, a Participant with respect to whom there
  may be an additional allocation 

50

 

 under Section 13.03 and/or Section 13.04 following
  the Participant's Normal Retirement, Early Retirement, or Termination of Employment
  by reason of death or Total and Permanent Disability and whose account balance
  exceeds $5,000 (or such other amount as is established by the Secretary of the
  Treasury pursuant to Section 411(a)(7)(B)(i) of the Code) on the date of his
  Termination of Employment, shall be entitled to elect to defer any distribution
  until the Employer Contribution for the Plan Year that includes the date of
  such Termination of Employment is made, or to elect a distribution of the Participant's
  vested interest in his Separate Account prior to the additional allocation and
  a subsequent distribution of his vested interest in any additional allocation
  in a single payment. 

15.02 Method of Distribution to
  Beneficiaries 

(a)

 (1) If a Participant dies after
    the date distribution of his vested interest in his Separate Account has commenced
    in the form of installment payments as provided in paragraph (b) of Section
    15.01, his Beneficiary shall receive distribution of the remainder of the
    installment payments beginning as soon as reasonably practicable following
    the Participant's date of death, except that a Participant's Beneficiary may
    elect to receive a single sum payment of the entire remaining balance of Participant's
    Separate Account (in lieu of any further payments).

   (2) If a Participant dies after
    the date distribution of his vested interest in his Separate Account has commenced
    in the form of Minimum Required Distributions as provided in paragraph (c)
    of Section 15.01, his Beneficiary shall receive distribution of the remainder
    of the Minimum Required Distributions beginning as soon as reasonably practicable
    following the Participant's date of death, except that a Participant's Beneficiary
    may elect to receive a single sum payment of the entire remaining balance
    of Participant's Separate Account (in lieu of any further payments). 

(b) If a Participant dies prior to
  the date distribution of his vested interest in his Separate Account has been
  made or commenced, his Beneficiary shall receive distribution of the Participant's
  vested interest in his Separate Account, beginning as soon as reasonably practicable
  following the date the Beneficiary's application for distribution is filed with
  the Plan Administrator, in one of the following methods of distribution, as
  elected by the Beneficiary: (1) a single sum payment of the entire balance of
  the Participant's Separate Account; or (2) monthly installments over a period
  of five, ten, or fifteen years, but not exceeding the life expectancy of the
  Beneficiary determined at the time installment payments commence, with the amount
  of any such installment payment redetermined annually by multiplying the value
  of the amount of the 

51

 

 Separate Account to be distributed by a fraction, the numerator
  of which is one and the denominator of which is the total number of installments
  remaining to be paid. If such Beneficiary does not make a timely election to
  receive distribution under the immediately preceding sentence, the Beneficiary
  shall receive distribution of his Separate Account in the form of minimum required
  distributions (and commencing at the time) as provided in Section 15.03 ("Minimum
  Required Distributions"). Distribution shall be made or commence no later than
  the end of the fifth calendar year beginning after the Participant's death,
  except that (A) if distribution is to be made to the Participant's surviving
  Spouse, distribution to the surviving Spouse must be made or commenced no later
  than the end of the first calendar year beginning after the Participant's death
  or the end of the calendar year in which the Participant would have attained
  age 70 1/2, whichever is later, or (B) if distribution is to be made to a Beneficiary
  who is not the Participant's surviving Spouse in periodic payments, distribution
  to such Beneficiary must commence no later than the end of the first calendar
  year beginning after the Participant's death. A Beneficiary who is receiving
  installment payments or Minimum Required Distributions may elect a single sum
  payment of the entire remaining balance of his Separate Account (in lieu of
  any further payments). 

(c) If distribution is to be made
  to a Participant's surviving Spouse, it shall be made available within a reasonable
  period of time after the Participant's death that is no less favorable than
  the period of time applicable to other distributions. 

15.03 Provisions Pursuant to Sections
  401(a)(9), 401(a)(14), and 411(a)(11) of the Code 

Notwithstanding anything to the contrary
  contained in the Plan, unless a Participant elects a later date (subject to
  the provisions of this Section), distribution of a Participant's Separate Account
  shall be made or commenced to the Participant not later than 60 days after the
  latest of the close of the Plan Year in which: occurs the date on which the
  Participant attains age 65; occurs the tenth anniversary of the year in which
  the Participant commenced participation in the Plan; or the Participant's employment
  terminates with the Employer and all other members of the Controlled Group.
  

Notwithstanding any other provision
  of the Plan to the contrary, the following provisions shall apply to the distribution
  of a Participant's vested Separate Account: 

(a) If a Participant's vested interest
  in his Separate Account at the time benefits are to commence exceeds $5,000
  (or such other amount as is established by the Secretary of the Treasury pursuant
  to Section 411(a)(7)(B)(i) of the Code), if the Participant has not attained 

52

 

 his Normal Retirement Age, distribution shall not be made without the Participant's
  written consent. 

(b) Distribution of a Participant's
  vested Separate Account shall be made or commenced to the Participant beginning
  not later than April 1 of the calendar year following the later of (A) the calendar
  year in which the Participant attains age 70-1/2 or (B) the calendar year in
  which such Participant separated from employment with the Controlled Group.
  However, in the case of a Participant who is a "5 percent owner" (as defined
  in section 416 of the Code) with respect to the Plan Year ending in the calendar
  year in which the Participant attains age 70-1/2, distribution of the Participant's
  vested Separate Account shall be made or commenced in accordance with section
  401(a)(9) of the Code and the regulations thereunder beginning not later than
  April 1 of the calendar year in which the Participant attains age 70-1/2. 

(c) 

(1) If the Participant dies after
    distribution of his Separate Account has begun, the remaining portion of such
    Separate Account shall continue to be distributed at least as rapidly as under
    the method of distribution being used prior to the Participant's death. 

  (2) If the Participant dies before
    distribution of his Separate Account begins, distribution of the Participant's
    entire interest shall be completed by December 31 of the calendar year containing
    the fifth anniversary of the Participant's death except to the extent that
    an election is made to receive distribution in accordance with (A) or (B)
    below: 

  (A) If any portion of the Participant's
      interest is payable to a "Designed Beneficiary" (as hereinafter defined),
      distributions may be made over the life or over a period certain not greater
      than the life expectancy of the Designated Beneficiary commencing on or
      before December 31 of the calendar year immediately following the calendar
      year in which the Participant died; 

    (B) If the Designated Beneficiary
      is the Participant's surviving Spouse, the date distributions are required
      to begin in accordance with (A) above shall not be earlier than the later
      of (1) December 31 of the calendar year immediately following the calendar
      year in which the Participant died, or (2) December 31 of the calendar year
      in which the Participant would have attained age 70-1/2. 

  
  The Participant's Designated Beneficiary
    must elect the method of distribution no later than the earlier of (1) December
    31 of the calendar year in which distributions would be required to begin,
    or 

  53

   

   (2) December 31 of the calendar year in which contains the fifth anniversary
    of the date of death of the Participant. If the Participant has no Designated
    Beneficiary, or if the Designated Beneficiary does not elect a method of distribution,
    distribution of the Participant's entire interest must be completed by December
    31 of the calendar year containing the fifth anniversary of the Participant's
    death. A deceased Participant's "Designated Beneficiary" (and whether a deceased
    Participant has a "Designated Beneficiary") shall be determined in accordance
    with section 401(a)(9) of the Code and regulations issued thereunder.

  (3) If the surviving Spouse dies
    after the Participant, but before payments to such Spouse begin, the provisions
    of paragraph (c)(2), with the exception of clause (B) therein, shall be applied
    as if the surviving Spouse were the Participant. 

(d) Notwithstanding any other provision
  of the Plan to the contrary, distribution from the Plan shall be made in accordance
  with section 401(a)(9) of the Code and regulations issued thereunder, including
  the minimum distribution incidental benefit requirements. 

(e) The Plan will apply the minimum
  distribution requirements of section 401(a)(9) of the Code in accordance with
  the regulations under section 401(a)(9) that were proposed on January 17, 2001,
  notwithstanding any provision of the Plan to the contrary. This Section 15.09(d)
  shall continue in effect until the end of the last calendar year beginning before
  the effective date of final regulations under section 401(a)(9) of the Code
  or such other date as may be specified in guidance published by the Internal
  Revenue Service. 

15.04 Small Benefit Cash-Out
  

Notwithstanding the other provisions
  of this Article XV, the vested Separate Account of a Participant shall be distributed
  in a single sum payment as soon as practicable following his Termination of
  Employment, if the value of his vested Separate Account as of the Valuation
  Date coinciding with or immediately preceding his Termination of Employment
  is $5,000 (or such other amount as is established by the Secretary of the Treasury
  pursuant to Section 411(a)(7)(B)(i) of the Code) or less; provided, however,
  that no such payment shall be made after benefits have commenced in an extended
  payment form. 

Notwithstanding the immediately preceding
  paragraph, a distributee the value of whose Separate Account does not exceed
  $5,000 (or such other amount as is established by the Secretary of the Treasury
  pursuant to Section 411(a)(7)(B)(i) of the Code) as of the date on which he
  would otherwise receive distribution of such Separate Account and with respect
  to 

 

54

 

 whom there may be an additional allocation under Section 13.03 and/or Section
  13.04 following the Participant's Normal Retirement, Early Retirement, or Termination
  of Employment by reason of death or Total and Permanent Disability shall be
  entitled to elect, in accordance with the procedures established by the Plan
  Administrator, to defer such payment until the Employer Contribution for the
  Plan Year that includes the date of such Termination of Employment is made,
  in which case the determination of the value of his Separate Account for purposes
  of the timing, amount, and form of distribution hereunder shall be made as of
  the Valuation Date as of which the Employer Contribution for the Plan Year that
  includes the date of such Termination of Employment is allocated if distribution
  is made (or commenced to the distributee prior to the next Valuation Date, and,
  otherwise, as of the Valuation Date coinciding with or immediately preceding
  the date as of which distribution is made or commenced. 

15.05 Notice Regarding Distributions
  

Within the 60 day period ending 30
  days prior to the date distribution of a Participant's Separate Account is to
  be made or commenced, the Plan Administrator shall provide him with a written
  explanation of the forms of payment available under the Plan, his right to make
  a direct rollover and, except as otherwise provided in Section 15.02, the Participant's
  right to defer distribution of his Separate Account until a date not later than
  the date required pursuant to Section 15.03. Notwithstanding the foregoing,
  distribution may be made or commenced less than 30 days after the notice required
  by this Section 15.05 is given to the Participant, provided that: 

(a) the Plan Administrator clearly
  informs the Participant that he has a right to a period of at least 30 days
  after receiving the notice to consider the decision of whether or not to elect
  a distribution and, if applicable, a particular distribution option, and 

(b) the Participant, after receiving
  the notice, affirmatively elects a distribution. 

15.06 Direct Rollover Requirements
  

Notwithstanding any provision of
  the Plan to the contrary that would otherwise limit a distributee's election
  under this Section, a distributee may elect, at the time and in the manner prescribed
  by the Plan Administrator, to have any portion of an eligible rollover distribution
  paid directly to an eligible retirement plan specified by the distributee in
  a direct rollover. For purposes of this Section, the following definitions shall
  apply: 

(a) Eligible rollover distribution:
  An eligible rollover distribution is any distribution of all or any portion
  of the balance to the credit of the distributee, except that an eligible rollover
  distribution does not include: 

 

55

 any distribution that is one of a series of substantially
  equal periodic payments (not less frequently than annually) made for the life
  (or life expectancy) of the distributee or the joint lives (or joint life expectancies)
  of the distributee and the distributee's designated beneficiary, or for a specified
  period of ten years or more; any distribution to the extent such distribution
  is required under Section 401(a)(9) of the Code; and the portion of any distribution
  that is not includible in gross income (determined without regard to the exclusion
  for net unrealized appreciation with respect to employer securities). 

(b) Eligible retirement plan: An
  eligible retirement plan is an individual retirement account described in Section
  408(a) of the Code, an individual retirement annuity described in Section 408(b)
  of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified
  trust described in Section 401(a) of the Code, that accepts the distributee's
  eligible rollover distribution. However, in the case of an eligible rollover
  distribution to the surviving spouse, an eligible retirement plan is an individual
  retirement account or individual retirement annuity. 

(c) Distributee: A distributee includes
  an Employee or former Employee. In addition, the Employee's or former Employee's
  surviving spouse and the Employee's or former Employee's spouse or former spouse
  who is the alternate payee under a qualified domestic relations order, as defined
  in Section 414(p) of the Code, are distributees with regard to the interest
  of the spouse or former spouse. 

(d) Direct rollover: A direct rollover
  is a payment by the Plan to the eligible retirement plan specified by the distributee.
  

(e) EGTRRA Provisions regarding Direct
  Rollovers of Plan Distributions: 

(1) Effective Date: This clause
    (e) shall apply to distributions made after December 31, 2001. 

  (2) Modification of definition
    of eligible retirement plan. For purposes of the direct rollover provisions
    in this Section, an eligible retirement plan shall also mean an annuity contract
    described in Section 403(b) of the Code and an eligible plan under Section
    457(b) of the Code which is maintained by a state, political subdivision of
    a state, or any agency or instrumentality of a state or political subdivision
    of a state and which agrees to separately account for amounts transferred
    into such plan from this plan. The definition of eligible retirement plan
    shall also apply in the case of a distribution to a surviving spouse, or to
    a spouse or former spouse who is the alternate payee under a qualified domestic
    relation order, as defined in Section 414(p) of the Code. 

   

  56

   

   

  (3) Modification of definition
    of eligible rollover distribution to exclude hardship distributions. For purposes
    of the direct rollover provisions in this Section, any amount that is distributed
    on account of hardship shall not be an eligible rollover distribution and
    the distributee may not elect to have any portion of such a distribution paid
    directly to an eligible retirement plan. 

Modification of definition of eligible
  rollover distribution to include after-tax employee contributions. For purposes
  of the direct rollover provisions in this Section 15.06, a portion of a distribution
  shall not fail to be an eligible rollover distribution merely because the portion
  consists of after-tax employee contributions which are not includible in gross
  income. However, such portion may be transferred only to an individual retirement
  account or annuity described in Section 408(a) or (b) of the Code, or to a qualified
  defined contribution plan described in Section 401(a) or 403(a) of the Code
  that agrees to separately account for amounts so transferred, including separately
  accounting for the portion of such distribution which is includible in gross
  income and the portion of such distribution which is not so includible. 

15.07 Valuation and Timing of
  Distribution 

The value of a Participant's Separate
  Account for purposes of distribution (and the amount of any distribution) shall
  be based on the value of the vested balance of the Participant's Separate Account
  as of the Valuation Date determined (on a uniform basis) by the Plan Administrator.
  Distribution shall be made as promptly as practicable after the Valuation Date
  applicable to such distribution. 

15.08 Form of Election 

All elections under this Article
  XV shall be in writing on the form prescribed by the Plan Administrator from
  time to time and must be filed on a timely basis. 

15.09 Prior Plans 

Effective as provided in Section
  23.02, notwithstanding any provision of Article XX, the method(s) of distribution
  provided in this Article XV (including, timing of distribution) shall be the
  only method(s) available under the Plan, except to the extent the provisions
  of Article XX would provide a later date for distribution to be made; provided,
  however that Section 15.04 shall nonetheless apply. 

 

57

 

ARTICLE XVI 

  VESTING AND FORFEITURES 

16.01 Full Vesting 

A Participant shall have a fully
  vested and nonforfeitable interest in his Separate Account on the first to occur
  of the following: 

(a) his Normal Retirement; 

(b) his Termination of Employment
  by reason of his Total and Permanent Disability; 

(c) his Termination of Employment
  by reason of his death; 

(d) his completion of the required
  Years of Vesting Service, pursuant to Section 16.02; or 

(e) termination of the Plan pursuant
  to Section 5.01. 

16.02 Vesting Schedule 

(a) A Participant other than a Participant
  to whom subsection (b) of this Section 16.02 applies shall vest in the value
  of his Separate Account in accordance with the following schedule:

	
      Vesting
        Years of Service

    	
      Vested
        Percentage

    
	
      less than
        5

    	
      0%

    
	
      5 or more

    	
      100%

    

(b) A Participant who was an Employee
  of Systematics Information Services, Inc. or its subsidiaries and whose Employment
  Commencement Date occurred prior to January 1, 1995, shall vest in the value
  of his Separate Account in accordance with the following schedule: 

	
      Vesting
        Years of Service

    	
      Vested
        Percentage

    
	
      less than
        3

    	
      0%

    
	
      3 but not
        4

    	
      25%

    
	
      4 but not
        5

    	
      50%

    
	
      5 or more

    	
      100%

    

 

58

 

 

16.03 Forfeitures 

If a Participant who has a Termination
  of Employment is not 100% vested in his Separate Account, the non-vested portion
  of his Separate Account shall be forfeited as follows:

 (a) If the Participant has no vested
  interest in his Separate Account, the non-vested balance of the Participant's
  Separate Account shall be a Forfeiture at the end of the Plan Year in which
  his Termination of Employment occurs; provided that he has not returned to employment
  prior to such date. 

(b) If the value of a Participant's
  vested interest in his Separate Account as of the date of distribution does
  not exceed $5,000 (or such other amount as is established by the Secretary of
  the Treasury pursuant to Section 411(a)(7)(B)(i) of the Code) resulting in his
  receipt of a single sum payment pursuant to Section 15.04, the non-vested portion
  of the Participant's Separate Account shall be a Forfeiture at the end of the
  Plan Year in which the single sum payment occurs; provided that he has not returned
  to employment prior to such date; and provided, further, that such distribution
  occurs prior to the end of the second Plan Year beginning on or after the Participant's
  Termination of Employment. 

(c) If the value of a Participant's
  vested interest in his Separate Account as of the date of distribution exceeds
  $5,000 (or such other amount as is established by the Secretary of the Treasury
  pursuant to Section 411(a)(7)(B)(i) of the Code) and the Participant is eligible
  for and consents in writing to a single sum payment of his vested interest in
  his Separate Account, the non-vested portion of the Participant's Separate Account
  shall be a Forfeiture at the end of the Plan Year in which the single sum payment
  occurs; provided that he has not returned to employment prior to such date;
  and provided, further, that such distribution occurs prior to the end of the
  second Plan Year beginning on or after the Participant's Termination of Employment.
  

(d) If paragraphs (a), (b), and (c)
  of this Section 16.03 are not applicable, the non-vested portion of the Participant's
  Separate Account shall be a Forfeiture at the end of the Plan Year in which
  the Participant incurs five consecutive one-year Breaks in Service; provided
  that he has not returned to employment prior to such date. 

Forfeitures shall be used for restoration
  purposes under Section 16.04 and to provide allocations under Section 13.03
  and 13.04 for Eligible Employees for whom an allocation was erroneously omitted,
  if any. To the extent that forfeitures are not used for the preceding purposes,
  they shall be reallocated pursuant to Section 13.03. 

 

59

 

16.04 Restoration of Certain Forfeitures
  on Reemployment 

If a Participant who had a Termination
  of Employment returns to employment prior to incurring five consecutive one-year
  Breaks in Service, the amount previously forfeited by him (his Forfeiture) shall
  be restored to his Separate Account as of the last day of the Plan Year in which
  he returns to employment with an Employer, provided he has not had a Termination
  of Employment prior to such date. The funds for such restoration shall come
  first from Forfeitures allocated at the end of such Plan Year, to the extent
  available and, if necessary, thereafter from additional contributions to the
  Plan by the Employer. 

16.05 Vesting Following Certain
  Distributions 

If a Participant receives a distribution
  of amounts attributable to Employer Contributions from his Separate Account
  at a time when he is less than 100% vested in his Separate Account and under
  the terms of the Plan the Participant could increase his vested interest in
  such amounts after the distribution, the balance of his Separate Account attributable
  to Employer Contributions with respect to which his vested interest can increase
  shall be computed as follows: 

(a) A separate account shall be established
  for the portion of the Participant's Separate Account attributable to Employer
  Contributions at the time of the distribution (or account balances shall be
  maintained under a method having the same effect), and 

(b) At any relevant time, the Participant's
  vested interest in such separate account is not less than an amount ("X") determined
  by the following formula: 

X = P(AB + (R x D)) - (R x D) 

For purposes of applying the formula:
  

P = The Participant's vested interest
    in such separate account at the relevant time; 

  AB = The balance of such separate
    account at the relevant time; 

  R = The ratio of (i) the balance
    of such separate account at the relevant time to (ii) the balance of such
    separate account after the distribution; and 

  D = The amount of the distribution.
    

 

60

 

The relevant time is the time at
  which, under the Plan, the Participant's vested interest in such separate account
  cannot increase. 

16.06 Election of Former Vesting
  Schedule 

If the Company adopts an amendment
  to the Plan that directly or indirectly affects the computation of a Participant's
  vested interest in his Separate Account, any Participant with three or more
  Years of Vesting Service shall have a right to have his vested interest in his
  Separate Account continue to be determined under the vesting provisions in effect
  prior to the amendment rather than under the new vesting provisions, unless
  the vested interest of the Participant in his Separate Account under the Plan
  as amended is not at any time less than such vested interest determined without
  regard to the amendment. A Participant shall exercise his right under this Section
  16.06 by giving written notice of his exercise thereof to the Administrator
  within 60 days after the latest of (i) the date he receives notice of the amendment
  from the Plan Administrator, (ii) the effective date of the amendment, or (iii)
  the date the amendment is adopted. Notwithstanding the foregoing, a Participant's
  vested interest in his Separate Account on the effective date of such an amendment
  shall not be less than his vested interest in his Separate Account immediately
  prior to the effective date of the amendment. 

 

61

 

ARTICLE XVII 

  BENEFICIARIES 

17.01 Designation of Beneficiary
  

Subject to the provisions of Section
  17.02, each Participant shall have the right to designate, by filing a written
  designation with the Plan Administrator on such form as the Plan Administrator
  may prescribe, a person or persons or entity to receive any benefit which may
  become payable upon the death of such Participant or any installment payments
  remaining unpaid at the death of the Participant. A married Participant's Beneficiary
  shall be his Spouse, unless the Spouse has consented in the manner provided
  in Section 17.02 to the Participant's designation of a Beneficiary other than
  his Spouse. A non-Spouse Beneficiary designation made by a Participant and consented
  to by his Spouse may be revoked by the Participant in writing at any time, without
  the consent of his Spouse. Any new Beneficiary designation must again comply
  with the requirements of Section 17.02. 

17.02 Spousal Consent Requirements
  

Any written spousal consent given
  pursuant to this Article XVII shall acknowledge the effect of the action taken,
  shall specifically acknowledge any non-Spouse Beneficiary designated by the
  Participant, and shall be witnessed by a Plan representative or a notary public.
  Such spousal consent shall be valid only with respect to the Spouse who signs
  the consent. Notwithstanding any other provision of the Plan to the contrary,
  written spousal consent shall not be required if the Participant establishes
  to the satisfaction of the Plan Administrator that such consent cannot be obtained
  because the Spouse cannot be located or because of other circumstances set forth
  in Section 401(a)(11) of the Code and regulations issued thereunder. 

17.03 No Beneficiary 

If no Beneficiary has been designated
  pursuant to Section 17.01, if a designation is for any reason illegal or ineffective,
  or if no Beneficiary survives the Participant and he has no surviving Spouse,
  then the Beneficiary under the Plan shall be the Participant's estate. If a
  Beneficiary dies after becoming entitled to receive a distribution under the
  Plan but before distribution is made to him in full, and if no other Beneficiary
  has been designated to receive the balance of the distribution in that event,
  the estate of the deceased Beneficiary shall be the Beneficiary as to the balance
  of the distribution. 

62

 

 

17.04 Reliance 

In determining a Participant's Beneficiary,
  the Plan Administrator may act and rely upon any information it deems reliable
  upon reasonable inquiry, and upon any affidavit, certificate, or other paper
  believed by it to be genuine, and upon any evidence believed by it to be sufficient.
  

 

63

 

ARTICLE XVIII 

  LOANS 

18.01 No Loans 

A Participant shall not be permitted
  to obtain any loans from the Plan. 

 

64

 

ARTICLE XIX 

  IN-SERVICE WITHDRAWALS 

19.01 No In-Service Withdrawals
  

A Participant shall not be permitted
  to withdraw any portion of his interest in the Plan. 

 

65

ARTICLE XX 

  MERGER OF CERTAIN PLANS INTO THE PLAN 

20.01 In General 

This Article XX contains special
  provisions regarding Prior Plans that have been merged into the Plan from time
  to time. Except as provided in Section 15.09 and as may be expressly provided
  elsewhere in this Article XX, the forms of payment or other rights that may
  not be eliminated under Section 411(d)(6) of the Code available under a Prior
  Plan shall be available under the Plan with respect to, and solely with respect
  to, a Participant's interest under a Prior Plan and not to the Participant's
  interest under the Plan determined without regard to this Article XX. A Participant
  may, however, elect to receive his entire interest under the Plan in a form
  of payment provided under Article XV. 

20.02 Merger of Allied Telephone
  Company Profit Sharing Plan 

(a) Effective as of the beginning
  of business on January 1, 1995, the Allied Telephone Company Profit Sharing
  Plan (the "Allied Plan") shall be merged into and made a part of the Plan, and
  the trust fund maintained in connection with the Allied Plan shall be added
  to the assets of the Trust Fund to be disposed of under the terms, conditions,
  and provisions of the Plan and the Trust. On and after January 1, 1995, except
  as otherwise expressly provided in this Article XX, the general provisions of
  the Plan shall govern with respect to the interests under the Allied Plan of
  all persons, to the extent not inconsistent with any provision of the Allied
  Plan that may not be eliminated under Section 411(d)(6) of the Code. 

(b) As of January 1, 1995, Separate
  Accounts shall be established in accordance with the provisions of Section 11.04
  (to the extent not previously established) in the name of each person who as
  of the close of business on December 31, 1994 was a participant or beneficiary
  with an interest under the Allied Plan. In addition to any credits or debits
  to the Separate Account of the persons described in the immediately preceding
  sentence on or after January 1, 1995 (or with respect to periods prior to January
  1, 1995, if any, during which a person described in the immediately preceding
  sentence was a Participant), in accordance with the Plan's general provisions,
  as of the date the assets of the trust fund for the Allied Plan are received
  by the Trustee and deposited in the Trust Fund there shall be credited to each
  such Separate Account or Sub-Account, as applicable, the value of such person's
  prior separate account or sub-account of the corresponding type under the Allied
  Plan as certified to the Plan Administrator by the Plan administrator of the
  Allied Plan. 

66

 

(c) Any election, waiver, or beneficiary
  designation made by a person with respect to his interest under the Allied Plan
  shall remain in effect, but with respect only to that portion of his Separate
  Account attributable to the Allied Plan and the provisions of the Plan other
  than this Section 19.02 shall apply to the portion of his Separate Account not
  attributable to the Allied Plan, if any. Provided that an election, waiver,
  or beneficiary designation has not become irrevocable (by reason of death or
  otherwise), a person described in the first sentence of paragraph (b) of this
  Section 19.02 may make a new election, waiver, or beneficiary designation for
  his entire interest under the Plan. 

20.03 Merger of Profit Sharing
  Plan for Employees of Systematics Information Services, Inc. and Participating
  Affiliates 

(a) Effective as of the beginning
  of business on January 1, 1995, the Profit Sharing Plan for Employees of Systematics
  Information Services, Inc. and Participating Affiliates (the "Systematics Plan")
  shall be merged into and made a part of the Plan, and the trust fund maintained
  in connection with the Systematics Plan shall be added to the assets of the
  Trust Fund to be disposed of under the terms, conditions, and provisions of
  the Plan and the Trust. On and after January 1, 1995, except as otherwise expressly
  provided in this Article XX, the general provisions of the Plan shall govern
  with respect to the interests under the Systematics Plan of all persons, to
  the extent not inconsistent with any provision of the Systematics Plan that
  may not be eliminated under Section 411(d)(6) of the Code. 

(b) As of January 1, 1995, Separate
  Accounts shall be established in accordance with the provisions of Section 11.04
  in the name of each person who as of the close of business on December 31, 1994
  was a participant or beneficiary with an interest under the Systematics Plan.
  In addition to any credits or debits to the Separate Account of the persons
  described in the immediately preceding sentence on or after January 1, 1995,
  in accordance with the Plan's general provisions, as of the date the assets
  of the trust fund for the Systematics Plan are received by the Trustee and deposited
  in the Trust Fund there shall be credited to each such Separate Account or Sub-Account,
  as applicable, the value of such person's prior separate account or sub-account
  of the corresponding type under the Systematics Plan as certified to the Plan
  Administrator by the plan administrator of the Systematics Plan. 

(c) Each Employee who is a participant
  in the Systematics Plan on December 31, 1994, and becomes an Eligible Employee
  on January 1, 1995, shall become a Participant on January 1, 1995. An Employee
  of Systematics Information Services, Inc. or its subsidiaries who was hired
  prior to January 1, 1995, who becomes an Eligible Employee on January 1, 1995,
  and who would have become a participant in the 
  

67

    

 

 Systematics Plan upon fulfilling
  the age and service eligibility requirements under the Systematics Plan shall
  become a Participant on the earlier of (i) the date that he would have become
  a participant in the Systematics Plan or (ii) the date that he would become
  a Participant in accordance with Section 10.01. Each other Employee of Systematics
  Information Services, Inc. or its subsidiaries who is hired on or after January
  1, 1995, and who becomes an Eligible Employee shall become a Participant on
  the date that he would become a Participant in accordance with Section 10.01.
  

(d) Any election, waiver, or beneficiary
  designation made by a participant or beneficiary, as applicable, under the Systematics
  Plan with respect to his interest under the Systematics Plan shall remain in
  effect unless superseded by a valid election, waiver, or beneficiary designation
  under the Plan. 

(e) Any election, waiver, or beneficiary
  designation made by a person with respect to his interest under the Systematics
  Plan shall remain in effect, but with respect only to that portion of his Separate
  Account attributable to the Systematics Plan and the provisions of the Plan
  other than this Section 19.03 shall apply to the portion of his Separate Account
  not attributable to the Systematics Plan, if any. Provided that an election,
  waiver, or beneficiary designation has not become irrevocable (by reason of
  death or otherwise), a person described in the first sentence of paragraph (b)
  of this Section 19.03 may make a new election, waiver, or beneficiary designation
  for his entire interest under the Plan. 

(f) Notwithstanding any other provision
  of the Plan to the contrary, any outstanding loan under the Systematics Plan
  shall continue to be repaid and administered in accordance with its terms and
  the applicable provisions of the Systematics Plan in effect at the time the
  loan was granted. 

 

68

 

ARTICLE XXI 

  TRANSFER OF BENEFITS WITH RESPECT TO CERTAIN EMPLOYEES WHOSE EMPLOYMENT TRANSFERS
  TO CITIZENS UTILITIES COMPANY OR ONE OF ITS AFFILIATES 

21.01 Definitions 

For purposes of this Article XXI,
  the following definitions shall apply: 

(a) "Citizens" shall mean Citizens
  Utilities Company, a Delaware corporation; Citizens Telecommunications Company
  of Oregon, a Delaware corporation; Citizens Utilities Company of California,
  a California corporation; and Citizens Utilities Company, a Pennsylvania corporation,
  individually or collectively, as the context may require. 

(b) An "Effective Date" shall mean
  an Effective Date as defined in an Employee Transfer Agreement. 

(c) An "Employee Transfer Agreement"
  shall mean an Employee Transfer Agreement between ALLTEL Corporation and Citizens
  Utilities Company, a Delaware corporation (with respect to Navajo Communications
  Co., Inc.); ALLTEL Corporation and Citizens Utilities Company, a Delaware corporation
  (with respect to Mountain State Telephone Company); ALLTEL Corporation and Citizens
  Utilities Company, a Delaware corporation (with respect to ALLTEL Nevada, Inc.);
  ALLTEL Corporation and Citizens Utilities Company, a Delaware corporation (with
  respect to NCC Systems, Inc.); ALLTEL Corporation and Citizens Telecommunications
  Company of Oregon, a Delaware corporation; CP National Corporation and Citizens
  Utilities Company of California, a California corporation; ALLTEL Tennessee,
  Inc. and Citizens Utilities Company, a Delaware corporation; and Tuolumne Telephone
  Company and Citizens Utilities Company, a Pennsylvania corporation; each dated
  November 28, 1994, (collectively, the "Employee Transfer Agreements"). 

(d) The "Transfer Assets" shall mean
  the amount or amounts directed by the Company to be transferred to the Transfer
  Plans in accordance with the provisions of the Transfer Agreements. 

(e) A "Transfer Employee" shall mean
  an active Employee (including an Employee on military leave, maternity leave,
  or other approved leaves of absence of 12 months or less, short-term disability,
  and an Employee on layoff with recall rights) whose employment transfers from
  a Transferring Employer to Citizens, as of an Effective Date. 

69

 

(f) A "Transfer Plan" shall mean
  such one or more qualified plans as may be designated by Citizens. 

(g) A "Transferring Employer" shall
  mean Navajo Communications Co., Inc., Mountain State Telephone Company, ALLTEL
  Nevada, Inc., NCC Systems, Inc., ALLTEL Oregon, Inc., CP National Corporation,
  ALLTEL Tennessee, or Tuolumne Telephone Company (collectively, the "Transferring
  Employers"). 

21.02 Transfer of Assets 

The Company shall direct the Trustee
  to transfer the Transfer Assets to the trustee(s) or funding agent(s) for the
  Transfer Plans, in accordance with the provisions of the Employee Transfer Agreements,
  to be held, administered, and disposed of by the trustee(s) of the Transfer
  Plans, under the terms, conditions, and provisions of the Transfer Plans. 

21.03 Benefit Payments After an
  Effective Date but Prior to the Transfer of Assets 

If, on or after an Effective Date
  and before the actual transfer of assets, benefits become payable under the
  Plan with respect to a Transfer Employee, the benefits shall be paid from the
  Plan and the assets and liabilities for benefits to be transferred pursuant
  to Section 21.02 shall be reduced accordingly. 

21.04 Cessation of Participation
  

Effective as of the Effective Date
  applicable to him, a Transfer Employee shall cease to be a Participant in the
  Plan, and no Transfer Employee or any person claiming under or through any Transfer
  Employee shall have any benefits or rights under the Plan after the Closing
  Date (except as provided in Section 21.03). 

21.05 Vested Interest of Transfer
  Employees 

The entire Separate Account of each
  Transfer Employee shall be transferred to one or more of the Transfer Plans,
  as designated by Citizens, including any amounts in which the Transfer Employee
  does not have a nonforfeitable interest. The vested interest of each Transfer
  Employee in the Transfer Plan applicable to him shall be determined under the
  provisions of the Transfer Plan, but in no event shall such vested interest
  be less than the Transfer Employee's vested interest under the Plan as of the
  Closing Date. 

21.06 Plan Continuing 

The applicable Transfer Plan shall
  be deemed to be a continuation of the Plan with respect to the Transfer Employees,
  and the transfers of assets 

70

 

 to the Transfer Plans shall not be deemed a termination
  or partial termination of the Plan with respect to the Transfer Employees or
  otherwise. 

21.07 Overriding Provisions
  

The provisions of this Article XXI
  shall apply notwithstanding any other provisions of the Plan, except Section
  3.07, and shall override any conflicting Plan provisions. 

71

 

ARTICLE XXII 

  EXTENSION OF COVERAGE TO CERTAIN EMPLOYEES 

22.01 Extension of Coverage to
  Certain Georgia Exchange Employees 

Effective beginning June 1, 1998
  and as more specifically hereinafter provided, the proviso to paragraph (a)(1)
  of Section 1.12 shall not apply to and coverage under the Plan shall be extended
  to a person who on or after June 1, 1998 is an Employee and who on or before
  June 1, 1998 was in the bargaining unit described in National Labor Relations
  Board Case 10-RD-1309 (a "Decertified Employee"): For purposes of Sections 13.01,
  13.02, 13.03, 13.04 and 13.06, for the Plan Year ending December 31, 1998, a
  Decertified Employee who would have been an Eligible Employee at relevant times
  during the Plan Year ending December 31, 1998 but for paragraph (a)(1) of Section
  1.12 shall be treated as an Eligible Employee at such relevant times during
  the Plan Year ending December 31, 1998. 

22.02 Extension of Coverage to
  Certain Ohio Employees 

Effective beginning December 16,
  1998 and as more specifically hereinafter provided, the proviso to paragraph
  (a)(1) of Section 1.12 shall not apply to and coverage under the Plan shall
  be extended to a person who on or after December 16, 1998 is an Employee and
  who on or before December 16, 1998 was in the bargaining unit described in National
  Labor Relations Board Case 8-RD-1819 (a "Decertified Employee"): For purposes
  of Sections 13.01, 13.02, 13.03, 13.04 and 13.06, for the Plan Year ending December
  31, 1998, a Decertified Employee who would have been an Eligible Employee at
  relevant times during the Plan Year ending December 31, 1998 but for paragraph
  (a)(1) of Section 1.12 shall be treated as an Eligible Employee at such relevant
  times during the Plan Year ending December 31, 1998. 

22.03 Extension of Coverage to
  Certain Georgia Exchange Employees 

Effective beginning February 22,
  1999 and as more specifically hereinafter provided, the proviso to paragraph
  (a)(1) of Section 1.12 shall not apply to and coverage under the Plan shall
  be extended to a person who on or after February 22, 1999 is an Employee and
  who on or before February 22, 1999 was in the bargaining unit described in National
  Labor Relations Board Case 10-RD-1320 (a "Decertified Employee"): For purposes
  of Sections 13.01, 13.02, 13.03, 13.04 and 13.06, for the Plan Year ending December
  31, 1999, a Decertified Employee who would have been an Eligible Employee at
  relevant times during the Plan Year ending December 31, 1999 but for  

72

 

 paragraph
  (a)(1) of Section 1.12 shall be treated as an Eligible Employee at such relevant
  times during the Plan Year ending December 31, 1999. 

22.04 Extension of Coverage to
  Certain Kentucky Employees 

Effective beginning January 13, 2000,
  and as more specifically hereinafter provided, the proviso to paragraph (a)(1)
  of Section 1.12 shall not apply to and coverage under the Plan shall be extended
  to a person who on or after January 13, 2000 is an Employee and who on or before
  January 13, 2000 was in the bargaining unit described in National Labor Relations
  Board Case 9-RD-1910 (a "Decertified Employee"): For purposes of Sections 13.01,
  13.02, 13.03, 13.04, and 13.06, for the Plan Year ending December 31, 2000,
  a Decertified Employee who would have been an Eligible Employee at relevant
  times during the Plan Year ending December 31, 2000 but for paragraph (a)(1)
  of Section 1.12 shall be treated as an Eligible Employee at such relevant times
  during the Plan Year ending December 31, 2000. 

22.05 Extension of Coverage to
  Certain Alabama Employees 

Effective beginning February 15,
  2001, and as more specifically hereinafter provided, the proviso to paragraph
  (a)(1) of Section 1.12 shall not apply to and coverage under the Plan shall
  be extended to a person who on or after February 15, 2001 is an Employee and
  who on or before February 15, 2001 was in the bargaining unit described in National
  Labor Relations Board Case 10-RD-1368 (a "Decertified Employee"): For purposes
  of Sections 13.01, 13.02, 13.03, 13.04, and 13.06, for the Plan Year ending
  December 31, 2001, a Decertified Employee who would have been an Eligible Employee
  at relevant times during the Plan Year ending December 31, 2001 but for paragraph
  (a)(1) of Section 1.12 shall be treated as an Eligible Employee at such relevant
  times during the Plan Year ending December 31, 2001. 

 

73

 

ARTICLE XXIII 

  SPECIAL PROVISIONS AND EFFECTIVE DATES 

23.01 General 

This amended and restated Plan ("January
  1, 2002 Restatement") is effective as of January 1, 2002, but with respect only
  to Participants whose employment terminates on or after January 1, 2002 except
  as may otherwise be provided herein. Unless and to the extent expressly provided
  in this January 1, 2002 Restatement: No provision of this January 1, 2002 Restatement
  shall be construed to expand the definition of eligible employees, change accrued
  benefits, or otherwise change any substantive provision of the Plan with respect
  to periods prior to January 1, 2002. No provision of this January 1, 2002 Restatement
  corresponding to any provision of the Plan that was amended effective prior
  to January 1, 2002 shall be effective prior to the relevant effective date or
  event specified in the prior amendment to the Plan. 

23.02 Specific Effective Date
  Provisions

 (a) The provisions of this January
  1, 2002 Restatement regarding contributions to the Plan, forfeitures, and allocations
  thereof shall be effective for Plan Years beginning after December 31, 2001,
  except that effective for Plan Years beginning after December 31, 1996, any
  Plan provisions for family aggregation with respect to the provisions of Section
  401(a)(17) of the Code (as in effect prior to repeal of the family aggregation
  rule of that section) are deleted. 

(b) To the extent that annuity, installment,
  or other extended payment forms of distribution were available or being provided
  under the Plan as in effect immediately prior to the execution date of this
  January 1, 2002 Restatement the following shall apply: (a) such forms of distribution
  shall be available with respect to (and only with respect to) any distribution
  with an annuity starting date that is earlier than the earlier of (i) the 90th
  day after the date a summary that reflects the elimination of such forms of
  distribution and that satisfies the requirements of Department of Labor regulation
  section 2520.104b-3 has been furnished in accordance with ERISA, or (ii) January
  1, 2004, and (b) distribution thereof shall be made as provided under the applicable
  provisions of the Plan as in effect immediately prior to the execution of this
  January 1, 2002 Restatement. 

(c) For a Participant who is (or
  was) an Employee and who attains (or attained) age 70-1/2 in a calendar year
  beginning after December 31, 1996 and prior to January 1, 2003, the Participant
  shall be given a one-time election to have distribution of the Participant's
  vested Separate 

74

 

 Account be made or commenced in accordance with Section 401(a)(9)
  of the Code and the regulations thereunder beginning no later than April 1 of
  the calendar year following the calendar year in which the Participant attains
  (or attained) age 70-1/2. The election shall be made in the form and manner
  as prescribed by the Plan Administrator. 

23.03 Law Change Effective Dates
  

Notwithstanding the provisions of
  Section 23.01 and Section 23.02, with respect to any change made to the Plan
  to satisfy or implement the provisions of applicable law, including any regulations,
  rulings, or other published guidance, such change shall be effective on the
  first day of the first period (which may or may not be the first day of a Plan
  Year) with respect to which such change became required or effective because
  of such provisions. 

23.04 GUST Effective Dates
  

Except as otherwise expressly provided
  herein, each change made to the Plan by this January 1, 2002 Restatement for
  the purpose of satisfying or implementing a provision of (i) the Uniformed Services
  Employment and Reemployment Rights Act of 1994, (ii) the Uruguay Round Agreements
  Act of 1994, (iii) the Small Business Job Protection Act of 1996, (iv) the Taxpayer
  Relief Act of 1997, (v) the Internal Revenue Service Restructuring and Reform
  Act of 1998, (vi) the Community Renewal Tax Relief Act of 2000, (vii) any other
  change in the Code or ERISA, or (viii) regulations, rulings, or other published
  guidance issued under the Code, ERISA or the legislative enactments listed in
  (i)-(vi) above (a "Compliance Amendment"), shall be effective as of the first
  date such change became required by reason of such provision and shall also
  be effective with respect to any plan merged (including a transfer of assets
  and liabilities from any plan subject to section 414(l) of the Code) into the
  Plan as of the first date such change became required by reason of such provision
  (including for periods prior to the merger date to the extent so required),
  and accordingly is also an amendment of any plan merged (including a plan from
  which assets and liabilities were transferred) into the Plan for this purpose.
  This provision shall be effective to amend any plan merged (including a plan
  from which assets and liabilities were transferred) into the Plan only with
  respect to Compliance Amendments, and shall not be construed to expand the definition
  of "eligible employee," change contributions or forfeitures, or otherwise change
  any substantive provision of any plan merged (including a plan from which assets
  and liabilities were transferred) into the Plan that is not directly affected
  by a Compliance Amendment prior to the merger date. 

23.05 EGTRAA Effective Dates
  

This January 1, 2002 Restatement
  is adopted to reflect certain provisions of the Economic Growth and Tax Relief
  Reconciliation Act of 2001 ("EGTRRA").  

75

 

 This January 1, 2002 Restatement is intended
  as good faith compliance with the requirements of EGTRRA and is to be construed
  in accordance with EGTRRA and guidance issued thereunder. Except as otherwise
  provided, provisions of this January 1, 2002 Restatement implementing EGTRRA
  shall be effective as of the first day of the first Plan Year beginning after
  December 31, 2001. 

EXECUTED this 20th day of February,
  2002. 

	 		ALLTEL CORPORATION
	 		By:  
      /s/Joe Ford
	 		Title: 
      Chairman and CEO

 

76

 

ALLTEL CORPORATION
  PROFIT-SHARING PLAN 

  APPENDIX A 

Notwithstanding any terms in the
  Plan to the contrary, each person listed on this Appendix A became an Eligible
  Employee effective as of January 1, 1994, or, if later, the Employee's Employment
  Commencement Date. 

Included a table of
eligible employees and social security numbers.

 

 

 

 

 

 

1

 

 

Included a table of
eligible employees and social security numbers (continued).

 

 

2

 

ALLTEL CORPORATION
  PROFIT-SHARING PLAN 

  APPENDIX B 

Notwithstanding any terms in the
  Plan to the contrary, in determining Years of Eligibility Service with respect
  to certain Employees who satisfy the requirements specified in this Appendix
  B, the terms of this Appendix B shall govern. 

In determining Years of Eligibility
  Service for an Employee described in this Appendix B, the Employee's period
  or periods of employment with an employer described in this Appendix B shall
  be counted as Years of Eligibility Service if such period or periods of employment
  would have been taken into account under the Plan had such period or periods
  of employment been service with a member of the Controlled Group. Notwithstanding
  any other provision of the Plan or this Appendix B, there shall be no duplication
  of Years of Eligibility Service under the Plan by reason of service (or hours
  of service) in respect of any single period or otherwise. 

(a) For an Employee who was an employee
  of GTE Directories Service Corporation or one of its subsidiaries ("GTE Directories")
  immediately prior to October 15, 1993 and became an Employee on October 15,
  1993 in connection with the Purchase and Sale Agreement dated May 18, 1993 between
  GTE Directories Service Corporation and ALLTEL Publishing Corporation, the Employee's
  period or periods of employment with GTE directories and its affiliated corporations
  prior to October 15, 1993. 

(b) For an Employee who was an employee
  of Dime Savings Bank, F.S.B. ("Dime") immediately prior to October 28, 1995,
  and became an Employee on October 28, 1995, the Employee's period or periods
  of employment with Dime prior to October 28, 1995. 

(c) For an Employee who was an employee
  of Glendale Federal Bank, F.S.B. ("Glendale") immediately prior to December
  1, 1995, and became an Employee on December 1, 1995, the Employee's period or
  periods of employment with Glendale prior to December 1, 1995. 

(d) For an Employee who was an employee
  of Medical Data Technologies, Inc. ("Medical Data") immediately prior to December
  26, 1994, and became an Employee on December 26, 1994, the Employee's period
  or periods of employment with Medical Data prior to December 26, 1994. 

(e) For an Employee who was an employee
  of OnBank & Trust Company ("OnBank") immediately prior to January 19, 1997,
  and became an Employee on January 19, 1997, the Employee's period or periods
  of employment with OnBank prior to January 19, 1997. 

1

 

(f) For an Employee who was an employee
  of City National Bank ("City National") immediately prior to April 1, 1997,
  and became an Employee on April 1, 1997, the Employee's period or periods of
  employment with City National prior to April 1, 1997. 

(g) For an Employee who was an employee
  of City National Bank ("City National") immediately prior to September 16, 1997,
  and became an Employee on September 16, 1997, the Employee's period or periods
  of employment with City National prior to September 16, 1997. 

(h) For an Employee who was an employee
  of Eclipsys Corporation or Eclipsys Solutions Corporation (collectively, "Eclipsys")
  immediately prior to October 1, 1997, and became an Employee on October 1, 1997,
  pursuant to the assignment entered into by and between Eclipsys Solutions Corporation,
  Eclipsys Corporation, and ALLTEL Information Services, Inc. on September 18,
  1997, the Employee's period or periods of employment with Eclipsys prior to
  October 1, 1997. 

(i) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to August 9, 1997, and became
  an Employee on August 9, 1997, the Employee's period or periods of employment
  with CSC prior to August 9, 1997. 

(j) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to September 20, 1997, and
  became an Employee on September 20, 1997, the Employee's period or periods of
  employment with CSC prior to September 20, 1997. 

(k) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 13, 1997, and became
  an Employee on October 13, 1997, the Employee's period or periods of employment
  with CSC prior to October 13, 1997. 

(l) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 18, 1997, and became
  an Employee on October 18, 1997, the Employee's period or periods of employment
  with CSC prior to October 18, 1997. 

(m) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 20, 1997, and became
  an Employee on October 20, 1997, the Employee's period or periods of employment
  with CSC prior to October 20, 1997. 

(n) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to November 24, 1997, and became
  an Employee on November 24, 1997, the Employee's period or periods of employment
  with CSC prior to November 24, 1997. 

2

 

(o) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to January 3, 1998, and became
  an Employee on January 3, 1998, the Employee's period or periods of employment
  with CSC prior to January 3, 1998. 

(p) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to February 2, 1998, and became
  an Employee on February 2, 1998, the Employee's period or periods of employment
  with CSC prior to February 2, 1998. 

(q) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to February 28, 1998, and became
  an Employee on February 28, 1998, the Employee's period or periods of employment
  with CSC prior to February 28, 1998. 

(r) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to March 27, 1998, and became
  an Employee on March 27, 1998, the Employee's period or periods of employment
  with CSC prior to March 27, 1998. 

(s) For an Employee who was an employee
  of United Companies Financial Corporation ("UCFC") immediately prior to December
  7, 1998, and became an Employee on December 7, 1998, the Employee's period or
  periods of employment with UCFC prior to December 7, 1998. 

(t) For an Employee who was not an
  employee of 360 Communication Company ("360") on or after July 1, 1998, who
  was an employee of 360 prior to July 1, 1998, and who became an Employee prior
  to January 1, 1999, the Employee's period or periods of employment with 360
  prior to July 1, 1998. 

(u) For an Employee who was an employee
  of Corporate Solutions International, Inc. ("CSI") immediately prior to April
  1, 1999, and became an Employee on April 1, 1999, the Employee's period or periods
  of employment with CSI prior to April 1, 1999. 

(v) For an Employee who was an employee
  of Advanced Information Resources, LTD. ("AIR") immediately prior to September
  16, 1999, and became an Employee on September 16, 1999, the Employee's period
  or periods of employment with AIR prior to September 16, 1999. 

(w) For an Employee who was an employee
  of ACE USA Software Sciences ("ACE") immediately prior to October 25, 1999,
  and became an Employee on October 25, 1999, the Employee's period or periods
  of employment with ACE prior to October 25, 1999. 

3

 

(x) For an Employee who was an employee
  of ACE USA Software Sciences ("ACE") immediately prior to November 11, 1999,
  and became an Employee on November 11, 1999, the Employee's period or periods
  of employment with ACE prior to November 11, 1999. 

(y) For an Employee who was an employee
  of Southern Data Systems, Inc. ("SDS") immediately prior to October 1, 1999,
  and became an Employee on October 1, 1999, and who was an Employee on January
  1, 2000, the Employee's period or periods of employment with SDS prior to October
  1, 1999. 

(z) For an Employee who was an employee
  of WestGroup Management Resources, Inc. ("WestGroup") immediately prior to December
  20, 1999, and became an Employee on December 20, 1999, and who was an Employee
  on January 1, 2000, the Employee's period or periods of employment with WestGroup
  prior to December 20, 1999. 

(aa) For an Employee who was an employee
  of BellSouth Corporation - Atlanta ("BSA") immediately prior to April 1, 2000,
  and became an Employee on April 1, 2000, the Employee's period or periods of
  employment with BSA prior to April 1. 2000. 

(bb) For an Employee who was an employee
  of Origin Technology in Business, Inc. ("Origin") immediately prior to May 15,
  2000, and became an Employee on May 15, 2000, the Employee's period or periods
  of employment with Origin prior to May 15, 2000. 

(cc) For an Employee who was an employee
  of Harris Bank - Chicago ("Harris Bank") immediately prior to September 1, 2000,
  and became an Employee on September 1, 2000, the Employee's period or periods
  of employment with Harris Bank prior to September 1, 2000. 

(dd) For an Employee who was an employee
  of Benchmark Consulting International, Inc. ("Benchmark") immediately prior
  to August 2, 2000, and became an Employee on August 2, 2000, the Employee's
  period or periods of employment with Benchmark prior to August 2, 2000. 

(ee) For an Employee who was an employee
  of Datamatic Services, Inc. ("Datamatic") immediately prior to December 6, 2000,
  and became an Employee on December 6, 2000, the Employee's period or periods
  of employment with Datamatic prior to December 6, 2000. 

(ff) For an Employee who was an employee
  of PMG Systems, Inc. ("PMG") immediately prior to November 15, 2001, and became
  an Employee on November 15, 2001, the Employee's period or periods of employment
  with PMG prior to November 15, 2001. 

 

4

 

ALLTEL CORPORATION
  PROFIT-SHARING PLAN 

  APPENDIX C 

Notwithstanding any terms in the
  Plan to the contrary, in determining Years of Vesting Service with respect to
  certain Employees who satisfy the requirements specified in this Appendix C,
  the terms of this Appendix C shall govern. 

In determining Years of Vesting Service
  for an Employee described in this Appendix C, the Employee's period or periods
  of employment with an employer described in this Appendix C shall be counted
  as Years of Vesting Service if such period or periods of employment would have
  been taken into account under the Plan had such period or periods of employment
  been service with a member of the Controlled Group. Notwithstanding any other
  provision of the Plan or this Appendix C, there shall be no duplication of Years
  of Vesting Service under the Plan by reason of service (or hours of service)
  in respect of any single period or otherwise. 

(a) For an Employee who was an employee
  of GTE Directories Service Corporation or one of its subsidiaries ("GTE Directories")
  immediately prior to October 15, 1993 and became an Employee on October 15,
  1993 in connection with the Purchase and Sale Agreement dated May 18, 1993 between
  GTE Directories Service Corporation and ALLTEL Publishing Corporation, the Employee's
  period or periods of employment with GTE Directories and its affiliated corporations
  prior to October 15, 1993. 

(b) Effective as of the Closing Date,
  as Closing Date is defined in the Employee Transfer Agreements between ALLTEL
  Illinois, Inc. and GTE South Incorporated, ALLTEL Indiana, Inc. and Contel of
  the South, Inc., and ALLTEL Michigan, Inc. and Contel of the South, Inc., each
  dated April 5, 1993, with respect to Participants who are GTE Transfer Employees
  (as GTE Transfer Employees is defined in subsection (a) of Section 13.05) as
  of the Closing Date or Participants who become GTE Transfer Employees after
  the Closing Date, the Years of Vesting Service of an Employee who transfers
  employment from an Employer to GTE South Incorporated or to Contel of the South,
  Inc. pursuant to an Employee Transfer Agreement shall be determined taking into
  account service with GTE (as defined in the Employee Transfer Agreements). 

(c) For an Employee who was an employee
  of Dime Savings Bank, F.S.B. ("Dime") immediately prior to October 28, 1995,
  and became an Employee on October 28, 1995, the Employee's period or periods
  of employment with Dime prior to October 28, 1995. 

(d) For an Employee who was an employee
  of Glendale Federal Bank, F.S.B. ("Glendale") immediately prior to December
  1, 1995, and became 

1

 

 an Employee on December 1, 1995, the Employee's period or
  periods of employment with Glendale prior to December 1, 1995.

(e) For an Employee who was an employee
  of Medical Data Technologies, Inc. ("Medical Data") immediately prior to December
  26, 1994, and became an Employee on December 26, 1994, the Employee's period
  or periods of employment with Medical Data prior to December 26, 1994. 

(f) For an Employee who was an employee
  of OnBank & Trust Company ("OnBank") immediately prior to January 19, 1997,
  and became an Employee on January 19, 1997, the Employee's period or periods
  of employment with OnBank prior to January 19, 1997. 

(g) For an Employee who was an employee
  of City National Bank ("City National") immediately prior to April 1, 1997,
  and became an Employee on April 1, 1997, the Employee's period or periods of
  employment with City National prior to April 1, 1997. 

(h) For an Employee who was an employee
  of City National Bank ("City National") immediately prior to September 16, 1997,
  and became an Employee on September 16, 1997, the Employee's period or periods
  of employment with City National prior to September 16, 1997. 

(i) For an Employee who was an employee
  of Eclipsys Corporation or Eclipsys Solutions Corporation (collectively, "Eclipsys")
  immediately prior to October 1, 1997, and became an Employee on October 1, 1997,
  pursuant to the assignment entered into by and between Eclipsys Solutions Corporation,
  Eclipsys Corporation, and ALLTEL Information Services, Inc. on September 18,
  1997, the Employee's period or periods of employment with Eclipsys prior to
  October 1, 1997. 

(j) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to August 9, 1997, and became
  an Employee on August 9, 1997, the Employee's period or periods of employment
  with CSC prior to August 9, 1997. 

(k) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to September 20, 1997, and
  became an Employee on September 20, 1997, the Employee's period or periods of
  employment with CSC prior to September 20, 1997. 

(l) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 13, 1997, and became
  an Employee on October 13, 1997, the Employee's period or periods of employment
  with CSC prior to October 13, 1997. 

2

 

(m) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 18, 1997, and became
  an Employee on October 18, 1997, the Employee's period or periods of employment
  with CSC prior to October 18, 1997. 

(n) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to October 20, 1997, and became
  an Employee on October 20, 1997, the Employee's period or periods of employment
  with CSC prior to October 20, 1997. 

(o) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to November 24, 1997 and became
  an Employee on November 24, 1997, the Employee's period or periods of employment
  with CSC prior to November 24, 1997.

 (p) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to January 3, 1998 and became
  an Employee on January 3, 1998, the Employee's period or periods of employment
  with CSC prior to January 3, 1998. 

(q) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to February 2, 1998, and became
  an Employee on February 2, 1998, the Employee's period or periods of employment
  with CSC prior to February 2, 1998. 

(r) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to February 28, 1998, and became
  an Employee on February 28, 1998, the Employee's period or periods of employment
  with CSC prior to February 28, 1998. 

(s) For an Employee who was an employee
  of CSC Intelicom, Inc. ("CSC") immediately prior to March 27, 1998 and became
  an Employee on March 27, 1998, the Employee's period or periods of employment
  with CSC prior to March 27, 1998.

 (t) For an Employee who was an employee
  of United Companies Financial Corporation ("UCFC") immediately prior to December
  7, 1998 and became an Employee on December 7, 1998, the Employee's period or
  periods of employment with UCFC prior to December 7, 1998. 

(u) For an Employee who was an employee
  of Corporate Solutions International, Inc. ("CSI") immediately prior to April
  1, 1999 and became an Employee on April 1, 1999, the Employee's period or periods
  of employment with CSI prior to April 1, 1999. 

(v) For an Employee who was an employee
  of Advanced Information Resources, LTD. ("AIR") immediately prior to September
  16, 1999, and  

3

 

 became an Employee on September 16, 1999, the Employee's period
  or periods of employment with AIR prior to September 16, 1999. 

(w) For an Employee who was an employee
  of ACE USA Software Sciences ("ACE") immediately prior to October 25, 1999,
  and became an Employee on October 25, 1999, the Employee's period or periods
  of employment with ACE prior to October 25, 1999. 

(x) For an Employee who was an employee
  of ACE USA Software Sciences ("ACE") immediately prior to November 11, 1999,
  and became an Employee on November 11, 1999, the Employee's period or periods
  of employment with ACE prior to November 11, 1999. 

(y) For an Employee who was an employee
  of Southern Data Systems, Inc. ("SDS") immediately prior to October 1, 1999,
  and became an Employee on October 1, 1999, and who was an Employee on January
  1, 2000, the Employee's period or periods of employment with SDS prior to October
  1, 1999. 

(z) For an Employee who was an employee
  of WestGroup Management Resources, Inc. ("WestGroup") immediately prior to December
  20, 1999, and became an Employee on December 20, 1999, and who was an Employee
  on January 1, 2000, the Employee's period or periods of employment with WestGroup
  prior to December 20, 1999. 

(aa) For an Employee who was an employee
  of BellSouth Corporation - Atlanta ("BSA") immediately prior to April 1, 2000,
  and became an Employee on April 1, 2000, the Employee's period or periods of
  employment with BSA prior to April 1, 2000. 

(bb) For an Employee who was an employee
  of Origin Technology in Business, Inc. ("Origin") immediately prior to May 15,
  2000, and became an Employee on May 15, 2000, the Employee's period or periods
  of employment with Origin prior to May 15, 2000. 

(cc) For an Employee who was an employee
  of Harris Bank - Chicago ("Harris Bank") immediately prior to September 1, 2000,
  and became an Employee on September 1, 2000, the Employee's period or periods
  of employment with Harris Bank prior to September 1, 2000. 

(dd) For an Employee who was an employee
  of Benchmark Consulting International, Inc. ("Benchmark") immediately prior
  to August 2, 2000, and became an Employee on August 2, 2000, the Employee's
  period or periods of employment with Benchmark prior to August 2, 2000.

 (ee) For an Employee who was an
  employee of Datamatic Services, Inc. ("Datamatic") immediately prior to December
  6, 2000, and became an 

4

 Employee on December 6, 2000, the Employee's period or
  periods of employment with Datamatic prior to December 6, 2000.

 (ff) For an Employee who was an
  employee of PMG Systems, Inc. ("PMG") immediately prior to November 15, 2001,
  and became an Employee on November 15, 2001, the Employee's period or periods
  of employment with PMG prior to November 15, 2001. 

 

5

 

ALLTEL CORPORATION
  PROFIT-SHARING PLAN 

  APPENDIX D 

Notwithstanding any other provisions
  of the Plan to the contrary, the terms of this Appendix D shall govern in determining
  eligibility for an allocation of Employer Contribution with respect to certain
  Employees who satisfy the requirements specified in this Appendix D. 

Each Participant who is not otherwise
  eligible to receive an allocation of Employer Contribution for the Plan Year
  and who is described in the paragraph(s) below of this Appendix D shall receive
  an allocation of Employer Contribution for the specified Plan Year as provided
  in this Appendix D if: The Participant is credited with at least such number
  of Hours of Service as the number determined by multiplying 1,000 by a fraction
  the numerator of which is the number of days of employment with the Controlled
  Group completed by the Participant in the specified Plan Year and the denominator
  of which is three hundred sixty-five (365). Subject to the last sentence of
  Section 13.01, the amount of Employer Contribution (as a percentage of Compensation)
  for the Region including such Participants shall be specified in the Board of
  Directors resolution for the specified Plan Year and shall be allocated to the
  Participants in such Region as provided in Section 13.04, but without regard
  to the requirement that a Participant have a Year of Participation. Notwithstanding
  the provisions of Section 13.04, any Participant who would receive an allocation
  of Employer Contribution under this Appendix D but for his transfer of employment
  prior to the last day of the specified Plan Year, shall be deemed to be in the
  Region including the Participants eligible under this paragraph Appendix D for
  the specified Plan Year. 

(a) Reserved (As of the execution
  date of this January 1, 2002 Restatement, there are no Participants described
  in this Appendix D). 

 

 

1EXHIBIT 10.1

                        INTERCORPORATE SERVICES AGREEMENT

        This INTERCORPORATE  SERVICES AGREEMENT (the "Agreement"),  effective as
of January 1, 2002, amends and supersedes that certain  Intercorporate  Services
Agreement  effective  as of  January  1, 2001  between  CONTRAN  CORPORATION,  a
Delaware  corporation  ("Contran"),  and  NL  INDUSTRIES,  INC.,  a  New  Jersey
corporation ("NL").

                                    Recitals

        A. NL desires to have the  services  of certain  Contran  personnel  and
Contran is willing to provide such services under the terms of this Agreement.

        B. Contran  desires to have the services of certain NL personnel  and NL
is willing to provide such services under the terms of this Agreement.

        C. The  costs of  maintaining  the  additional  personnel  necessary  to
perform the  functions  provided for by this  Agreement  would exceed the amount
charged to such party that is contained in the net fee set forth in Section 4 of
this  Agreement and that the terms of this  Agreement  are no less  favorable to
each party than could  otherwise be obtained  from a third party for  comparable
services.

        D. Each party  desires to  continue  receiving  the  services  presently
provided  by the other  party and its  affiliates  and each  party is willing to
continue to provide such services under the terms of this Agreement.

                                    Agreement

        For and in  consideration of the mutual  premises,  representations  and
covenants  contained  in  this  Agreement,  and  for  other  good  and  valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged, the
parties hereto mutually agree as follows:

        Section 1.  Contran  Services  to be  Provided.  Contran  agrees to make
available to NL, upon request,  the following services (the "Contran  Services")
to be rendered by the internal staff of Contran and affiliates of Contran:

               (a)   Consultation   and  assistance  in  the   development   and
        implementation  of  NL's  corporate  business   strategies,   plans  and
        objectives;

               (b)  Consultation  and  assistance in  management  and conduct of
        corporate affairs and corporate  governance  consistent with the charter
        and bylaws of NL;

               (c)  Consultation  and  assistance  in  maintenance  of financial
        records  and  controls,  including  preparation  and review of  periodic
        financial  statements and reports to be filed with public and regulatory
        entities and those required to be prepared for financial institutions or
        pursuant to indentures and credit agreements;

<PAGE>

               (d)  Consultation  and  assistance  in  cash  management  and  in
        arranging financing necessary to implement the business plans of NL;

               (e)   Consultation   and   assistance  in  tax   management   and
        administration, including, without limitation, preparation and filing of
        tax returns, tax reporting,  examinations by government  authorities and
        tax planning;

               (f) certain  administration and management  services with respect
        to  NL's  insurance  and  risk  management  needs,  including,   without
        limitation, administration of NL's:

                      (i)    property and casualty insurance program,

                      (ii)   claims management program,

                      (iii)  property loss control program; and

               (g) Such other  services as may be  requested  by NL from time to
        time.

        Section 2. NL Services to be  Provided.  NL agrees to make  available to
Contran,   upon  request,   the  following  services  (the  "NL  Services,"  and
collectively  with the Contran  Services,  the "Services") to be rendered by the
internal staff of NL:

               (a) certain  administration  and support services with respect to
        Contran's insurance and risk management needs; and

               (b) Such other  services as may be requested by Contran from time
        to time.

This  Agreement  does not apply to, and the Services  provided for herein do not
include,  any  services  that Harold C.  Simmons,  Glenn R. Simmons or Steven L.
Watson may provide to NL in their roles as members of NL's board of directors or
any other activity related to such board of directors.

        Section  3.  Miscellaneous  Services.  It is the  intent of the  parties
hereto that each party to this Agreement provide (a "Providing Party") only such
Services as are requested by the other party (a "Receiving Party") in connection
with routine management,  financial and administrative  functions related to the
ongoing  operations  of the  Receiving  Party and not with  respect  to  special
projects,  including corporate investments,  acquisitions and divestitures.  The
parties hereto  contemplate  that the Services  rendered by a Providing Party in
connection  with the conduct of each  Receiving  Party's  business  will be on a
scale  compared  to that  existing  on the  effective  date  of this  Agreement,
adjusted  for  internal  corporate  growth  or  contraction,  but not for  major
corporate acquisitions or divestitures,  and that adjustments may be required to
the terms of this Agreement in the event of such major  corporate  acquisitions,
divestitures or special projects. Each Receiving Party will continue to bear all
other costs  required for outside  services  including,  but not limited to, the
outside services of attorneys, auditors, trustees, consultants,  transfer agents
and registrars, and it is expressly understood that each Providing Party assumes
no  liability  for any  expenses  or  services  other than those  stated in this

                                      -2-
<PAGE>

Agreement to be provided by such party.  In addition to the amounts charged to a
Receiving Party for Services provided pursuant to this Agreement, such Receiving
Party will pay the Providing Party the amount of out-of-pocket costs incurred by
the Providing Party in rendering such Services.

        Section  4. Net Fee for  Services.  NL  agrees  to pay to  Contran a net
annual fee of $1,503,000  payable in quarterly  installments of $375,750 each on
the first  business  day of each  quarter,  commencing  as of  January  1, 2002,
pursuant to this Agreement. In addition to the net annual fee:

               (a) Contran shall credit or pay to NL additional amounts plus all
        related out-of-pocket costs, all as agreed to by the parties, for all NL
        Services provided under Subsection 2(b); and

               (b) NL shall credit or pay to Contran additional amounts plus all
        related  out-of-pocket  costs, all as agreed to by the parties,  for all
        Contran Services provided under Subsection 1(f).

        Section 5. Original Term. Subject to the provisions of Section 6 hereof,
the original  term of this  Agreement  shall be from January 1, 2002 to December
31, 2002.

        Section  6.   Extensions.   This  Agreement   shall  be  extended  on  a
quarter-to-quarter  basis  after the  expiration  of its  original  term  unless
written  notification  is given by Contran or NL thirty  (30) days in advance of
the first  day of each  successive  quarter  or  unless  it is  superseded  by a
subsequent written agreement of the parties hereto.

        Section 7.  Limitation of Liability.  In providing  Services  hereunder,
each  Providing  Party shall have a duty to act, and to cause its agents to act,
in a  reasonably  prudent  manner,  but no  Providing  Party  nor  any  officer,
director,  employee or agent of such party nor or its affiliates shall be liable
to a Receiving Party for any error of judgment or mistake of law or for any loss
incurred  by the  Receiving  Party in  connection  with the matter to which this
Agreement relates,  except a loss resulting from willful misfeasance,  bad faith
or gross negligence on the part of the Providing Party.

        Section 8.  Indemnification.  Each Receiving  Party shall  indemnify and
hold harmless the Providing Party, its affiliates and their respective officers,
directors  and  employees  from and  against  any and all  losses,  liabilities,
claims,  damages,  costs  and  expenses  (including  attorneys'  fees and  other
expenses  of  litigation)  to which  such  Providing  Party or person may become
subject  arising out of the  Services  provided by such  Providing  Party to the
Receiving  Party  hereunder,  provided that such indemnity shall not protect any
person against any liability to which such person would  otherwise be subject by
reason of willful misfeasance, bad faith or gross negligence on the part of such
person.

        Section 9.  Confidentiality.  Except as otherwise required by applicable
law,  each of the  parties  agrees  that  it will  maintain  in  confidence  all
confidential  information regarding the other party supplied to it in the course
of the performance of this Agreement.

                                      -3-

<PAGE>

        Section 10. Further Assurances.  Each of the parties will make, execute,
acknowledge and deliver such other instruments and documents,  and take all such
other actions,  as the other party may reasonably  request and as may reasonably
be required in order to effectuate  the purposes of this  Agreement and to carry
out the terms hereof.

        Section 11. Notices.  All  communications  hereunder shall be in writing
and shall be addressed,  if intended for Contran,  to Three Lincoln Centre, 5430
LBJ Freeway,  Suite 1700, Dallas,  Texas 75240,  Attention:  President,  or such
other address as it shall have  furnished to NL in writing,  and if intended for
NL, to Two Greenspoint Plaza, 16825 Northchase Drive, Suite 1200, Houston, Texas
77060, Attention: President, or such other address as it shall have furnished to
Contran in writing.

        Section 12. Amendment and  Modification.  Neither this Agreement nor any
term hereof may be  changed,  waived,  discharged  or  terminated  other than by
agreement in writing signed by the parties hereto.

        Section 13. Successor and Assigns.  This Agreement shall be binding upon
and inure to the benefit of Contran and NL and their  respective  successors and
assigns,  except that neither  party may assign its rights under this  Agreement
without the prior written consent of the other party.

        Section 14.  Governing  Law.  This  Agreement  shall be governed by, and
construed and interpreted in accordance with, the laws of the state of Texas.

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

                                      CONTRAN CORPORATION

                                      By:/s/ Steven L. Watson
                                         ---------------------------------------
                                             Steven L. Watson
                                             President

                                      NL INDUSTRIES, INC.

                                      By:/s/ Robert D. Hardy
                                         ---------------------------------------
                                             Robert D. Hardy
                                             Vice President

                                      -4-

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